No News Is Bad News

Looks like ‘no change’, business as usual for SOEs’ losses

KUALA LUMPUR, June 26, 2023: It sure looks like in the past for state-owned enterprises (SOEs) as far as responsibility and accountability are concerned.

No one is held responsible nor accountable for huge losses in SOEs, and it is business as usual as governments turn a blind eye and let such matters be forgotten over time.

Even Prime Minister Anwar Ibrahim’s Unity Government (UG) seem to be unable or reluctant to take action against anyone in the country’s only Sovereign Wealth Fund (SWF), Khazanah Nasional.

No News Is Bad News is referring to Khazanah recently losing its RM165 million Kidzania Singapore theme park for a meagre RM379,000 to liquidators in Singapore.

Of course someone is laughing all the way to the bank! And incompetents continue to sow and rule.

With that unsettled, and heading towards Malaysia’s infamous No Further Action (NFA) direction, Anwar starts talking about Khazanah creating a new green investment platform to attract more direct investments.

Really, when Khazanah cannot get its act right on responsibility and accountability over a simple investment and losses, do you really think it is competent for greater tasks?

Just compare Khazanah with other SWFs in the world and see how disappointing is its financial performance. You need not look far, just our neighbour, Singapore, which has two SWFs as top 10 in the world in terms of earnings and wealth.

No News Is Bad News reproduces below what Anwar is saying about Khazanah even after the humongous loss and our past postings on the issue:

Khazanah to create new green investment platform

Prime Minister Anwar Ibrahim says more high-quality jobs would be created through the initiative which is aimed at helping local companies, especially Bumiputera firms.

Bernama - 25 Jun 2023, 11:07pm

Khazanah Nasional Bhd could help develop local talent and increase the country’s capability and competitiveness via the new initiative, Prime Minister Anwar Ibrahim said. (Reuters pic)

KUALA LUMPUR: A new green investment platform is to be created by the investment fund Khazanah Nasional Bhd to attract more direct investment locally and from abroad, says Prime Minister Anwar Ibrahim.

He said the initiative is aimed at helping local companies, especially Bumiputera firms, and would result in more high-quality jobs for the people.

Anwar said the matter was discussed at Khazanah’s board meeting a few days ago, which looked into the company’s role in national development efforts.

“We also discussed the importance of implementing a sustainable energy transition plan to ensure economic sustainability,” he said in a Facebook post.

Anwar, who is also the finance minister, said the meeting’s main discussion was on investments by Khazanah to strengthen the domestic economic ecosystem, not only for startup companies but also for those that were already successful and required capital for future growth.

He said with Khazanah’s involvement, the initiative could help develop local talent and increase the country’s capability and competitiveness.

Anwar said Khazanah would continue to work with the government through the “Advancing Malaysia” strategy, to be in line with the country’s economic development goals.

He also called for stronger cooperation between the private sector and the government, at the federal, state or local levels. - FMT

Friday, 16 June 2023

Khazanah … a disgraceful SWF

No News Is Bad News

UPDATE: Nowhere did No News Is Bad News implied that the sale was done directly with Malaysia Sovereign Wealth Fund (SWF) Khazanah Nasional Bhd. We only pointed out the disgraceful SWF handling of the investment. Whether the sale was done through directly with buyer or through the liquidators does absolve Khazanah the humongous loss in investments - and, therefore, someone in the SWF needed to take responsibility and accountability.

BUSINESS

We dealt with liquidators, not Khazanah: Sim Leisure Group

Theme park giant explains acquisition of Kidzania Singapore investment

Updated 2 hours ago · Published on 19 Jun 2023 2:02PM

Sim Leisure Group has explained that their takeover of Kidzania Singapore for S$110,000 (RM378,957) began towards the end of 2020, at the height of the Covid-19 pandemic, and they were also in the process of negotiating a lease for the facility the last two years with Sentosa Development Corporation. – File pic, June 19, 2023

JOHOR BARU – Responding to allegations making rounds on the internet, the Sim Leisure Group clarifies that sovereign wealth fund Khazanah Nasional Bhd was never involved in negotiations for Kidzania’s Singapore assets, and instead dealt with liquidators directly.

