Malaysia Today - Your Source of Independent News
Malaysia Today - Your Source of Independent News |
- 152,000 lose study loans due to poor results
- The souring of a mega deal
- Sex, Lies and Videotape in Malaysia
- Bersih denies it’s anti-govt
- Don’t walk away from democracy
| 152,000 lose study loans due to poor results Posted: 24 Jun 2011 02:26 PM PDT (Bernama) - TEMERLOH: The National Higher Education Fund Corporation has withheld loans to 152,000 students for scoring a Semester Grade Point Average (SGPA) of 2.0 and below. The corporation's chairman, Datuk Ismail Mohamed Said, said students with poor results received loans totalling RM632mil. "But if they are able to get a SGPA above 2.0 in the next examination, the loans will be released," he told reporters after presenting loans to 100 public and private university students from the Kuala Krau parliamentary constituency in Jengka yesterday. Of the 132,180 blacklisted students who defaulted on their loan repayments, he said 12,400 had repaid the loans amounting to RM113.9mil. — Bernama |
| Posted: 24 Jun 2011 02:01 PM PDT By Anita Gabriel, The Star AN ignominous flop. That may sound harsh but it befits a deal that was trumpeted would create the most valuable Malaysian bank in South-East Asia, steered by the unwaveringly powerful Bank Negara and executed by no less than the country's top influential bankers Datuk Seri Nazir Razak and Datuk Seri Abdul Wahid Omar. As it turned out, Malayan Banking Bhd and CIMB Group Holdings Bhd's battle to take over RHB Capital Bhd, led respectively by Wahid and Nazir, which had a three-month deadline for completion took merely three weeks to go belly up. On Thursday, just one week before both banking giants' competing offers were scheduled to land on the table of RHB Cap directors, the banks revealed that they had scrapped talks and were bowing out of the merger plan. Their carefully-crafted statements to the stock exchange, this time around, did little to mask the disenchantment. Based on the expectations of key stakeholders "we do not believe that we will be able to arrive at a value creating merger ... we prefer not to prolong our discussions unnecessarily," said Nazir. Maybank's note, as terse as it was, was unusually revelatory; it said it was calling off the talks "in the light of recent developments." Little guessing was needed to figure out what that was. Wahid elaborates on the "recent developments" to StarBizWeek: "... the recent transaction has set an expectation among certain shareholders on the valuation of RHB. We believe that a transaction that will benefit all stakeholders, including our own shareholders, may be challenging to achieve based on the price expectations that have been created." On hindsight wisdom, it's near impossible to have two deals a sale of a strategic block and a wholesale acquisition involving the same entity, taking place almost concurrently without jeopardising someone's interest. Therein lay the writing on the wall. From the glass half-full perspective, an astute corporate observer appears relieved: "I'm pleased that the parties have the discipline not to push ahead when good sense dictates they should stand down. What would be bad is inspite of all these (high) expectations, they went ahead. That would show indiscipline and lack of maturity and would have done injustice to Maybank or CIMB." "What would have been ideal is to exchange the shares at realistic prices and reap the gains in the uplift of share price after the merger," he adds. The strong arm of the regulator Bank Negara's regulatory hand, guided by the overriding compass for industry consolidation, in the entire saga is hard to miss right from the start. Without the central bank's blessings (or was it cajoling?), the two banking juggernauts may not have stepped up to the plate as fast as they did to start merger talks with RHB Cap. Their almost mirrored and closely-timed statements on receiving the regulator's nod to talk to RHB Cap board and its substantial shareholders somewhat reflect this. Cementing this notion is the twin step late this week by both to bow out of the merger plans. "If one had walked out of submitting an offer while the other stayed, it would be easier to believe that the central bank had little to do with this. They were competing with each other for RHB Cap. But instead, both pulled