Low dispels talk he received RM500mil airbase job

Low dispels talk he received RM500mil airbase job

EXCLUSIVE
By WONG CHUN WAI, WONG SAI WAN and LESTER KONG

Friday July 30, 2010

Low: ‘I have been getting good feedback from Arabs who have invested in Malaysia’

KUALA LUMPUR: Well-connected businessman Jho Low has dispelled talk that he is involved in the redevelopment of the TUDM Sungai Besi airbase.

“I am not involved – that part I want to make clear. I understand that there are some allegations that I received a RM500mil contract for the Sungai Besi project. That is absolutely not true. I have no involvement whatsoever in the Sungai Besi project and from what I was made to understand, it is a project by 1MDB,” he said in an exclusive interview.

Low also spoke extensively about Middle East investments in Malaysia and what the country needed to do to get more Arabs to invest here.

Q: What do you think Malaysian companies can do in the Middle East?

A: Tun Dr Mahathir Mohamad had great vision when he was Prime Minister with a lot of money that was spent building Malaysian infrastructure which also resulted in Malaysian-based construction companies that have gone on to be leaders in the global construction arena.

There are now many Malaysian companies doing sophisticated construction work in Abu Dhabi, Qatar and all over the Middle East. Overall, Malaysian companies have gained a good reputation there.


Q: What was your first involvement in a government-type project in Malaysia?

A: My first was actually the Iskandar Development Region investment. A friend from Khazanah called me and mentioned that they were looking to invite some Middle Eastern investors to be the core investors and asked if I knew of potential blue-chip investors.

So that is where it started. Eventually, both Mubadala and Kuwait Finance House’s USD1.2bil entry into Iskandar was a big boost for Malaysia.

They have shown their commitment as long-term investors and it is my view that Khazanah and Iskandar Investment Bhd have done a good job.

I have heard some arguments that projects in Iskandar are behind schedule. However, I have been told by a lot of major Middle Eastern developers that it is very important that large development projects are sustainable in the long term. It is better to take your time to be prudent with careful planning and proper execution as opposed to a rush job.

The Iskandar project so far has paced itself well as a long-term project, and the critics sometimes need to appreciate the fact that the objectives of Iskandar is to achieve long-term sustainability.

Q: Have you also been asked about other Malaysian investments?

A: I had also been asked by the previous chairman of Abu Dhabi Commercial Bank (ADCB) for my input and opinion on RHB Bhd and its potential which I was very bullish on for the long-term. ADCB eventually invested a significant amount in the Malaysian bank. That is one of the key investments Abu Dhabi made in Malaysia which continues to show that Abu Dhabi is investing in Malaysia for the long-term.

Q: What about 1Malaysia Development Berhad (1MDB) and what was your role in the Terengganu Investment Authority (TIA)?

A: I was involved in the setting up of TIA from January 2009 to mid-May 2009. The Yang di-Pertuan Agong Sultan Mizan (Zainal Abidin) was kind enough to ask me to assist, given my relationship with the Middle East and insight I had on how they had set up their sovereign wealth funds.

In addition to me, there was an important committee comprising key Malaysians such as Tan Sri Azlan Zainol amongst others, who provided important guidance. There was also input from blue-chip foreign consultants and advisers.

Subsequently, as I understand from news reports, TIA was federalised to become 1MDB. I don’t play any role in 1MDB, and I did not get compensated by 1MDB or any other government-owned entities although some blogs have mentioned that I did. That is untrue.

However, I do from time to time speak to friends in Khazanah and 1MDB to get their input and ideas on how to better facilitate investments from the Middle East to Malaysia or vice-versa.

Q: How did you get to know the Yang di-Pertuan Agong?

A: His Majesty’s sister Tunku Datuk Rahimah introduced us. She is the chairman of Loh & Loh Corporation Bhd, whom I met as a fellow shareholder of Abu Dhabi-Kuwait-Malaysia Investment Corporation (ADKMIC).

Q: How did you get involved in UBG Bhd and what is the latest on the sale to Petro Saudi?

A: In January 2008, I was invited to participate as a shareholder of ADKMIC. The other investors included Sheikh Sabah, Yousef Al Otaiba, and few other prominent Middle East and local investors. I had a 10% share.

This private investment company was set up for investments in Malaysia, and it participated in the UBG transaction because we saw UBG as a good company in terms of growth and the construction business. Un-fortunately, the world was hit by the financial crisis and infrastructure jobs in UAE slowed down.

We subsequently received an offer from Petro Saudi and we decided to exit this investment. We were informed by Petro Saudi that they believed that companies like Loh & Loh and Putrajaya Perdana had good potential to expand in Arabian markets.

