No News Is Bad News

Rewards of recognising meritocracy, talent and brains

KUALA LUMPUR, Sept 3, 2023: Although Chinese is the majority in Singapore, look at the above image which is self-explanatory.

The image was found on Facebook but the author actually poked fun at Singapore, describing it as the Little India of this world.

Assuming the author is a Malaysian, such is the pea-brain mentality - the grave reason why Malaysia is still striving to be a developed nation.

Singaporeans are proud to be Singaporeans, race and religion are secondary.

After breaking away from Malaysia, Singaporeans knew and realised that their survival is achieving excellence in socio-economic and financial progress.

They do not see race and religion as their means of political survival. Also, almost zero tolerance for corruption.

Just compare their socio-economic and financial progress and achievements today with Malaysia, and face reality.

No News Is Bad News reproduces below its previous postings on the same issues:

UPDATE:

Malaysian Education quagmire: Destruction of current and future human capital

By DR. RAIS HUSSIN and CHAN MYAE SAN

OPINION

Sunday, 03 Sep 2023

11:11 PM MYT

Rais_Figure 1

THE intersection of the education system, the burgeoning gig economy and the brain drain may seriously challenge Malaysia’s future.

With a massive brain drain already in place, as more and more students choose to join the gig economy instead of pursuing tertiary education, understanding the factors driving this disinterest in tertiary education is paramount to ensuring that the educational system remains relevant and effective in preparing individuals for the rapidly evolving landscape of the modern job market.

In an era of rapid technological advancements and shifting professional landscapes, the traditional pathways to success are undergoing a profound transformation.

The allure of flexible work arrangements, lucrative opportunities, autonomy, and on-demand work gaining momentum challenges the conventional notions of the value of higher education.

Armed with a tech-savvy mindset and an innate entrepreneurial spirit, the younger generation questions the age-old narrative that equates tertiary education with assured prosperity.

This shift in attitude raises critical questions about the potential consequences for the future workforce, economy, and societal development.

As per the Organisation for Economic Cooperation and Development (OECD), the enrolment figures in tertiary education serve as a measure of a nation’s prospective capacity for a skilled workforce in the future (refer to "Equipping future talents with education, skills to thrive").

Global data also shows that higher tertiary education enrolment correlates with better national outcomes over time (Figure 1).

Very well, there could be a reciprocal relationship, thus creating a vicious cycle!

However, Figure 2 illustrates Unesco's data concerning the trajectory of tertiary education enrolment proportions in Malaysia.

Rais_Figure 2

Overall, Malaysia’s enrolment rate has been in decline since 2016.

In 2020, Malaysia stood at 42.57%, while the world average based on 113 countries was 51.98%.

Malaysia’s enrolment rate is significantly lower compared to advanced economies such as, for example, Finland (95%), Singapore (93%), the United States (88%), Germany (73%) or Japan (66%).

Consistently with the OECD expectations, the Employment Statistics, Second Quarter 2022 report by Statistics Department revealed that 62.2% of jobs were in the Semi-Skilled category.

If the decline in tertiary education enrolment continues, it could potentially cast a shadow on the growth of the skilled workforce, consequently influencing the holistic progress of the nation and making Malaysia’s objective of becoming a high-income nation a distant dream.

To effectively address this issue, it is vital to understand the potential forces driving this change.

Brain drain and its push factors

The public data points to an exponential growth of Malaysian brain drain over the last four decades.

According to global empirical research, one of the systematic impacts of the brain drain on its home country is a decline in the quality of education.

At the same time, poor implementation and execution of the affirmative policy in education is profoundly featured in empirical research as one of the key push factors behind the Malaysian brain drain (refer to "Malaysian brain drain – don’t go chasing waterfalls").

Both factors can severely impede tertiary enrollment among capable students who now may prefer educational options abroad.

Fresh graduates earn less salary than those working in the gig economy

According to the president of the Malaysian Employers Federation (MEF), Datuk Dr Syed Hussain Syed Husman, the average starting salary of graduates holding an honours degree is approximately RM2,700 (refer to "Employers unable to meet fresh grads' high salary expectations" from May 19, 2023).

Meanwhile, a Grab driver can make around RM4,000 monthly (refer to "Employers unable to meet fresh grads' high salary expectations" from May 5, 2022).

Such a disparity in earnings has become a compelling factor for the younger generation when considering career paths potentially steering individuals towards the gig economy rather than pursuing traditional tertiary education routes.

