Kleptocrat Najib ‘1MDB’ Razak unworthy of royal pardon

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 Fighting for sympathy and freedom to enjoy his ill-gotten wealth! - Facebook image

Kleptocrat Najib ‘1MDB’ Razak unworthy of royal pardon

KUALA LUMPUR, Nov 1, 2024: Super kleptocrat and disgraced shameless former prime minister Najib “1MDB” Razak does not deserve any sympathy nor forgiveness after his so called public apology for the multi-billion-Ringgit 1Malaysia Development Berhad financial scandal.

The corrupt former Umno president’s apology is NO apology at all!

What did he apologise for?;

> DID he admit to his crime?;

> DID he show any remorse?;

> HAS he returned all his ill-gotten wealth?;

> HAS he accepted accountability and responsibility for the billions of Ringgit lost under his management?; and 

> HAS he even lifted a finger to help the Government reover the 1MDB loot for Malaysians and Malaysia?

The following images are self-explanatory of Najib’s service to rakyat dan negara (people and country):

 And Najib expects sympathy and support from the Government and rakyat to free him? Well! Umno supports him (read as the corrupt) to be freed and to enjoy his wealth!

Mariam Mokhtar wrote: Is Najib’s apology linked to new laws about ‘house arrest’?

She added: The apology made by Najib about the 1MDB scandal may have been borne out of his need to obtain the support of naïve politicians in his quest of a royal pardon and release from jail.

Is Najib’s apology linked to new laws about ‘house arrest’?

Mariam Mokhtar

-01 Nov 2024, 08:30 AM

The apology made by Najib Razak about the 1MDB scandal may have been borne out of his need to obtain the support of naïve politicians in his quest of a royal pardon and release from jail.

 

A policeman on a kapcai motorcycle once waved me to the side of the road and insisted that I had crossed double white lines at a busy junction in the centre of Ipoh. I told him there were no white lines and that I had not broken any traffic laws.

He repeatedly said “Macam mana mau settle?”, but I stood my ground, and told him that I had done nothing wrong. When I asked for his serial number and name, he backed off.

His failure to issue me with an on-the-spot fine did not stop me from writing to the police chief complaining about the policeman’s false accusation.

That traffic cop had attempted to scare me into thinking I was guilty of a traffic violation. The delay meant I missed an appointment. He had caused much inconvenience. Worse, he tried to solicit a bribe. In my letter to the Perak police chief, I included photos of the road surface to show the absence of double white lines.

Many weeks later, the police chief replied and said sorry for the “overzealous” actions of the traffic policeman. He agreed that there were no road markings, and assured me that it would not happen again; but he ended his letter with “…and don’t (you) repeat the traffic violation”.

Former prime minister Najib Razak’s apology for 1MDB sounds just as hollow and insincere as that offered by the police chief.

How dare Najib apologise and yet claim to be innocent of the 1MDB scandal. More importantly, why is he apologising only now, six years after he was first charged with seven counts of criminal breach of trust, money laundering and embezzlement?

Many Malaysians claim that his two years in Kajang prison may have given him ample time to reflect on his misdeeds. But the answer is probably linked to the announcement about drafting new laws pertaining to house arrest, which was quietly sneaked in during Prime Minister Anwar Ibrahim’s tabling of the 2025 budget.

Umno will have prompted the house arrest agenda as they have always wanted Najib pardoned and released. Did DAP and Amanah or any of the Borneo parties agree?

None of Najib’s family members believe him to be guilty. They claim he was not given a fair trial.

The misappropriation of 1MDB funds was not an overnight occurrence. It took years to develop and should have been nipped in the bud. Either Najib was complicit, or too trusting of his aides, or too daft to realise that he was being manipulated and conned, or it was all of the above.

The warning signs were there. Tampering with the audit. The missed payments for some of the US$11 billion which 1MDB owed to banks and bondholders. Then came the report by the Wall Street Journal about a paper trail of US$700 million from the fund to Najib’s personal bank accounts.

In his feeble apology, Najib denied the role he had played in 1MDB, claimed that he knew nothing about the swindle of money from the sovereign fund; although he said that he had mishandled the debacle, he claimed to have been duped.

He apportioned blame on his former trusted aide, Low Taek Jho or Jho Low, and Patrick Mahoney and Tarek Obaid, two executives from Petrosaudi.

He also said that once the irregularities of 1MDB had come under public scrutiny, he had initiated various investigations but in the end, was “inclined to believe the explanations by the board and management”.