In a press statement today, Sim Leisure Group explained that their takeover of Kidzania Singapore for S$110,000 (RM378,957) began towards the end of 2020, at the height of the Covid-19 pandemic, and they were also in the process of negotiating a lease for the facility the last two years with Sentosa Development Corporation.

Last week, The Vibes reported that Khazanah and Boustead Holdings Bhd, through subsidiary Rakan Riang Pte Ltd, is believed to have invested S$48 million (RM165 million) into the Kidzania project, which later went into liquidation after suffering heavy losses.

Its non-movable assets were acquired by the Sim Leisure Group for pennies on the dollar.

The theme park operator explained that its bid for these assets was risky, as dealings with the liquidator of Rakan Riang took place during the lockdown and Sim Leisure Group could not perform physical checks.

“Khazanah was never in the process – all of Sim Leisure Group’s dealings were through the liquidator.

“At that point in time, such a bid would be considered high risk for the company,” the statement said.

No experience, no expertise

Meanwhile, Sim Leisure Group founder and chairman Datuk Sim Choo Kheng explained that although there were criticisms pertaining to the company’s taking over of the failed assets in Kidzania Singapore, he reminded the public that other failed theme park investments such as the Movie Animation Park Studios in Ipoh ended up as scrap metal.

Commenting further, Sim pointed out that investors in the region lack the experience and expertise to operate in the highly specialised industry, drawing the analogy that companies entering into the business is akin to a person who has done first-aid training trying to be a heart surgeon.

“Most theme park investors are real estate developers, gaming operators and governments with good intentions to catalyse real estate, with most of them cross-subsidising the attraction business.

“At Sim Leisure Group, we live, eat and breathe theme parks; it is all we do, so every business we develop and operate must stand on its own and be profitable from day one.

“It’s not all about buying equipment or engaging IP owners or foreign experts. These are actually the main reasons they fail,” Sim said.

On Friday, responding to reports, Khazanah explained that it did not sell the discontinued Kidzania to Sim Leisure Group for RM378,957.

Instead, they clarified that the theme park operator purchased all non-movable assets from the liquidator and negotiated a franchise licence with Kidzania Mexico.

Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim said on the same day that he will hold talks with Khazanah over their failed ventures into Kidzania theme parks.

Khazanah’s exit from Kidzania is not limited to Singapore, as their children-centric theme park in Kuala Lumpur, Kidzania Malaysia suffered a similar fate in 2020.

In 2020, after Khazanah and Boustead Holdings were believed to have initially invested RM90 million into Kidzania Malaysia four years earlier, it was sold to Sim Leisure Group for a mere RM3.8 million. – The Vibes, June 19, 2023

https://www.khazanah.com.my/

Khazanah … a disgraceful SWF

KUALA LUMPUR, June 17, 2023: Malaysia’s Sovereign Wealth Fund (SWF) Khazanah Nasional Berhad, like many other failed businesses, has conveniently blamed its woes on the Coromavirus (Covid-19) pandemic.

It sold its RM165 million Kidzania Singapore theme park for a meagre RM379,000.

So, is this supposed to be an acceptable excuse, pretend nothing has happened and no one takes responsibility for the humongous losss of public funds?

If others can restart the park, why not Khazanah?

Khazanah, your management skills and competency in managing public funds is a disgrace to SWFs all over the world. No imagination or creativity. No accountability. Losses, just sell. Period.

No News Is Bad News reproduces below news reports on the issues:

MALAYSIA

Khazanah blames Covid-19 pandemic for Kidzania failure

New operator’s move to restart park unrelated to our subsidiary, adds sovereign wealth fund

Updated 7 hours ago · Published on 16 Jun 2023 11:20PM

Earlier today, Prime Minister Datuk Seri Anwar Ibrahim said that he will be holding talks with Khazanah over The Vibes’ report on how Kidzania was sold to Sim Leisure for a mere S$110,000 (RM379,398). This is despite Khazanah and Boustead Holdings Bhd, which first launched Kidzania in Singapore in 2016, initially injecting RM165.52 million into the project. – File pic, June 16, 2023

KUALA LUMPUR – Sovereign wealth fund Khazanah Nasional Bhd has cited the Covid-19 pandemic and the subsequent economic downturn as factors behind its decision to wind up its theme park, Kidzania Singapore.