A misconception among youngsters that gig work can offer sustainable livelihood

A misconception that gig work can offer a desired lifestyle might be rooted in inadequate information about the long-term implications of such employment and a lack of proper financial planning - retirement savings, future family support and economic safety net.

Holding a degree does not guarantee a high-paying job

Among the significant reasons for young people losing interest in conventional employment pathways is an observation that holding a degree does not guarantee a high-paying job, especially in an economy with a shrinking industry complexity (breadth and depth) and predominantly low- and semi-skilled jobs.

With this uncertainty, the gig economy presents itself as a pragmatic option, offering a source of income without the perceived constraints of formal education.

According to the "Graduate Statistics 2021" by the Statistics Department from July 27 2022, the number of unemployed graduates recorded 197.4 thousand persons out of 4.77 million graduates in the labour force, while skill-related youth underemployment has reached a new high – 1.55 million as of 2021.

As more and more young people encounter difficulties securing jobs, many are drawn to the gig economy for quick income while seeking permanent employment.

However, there is a danger that such temporary work can become permanent as young individuals quickly become too comfortable with the gig economy's flexibility.

Poverty

According to the article, "Poor students forgoing higher education, cause for concern" by Bernama, there has been an increasing trend in Malaysian students from low-income households forgoing higher education, especially after the Covid-19 pandemic.

High school graduates from low-income households who have completed their SPM often face the obligation to enter the workforce promptly to provide financial assistance to their families and cover their expenses.

The gig economy may appear as a potentially profitable sector for these students, offering a swift income source.

The above shift in the younger generation’s perspective about their career pathway can be a serious concern as the gig economy provides less stability, security and earning potential than a more "regular" career in the long term.

Gig workers are also not protected under the Work Act 1995 and other labour ordinances.

Gig platforms often lack benefits like health coverage and paid leave for workers.

Job security is lower, and gig workers shoulder more risk using personal resources for tasks such as deliveries or freelance work ("22 gig economy statistics for 2023").

Despite existing retirement saving options like EPF's i-Saraan for gig workers, their awareness and participation are limited.

This highlights the need for government-led educational initiatives to boost awareness.

Malaysian Gig Economy Commission (SEGiM), to be announced in the 2024 Budget, seeks to address informal workforce challenges and ensure gig worker well-being.

This framework is crucial for supporting gig workers, facilitating their ongoing economic contributions, and enabling skill enhancement – upskilling, reskilling, and cross-skilling ("Gig economy commission to improve the welfare of workers to be unveiled in Budget 2024").

Without swift political intervention and effective remedies, Malaysia may witness a critical scarcity of skilled labour already in the medium term, hampering businesses in their search for necessary expertise, deterring foreign investors and keeping Malaysia's economy positioned at the lower echelons of the value chain.

Innovative education system reforms are essential to attract students towards tertiary education, fostering a skilled workforce that aligns with the demands of the nation's economy and ensures competitiveness on par with more developed countries.

However, there is also the need to adopt a realistic and practical approach to resolve issues that align harmoniously with evolving perspectives and the job landscape.

Recognising that not all individuals are suited for traditional academic tertiary education is crucial.

Instead of solely emphasising the pursuit of conventional higher education, it becomes imperative for stakeholders to explore diverse frameworks that refine the entire societal spectrum, nurturing the highest potential within everyone.

EMIR Research would like to urge policymakers to consider the following:

- Educational reform through aligning our education system with global trends set by successful national education systems (for details, refer to an earlier article by EMIR Research, "Urgent Need to Reform Malaysian Education System") and relevantising it for 4IR (and soon 5IR) reality.

- Affirmative policy in the education system must be based on criteria while allowing sufficient flexibility to not disadvantage exceptionally bright students. As empirical data shows, thus far, affirmative action, due to its poor implementation and execution, has been ineffective in closing the intended gaps (refer to "Ruthless colonisation Mat Kilau could not even imagine").

- Introduce progressive wages strictly linked to productivity, knowledge skills and abilities via the Input-Output-Outcome-Impact model.

- Adoption of the hybrid model in university – Malaysia could implement a similar University-industry partnerships model as in the UK, which involves students dividing their time between practical training in workplaces and academic learning at universities, which enables them to earn supplemental income while advancing their education ("Efficiency in university-industry collaboration: an analysis of UK higher education institutions").

- Provide support to underprivileged families of talented students by identifying them during their middle school years. By catching them earlier, we can help those who may have the potential but lack the motivation to pursue higher education due to challenging family circumstances. This is also one of the mechanisms to extend the safety net in a very targeted approach, notably by not just extending subsidies but employing or re-training and re-employing if necessary (see "4IR enabled farmers: Solving national food security" for low-hanging fruit solutions).