So, did he ignore the conclusions and outcome of the investigations, but only accepted what the board and management wanted him to believe? If that were the case, what is the point of conducting the many investigations as they would be a waste of time and resources?

He also claimed to have become suspicious about the activities in 1MDB, and that his immediate concerns were its financial predicaments and the risk it posed to diplomatic and bilateral relations at the highest level. And yet he failed to act.

However, our understanding of the many previous reports of 1MDB was that Najib initiated a massive cover-up. Issues related to the 1MDB scandal were so sensitive that whistleblowers were threatened, websites were blocked, journalists were harassed by the police, a former attorney-general was removed from office and  a former deputy PM was sacked.

In 2016, two journalists of the Australian Broadcasting Corporation were detained by police in Sarawak then escorted to the airport and forced to leave Sarawak for daring to question Najib about the multiple corruption scandals linked to 1MDB.

Around the world, well established banks and financial bodies were forced to close down because many had broken their own money-laundering laws.

Najib failed to act fast enough and again, his poor and weak leadership led to our tarnished reputation and a massive loss of trust in our own government and banking and financial institutions.

Najib’s apology may have been borne out of necessity to placate the public and convince naïve politicians to rally behind him in his quest of a royal pardon and release.

If Najib were to be placed under house arrest, how would the nation react?

The views expressed are those of the writer and do not necessarily reflect those of FMT.

SIS: Mufti bill facilitates creation of ‘backdoor’ laws through misuse of fatwas

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SIS: Mufti bill facilitates creation of ‘backdoor’ laws through misuse of fatwas

KUALA LUMPUR, Nov 1, 2024: Sisters In Islam (SIS) warns Malaysians, especially the 222 Members of Parliament (MPs), that the Mufti (Federal Territories) Bill 2024, if passed, could facilitate the creation of “backdoor” laws through a misuse of fatwas.

SIS says the process could be utilised to indirectly criminalise certain acts, bypassing altogether the legislative process.

In shot, multiracial Malaysians, especially Muslims, will lose their Constitutional rights and their lives be be at the mercy of muftis.

No News Is Bad News reproduces below a news report on SIS’ warning and our previous post on the issue:

SIS warns of potential ‘backdoor’ laws via FT’s mufti bill

Osmond Mah and Lynelle Tham

-01 Nov 2024, 07:30 AM

Sisters in Islam says the process could be utilised to indirectly criminalise certain acts, bypassing altogether the legislative process.

Sisters in Islam warned that the proposed Mufti (Federal Territories) Bill 2024, if passed into law, could limit Islamic jurisprudence in Malaysia.

KUALA LUMPUR: A women’s rights group has warned that the proposed Mufti (Federal Territories) Bill 2024, if passed, could facilitate the creation of “backdoor” laws through a misuse of fatwas.

Sisters in Islam (SIS) advocacy, legal services and research manager Waheda Rufin said this process could be utilised to indirectly criminalise certain acts, bypassing altogether the legislative process.

She said a fatwa, once gazetted, cannot be questioned, and may be prosecuted under Section 12 of the Syariah Criminal Offences (Federal Territories) Act 1997.

“For instance, instead of criminalising sodomy, a fatwa could be issued declaring same-sex relationships forbidden (haram). So, instead of criminalising the act of sodomy, they just criminalise the act of defying the fatwa, not the action itself.

This process allows a law to be made outside of Parliament and the state assemblies, she said during a media briefing on Wednesday.

Waheda pointed out that in February, the Federal Court struck down an attempt to introduce sodomy as a shariah offence, holding that the Kelantan state assembly was not competent to include it as an offence in the state’s Syariah Criminal Code.

The gazetting of a fatwa would potentially allow the Islamic authorities to introduce the same law via the “backdoor”, she said.

SIS said another central issue lies in Clauses 13 and 14 of the bill, which allows the FT fatwa committee to consult the Muzakarah Committee, a key body within the National Council for Islamic Religious Affairs, on the issuance of fatwas affecting “national interest”.

The group warned that if both committees concur, the FT mufti may issue a fatwa on the subject which will have the force of law upon gazettement.

Another contentious aspect of the bill, SIS said, was the narrowing of accepted Islamic jurisprudence schools, which could limit broader Islamic scholarship in the country and fuel sectarian divisions.

SIS communications manager Ameena Siddiqi said the Administration of Islamic Law (Federal Territories) Act 1993 presently allows for Islamic law and practice to be interpreted according to any recognised mazhab.

Section 3 of the bill, however, seeks to restrict the practice of Islam to only the four major Sunni schools: Hanafi, Maliki, Shafi’i and Hanbali.