In a statement today, Khazanah sought to clarify matters relating to The Vibes’ report on the theme park’s sale at a significant loss.

The statement detailed that the theme park was operated by Khazanah subsidiary Destination Resorts and Hotels Sdn Bhd (DRH) – formerly known as Themed Attractions Resorts and Hotels Sdn Bhd (TARH) – through Rakan Riang Pte Ltd.

“Despite best efforts by Rakan Riang to achieve a stable financial position for Kidzania, the Covid-19 pandemic and economic effects that followed dampened ticket sales and affected commercial partners, which impacted its overall financial performance.

“This led to a voluntary winding up and the appointment of a liquidator on June 11, 2020 to recover and liquidate all Rakan Riang’s assets and to distribute the sale proceeds to all creditors,” the statement said.

It added that after theme park operator Sim Leisure Group had purchased all non-moveable assets from the liquidator, the group had proceeded to negotiate a franchise licence with Kidzania Mexico.

“The decision by Sim Leisure to restart Kidzania in Singapore, as per their announcement dated June 12, is unrelated to DRH or any of our subsidiaries, as Rakan Riang’s operation licence was terminated in June 2020,” it said.

It also said that the premises where Kidzania Singapore operates is not owned by any of its subsidiaries and is instead owned by a third party.

This is despite Khazanah and Boustead Holdings Bhd, which first launched Kidzania in Singapore in 2016, initially injecting RM165.52 million into the project.

According to a Singapore Business Times report, poor management of the theme park by Khazanah saw it record RM51.73 million in revenue and RM28.63 million in losses after tax.

Kidzania also owed RM184.17 million to creditors, with as much as 93% of the debt owed to TARH.

It is believed that this failed investment venture by Khazanah is not limited to its activities in Singapore, as it appears that similar circumstances apply to the Kidzania theme park in Malaysia, which was also purchased by Sim Leisure Group in 2020.

According to the Companies Commission of Malaysia documents spotted by The Vibes, TARH sold its 24.48 million shares to Sim Leisure Escape Sdn Bhd in 2021.

Although it was reported that the Sim Leisure Group acquired Kidzania Malaysia for RM3.8 million, it is believed that the project, which also involved Khazanah and Boustead Holdings, required an initial injection of RM90 million for construction and pre-operating costs.

According to a report by South China Morning Post, by the close of 2022, Kidzania Malaysia, which never made any money under its former management – had brought in RM6.46 million in profits for its new owners. – The Vibes, June 16, 2023

Thursday, 15 June 2023

Hello Anwar! Heads must roll for incompetents - selling RM165m in Khazanah investment for only RM379,000

No News Is Bad News

Hello Anwar! Heads must roll for incompetents - selling RM165m in Khazanah investment for only RM379,000

UPDATE: Anwar to look into Khazanah’s sale of Kidzania Singapore

The sovereign wealth fund reportedly invested RM165 million into the theme park but sold it for just RM379,398.

Azril Annuar - 16 Jun 2023, 2:52pm

Prime Minister Anwar Ibrahim said he will hold a meeting with Khazanah Nasional on the sale of Kidzania Singapore.

CYBERJAYA: Prime Minister Anwar Ibrahim says he will look into the reported sale of a Singapore theme park owned by Khazanah Nasional Berhad at a substantial loss.

“We will hold a meeting with them (Khazanah),” he told reporters after Friday prayers.

He was asked to comment on a report by The Vibes that sovereign wealth fund Khazanah sold Kidzania Singapore for a mere RM379,398 after investing RM165.5 million in the theme park.

The report said that theme park operator Sim Leisure Group had purchased Kidzania Singapore after it went into liquidation, including all of its non-movable assets.

Singapore Business Times reported that under Khazanah’s management, Kidzania Singapore recorded RM51.73 million in revenue and RM28.63 million in losses after tax.

