Will Valuecap throw good money after bad? COMMENTARY OCT 27 — Last week it seemed like Malaysia was dusting off its playbook for the 1997 Asian financial crisis, starting with a proposed RM5 billion stock market injection. It seems par for the course that the government would borrow the money from the Employees Provident Fund to finance the investment through government agency Valuecap Sdn Bhd.
Who is Valuecap helping with EPF’s RM5b?
Malaysian Insider has a commentary which raises valid questions about Valuecap. It compares and contrasts the RM5 billion injection of EPF funds into Valuecap with the US bailout of financial institutions using taxpayers’ money.
Message from PJ vigil: Remember RPK on 7 Nov
Thanks to Sivin Kit for pointing out this video which captures the mood of the occasion
Photos by Rakyat@Work
As sure as Day follows Night, we know that Light will conquer Darkness and Justice will conquer Oppression. Happy Diwali, folks!
Rakyat@Work reports for anilnetto.com on the third weekly Sunday candlelight vigil in PJ: Warmest greetings once more, Remember 7 Nov 2008 (Raja Petra’s second habeas corpus case): “Please be there! Make a date with RPK. It’s a crucial time – we need the physical support of people. Make our presence felt.” – Marina Lee Abdullah That’s the message we took home. The entire event tonight lasted from 8.00 to 9.15. Unlike the previous two wet nights, tonight was warm. The crowd numbered about 250 to 280. We assume some would have left the city due to the long week-end holidays.Penang’s a happening place!
It’s all happening here in Penang in the coming days:
Sunday, 25 October
Noon: Himanshu Bhatt on the meaning of Deepavali in Penang’s dim and distant past
Venue: Upper Penang Road
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2.00-3.30pm: Kee Thuan Chye reads from his latest book “March 8: The day Malaysia woke up”
Venue: Upper Penang Road.
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10.00am-3.00pm: Exhibition on people’s movements pre- and post-Independence
3.00-5.00pm: Forum
Venue: Caring Society Complex
Organisers: Persatuan Persahabatan Abad Ke-21 Malaysia, Persatuan Kawan Karib Pulau Pinang, Persatuan Persahabatan Phoenix Malaysia and Suaram.
Tuesday, 28 October
8.00pm – Mass for Justice and Peace in our land, including prayers for the release of all ISA detainees and the repeal of the ISA
Venue: (Catholic) Church of the Nativity, Butterworth (next to Sikh temple), about 1km from ferry terminal.
Vwaishhnnavi, 6, released: Living in a topsy-turvy world
P Vwaishhnnavi, the six-year-old niece of detained Hindraf leader P Uthayakumar, and her mother K Shanti were released today
But should they even have been held in the first place?
They were held until late last night. (But both didn’t want to leave their comrades after they were allowed to go, reported Malaysiakini.) For what? Reading out a memo, sending a greeting card and appealing for the release of ISA detainees ahead of Diwali?
And why were the other 10 arrested and now taken to court? To faciliate investigations, apparently. The KL police chief is reported in today’s Sun as saying they were detained for representing or acting for an outlawed organisation or group under Section 48 of the Societies Act.
From leasehold to freehold: The controversy simmers
The controversy over the conversion of foreshore land from leasehold and freehold land has not completely subsided.
While it may now be too late for the State to do anything about previous projects such as Queensbay, there may be current projects where applications have been submitted for conversion (from leasehold to freehold), which could now be awaiting approval.
Defending the conversion in the Queensbay case, the Penang Chief Minister was reported in theSun (16 October) as saying that he had been advised by lawyers and consultants with the PDC and the state legal advisor that the conversion was legal.
But is the opinion of the PDC – which had an interest in the project – independent and objective, asks conveyancing lawyer Agatha Foo.
The Star: Lie or genuine error on press freedom ranking?
I hope this is a genuine error and not gross deception by The Star. Thanks to blog reader Forest for pointing it out.
Most surfers will know that the RSF press freedom ranking for Malaysia has plunged eight spots from 124th last year to 132nd this year – but not The Star, which is on a different planet. It reports that Malaysia’s press freedom ranking has climbed 10 spots! This is what happens when you try to spin the reality.
This is the excerpt from The Star report:
Press freedom index up 10 spots
Valuecap should reveal accounts before getting RM5b
The government wants to inject RM5 billion into Valuecap Sdn Bhd to “invest” in the stock market. This money is supposed to be borrowed from the EPF (your retirement money). This is the same EPF that has lent RM3 billion to the Bakun Dam developer.
Before the RM5 billion is channelled to Valuecap, let’s make public Valuecap’s detailed financial statements and look at how it has performed relative to the KLCI index since 2003, when it began operations. Since it is supposed to be in the black, there should not be any objections to this. Show us which counters it has invested in. That would only be fair – if they want to use our money. Without transparency, how can we hope to inspire confidence?