out together, which is telling," says an observer. The merger idea was largely dictated by a single denominator the race for scale. Whichever way it swung (Maybank-RHB Cap or CIMB-RHB Cap), it could have created the largest banking group in the region in terms of market value, a clear market leader in Malaysia and bolster their overseas operations. The merged entity would have also cosied up even closer to three of Singapore's banking heavyweights, which have held the near-indomitable top three spots based on the assets in the region. Now, wouldn't that have been something to cheer about? Even so, the potential grandeur was somewhat muffled by the murky synergistic benefits and potential substantial duplication issues which could arise from the merger with either one. Credit Suisse in an earlier report had cited "substantial overlap resulting in excess staff and branches" as a key challenge in the potential merger. Given the upcoming general elections, which it said is likely in 2012, "we doubt authorities would agree to allow either bank to shed excess staff." In other words, not many were convinced by the cost synergies to be extracted from the union. It is for this very reason that OSK Research wasted no time (one day after Maybank and CIMB nixed the deal to be exact) to echo a rumour of AMMB entering the RHB Cap merger fray, given it's a better fit, hence a "marriage of equals." The local research house also expressed that it was not surprised by the turn of events: "This piece of news did not entirely come as a surprise given the fact that the proposed merger with RHB Capital was rumored to have been at the invitation of the central bank rather than initiated by CIMB or Maybank. As such, pricing and the rationale for a synergistic merger were key stumbling blocks from the start." While the central bank had steered the banking stalwarts towards a merger with RHB Cap, it was too late to stop Abu Dhabi Commercial Bank from divesting its 25% stake in the country's fifth largest bank, despite the potential red flags. Such concerns turned into grim reality over the week. The harbinger The cracks in the merger plans emerged following the RHB Cap stake sale by ADCB to another sovereign-owned agency Aabar Investment Agency PJSC on June 17. The harbinger of a doomed merger was the all-important determinant in the sale, as in any transaction the price tag. At RM10.80 a piece, the strategic block would change hands, from left to right that is, at 2.25 times the book value of RHB Capital. "It wasn't so much about the price. Remember, this is a merger involving a share swap. CIMB could have been willing to pay RM10.80 per share for RHB Cap on a fully-valued basis. In return, it would also fully value its own shares at say, RM12. Why would it undervalue its own shares while fully valuing that of RHB Cap? This in turn, would determine the swap ratio. The problem is that RHB Cap shareholders were not warmed up to such a plan as their shareholding would be significantly diluted in the enlarged entity," says an observer. Still, determined not to allow the exercise to derail the consolidation agenda, Bank Negara slapped two conditions on the deal. Firstly, Aabar must support a merger with another Malaysian bank. But it was the other condition - that the sale price be adjusted accordingly if the merger offer price came in below - which had peeved not just the Middle Easteners but also the keeper of 12 million Malaysians' retirement savings and 45% owner of RHB Cap, the Employees Provident Fund (EPF). "How can the central bank force non-market conditions on the market? If I were the regulator, I would have allowed Maybank and CIMB to submit their proposals and the RHB Cap board and shareholders to evaluate them. If good, let's merge and if bad, it will be rejected. Free market forces should reign. Not this ..." says an irate source who is close to the deal. Was the central bank right? Opinions are mixed depending on who you talk to on whether the central bank did the right thing. "You can appreciate the central bank's concern. If the transaction is done at an unrealistic price, it would jeopardise the entire merger process. That's a legitimate concern. If it really wanted to interfere, it could have disallowed the sale (of 25% in RHB Cap). Bank Negara has authority to approve all major transactions in respect