“The proposed bill would revoke the autonomy of Muslims in the Federal Territories to practice schools of thought of their choice, which is contrary to Islamic jurisprudence’s inherent diversity,” she said.

The bill, which was tabled for its first reading last July, has encountered significant opposition from various groups, including Muslim scholars and political figures.

It is scheduled for debate during the ongoing Dewan Rakyat meeting.

Wednesday 30 October 2024

Multiracial Malaysians in a religious extremism dilemma?

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PAS spiritual leader Hashim Jasin has dismissed Bukit Aman counter-terrorism chief Normah Ishak’s claims that PAS is banking on the Taliban to improve its Islamic image. Calling the claim an attempt to tarnish the party’s image, Hashim insisted that there was no proof that PAS was “following” the Taliban. For image info, go to https://focusmalaysia.my/pas-we-are-not-banking-on-the-taliban-to-improve-our-islamic-image/ 

 Taliban spokesman Abdul Qahar Balkhi says that harsh punishments such as amputations and stoning are reserved for criminals in the most extreme cases, with the intention to deter crime. – @FabianEberhard Twitter pic, August 29, 2021. For image info, go to https://www.thevibes.com/articles/news/39921/taliban-thanks-pas-for-well-wishes-calls-human-rights-accusations-propaganda (EXCLUSIVE: Taliban thanks PAS for well wishes, calls human rights accusations ‘propaganda’)

Multiracial Malaysians in a religious extremism dilemma?

https://www.youtube.com/watch?v=bjh0bSGczcU (Watch how the Saudis have transformed themselves)

KUALA LUMPUR, Oct 31, 2024: Multiracial Malaysians are in a religious and political dilemma, to say the least.

Come the next general election that must be held in 2027, who can they rely on for social and religious freedom?

They only have a choice between the Pakatan Harapan (PH), comprising DAP, PKR and Amanah (with the racist Umno as an ally?) or Perikatan Nasional (PN) comprising the Taliban-like PAS, Bersatu and Gerakan led by the racist Muhyiddin “I Am Malay First” Yassin.

Who then can multiracial Malaysians rely on for defending their Constitutional rights and freedom?

No News Is Bad News reproduces below a terrifying new Taliban edict that bans women from hearing each other’s voices!

Should the so-called Unity Government’s Mufti Bill be passed, will the mufti issue a similar edict or other edicts that not only curb the Constitutional rights and freedom of Muslims, but also likely affect non-Muslims?

What’s with Prime Minister Anwar Ibrahim and his push to give the mufti unlimited powers to issue edits, and without having to face the law and Parliament?

Do the 222 Members of Parliament (MPs) want to risk turning Malaysia into a Taliban state?

World

Middle East

‘No limits’: New Taliban edict bans women from hearing each other’s voices

A terrifying new rule has been inflicted on 14 million women, in the latest step toward the erasure of their rights in Afghanistan.

Natalie Brown

@natalieisbrown

October 30, 2024 - 4:38PM

The Taliban has banned women in Afghanistan from hearing each other’s voices in what experts say is its latest step toward erasing “women entirely from public life and society”.

The country’s Minister for the Promotion of Virtue and Prevention of Vice, Khalid Hanafi, announced the new edict on female behaviour.

“Even when an adult female prays and another female passes by, she must not pray loudly enough for them to hear,” he said in his message.

A woman’s voice is considered “awrah” – meaning that which must be covered, and shouldn’t be heard in public – Mr Hanafi said.

“When women are not permitted to call takbir or athan [Islamic call to prayer], they certainly cannot sing songs or [make] music,” he said.

“How could they be allowed to sing if they aren’t even permitted to hear (each other’s) voices while praying, let alone for anything else.”

The exact details of the Taliban’s new ruling are unclear, though the minister said it “will be gradually implemented, and God will be helping us in each step we take”.

Human rights activists in both Afghanistan and abroad, however, have warned this latest measure by the Taliban could mean women are effectively banned from holding conversations with one another.

“It is hard to imagine the situation getting worse after the Taliban banned women’s voices and faces in public last month, but with this latest decree, we have seen that the Taliban’s capacity to inflict harm on women has no limits,” Zohal Azra, from the Australian Hazara Advocacy Network, told news.com.au.

Taliban Minister for the Promotion of Virtue and Prevention of Vice, Khalid Hanafi. Picture: Ahmad Sahel Arman/AFP

“Since returning to power in Afghanistan the Taliban has effectively erased women and girls from public life in methodical, and systematic approach involving over 105 decrees, edicts, and orders that are enforced violently and arbitrarily, including through detention, sexual abuse, torture and cruel, inhuman, or other degrading treatment and punishment such stoning and whipping women and girls.