Valuecap is a fund management firm established in 2002 to invest in the stock market. It has been described as “the brainchild of Second Finance Minister Nor Mohamed Yakcop”.
It is jointly owned by:
- Khazanah Nasional Bhd, the government’s investment arm,
- Permodalan Nasional Bhd, and
- Retirement Fund (Incorporated) or KWAP, a statutory body established on 1 March 2007 under the Retirement Fund Act 2007 (which replaces the repealed Pensions Trust Fund Act 1991). KWAP was set up to assist the Federal Government in funding its liability of pension payouts. Its investment strategy is 30 per cent (plus/minus 10 per cent) in equity investments and a similar percentage in fixed investments.
Abdullah’s legacy: From 104th to 132nd in press freedom
Not surprisingly, Malaysia has dropped from 124th last year to 132nd place in 2008 in the RSF press freedom ranking.
Among ten South-East Asian nations, Malaysian remains in 5th place while Timor-Leste, which has the freest press in the region, showed the biggest improvement in the global rankings, shooting up 29 places to 65th. Thailand climbed 11 places to finish above Malaysia at 124th place. Singapore, Laos, Vietnam and Burma prop up the regional table with the least press freedom – unchanged from last year.
For all the talk of reforms under Abdullah Badawi, Malaysia’s press freedom ranking has actually dropped from 104th place in 2003, the year Abdullah took over, to 132nd place now. That’s a plunge of 28 places.
It wasn’t always sliding under Abdullah. His brightest year was in 2006, when Malaysia’s press freedom ranking actually climbed to a high of 92nd, making it the second freest in South-East Asia after Timor-Leste. But since then, we have sunk 40 places within the space of two years to reach 132nd! What happened, Abdullah? Did your administration have to crack down on mounting disenchantment when your promised reforms failed to take off fast enough?
Here is the RSF global ranking for 2008:
Equine Capital disposes of PGCC developer Abad Naluri
The PGCC coffin has been lowered into its final resting place. Equine Capital has sold its 25 per cent stake in Abad Naluri, the developer of the aborted Penang Global City Centre project, to Kiara Ikhtisas Sdn Bhd for RM2 million. This comes a couple of weeks after Patrick Lim stepped down as chairman and executive director of Equine Capital (though he still controls about 28.9 per cent of Equine). Equine now appears to have come under new management, especially in its projects side.
This Kiara Ikhtisas sounds like an ‘interesting’ company – reportedly registered earlier this year with its shareholders being Zainudin Koming and Noraini Abdullah (see report below).
Remember, the Penang Turf Club land deals and the 1,000 acres Batu Kawan land agreement were entered into with Abad Naluri, not Equine Capital. This means Kiara Ikhtisas/Abad Naluri – along with the land deal vendors, Penang Turf Club and Penang Development Corporation (re the Batu Kawan land bank) – will now have to decide what to do with these deals. At any rate, Penangites will be watching very closely to see what happens now to these two plots of land.
This article from The Edge Daily:
21-10-2008: Equine sells Abad Naluri by Jose Barrock KUALA LUMPUR: Property developer Equine Capital Bhd has disposed of its 25% stake in Abad Naluri Sdn Bhd for RM2 million cash to privately held Kiara Ikhtisas Sdn Bhd. Abad Naluri was the company given the mandate to develop the controversial RM20 billion Penang Global City Centre (PGCC) project, which was shelved when the ruling coalition Barisan Nasional lost Penang state. Checks with the Companies Commission of Malaysia show that Kiara Ikhtisas was registered end-April this year with an authorised capital of RM500,000. Its directors are Mejar Jeneral (Rtd) Datuk Sulaiman Kudus, Mohamed Fadzil Mohamed Ariffin and Shahrin Osman. The company’s shareholders are Zainudin Koming and Noraini Abdullah, who control the company equally. Both the individuals are also shareholders in Gubahan Saujana Sdn Bhd which, together with LSG Asia GmbH and Fahim Capital Sdn Bhd, acquired LSG Sky Chefs-Brahim’s Sdn Bhd (formerly known as MAS Catering Sdn Bhd) for RM175 million in 2003. Gubahan Saujana is reported to have a 25-year concession to supply in-flight catering for the national flag-carrier. The duo’s plans for Abad Naluri are not clear. Datuk Ibrahim Ahmad Badawi, the brother of Prime Minister Datuk Seri Abdullah Ahmad Badawi, was once a director of Gubahan Saujana.