- Normalising TVET as an alternative institution to conventional education to produce industry-ready graduates – the government must promote TVET as an equivalent choice for students who prefer non-conventional tertiary education, refraining from portraying it as inferior to university academics. A successful Scandinavian model serves as a good example, where vocational education is highly regarded as equipping students with relevant skills for prosperous careers and seamlessly integrates into the education system in such a way that it holds parity with academic learning. For this purpose, an integrated model between TVET and universities allowing TVET students to study in the local Universities for up to one year can also be considered.

- Locate TVET institutions in strategic places, such as Ipoh, Kota Kinabalu, and Kuching, for effective collaboration between industries and universities.

- Encourage corporate participation to commit to TVET Madani – examples are the recent TM contribution of RM3.5mil for TVET Madani Success to enhance the students’ employability ("TM Commits RM3.5mil for TVET Madani Success") and the Food Panda scholarship program for its rider to pursue a diploma in MIU ("Second shot at higher learning for gig workers").

- Strategic collaboration with local and international TVET institutions – provision of government scholarships for local TVET students to study in TVET institutions abroad.

- Produce through TVET a high-skilled workforce well equipped for digital economy, renewable industry, smart cities, etc.

Education is fundamental in shaping society and determining the country’s future.

It can be the root of many socio-economic issues, so innovations must be made to the system to keep education in line with the changing practices.

To do so, leadership with vision is needed.

Dr Rais Hussin and Chan Myae San are part of the research team at EMIR Research, an independent think tank focused on strategic policy recommendations based on rigorous research. - The Star

Tuesday, 15 August 2023

Why is Malaysia socio-economically far behind Singapore?

No News Is Bad News

Image for illustration only, not factual (yet) on the foreign exchange.

Why is Malaysia socio-economically far behind Singapore?

https://www.youtube.com/watch?v=BKWKFGz2T_4

KUALA LUMPUR, Aug 16, 2023: Wake up Malaysians! View the above two video clips which are self-explanatory, compare them with the quality of our politicians.

That is why Singapore is today a super rich developed nation, while Malaysia continues to struggle to keep its developing nation status afloat amid a real threat to national unity and harmony from Taliban-like racial and religious bigots.

Don’t just take No News Is Bad News opine hands down, view the two video clips to form your own judgment of the quality of our politicians and leaders (both politicians and corporate).

Sunday, 20 August 2023

Khazanah continues to disappoint, govt ignores

No News Is Bad News

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

Khazanah continues to disappoint, govt ignores

KUALA LUMPUR, Aug 21, 2023: Malaysia’s so-called Sovereign Wealth Fund (SWF), Khazanah Nasional, continues to disappoint with its poor financial managemnent.

It is quite obvious that Khazanah needs a total revamp to remove the incompetents who are clearly failing to raise the performance to the SWF to match other such funds in the world.

A petition was filed to wind up a Khazanah subsidiary over a RM95 million debt.

In June, Khazanah’s RM165 million Kidzania Singapore theme park was sold for a meagre RMRM379,000. The Singaporean buyer is now laughing all the way to the bank for acquiring the park dirt cheap.

Khazanah, like many other failed businesses, has conveniently blamed its woes on the Coronavirus (Covid-19) pandemic. But, why is it that others are able to ensure the commercial viability of the park?

Till today, no one in Khazanah has been hauled up or removed for accountability or responsibility for the SWF’s losses.

It sure looks like Prime Minister Anwar Ibrahim’s Madani Unity Government is no different from previous federal governments, all business as usual with no one held for accountability and responsibility.

For details of Khazanah’s atrotious financial managements and investments see below’s postings:

Petition filed to wind up Khazanah subsidiary over RM95mil debt

Creditor wants the High Court to wind up TAR PH Sdn Bhd, owner of the Puteri Harbour Hotel in Iskandar Puteri, over an arbitral award.

FMT Business - 21 Aug 2023, 7:00am

Jana DCS Sdn Bhd is seeking to wind up TAR PH Sdn Bhd for being ‘unable to pay its debts’ after the Khazanah subsidiary failed to comply with a statutory demand for payment made in March last year. (AFP pic)

PETALING JAYA: Khazanah Nasional may see one of the companies in its stable wound up by the High Court for non-payment of a debt of almost RM95 million due to a creditor.