“The situation is so dire that it requires urgent global intervention to support women in Afghanistan.

“Through these decrees the Taliban has established a system of gender apartheid.”

Amnesty International Australia’s Strategic Refugee Rights Campaigner, Zaki Haidari, told news.com.au that the situation for women and girls in Afghanistan is “growing darker by the day”.

“The Taliban is methodically punishing women, seemingly testing how far they can push before the world responds,” Mr Haidari, who is of Hazara background, said.

The world has “remained largely silent” since the early days of their regime, Mr Haidari said, and now “feels empowered, believing they have the power to erase women entirely from public life and society”.

Taliban security personnel stand guard as an Afghan burqa-clad woman walks along a street at a market in the Baharak district of Badakhshan province on February 26, 2024. Picture: Wakil Kohsar/AFP

As one woman, a former civil servant who lives in Kabul, told The Telegraph, the Taliban “are waging an all-out war against us, and we have no one in the world to hear our voices”.

“The world has abandoned us. They left us to the Taliban, and whatever happens to us now is a result of Western government policies,” she said. 
“I feel depressed. The world is advancing in technology and having fun with their lives, but here we cannot even hear each other’s voices.”

Mr Haidari echoed the sentiment that Afghanistan has been “abandoned” by the rest of the world.

“After 20 years of war led by the US and its allies in the name of democracy and freedom, their departure feels like a betrayal,” he said.

“If these nations had taken their responsibilities seriously, they wouldn’t have left the Afghan people at the mercy of a terrorist regime.

“Women, in particular, are now being murdered, raped and erased from society with little meaningful intervention from the international community.”

‘If these nations had taken their responsibilities seriously, they wouldn’t have left the Afghan people at the mercy of a terrorist regime.’ Picture: AFP

As the Taliban’s oppression worsens, Human Rights Watch Australia director, Daniela Gavshon, told news.com.au it is “critical for governments claiming to support human rights and accountability to move from words to action”.

“We are seeing states try and put pressure on the Taliban through new, previously unused avenues – like trying to hold the Taliban to account for their serious violations of the rights of women and girls under the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW),” she said.

“Yet while some states are trying, they need to do more.”

Last month, Australia, Canada, Germany and the Netherlands formally accused the Taliban of gender discrimination, in a case that will be taken to the International Court of Justice (ICJ), based in The Hague.

The case is the first legal move of its type since the Taliban’s takeover in 2021, and is also believed to be one of the first gender discrimination cases considered by the ICJ.

In a statement at the time, Australia’s Foreign Minister Penny Wong said the four countries would not “stand by and allow the situation in Afghanistan to become a ‘new normal’”.

“The Taliban has demonstrated contempt for the human rights and fundamental freedoms of women and girls in Afghanistan, through a campaign of sustained and systematic oppression,” Senator Wong said.

Foreign Minister Penny Wong said Australia would not ‘stand by and allow the situation in Afghanistan to become a ‘new normal’’. Picture: NCA NewsWire/Martin Ollman

While this was “a welcomed step”, Ms Azra pointed out, “Australia was among the first countries in the world to join the war in Afghanistan”.

“We also played an outsized role in the war in Afghanistan, made many promises to Afghan women, and as a result we have a clear, moral obligation to support the women of Afghanistan,” she said.

“The Australian Government must match its outsized role in the war in Afghanistan, and promises to the people of Afghanistan with actual material support for women and girls under the Taliban rule.”

Such measures include “referring to the Taliban’s treatment of women and girls as gender apartheid”, ensuring that our humanitarian aid contributions to Afghanistan are “strictly conditional upon the improvement of human rights”, and making “greater use of its influence in international bodies like the UN to advocate for resolutions and sanctions against the Taliban regime due to their policies on women”, Ms Azra suggested.

“Now, more than ever, the women of Afghanistan need the world’s attention,” Mr Haidari said.

“We must amplify their voices and advocate for their basic human rights and very existence.

“While there are many crises unfolding across the globe, we must not forget the people of Afghanistan, especially the women, who are being silenced and oppressed.

“It is our collective responsibility to stand with them.”

Govt orders Khazanah to explain RM43.9m losses

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Govt orders Khazanah to explain RM43.9m losses

KUALA LUMPUR, Oct 31, 2024: Malaysia’s so-called Sovereign Wealth Fund (SWF), Khazanah Nasional Berhad, is reportedly to have suffered RM43.9 million losses after selling its stakes in Fashion Valet.