Here’s why Malaysia should focus on solar energy
Solar energy is not only green and safe, there’s going to be a huge demand for it. So Penang and the rest of Malaysia should get their act together and take a closer look at it. Already, Selangor Mentri Besar Khalid Ibrahim was reported in theSun yesterday as saying that they were looking at developing new technology such as solar power. Well, what about Penang? (There is already an MNC, First Solar, which produce solar modules and has operations in Kulim, Kedah, points out blog reader Kulo.)
Instead of going down the nuclear energy path, we should be checking out the solar energy sector, which is booming. Over in the United States, the Daily Journal of Commerce in Portland, Oregon reports:
Blog reader George forwarded this report from the Washington Post, highlighting how Germany is phasing out nuclear power plants in favour of renewable energy (although recently there has been a revival of the debate as nuclear power advocates in the current administration try to block that phase-out):In 2007, the solar industry nationally marked its best year ever, raking in $20 billion. But those close to the industry say the best is yet to come: In 10 years, the industry’s revenues are expected to triple.
Much of this growth is dependent on how the industry is incentivized, lawmakers said.
The hope is to create better incentives for individual solar use on what’s known as “the front and back end.” This would make it easier for individuals with solar panels to essentially resell excess energy back to the grid.
Currently, solar advocates argue, the federal government doesn’t prioritize private solar energy storage.
…a law adopted in 2000. It requires the country’s huge old-line utility companies to subsidize the solar upstarts by buying their electricity at marked-up rates that make it easy for the newcomers to turn a profit. Their cleanly created power enters the utilities’ grids for sale to consumers.Solar energy is not just a dream; it is already creating “green collar” jobs – lots of them:
Maybank “scandal”, exclusivist demands and ISA
Some odds and ends:
- In his address in Parliament, Lim Guan Eng slams Maybank’s controversial RM8.5 billion acquisition of an Indonesian bank from Singapore’s Temasek Holdings (see video clip above);
- Farish Noor cautions democratic-minded politicians of the potential shortcomings in a democratic system, under which even exclusivist groups will want their demands accommodated and met. See Politics and posturing;
Penang could become centre for solar energy research
There is no reason why Penang and Malaysia cannot become a centre for research into green energy sources, especially solar energy (Photo credit: Wikipedia.org)
I am dismayed that the Cabinet is seriously looking into nuclear energy as an alternative energy source. This excerpt from the NST:
Deputy Science, Technology and Innovation Minister Fadillah Yusof said another objective of the paper, which outlined the direction of nuclear power, was to enable further studies and plans on the initiative to be carried out by his ministry and the Energy, Water and Communications Ministry.
Faidilah said while nuclear power would only be a reality after 2020, the foundation of the plan and efforts to create awareness of nuclear power needed to start now. He said it was important for the public to know that nuclear power was safe, environmentally friendly and more affordable in the long run.
Over 300 gather in PJ calling for end to ISA
Once again, a crowd gathered in PJ to call for the repeal of the ISA (Photo by Rakyat@Work)
Bebaskan RPK! Mansuhkan ISA! (Photo by Rakyat@Work)
Great night! Great sing-a-long too! What an atmosphere… loved it! Felt so safe last week that I brought my daughter and wife along. Hope we will fill up the padang in no timeRakyat@Work reports for anilnetto.com from Petaling Jaya: 2115: The rain pelts down now; more cars are honking and they are met with more cheers of approval from the crowd. Time to go back. People start leaving…. Well, another night is over. My mate and I head towards our car, walking silenty and quietly, satisfed with the night. Our thoughts are with RPK, just hoping he was with us. I wonder what he is doing right this moment. We still need to pray hard and to continue until RPK and all the other ISA detainees are set free. That’s our target and that’s our mission… That’s the minimum standard we’re talking about, the new nation and the new rakyat! Good Night and God Bless All.
Waiting for Rapid Penang’s GPS display boards
Rapid Penang can track the movement of its buses from its control centre in Lorong Kulit
Rapid Penang is now equipped with GPS (Global Positioning System), which enables it to track the movement of its buses around Penang.
The next phase involves setting up display boards in selected locations which would enable the public to know when the next bus is due to arrive. When I visited the Rapid Penang head office a few weeks ago, I was told that they had submitted an application to set up these display boards, but I am not sure what’s holding it up. I was impressed with its chief executive officer Azhar Ahmad, who appeared competent and friendly and seemed to be thinking ahead.
Johor activist detained under ISA
Update: She has been released on bail. Check out Aliran president Ramakrishnan’s statement here.
Here we go again:
Cheng Lee Whee, a Suaram volunteer in Johor, has been detained under Section 28 of the ISA after she had made a report accusing the police of abuse of power during the eviction of urban pioneers in Kampung Baru Plentong Tengah yesterday.