Jana DCS Sdn Bhd has petitioned to wind up TAR PH Sdn Bhd after the sovereign wealth fund’s subsidiary failed to honour a statutory demand for payment issued on March 10, 2022.

TAR PH is a wholly owned subsidiary of Themed Attractions Resorts & Hotels Sdn Bhd, Khazanah’s hospitality and attraction destinations arm.

The company owns JEN Johor Puteri Harbour Hotel, a four-star hotel in Iskandar Puteri, which had been run by the Shangri-La group hotel chain until it ceased operations on May 9 this year, reportedly “due to legal proceedings beyond its control”.

“With the closure of the hotel, the respondent company has no income stream at all,” the petition, sighted by FMT, said.

It said the financial statements of the company reveal assets worth RM66.48 million against liabilities of RM183.76 million, after taking into account the debt owed to Jana DCS.

According to the petition, that debt stands at RM94,746,708.01 as of Aug 10, the date it was filed in the Shah Alam High Court by solicitors Zaid Ibrahim Suflan TH Liew & Partners.

“The respondent company (TAR PH) failed or neglected to comply with the notice by making payment in satisfaction of the arbitral award within the (21-day) period of the notice.

“In the circumstances, and as the respondent company is deemed to be unable to pay its debts under Section 465(1)(e) of the Companies Act 2016, the respondent company should be wound up.

“Additionally, it is also just and equitable for the respondent company to be wound up,” the petition said.

TAR-PH’s debt to Jana DCS is premised on an arbitral award of RM89,262,672.91 handed down last year.

Former Court of Appeal judge Ananthan Kasinather, sitting as arbitrator, ruled that the Khazanah subsidiary had wrongfully terminated a 2012 agreement with Jana DCS for the supply of cooling loads to serve the air-cooling systems to the hotel.

On Jan 11, 2023, judicial commissioner Adlin Abdul Majid (now a High Court judge) dismissed TAR PH’s attempt to set aside the arbitral award. Adlin went on to record the terms of the award as a judgment of the court in favour of Jana DCS.

“(On Jan 31) the petitioner’s solicitors wrote again to the respondent company demanding payment be made to satisfy the final arbitral award.

“The respondent company still did not comply but instead, on April 6, filed an application to the High Court seeking an order to stay the execution of the order dated Jan 11 pending its appeal to the Court of Appeal,” the petition said.

However, on June 12, TAR PH’s applications for to stay and injunct the enforcement of the award were dismissed with costs, it added.

Jana DCS is seeking the appointment of Mok Chew Yin and Bernard Check of BDO Consulting Sdn Bhd as the company’s liquidators.

The petition is fixed for case management on Sept 18, and for hearing on Nov 7.

Friday, 16 June 2023

Khazanah … a disgraceful SWF

No News Is Bad News

UPDATE:

Khazanah MD says fund’s performance ‘very respectable’

The fund’s net asset value declined 5% to RM81 billion in 2022, despite a RM1.6 billion net profit.

FMT Business - 27 Jun 2023, 5:36pm

Khazanah Nasional Bhd managing director Amirul Feisal said the fund will be looking for ways to improve its resilience in the market. (Facebook pic)

PETALING JAYA: Khazanah Nasional Bhd’s overall performance is still “very respectable” considering the types of investments undertaken by the fund, according to its managing director Amirul Feisal.

Questioned by business news channel CNBC on the sovereign wealth fund’s lacklustre performance, Amirul said: “As far as the returns overall, it’s still profitable. It’s still very respectable”.

In March, Khazanah reported a 5% decline in its net asset value to RM81 billion in 2022 compared to the previous year.

Despite this, the fund still managed a net profit of RM1.6 billion in 2022, more than double its net profit from the previous year.

Amirul said that while critics might question Khazanah’s few underperforming investments, the fund’s overall performance has remained strong.

Khazanah’s mandate, he said, is not only to generate returns but also to pursue developmental objectives, which may pose a higher risk.

“When you look at some of the (investments) that we have, which are based on growth and development, our performance is still (quite) profitable,” he said.

Going forward, Amirul said the fund will be looking for ways to improve its resilience in the market.

“Looking at the volatility in the market, we are still in the process of rebalancing our portfolio. There is actually a lot of potential in deploying assets (in the current environment),” he said.

He added that this may open opportunities in the private equity space as well.

As of end-2022, Khazanah reported 55.9% of its portfolio was invested in public markets in Malaysia, and 13.4% invested in public markets overseas.

Nearly a quarter of its portfolio was invested in private markets, while more than half outside of Malaysia, with 8% invested in real assets.

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?