of banks. This sale involved a related party transaction. It had the right to conclude that the sale, done at a higher price, was impairing the merger possibility, hence it imposed those conditions," says an astute observer. In fact, he says, there was no compelling reason to allow a financial investor like Aabar to engage in a strategic stake in a bank, drawing a parallel with buyout firm Primus Pacific Partners' purchase of a 20% stake in EON Cap in 2008. "It's a strategic block. EPF needs a strategic partner not a financial investor. ADCB was at the least, ostensibly, a strategic investor. "So, in the absence of a strategic partner, EPF needs a strategic merger ...," he says. But opponents of the central bank's "encroaching style" say it was unreasonable to set such conditions, especially as ADCB was a public-listed company (it is listed on Abu Dhabi Securities Exchange). Significant pressure and criticism was piling on the central bank due to the unpopular decision. That was the beginning of the end. And as feared, the transaction posed an insurmountable psychological barrier for the merger plans to move ahead. "Nazir's a fighter. But things were getting complicated and the truth was getting lost amidst all the spinning. Our best guess was the deal was not doable," said a source close to the deal. One meeting, two calls Those involved, particularly the regulator and bankers, were beginning to feel uneasy. Against this highly-charged backdrop, it is believed that EPF chairman Tan Sri Azlan Zainol met up with central bank governor Tan Sri Dr Zeti Akhtar Aziz and deputy governor Nor Shamsiah Mohd Yunus on Monday (June 20). According to a source, EPF felt as if it did not have enough say in the merger process. The issue of pricing was also discussed as understandably, the Fund was eager to fetch the best valuation for a bank it controlled and successfully strengthened over the years. (EPF also has a 10.4% and 12% interest in Maybank and CIMB respectively. If the deal had happened and involved largely stock, EPF could have ended up with between 17% and 20% in the enlarged entity.) According to sources, while Maybank had indicated a better offer price for RHB Cap, it was CIMB Group which was deemed a better fit with a stronger management to lead the charge for the merged entities. "Maybank was willing to bid higher. But CIMB's management made it a more compelling partner," says the source. At one point of the impasse, it is believed that an idea was floated for EPF instead to acquire CIMB although it cannot be ascertained how far this is true. "There was a counter proposal. If CIMB deemed 2.25 book for RHB Cap too expensive, then EPF could acquire CIMB for 2.65 times. It would mean a tidy exit for Khazanah and in line with EPF's investment focus on dividend and capital appreciation," says a source in the loop. The pitch failed to pique interest but it drove home the point that EPF was keen to remain on the driver's seat of a banking group. By late Monday, the deal became wobbly. "There was a risk of the merger, which was meant to enhance value, suddenly turning into a value destructive exercise. The regulator was not pleased with the direction of the whole process and had a change of heart after the meeting with EPF," said a source. The very next day, on Tuesday, sources said the central bank made two calls - one to Nazir and the other, to Wahid which would be the game changer. The regulator asked both men to pull the plug on the deal with the possibility of revisiting it some other time when normalcy resumed. On late Wednesday, sources said the Finance Ministry had finally given the consent for the deal to be called off. Merger still on the cards Even so, all may not be lost yet. Market wags expect the parties to resume talks again down the road. "It could take a further 3 months, maybe six months ... That may happen," says a source. Maybank's statement to Bursa that it has called off the talks "at this juncture" has further fanned such expectations. "Ultimately, there will be a merger but one that is fair and transparent and mutually agreed by all parties and that is value enhancing for both groups," says a source. RHB Cap's counter has had a wild ride this June. Just days after the banking giants announced their merger plans on May 30, the shares surged to an all-time high of RM9.98. In contrast