Khazanah sold its RM47 million investments for a meagre RM3.1 million!

Its sure sounds familiar as Khazanah sold its RM165 million Kidzania Singapore theme park for a meagre RM379,000 last year.

Now, Communications Minister Fahmi Fadzil said Khazanah should promptly address public concerns regarding their recent transaction, urging the SWF to explain the losses.

Losses are nothing new nor surprising for Malaysia’s so-called SWFs - the other being the infamous 1Malaysia Development Berhad (1MDB).

And the losses are not expected to stop for Khazanah as it has a stake in the financially ailing national airline MAS (Malaysia Airlines System) which may need, yet, another bailout.

But the Government is not expected to act against those responsible and accountable to the SWF's performance.

See posting below for story.

No News Is Bad News reproduces below a news report on what Fahmi told the media and past postings on the issues:

Fahmi urges Khazanah to explain RM43.9mil losses after selling FashionValet stakes

By ARFA YUNUS and BENJAMIN LEE

Nation

Thursday, 31 Oct 2024

2:22 PM MYT

 

KUALA LUMPUR: Khazanah Nasional Berhad and Fashion Valet should promptly address public concerns regarding their recent transaction, says Communications Minister Fahmi Fadzil.

Describing the issue as significant and of public interest, Fahmi said the public should be given an explanation soon.

“We are monitoring the issue closely. Although I haven’t yet received a full report on the specifics, many questions are circulating, and people are seeking clarity,” he said when met at the Madani Deepavali Open House on Thursday (Oct 31).

He said the issue surfaced following a written Parliamentary reply published recently, highlighting that it involves public funds.

In recent days, the matter has sparked significant social media attention.

“To be fair to all parties, including Khazanah and Fashion Valet, we should allow them a little time to provide an official response. However, given the level of public interest, they should issue a statement soon," said Fahmi.

On Tuesday (Oct 29), the Finance Ministry said that Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) have sold their collective stakes in Malaysia’s first fashion e-commerce platform, Fashion Valet Sdn Bhd (FashionValet), for RM3.1mil.

This sale marks a significant loss compared to their initial RM47mil investment.

In a written parliamentary reply, the Finance Ministry revealed that Khazanah had invested RM27mil and PNB RM20mil in 2018 to acquire minority stakes in FashionValet.

According to the Finance Ministry, in late 2023, a Bumiputera firm, NXBT Partners, offered to acquire Khazanah and PNB’s stakes and inject the necessary capital into the company.

Despite the RM3.1mil sale, the Finance Ministry described the losses as “minimal” in comparison to the overall earnings of Khazanah and PNB for the year.

It was previously reported that Khazanah had said that it regularly invests and divests assets based on its portfolio allocation strategy and investment horizon.

However, Khazanah did not share with the online portal if it had disposed of its stake in FashionValet or the percentage it had paid RM27mil for.

Khazanah, PNB sold their RM47 mil stakes in FashionValet for just RM3.1 mil — MOF

By Luqman Amin / theedgemalaysia.com

29 Oct 2024, 01:41 am

 

KUALA LUMPUR (Oct 29): Malaysia's sovereign wealth fund Khazanah Nasional Bhd and asset manager Permodalan Nasional Bhd (PNB) sold their collective stakes in the country’s first fashion e-commerce platform Fashion Valet Sdn Bhd (FashionValet) for a mere RM3.1 million — a significant loss from their initial RM47 million investments.

Khazanah invested RM27 million into FashionValet in 2018 while PNB put in RM20 million, both for minority stakes in the company, according to the Ministry of Finance's (MOF) written reply published on Parliament's website on Monday evening.

Khazanah and PNB then sold their stakes at the end of 2023 to NXBT Partners Sdn Bhd, an investment holding company controlled by Afzal Abdul Rahim, the chief executive officer of TIME dotCom Bhd (KL:TIMECOM). Khazanah also holds a 32.34% stake in TIME dotcom, as of July 22 this year.

The ministry was responding to a question from Puchong MP Yeo Bee Yin, who asked for details of the transaction, and if other government-linked companies or government-linked investment companies had also invested in FashionValet.

Khazanah had earlier last month made a statement to address what it termed as misconceptions regarding the asset disposal, which had been described as a fire sale by a tech newsletter and stirred heated discussions online about the valuation of the transaction. Khazanah was reported as saying that as a private market investor, it "regularly invests in and divests from assets based on our investment horizon and portfolio allocation strategy".