Q: One of the biggest problems Malaysia has is attracting FDIs. What are the things we need to do?

A: Prime Minister Datuk Seri Najib Tun Razak’s recent announcement on liberalisation have been tremendously helpful in building investor confidence for Malaysia. However, there are some investors who are taking a wait-and-see attitude to be convinced of actual implementation.

Previously, there had also been complaints about bureaucracy but this has improved tremendously. I have been getting good feedback from a lot of Arabs who are investing in Malaysia and thus I am bullish in the long-term on our ability to attract FDIs.

Attracting FDIs is not just about going abroad and doing roadshows to sell publicly-listed shares. The FDIs that Malaysia should be pushing hard to attract are those which clearly indicate a commitment for the long-term which result in real multiplier effects and benefits the country.

Malaysia can also be more effective in locking in FDIs by having a more streamlined, coordinated and systematic approach in which heads of states, government officials and private businesses target key investors and offer attractive investment propositions in strategic areas for Malaysia which maximises the short-term economic impact for Malaysia, but also fits the bill of sustainable development in the long-term.

It is also important that all Malaysians make the extra effort of explaining to investors about the potential of Malaysia and clarify some of the negative perceptions of our country.

Billionaire investors accused of making US$550mil through insider trading

Billionaire investors accused of making US$550mil through insider trading

Published: Friday July 30, 2010 MYT 12:19:00 PM
Updated: Friday July 30, 2010 MYT 12:20:10 PM

DALLAS: Famed Dallas billionaire investors Sam and Charles Wyly made US$550 million in undisclosed profits through 13 years of insider trading in the shares of companies on whose boards they served, according to a Securities and Exchange Commission lawsuit filed Thursday.

In a 78-page complaint filed in a Manhattan federal court in New York, the SEC said the Wylys held and traded tens of millions of securities in the companies and "defrauded the investing public" by misrepresenting the Wylys' ownership and trading of those shares.

"The apparatus of the fraud was an elaborate sham system of trusts and subsidiary companies located in the Isle of Man and the Cayman Islands ... created by and at the direction of the Wylys," the SEC complaint stated.

Using this offshore system, the Wylys were able to sell stock worth more than $750 million in four public companies where they served as corporate directors.

They also committed an insider trading violation at one of the companies that resulted in an unlawful gain of over $31.7 million, according to the complaint.

The complaint lists the four companies as Michaels Stores Inc., Sterling Software Inc., Sterling Commerce Inc. and Scottish Annuity & Life Holdings Ltd., which is now known as Scottish Re Group Ltd.

"The cloak of secrecy has been lifted from the complex web of foreign structures used by the Wylys to evade the securities laws," Lorin L. Reisner, SEC deputy director of enforcement, said in a statement Thursday.

"They used these structures to conceal hundreds of millions of dollars of gains in violation of the disclosure requirements for corporate insiders."

Also named as defendants in the lawsuit are the Wylys' investment attorney, Michael C. French of Dallas, who was accused of covering the operation "with a false cloak of legality that was essential both to its concealment and its execution.

Another defendant was the Wylys' stockbroker, Louis J. Schaufele III of Dallas, who was accused of using his position to conceal and misrepresent the Wylys' control over the securities and making insider trades himself.

The Wylys' defense attorney, William A. Brewer III of Dallas, called the charges "without merit" and said the Wylys "intend to vigorously defend themselves - and expect to be fully vindicated."

"At worst, the claims appear to represent an after-the-fact justification for a misguided six-year investigation," Brewer said in a statement issued by his law firm.

Attorneys for French and Schaufele had no comment Thursday.

In March, Forbes magazine estimated Sam Wyly's net worth at $1 billion. He has given generously to Republican causes and candidates, including the Swift Boat campaign that helped re-elect President George W. Bush in 2004 by tarring his Democratic opponent, Sen. John Kerry. - AP

More measures needed to attract FDI

More measures needed to attract FDI
TEE LIN SAY

Wednesday July 28, 2010


KUALA LUMPUR: Foreign direct investment (FDI) into Malaysia for the first quarter of 2010 amounted to RM5.06bil, nearly the same amount captured for the whole of 2009, said the Ministry of International Trade and Industry in a statement recently.

It is be worth noting that the United Nations Conference on Trade and Development (UNCTAD) - in its World Investment Report 2010 - last week said that Malaysia’s FDI had fallen by 81% in 2009, trailing behind the Philippines, Vietnam, Thailand, Indonesia and Singapore.

This is in comparison to FDI inflow into South-East Asia in 1980, when more than 35% came to Malaysia. Vietnam had less than 1% of the total. But this changed in 2008, with Malaysia and Vietnam attracting almost same amount (US$8bil).