Furthermore, the children’s theme park also owed RM184.17 million to creditors, with around 93% of the debt owed to Theme Attractions Resorts and Hotels Sdn Bhd (TARH), which is a Khazanah subsidiary.

KUALA LUMPUR, June 16, 2023: Only the Malaysian Government will invest RM165 million and later sells it for a mere RM379,000.

This apparently happened to the failed Kidzania Singapore theme park by sovereign wealth fund Khazanah in Singapore which was launched in 2016.

What next? Business as usual?

It will do well for the Anwar Ibrahim-led Unity Government to take this loss seriously and show that it is unlike previous governments that failed to take action against the incompetent responsible for such a financial loss to the country.

Anwar, heads must roll! Period.

No News Is Bad News reproduces a news report on Khazanah’s lastest financial loss, throwing public money down the drain:

MALAYSIA

Khazanah’s RM165 mil Kidzania S’pore sold for RM379,000

Theme park, another failed project by M’sian sovereign wealth fund sold for pennies to the dollar

Updated 1 hour ago · Published on 16 Jun 2023 9:40AM

Following Kidzania Singapore’s liquidation, Sim Leisure Group bought all its non-movable assets for RM379,398. Khazanah and Boustead Holdings Bhd, which launched Kidzania in Singapore in 2016, reportedly invested RM165.52 million in the project. – File pic, June 16, 2023

BY The Vibes Team

JOHOR BARU – Not too long after it was reported that Khazanah Nasional Bhd sold Iskandar Malaysia Studios (IMS) for pennies on the dollar, it appears that the same circumstances apply to the sovereign wealth fund’s investment in Kidzania.

Theme park operator Sim Leisure Group recently acquired Kidzania Singapore after the children’s theme park went into liquidation in the city-state, with the company obtaining all of its non-movable assets from receivers for a mere SG$110,000 (RM379,398).

Meanwhile, it is believed that Khazanah and Boustead Holdings Bhd, which launched Kidzania in Singapore in 2016, initially injected SG$48 million (RM165.52 million) into the project.

However, poor management of the theme park by Khazanah saw it record SG$15 million (RM51.73 million) in revenue and SG$8.3 million (RM28.63 million) in losses after tax, according to a Singapore Business Times report.

Further, Kidzania Singapore also owed SG$53.4 million (RM184.17 million) to creditors, with as much as 93% of the debt owed to Theme Attractions Resorts & Hotels Sdn Bhd (TARH), a subsidiary of Khazanah.

TARH owns an 80% stake in Rakan Riang Pte Ltd (Rakan Riang Singapore), which operates Kidzania through a joint venture with Boustead Curve – a subsidiary of Bousted Holdings.

A company search by The Vibes revealed that Rakan Riang Singapore has a paid-up capital of SG$24 million (RM82.78 million) in ordinary and preference shares.

It also showed that Rakan Riang Singapore’s total assets in 2017, which were valued at SG$50 million, depreciated all the way to SG$6.578 million in 2019.

By the end of 2019, the company had recorded a total of SG$87.839 million in recorded losses.

Meanwhile, TARH managing director Stephanie Saw Ai Lin is named director of Rakan Riang Singapore, while Wong Hee Chai was disqualified from acting as a director on March 15, 2021, the company documents said.

Based on the shareholder structure alone, it is believed that Khazanah, through TARH, injected at least SG$4.512 million into Rakan Riang Singapore, while Bousted contributed at least SG$1.128 million.

Further, there are also three charges attached to the company, which have already been satisfied, with the chargee being Malayan Bank Bhd.

It is believed that Khazanah, perhaps through its subsidiaries, obtained a loan with an estimated worth of SG$25 million with regard to its Kidzania Singapore investment.

However, this failed investment venture by Khazanah is not limited to its activities in Singapore; it appears the same circumstances apply to the Kidzania theme park in Malaysia, which was also purchased by Sim Leisure Group in 2020.

According to documents by the Companies Commission of Malaysia, TARH sold its 24.48 million shares to Sim Leisure Escape Sdn Bhd in 2021.