"Losses incurred from the stake sale were minor in comparison to Khazanah and PNB’s overall earnings for the year," MOF said in its written reply on Monday.

“The sale represents a responsible exit by Khazanah and PNB, transferring FashionValet to a strategic investor positioned to meet the company's financial needs and support business growth," it said.

MOF also defended Khazanah's investment into the company, saying it aligned with Khazanah's mandate at the time to foster local tech entrepreneurs and gain exposure to the growing e-commerce sector.

"At the same time, PNB’s investment thesis was focused on supporting fast-growing Bumiputera digital retail companies to develop into a regional retail platform for Malaysian brands." it added.

NXBT now owns 51.25% of FashionValet, according to data from the Companies Commision of Malaysia. The second largest shareholder is Datuk Fadzarudin Shah Anuar, husband of fashion influencer Datin Vivy Yusof, holding 17.65%, followed by MyEG Capital Sdn Bhd — a subsidiary of MyEG Services Bhd (KL:MYEG) — with a 5.78% stake.

Co-founded by Vivy and Fadzarudin, FashionValet initially focused on third-party fashion items before launching its own modest wear brands, dUCK and Lilit. 

The company has been loss-making for the past three consecutive years. In the financial year ended Dec 31, 2022 (FY2022), it incurred a loss-after-tax of RM34.51 million — more than triple its RM9.63 million loss in FY2021 — as revenue fell 0.62% to RM112.82 million from RM113.52 million. In FY2020, the company reported a loss-after-tax of RM12.37 million on RM84.5 million in revenue.

Sunday 20 August 2023

Khazanah continues to disappoint, govt ignores

 No News Is Bad News

 https://www.khazanah.com.my/ 

UPDATE:

Khazanah subsidiary to object to winding-up petition, court told

Jana DCS wants TAR PH wound up over alleged non-payment of debt of almost RM95 million.

FMT Reporters - 19 Sep 2023, 10:24am

PETALING JAYA: A subsidiary to sovereign wealth fund Khazanah Nasional Bhd is expected to object to a winding-up petition filed by a creditor over the non-payment of a debt of almost RM95 million.

Jana DCS Sdn Bhd had petitioned to wind up TAR PH Sdn Bhd after it allegedly failed to honour a statutory demand for payment issued on March 10, 2022.

Liew Teck Huat, a lawyer for the petitioner, said TAR PH’s counsel told the court at yesterday’s case management the company intends to object to the petition and will be filing its affidavit in opposition.

He also told FMT the next case management has been set by court assistant registrar Norsyakirah Che Hashim for Oct 23.

The petition is set to be heard on Nov 7.

Lawyer Ong Kang Nyong appeared for Jana DCS, while Nicholas Wong represented TAR PH.

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

The company owns JEN Johor Puteri Harbour Hotel, a four-star property at 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.

According to the petition, that debt stood 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.

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

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?

Tuesday 3 September 2024

No worries MAS! Taxpayers’ money provide unlimited bailouts!

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 Three bailouts cost Malaysians RM30 billion! - Finance Twitter image

No worries MAS! Taxpayers’ money provide unlimited bailouts!

KUALA LUMPUR, Sept 3, 2024: Malaysia’s 10^th prime minister Anwar Ibrahim says the his so-called Madani Unity Government (UG) is committed to save the beleaguered Malaysia Airlines (MAS).

That sounds familiar to Malaysians - unlimited wanton use of taxpayers’ money (public money) to bailout incompetent managements of Government-linked companies (GLCs).

“As a Government, we remain committed to ensuring the success of the airline because it is our national airline,” Anwar stressed.

Then, what happened to national car manufacturer Proton? Sold to Chinese nationals?

And MAS has been bailed out at least three times in its history of operations or existence at a cost of a whopping RM30 billion!

Enough lah! Just treat MAS as Proton! Sell it to the highest bidder, if there is any taker!

With unlimited access to public funds, non-perfoming GLCs need not worry.

Incompetent managements can always look forward to Government bailouts! No worries! Carry on with managing badly! After all, MAS needs to uphold Malaysians’ favourite tag for MAS - Mana Ada Sistem (Where Got System).

No News Is Bad News reproduces a news report on what Anwar said about MAS’ woes and an opinion piece by EMIR Research Head of Science & Technology

Ameen Kamal, who saw it coming for MAS in November 2020 but went unheeded by Government (elected every five years):

Govt committed to save Malaysia Airlines by any reasonable means, says PM

Lynelle Tham

-03 Sep 2024, 05:37 PM

Anwar Ibrahim says the Cabinet discusses strategies to revitalise the national carrier almost every week ‘without fail’.