Over the last three decades some structural weaknesses have appeared. The main culprit has been dwindling private sector participation, which fell to below 10% of GDP last year, compared to a high of 30% of GDP in the 1980s plus an outflow of capital amounting to RM117bil for 2008 and RM54bil for 1H 2009.

AmResearch Sdn Bhd senior economist Manokaran Mottain said that changes can be seen in the Government’s approach towards FDI - under Prime Minister Datuk Seri Najib Tun Razak’s administration.

“Several key initiatives having been undertaken, including liberalization in key sectors of the economy, like 100% ownership in 27 sub-sectors of services sector; the Economic and Government Transformation Programmes; New Economic Model and 10th Malaysia Plan to spur the economy,” he said.

Manokaran said that in order to achieve average growth of 6% as targeted in the 10th Malaysia Plan for Vision 2020, and to attract more foreign investors, the Government will introduce public-private sector partnerships, as it re-defines its role in business.

For example, Government-Linked-Company’s (GLC) and the private sector are expected to joint venture to re-develop Government land into commercial and residential projects.

“If the Government needs to boost the rate of private investment growth to 12.8% over the 10MP period, we need more affirmative policy measures as follows,” “After achieving the 10th most competitive nation status this year, we expect the Government to further revamp corporate tax policies, to further increase competitiveness with our neighbouring countries,” said Manokaran.

He added that Malaysia eeded a revamp in personal income taxes to promote incentives to work and relocation of talents/ entrepreneurial and technical skills to Malaysia.

Manokaran said that the Government can also consider other forms of incentives such as rebates, tax preferences to encourage relocation of businesses to Malaysia and provide a more competitive business environment, from manufacturing to financial Increase in job opportunities.

Other forms of incentives include further liberalising caps on foreign ownership, and providing grants and incentives to encourage Malaysians to undertake world-class research.

He added that Malaysia needs to review immigration policies to facilitate the entry of “best of brains” in fields of knowledge economy.

What a World record?

 

Taek Jho Low spent 5 million ringgit a night

 

Blogger: The writer of the above article basically commented that Mr Low's 5 million ringgit can put to good use. Actually, Mr Low is probably making US 500 million a year and 5 million ringgit is only less than 1 % of his income. He can afford it. These monies were his own money. It is none of our business. We should be more concern on the government's spending and its leakages because we are the tax payers and government's spending is our money. Don't bark on the wrong tree. To Mr Low, that 5 million ringgit might be an investment for him. He wanted to secure more consultant business so he made himself famous. Spending 5 million ringgit might get him 500 million dollar business. Who knows? Mr Low is a different class of people. He has his own thinking.

Quality is more important

 

Mahfuz: Najib should quit over FDI plunge

Mahfuz: Najib should quit over FDI plunge

Jul 26, 10 6:50pm

PAS has blamed Prime Minister Najib Abdul Razak's performance as finance minister over the drastic 81 percent drop in foreign direct investments (FDI) in 2009.

NONE Commenting on the United Nations Conference on Trade and Development (UNCTAD) report released on Friday, PAS vice-president Mahfuz Omar (left) said foreign investors are now avoiding Malaysia because of rampant graft and a questionable legal system.

"Foreign investors will invest elsewhere because they see a chronic bureaucracy, where they are forced to pay cabinet lobbyists, cabinet ministers' wives and their families," said Mahfuz in a statement.

He adds that foreign investors are also wary of the flawed legal system, citing the unresolved case of the VK Lingam video controversy, the BN takeover of Perak and the second sodomy trial of Anwar Ibrahim.

azlan"These examples gives the impression of 'law of the (jungle)' and not 'rule of law'," he said.

A CEO would have resigned

Mahfuz said that if Najib's role was to be compared to that of a chief executive officer, the premier would certainly have to resign.

"The prime minister is the CEO of a country and is responsible for bringing returns to the country... The 81 percent drop in FDI has stripped Najib of his qualifications to be premier and finance minister.

"Najib should step down gracefully to save 1Malaysia and his 'people first, performance now' slogan," he said.

Mahfuz also cites questionable management of government assets such as conglomerate Sime Darby Bhd, Federal Land Development Authority, and banking giant Maybank Bhd.

azlan"They (foreign investors) don't see the culture of accountability and responsibility," he said.

The UNCTAD report showed that Malaysia continued its downward trend in attracting FDI since 2007 and the drop in 2009 was massive compared to neighbouring countries such as the Philippines, Indonesia and Thailand.

Critics said the report had spawned red flags for the economy which needs immediate attention, while the premier and the Finance Ministry have yet to officially respond to the matter.