Although it was reported that the Sim Leisure Group acquired Kidzania Malaysia for RM3.8 million, it is believed that this project, which involved Khazanah and Boustead Holdings, required an initial injection of RM90 million for construction and pre-operating costs.

Kidzania Malaysia, which was operated by Rakan Riang Sdn Bhd (Rakan Riang Malaysia), also received a RM26 million loan from CIMB, which was fully satisfied in 2016.

A source familiar with the details of the Kidzania takeovers was of the view that the sovereign wealth fund has a habit of pumping funds into its loss-making businesses.

Adding further, he said Khazanah could have made the smarter choice of leasing out the operations of the theme park to other companies instead of selling it outright or going into receivership.

In fact, this was a move by Khazanah when it leased the operations of IMS in Iskandar Puteri to Singaporean content company GHY Culture & Media.

“If I were the asset owner, I would get an operator to rent the asset, but Khazanah did not do so.

“In a scenario like this, I am sure there would be companies ready to jump on this idea.

“This would allow Khazanah to ensure returns in time without having to sell or liquidate,” the source said when contacted.

Meanwhile, according to reports, the Sim Leisure Group plans to refurbish Kidzania Singapore on Sentosa Island and begin operations by the first quarter of 2024.

The Malaysian-grown Sim Leisure Group, which is also listed on the Singaporean stock exchange, is in fact one of the world’s leading theme park developers, with Escape Penang, Kidzania, the John Wick ride in Dubai, and Six Flags Saudi Arabia among the 300 projects under their belt. – The Vibes, June 16, 2023

Why are all Malaysians and those born are debtors, but all Norwegians are millionaires

No News Is Bad News

https://www.nst.com.my/business/2023/01/870946/malaysias-national-debt-now-rm15-trillion-or-over-80pct-gdp (Malaysia's national debt now at RM1.5 trillion, or over 80pct of GDP)

Why are all Malaysians and those born are debtors, but all Norwegians are millionaires

KUALA LUMPUR, June 16, 2023: It was reported today by online news portal The Vibes that Malaysia’s so-called Sovereign Wealth Fund (SWF) Khazanah had sold its RM165 million investment in Singapore for a meagre RM379,000!

Wow! What a great way to make losses for the benefit of foreigners.

In the last two decades, this question was posed to Malaysians and all: Why is every Norwegian a theoretical crown millionaire today but every Malaysian and those born are debtors.

Norway’s oil-based SWF is the currently the 4^th largest in the world, and the top is - Singapore! (No joke man!)

No News Is Bad News reproduces current and past news related to SWF and national debt:

Why are the top SWFs in the world are so successful in managing and growing their wealth? Plain and simple answer: Competent, honest and trustworthy management of public funds.

One may argue that Norway is a small country with oil fields. But Malaysia also have oil fields and more … an abundance in natural resources.

Where is Malaysia today economically and financially

No News Is Bad News reproduces below current and past news reports on the issues:

Norway's wealth fund posts $84 billion quarterly profit

Reuters

April 21, 2023

5:42 PM GMT+8Updated 2 months ago

A general view of the Norwegian central bank, where Norway's sovereign wealth fund is situated, in Oslo, Norway, March 6, 2018. REUTERS/Gwladys Fouche/File Photo

OSLO, April 21 (Reuters) - Norway's $1.4 trillion sovereign wealth fund, one of the world's largest investors, on Friday posted a 5.9% return on investment for the first quarter boosted by rising equity markets.

"It's actually one of the strongest quarters we ever had," Deputy CEO Trond Grande said in a video posted on LinkedIn.

Despite market turmoil in March amid concerns of a new banking crisis, equity markets provided the biggest boost for the fund, with a nearly 8% gain, he said.

Meanwhile, falling interest rates benefited its bond portfolio, which returned almost 3%.

"The rise of the equity market was to a great extent driven by the technology and consumer discretionary sector," Grande said in a statement.

The profit of 893 billion Norwegian crowns ($83.89 billion) contrasted with a loss of 653 billion a year earlier.

Norway has a population of just 5.5 million, meaning the result works out to more than $15,000 per person.