and as testament that the counter's sugar rush in recent weeks was largely on the back of the potential merger, it sufferred a massive smack down this week, losing some 9% of its value or 85 sen to finish the week at RM8.75 on news that the deal has fallen out. At the current share price of RHB Cap or what one would say pre-merger talk levels, it could be a lot easier to return to the drawing board with RHB Cap's board and shareholders to discuss again merger plans. It's hard to resist the nagging suspicion could this have been part of the plan? Sadly, even as RHB Cap echoes the cliche that things are very much business as usual, it may be the most impacted from this entire debacle. The auction conducted for ADCB's stake sale earlier had drawn a bid by Japan's largest lender Sumitomo Mitsui Financial Group. But the strategic block landed on Aabar's lap instead as the ongoing merger plans with Maybank and CIMB had created some uncertainty for the prospective shareholders. Lest you forget, this could also inadvertently disadvantage EPF, whose deadline to pare down its stake in RHB Cap to 30% is looming closer. Let this episode serve as a lesson on the indelible power of a strategic block, if the "Primus case" hadn't already, especially for a sector as pivotal and ironically as highly regulated as banking. |
| Sex, Lies and Videotape in Malaysia Posted: 23 Jun 2011 08:58 PM PDT
Three who exposed Anwar video – if it was him – are happy to plead guilty Anwar's strategy may have backfired, since it allowed the three, who appeared in court Friday, to deliver what they said was an analysis by experts from Dartmouth College in the United States that the video was authentic. Thamby Chik's lawyer Muhammad Shafee Abdullah later told reporters that the experts said it was "99.99 percent certain" that the man in the video was Anwar. Asia Sentinel Three men known collectively as "Datuk T" pleaded guilty Friday in a Kuala Lumpur magistrate's court to screening a videotape in March allegedly featuring Malaysian opposition leader Anwar Ibrahim having sex with a Chinese prostitute earlier this year. The three are former Malacca Chief Minister Abdul Rahim Thamby Chik, a stalwart of the United Malays National Organization, Shazryl Eskay Abdullah, formerly a close friend of and fundraiser for Anwar, and Shuib Lazim, former treasurer of the Malay supremacy NGO Perkasa, which is closely aligned with former Prime Minister Mahathir Mohamad. The three said they had made the video to demonstrate that Anwar wasn't qualified to be prime minister. The three are Datuks, a minor honorific about equivalent to the British title of squire and the lowest level in the country's list of titles bestowed on businessmen and others. They entered the courtroom wearing broad smiles and waving to the crowd. Anwar, his family, his political party Parti Keadilan Rakyat and the opposition coalition Pakatan Rakyat have continued to insist that a stunt double made the film, which was shown to reporters under mysterious circumstances at a prestigious hotel. They have been demanding that charges of distributing pornography be lodged against the three over the video, which has since pretty much gone viral across Malaysia. That strategy may have backfired, since it allowed the three, who appeared in court Friday, to deliver what they said was an analysis by experts from Dartmouth College in the United States that the video was authentic. Thamby Chik's lawyer Muhammad Shafee Abdullah later told reporters that the experts said it was "99.99 percent certain" that the man in the video was Anwar. "Results of the analysis by experts from Dartmouth College, Handover, New Hampshire in the US verified the authenticity of the video, that there was no tampering or any act of super-imposing and that it originated from a DVR camcorder taken from Datuk Shazryl," deputy public prosecutor Kamalluddin Md Said was quoted as saying in local media. Anwar's allies insist that whether the video was or wasn't tampered with, it wasn't Anwar in the picture. In fact, the video so far appears to have done little damage to Anwar's reputation. He has been ensnared for months in a long-running trial for allegedly having homosexual sex a then-23-year-old aide. He was imprisoned for six years on similar charges in a trial that is universally regarded as having been trumped up.