Prime Minister Anwar Ibrahim said the government is committed to ensuring Malaysia Airlines’s success in performing effectively as it is a national carrier. (Bernama pic)

KUALA LUMPUR: The government is committed to revitalising Malaysia Airlines, which has recently faced operational challenges, says Prime Minister Anwar Ibrahim.

Anwar told reporters that the national carrier’s board, sovereign wealth fund Khazanah Nasional Bhd, and the government are dedicated to saving the airline by any reasonable means necessary.

Earlier in his speech at Khazanah’s 30th anniversary celebration, he said that while efforts to revive Malaysia Airlines have commenced, it will take time.

The government discusses ways to save the airline almost every week in the Cabinet without fail, he said.

As a government, we remain committed to ensuring the success of the airline because it is our national airline.

Anwar added that he was aware of how Malaysia Airlines’s operational difficulties had been widely discussed in the media and social media of recent.

Sometimes, political decisions lack transparency and give opportunities to one or two cronies to ruin a company that we take pride in, he said.

“Because of those mistakes, the burden is on us to this day. Do not erase that historical fact.

Last week, it was reported that the Civil Aviation Authority of Malaysia had reduced the validity of Malaysia Airlines’s air operator certificate from three years to one year.

The airline’s parent body, Malaysia Aviation Group, said it was supposed to receive 17 new aircraft this year from manufacturers but only four had been delivered so far.

MAG managing director Izham Ismail attributed operational challenges to global spare parts shortages and delays in engine repairs and overhauls.

MAG also announced that it is cutting flights and routes until December due to recent service disruptions affecting Malaysia Airlines, Firefly and Amal services.

‘Private sector must emulate Khazanah in giving RM3,000 minimum wage’

In his speech, Anwar also called on private companies to follow Khazanah’s example in setting a minimum wage of RM3,000 for their employees.

Anwar, who is also Khazanah chairman, praised the sovereign wealth fund for this progressive initiative.

I want to extend my highest congratulations to Khazanah Nasional for being a leading organisation that has established a minimum wage of RM3,000 and above for every member of the Khazanah family, he said.

 

Time for MAS and unions to look beyond bailouts

Ameen Kamal

30/11/2020 13:43 MYT

It's worth seriously considering a merger, with renewed management consisting of experts, new governance process with no political interference, new innovative business plans supported by indirect government aid and minimal direct aid. AFPpic

Malaysia Airlines Berhad (or MAB, but still commonly referred to as MAS) has undergone several bailouts and multiple leadership change. Additionally, it weathered through MH370 and MH17 tragedies and is now a victim of the pandemic. With the government's debt and contingent liabilities totalling at about RM1.2 trillion, worsened by the pandemic-related economic crisis, Malaysia has to be prudent in spending public resources. MAS is a national pride but it’s probably time to think of a different narrative for the struggling airline.

Instead of the extremities between a total bailout or a complete shutdown, it’s worth seriously considering a merger, with renewed management consisting of experts, new governance process with no political interference, new innovative business plans supported by indirect government aids and minimal direct aids.

According to a reply by Finance Minister Tengku Dato’ Sri Zafrul Tengku Abdul Aziz to Dewan Rakyat, a whopping RM28 billion has been injected into MAS by its owner Khazanah Nasional. That’s already substantial but what about the years before Khazanah came in?

Clearly Khazanah has done its part to help sustain the company and MAS management had many chances for a turnaround alongside several bailouts. Most recently, business news portal The Edge Weekly reported financial aid amounting to RM2.1 billion was being sought by MAS from its owners. It was only in July that the Edge Markets reported a US$300 million (RM1.28 billion) worth of new funding - likely a government grant - was secured by MAS to support it through the pandemic.

Nufam's Ismail Nasaruddin reportedly opined that the term ‘bailout’ is only valid when public resources are used to save companies in trouble due ‘mismanagement and financial misconduct’. File image

Last year, it was reported that Khazanah would require RM1 billion worth of annual capital to sustain MAS operations under the current structure. Khazanah has done more than enough. It’s clear that MAS is not sustainable and these injections and bailouts have proven non-viable.

The National Union of Flight Attendants Malaysia (Nufam) president Ismail Nasaruddin reportedly opined that the term ‘bailout’ is only valid when public resources are used to save companies in trouble due ‘mismanagement and financial misconduct’.

Whatever the terminology may be, how would previous losses and troubles by MAS be explained by Nufam? The fact is that MAS has struggled to be profit-making even in the past years before the pandemic.