However, the return was 0.06 percentage point below its benchmark index, said the fund, which has posted positive annual relative returns since 2009.

The fund, which saves revenue from Norway's large oil and gas industry, received 217 billion crowns in fresh government funds during the quarter.

Some 70% of the assets were held in stocks as of March 31, while 27.3% was invested in fixed income, 2.4% in unlisted real estate and 0.1% in unlisted renewable energy infrastructure.

Norway's central bank manages the fund, which owns 1.5% of all globally listed shares and has stakes in 9,200 companies.

It posted a record loss of 1.64 trillion crowns last year.

What is SWF?

A SWF is a fund owned by a state (or a political subdivision of a federal state) composed of financial assets such as stocks, bonds, property or other financial instruments. SWFs are entities that manage the national savings for the purposes of investment. The accumulated funds may have their origin in, or may represent, foreign currency deposits, gold, special drawing rights (SDRs) and International Monetary Fund (IMF) reserve position held by central banks and monetary authorities, along with other national assets such as pension investments, oil funds, or other industrial and financial holdings. These are assets of the sovereign nations which are typically held in domestic and different reserve currencies such as the dollar, euro and yen. The names attributed to the management entities may include central banks, official investment companies, sovereign oil funds, among others.

Some countries may have more than one SWF. Also, while the United States does not have a federal SWF, several of its states have their own SWFs.

List of countries by sovereign wealth funds

Rank	Country	Funds
1	Singapore	GIC / TH / CPF / Monetary Authority Singapore
2	China	SAFE / CADF / CIC / NSSF
3	France	Bpifrance/Caisse des dépôts et consignations
4	Norway	GPF

Tuesday, 30 August 2016

Today, Malaysians are worth less than 5 sen to BN and …

Today, Malaysians are worth less than 5 sen to BN and …

In this blog post, we are going to look or flashback as far back as late 2012, that is pre-GE13 (13th General Election was held in March 2013), on the socio-economic political issues raised then.

Why? Because you will find that many of the worrying issues are still relevant today. In fact, many of the concerns raised have actually deteriorated significantly.

What prompted this blog posting is an article by blogger OutSyed The Box that was published by the Malaysian-banned online news portal Malaysia Chronicle.

In a nutshell, the article is about Malaysia’s Stock Market plunging from No.4 in Asia to 16 out of 20 ie is to say from Top 4 to Bottom 4!

No News Is Bad News will not dwell into the issue as it has been aptly explained by OutSyed The Box and we reproduce here for your feedback:

“JUNK SHARES: THANKS TO NAJIB & 1MDB, M’SIAN MARKET PLUNGES FROM NO. 4 IN ASIA TO 16 OUT OF 20

Politics | August 29, 2016 by | 0 Comments

This is from Free Malaysia Today. My comments in blue (bold).

Malaysia drops from 4 to 16, and Hoo knows why
Malaysia’s capital market ranking drops to 16 out of 20
M’sia’s capital market used to rank in top four in East Asia in mid-90s
Now, it is 16th out of 20 Asian countries
Indonesia overtaking us in July 2016

(I told you so. This happened after the mamak was put in charge. This is proof of incompetence. The country has been going down since the mamak appeared on the scene.)

Indonesia now darling of investors
Malaysia taiko among poorer countries Vietnam, Cambodia and Myanmar.
in 90s M’sia’s capital market fourth after Japan, Taiwan and Hong Kong.

(Malaysia has gone from top four to bottom four. Indonesia has passed us. Next Vietnam, Cambodia and Myanmar may get past us. Papua New Guinea has beat our football team. Maybe Papua will pass our capital markets too. Can you hear the Dumbnos? They are saying, ‘So what?’, ‘Who cares?‘)

Hong Kong’s daily capital market volume is RM30b
Indonesia RM2 to RM3b daily
Shanghai RM40 to RM50b daily.