400 brave the rain in struggle to abolish ISA
They braved the rain; their spirits were not dampened
Singing Bob Marley’s “Redemption Song”
Bob Marley performs the Redemption Song
I was wondering how many people would actually turn up for the final candlelight vigil seeking the abolition of the ISA because it started pelting down at around 9.00pm again. Unlike last week, the rain did not clear for a while. But when I arrived, I was heartened to see so many people had already gathered there, some with brollies, others without. This was probably the largest crowd gathered over the last six weeks of vigils – in the rain, some more!
They sang, they listened to speeches, they took an ikrar (pledge) to continue the struggle to abolish the ISA. Among the speakers was Aliran president P Ramakrishnan, who revealed that a police officer had asked him, minutes earlier, to get in touch with an inspector at the station for reasons unknown. “I have nothing to do with the inspector and if he wants to speak to me, he should contact me,” Rama told the crowd.
Nik Aziz and his cheap, plastic BIC ballpoint pen
Here’s something our politicians can learn from Kelantan Mentri Besar Niz Aziz, who lives in a simple wooden house.
Farish Noor describes his encounter with the simple politician who still uses the same type of ballpoint that he saw him using when they met in 1999.
Abdullah’s corporate boys leave the scene
Bye-bye, Abdullah. Closely followed by the exits of Kalimullah and now Patrick Lim from their current positions… All three riding into the sunset – or is that the mirage of the Penang Global City Centre project?
This report from mysinchew/Straits Times/ANN:
Businessmen close to PM quit Two businessmen close to Malaysian Prime Minister Abdullah Badawi are quitting their positions, as an expected exodus of his inner circle begins. The two men – New Straits Times Press (NSTP) deputy chairman Kalimullah Hassan and Equine Capital chairman Patrick Lim – have been attacked in the past by former premier Mahathir Mohamad, for allegedly benefiting from Abdullah’s reign. News of their resignations from their respective companies comes just days after Abdullah’s announcement that he intended to step down as premier in March. With deputy prime minister Najib Razak set to take over the premiership in five months’ time, the circle around him is expected to rise, political observers and bloggers say. Kalimullah is also group executive chairman of ECM Libra Investment Bank, which has made headlines with major deals in the past few years. But he is better known as the controversial editor-in-chief of the mainstream New Straits Times (NST) newspaper, and has been accused by Mahathir of being a key ‘spin doctor’ for Abdullah. Mahathir, who appointed Abdullah as his successor in 2003, has in recent years become his most bitter critic. The former premier blames Kalimullah for allegedly blacking out his comments not only in the NST, but also in other mainstream media. In a column in the NST on Friday (10 Oct), Kalimullah defended Abdullah’s short reign and harshly attacked critics such as Mahathir. ‘One thing Najib will not have to worry about is a predecessor breathing down his neck, slandering him, his Cabinet, his party colleagues, his family, aides and friends. Because, for all his weaknesses, Abdullah is a decent, religious man,’ Kalimullah said in the column.So who will be next to go and who will replace them? It appears that Equine will now come under new parties, and concerned Penangites will be watching them very, very closely to see what they have in store for the Penang Turf Club land.
Last Abolish ISA vigil in Penang tonight
The sixth and last weekly candlelight vigil will be held today (Friday) at 9.00pm in front of Dewan Sri Pinang. This series has been organised by the Gabungan Mansuhkan ISA (Abolish ISA Movement).
On Sunday, GMI will be holding a commemoration of the 21st anniversary of Operation Lalang at the open space outside Prangin Mall in Penang from noon to 10.00pm. It looks as if there could be another candlelight vigil in PJ on Sunday night.
If you have not already seen the latest issue of Aliran Monthly, go here for more information. This issue focuses on the ISA and the unholy concept of a ‘national security state’.
More environmental concerns
The last two postings on the environment appear to have struck a chord among some of you:
Blog reader Adam and the Ants says the problem isn’t confined to Penang:
The whole country for that matter is being raped. Try coming down to Seremban, it’s even worse. Nobody cares.Orangutan in Perak is concerned about the waste discharge from a coal power plant:
The coal power plant in Manjung, Perak is flushing million of tons of sulphate, nitrate, chlorine oxide residue, and other toxic waste into the sea for the last five yeras. All this waste can have a damaging effect on the sea and the environment…. Tons of sea water is used and sent back polluted. This plant has another 20 to 25 years to go. Think what can further happen to the sea by then.Over in Pahang, Phua Kai Lit is appalled:
In my hometown of Kuantan, the hill (Bukit Pelindung) near the beautiful Teluk Cempedak beach is being deforested step by step. Some of the culprits (appear to be) government agencies that build offices and housing for their staff!Andrew shares with us his experience of the floods in Penang:
I experienced the (floods) on the way back from Chulia Street to Gelugor after supper. Just like a scene out of “The day after tomorrow”, the roads were filled with angry rushing water. Poor motorcyclists were being splashed full bodiedly by passing cars.