Surely there must be issues or weaknesses in management, strategies, and governance.

For example, despite a reported RM6 billion injection by Khazanah in 2014, MAS has been in the red from 2015 to 2018 with a total loss of RM4.3 billion, according to Finance’s Minister’s reply to Dewan rakyat.

Reportedly, MAS attributed 2018’s poor performance to “crew shortage, intense competition, oversupply of capacity and volatility in fuel prices and foreign exchange”.

Observing the troubles MAS was facing in those years, it was reported in 2018 that the late Tan Sri Dr Abdul Aziz Abdul Rahman – remembered as a great man who successfully helmed MAS in the 1980s to early 1990s and soared MAS to the heights it once was – suggested the formation of a team of experts to review MAS’s operations. Abdul Aziz pointed to examples of operational issues in MAS contributing to high expenditures such as high salaries to pay the top foreign talents and senior management as well as a bad investment decision in the purchase of Airbus A380 aircrafts which were mostly grounded at that time.

Managerial incompetence leading to poor strategies and decisions could be another factor. Unlike the pandemic which hit all airlines, The Edge Markets compared 2018 performance by MAS to Singapore Airlines’ profit of S$284 million despite the challenging conditions.

According to Endau Analytics – a consulting company led by an industry expert – MAS “is beyond rehabilitation and saving until and unless certain hard-nosed decisions are made. That means the immediate removal of those who are incompetent and inept”.

However, political interference can waste even the best talents and may have contributed to the failure of past turnaround efforts. Two foreign CEOs were brought in supposedly for their expertise but the back-to-back resignation of both CEOs points to other problems at the top instead of just market forces or managerial incompetence.

Centre for Aviation (CAPA) chief analyst and chief representative for Southeast Asia Brendan Sobie informed The Edge that “the airline could potentially take another crack at reducing its costs but this can only be effective if there is no political interference”.

Despite the obvious difficulty in keeping MAS afloat, a shutdown with no revival plans is the least favourable because a lot of jobs are stake. File image

In line with the structural changes that needs to happen, it’s advisable to conduct the necessary forensic audit. Loopholes in governance such as weak or questionable procurement processes that can cause leakage in funds (and increase costs) must be identified and removed.

Despite the obvious difficulty in keeping MAS afloat, a shutdown with no revival plans is the least favourable because a lot of jobs are stake. According to the International Air Transport Association (IATA) report in 2018, air transport and tourists arriving by air supported an estimated total of 450,000 jobs in Malaysia.

Reportedly, MAS itself has around 12,500 employees at stake.

Of course, the global situation affects not only MAS but other local airlines such as AirAsia. Given that MAS was reported to mention ‘intense competition’ as one the reasons for its poor financial performance in 2018, a merger with a competitor may be conceptually sound.

That being said, brokers of this deal must ensure that the merger is fair, resulting in a structure free of political meddling, and ensure the least repercussions to employees. Similar lines of concerns were also reflected by Nufam.

Should this fail, then a sell-off - reminiscent to what happened to Proton - may be considered. But why go down this road if there is a capable Malaysian partner for a merger?

A sell-off in the current environment with a rather challenging future outlook may risk a ‘fire sale’.

Furthermore, it’s well understood that aviation business is not like the automotive business. Experts from the Institute of Air & Space Law at McGill University mentioned airline industry as a ‘tough business’ with small profit margins, high fixed costs and big capital expenditures.

Additionally, McKinsey & Company pointed to the evolving aviation technology ‘post-crisis’ towards ‘smaller long-range aircrafts’ which has the potential to bring about the “retirement of very large wide-body craft designed for hub operations, such as A380s and 747s”. How competitive will MAS’s fleet of superjumbos be in the future and how will that be reflected in its valuation?

Thus, the government may still need to play a supporting role through guidance on national strategic directions and through both direct and indirect financial aids, especially in promoting a sustainable merger between Malaysia-based airline companies and in preventing further layoffs.

We are likely to find out more on how this might look like in the coming weeks, but what can be established is that these consecutive perpetual bailouts have proven unfeasible and a more permanent solution is needed.

If any union, such as Nufam, remains unsatisfied or have their own ideas that could help, then perhaps they should be brought in any future discussions to provide their proposal on workable solutions as well.

Ameen Kamal is the Head of Science & Technology at EMIR Research, an independent think tank focused on strategic policy recommendations based on rigorous research.

** The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of Astro AWANI.

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. 

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.

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.

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.

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?

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.

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.

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