M’sia’s daily volume is RM1 to RM2b
expansion of Indon capital market policies due to Jokowi since 2014
Jokowi’s tax amnesty to bring billions of dollars, no questions asked
2nd measure to reduce corporate tax from 25% to 17%
attracted foreign companies to invest
This created jobs for people
Jokowi’s third step to attract USD1 trillion investment from Japanese
these three measures, Indon capital market will grow 20% by end 2016
a lot of cash in Indon market at the moment
M’sia’s corporate tax remains at 25%

( In Russia both corporate and personal income tax was set at 15%. Indonesia’s corporate tax is 17%. This alone will pull significant investment to Indonesia instead of Malaysia. The Japanese are investing in Indonesia, most likely at our expense.We should reduce our corporate and personal income taxes progressively. Since the gomen has already imposed the GST, they should reduce other taxes. Instead we still have 25% corporate taxes, income taxes and now GST. And the gomen is still going broke.)

need to have easier flow for ringgit trade, just like rupiah
M’sia currency restrictions on ringgit
flow of currency restricted
a lot of red tape for foreigners
crucial to allow easier flow of ringgit

size of capital market directly proportional to size of economy.
US world’s largest economy, has largest and deepest capital market.
capital markets move money to organisations which need it to be productive
critical for a smooth functioning modern economy.

(This is very true. The stock market captures the productivity of the people in a country. People who are productive generate surplus wealth which can then be invested in the efforts of other productive people to create more wealth. It is a virtuous cycle.

The Malaysian capital market has gone from No. 4 in Asia to number 16 – out of 20. Our economic growth has also been shrinking. From 7% down to 6%, to 5% and now down to 4%. Granted the world economy goes through cycles but a sustained down trend like this is reflective of incompetent policy makers and incompetent gomen administrators. The mamak is at the top of all this incompetence.

Also, since they consolidated the banking industry, wiped out the finance companies, wiped out the credit and leasing companies, ‘merged’ more than 50 local banks to the less than 10 so called “mega banks’ or “anchor banks” (a load of crap) it has wiped out easy access to credit (aka capital). Which has given birth to the rise of the Ah Long industry, which will never go away now. Without easy access to capital, the long term economic growth has been hampered.

There has been gross incompetence in managing our economy for some time now, but it has accelerated over the past 13 years.

The management of our economy (and the country) has destroyed wealth creation opportunities steadily over time. That is why now we are at no. 16 out of 20 – at the same level as Myanmar, Cambodia and Vietnam. Thailand has long ago gone passed us. Indonesia has gone passed us too. This is incredible stupidity. Sadly, not many will even understand this.)

– http://syedsoutsidethebox.blogspot.my/"

In October 2012, it was claimed that individual Malaysians are worth only 5 sen (five cents) to the Umno-led Barisan Nasional (BN).

Haji Sobey referred to BN’s two BR1M cash handouts amounting to RM1,000 to each qualified Malaysian. You divide this amount by 55 years that BN has ruled Malaysia and you get RM18.18 a year.

You divide RM18.18 by 12 months, you get RM1.51 a month.

You divide RM1.51 by 30 days, you get 5 sen a day!

Mathematically, this is correct, and so it makes sense.

Haji Sobey concludes: “Telah ditipu, adakah akan terus ditipu? Pilihan ditangan anda …” (You have already been taken for a ride, do you want to be continue to be taken for a ride? The choice is in your hand …”

No News Is Bad News now looks at the federal debt issue from this angle: In 2012, after 55 years of BN’s plundering of the nation’s wealth, 26 million Malaysians were saddled with a RM502.4 billion federal debt or 53.7% of the Gross Domestic Product (GDP).

That was only 1.3% short of the 55% legislated debt ceiling.

Also, there was RM118 billion in off Budget liabilities or sovereign guarantees for private corporations like the Port Klang Free Zone (PKFZ) and government-linked company loans ending 2011.

However, many economists then believed that Malaysia had already breached the legislated debt ceiling as the then International Trade and Industry Deputy Minister Mukhriz Mahathir appeared to have “accidentally” leaked out some alarming information while speaking to new students in Universiti Utara Malaysia (UUM) on Sept 6, 2012.

In trying to paint a rosy picture of the country’s economy, he claimed that the nation was on the right growth track due to “wise” financial management, without reliance on heavy overseas borrowings.

“The government has about RM800 billion in borrowings. Of this figure, foreign borrowing is only 17%. The bulk is from local financial institutions,” TheEdge reported Mukhriz as saying.

Now, was our federal debt as revealed by Budget 2013 at RM502.4 billion or was it RM800 billion?

Till today, neither Mukhriz nor Bank Negara have denied the RM800 billion figure.

No News Is Bad News begs this question: Has Malaysia’s federal debt surpassed RM1 trillion! (Read this for context: http://victorlim2016.blogspot.my/2016/08/has-malaysias-federal-debt-surpassed.html

Mukhriz’s argument was also flawed when he tried to justify good financial management by differentiating between domestic and foreign borrowings.

A debt is a debt. It is still what you owe, nothing more, nothing less.

If the federal debt is at RM1 trillion, and with a population of 30 million today, every Malaysian born is a debtor. In a nutshell, that’s our future and what our generations of children have to shoulder for Malaysia.

Then, for the first time in 55 years and within a year, the BN federal government announced various cash handouts to qualified individuals, in the guise of helping the lower income group of Malaysians.

Those handouts were clearly an attempt to pacify and secure the support of the fast growing restless Malaysians who were struggling to make ends meet daily.

Clearly, the cash-strapped BN government was forced to give out such unprecedented cash handouts because of their fear of losing the rakyat (people)’s mandate to remain in power.

With the global 1Malaysia Development Berhad (1MDB) multi-billion-dollar/ringgit money laundering probe by some 10 countries, what is the future of Malaysians?

Clearly, the Goods and Services Tax (GST) has been implemented to keep the cash-strapped BN federal government administration afloat.

The GST compels Malaysians to pay taxes every second daily for almost every sale and purchase transaction, including your roti canai (bread) and teh tarik (tea).

And, that too means Malaysians are paying multiples of taxes because the flour and tea manufactures and down line businesses are also paying GST!

However, income tax and corporate tax have remained the same.

Generally, the Umno-led BN has not been able to change or reform to win back the support of Malaysians. Instead, many expect the BN to perform worse, if not lose power.

It is only in power because Opposition voters have always been split to give the BN the edge in 11 consecutive GEs.

Only in GE 12 and GE13 in 2008 and 2013 respectively did the Anwar Ibrahim-led Opposition managed to shake BN to the core, with BN losing its traditional two-thirds majority in Parliament.

With Anwar today languishing in Sungai Buloh Prison, it sure looks like the headless and severely disunited Opposition is headed for a mauling by BN in GE14. (Read this for context: http://victorlim2016.blogspot.my/2016/08/1mdb-najib-to-lead-bn-to-win-big-in-ge14.html)

The Umno-controlled Election Commission’s bias handling of the electoral process, gerrymandering of constituencies, have also helped give BN the vital edge.

In 2012, many had asked the question: Is Malaysia heading towards the direction of Greece as a corrupt and bankrupt country? Can we afford another 55 years with the Umno-led BN?

Today, are Malaysians still asking the same question, in a fast deteriorating socio-economic political scene.

With global oil and natural commodities prices severely depressed, and with the ringgit at RM4 to US$1, everything is OK, so claims BN politicians.

At an October 2012 political ceramah (rally) in Johor Baru, then PKR vice-president cum Johor PKR chief Chua Jui Meng said Malays must stop allowing themselves to be politically enslaved by Umno.

“Given Malaysia’s vast and rich natural resources, including oil and gas, and after 55 years of the Umno-led Barisan Nasional (BN) rule, shouldn’t we all be reasonably comfortable financially?

“Why must there be so many Malaysians, especially the Malays, living in poverty in rural and urban societies? Clearly, it is the result of BN-Umno leaders’ misrule, mismanagement and self-serving interests.

"Sebagai pemimpin-pemimpin rakyat, kita patut berhamba rakyat. Tetapi, BN-Umno telah memperbodohkan rakyat dan orang-orang Melayu selama 55 tahun (As leaders, we should slave for the people. But BN-Umno has made a fool of the people and Malays for 55 years)," he said.

Are Chua's words still hold true and realistic today?