|
| Posted: 23 Jun 2011 08:34 PM PDT
... if the government is for free and fair elections, says Haris Ibrahim in FMT RAW's maiden broadcast "If the government is going to wake up to the need to clean up, and effect these reforms, why would anyone be against the government? We say again and again, Bersih is not pro-Pakatan Rakyat. Neither are we anti-Barisan Nasional. We are pro-reform." He said Bersih sent invitations to both sides of the political divide, but "it's not our fault if BN chooses to stay away". Teoh El Sen, Free Malaysia Today A Bersih 2.0 leader today sought to correct a misconception that the movement is anti-government. "If the government stands for free and fair elections, then we are not anti-government," said Haris Ibrahim, who sits on the steering committee of Bersih 2.0. "But if the government is going to stand in the way of free and fair elections, we are against anyone who is against free and fair elections." He made his remarks in an interview on FMT RAW, a half-hour online broadcast that made its debut at 3pm today. Deputy Prime Minister Muhyiddin Yassin recently accused Bersih of having a "dirty political agenda" in its plan to rally Malaysians for a "Walk for Democracy" on July 9. In the interview with FMT reporter Stephanie Sta Maria, Haris said the conduct of the recent Sarawak election underlined the need for electoral reform in Malaysia. He added that a post-mortem showed that "it was corruption upon corruption upon corruption". Elaborating on Bersih's purpose, he said: "We are just acting against anyone acting against the interest of the rakyat. We have eight simple demands. I think they are all legitimate demands. "If the government is going to wake up to the need to clean up, and effect these reforms, why would anyone be against the government?" "We say again and again, Bersih is not pro-Pakatan Rakyat. Neither are we anti-Barisan Nasional. We are pro-reform." He said Bersih sent invitations to both sides of the political divide, but "it's not our fault if BN chooses to stay away". nOujvlBn5bE SEE VIDEO ON YOUTUBE HERE: http://www.youtube.com/watch?v=nOujvlBn5bE Pre-emptive arrests He renewed his invitation to all parties to participate in the rally. "Join us," he said. Referring to plans by Perkasa and Umno Youth to hold their own rallies, Haris said he respected their "right to peacefully assemble and I hope they respect ours". However, he accused the two organisations of attempting to taint Bersih's objectives with their racial rhetoric. "Every time they get involved in something like this, they bring in the race issues." But he added: "Malaysians are more mature, and are not so easily swayed by race rethoric, thank God." On the possibility of police action against the rally, Haris said Bersih was hoping that the police would realise that their function was to facilitate. "Article 10 of the Federal Constitution guarantees the rakyat the right to peacefully assemble," he said. It supersedes the Police Act, which was enacted by Parliament.
|
| Don’t walk away from democracy Posted: 23 Jun 2011 04:16 PM PDT
The Bersih spirit will live long enough to surface again with greater force when the whole country walks to the polls for democracy. It is unlikely that Bersih will light the fuse to blow up the country. Trouble makers like Perkasa and all those self-anointed sentinels who have lodged police reports are more likely to do the incendiary job. The government's "goon squads" have always disrupted peaceful forums in the past while the law enforcers stood idly by. Editorial, Free Malaysia Today There is nothing wrong if tens of thousands take to the streets in a stroll for democracy, come July 9. It is the right of citizens to express their displeasure when the government of the people, by the people, for the people becomes a government of the few for the few. People elect politicians to high office on the understanding that they will respect all the venerable institutions that govern the lives of the people. When the elected misuse their powers and undermine the vital organs of the government, they have lost the right to stay in office. There are two ways to punish political perverts who have raped democracy: vote them out or take to the streets. The ballot box is the ideal choice, but the date with destiny has not been fixed. In the meantime, the people can send a strong message to the recalcitrant government to mend its ways – by taking to the streets. The streets are the most effective platform to bring a wayward government to its senses. They are better than pumping fists or making pointless speeches in the stadiums. Stadiums are meant for concerts, football matches, circus shows. More often than not, a new country is born in the streets. But this is not a "spring offensive". The walk for democracy is not designed to overthrow the government by violent means or to whip up public hysteria. Its aims are simple: "to press for electoral reform, take a stand against corruption and strengthen public institutions". It is not a cheap tactic to gain political mileage. The Coalition for Clean and Fair Elections (Bersih) is a civil movement fighting for these causes that the government has long ago abandoned. It has become the voice of the people and has taken up the cudgels on their behalf. Unfortunately, the picture has been deliberately muddled by the government to make demons out of the organisers of the peaceful march. If you believe the government's tall tale, the rally will create chaos and in the ensuing mayhem, the whole country will slide into anarchy. Foreign investors will take to their heels and all those grandiose economic plans will lie in ruins. People will suffer and perhaps die of starvation. It is unlikely that Bersih will light the fuse to blow up the country. Trouble makers like Perkasa and all those self-anointed sentinels who have lodged police reports are more likely to do the incendiary job. The government's "goon squads" have always disrupted peaceful forums in the past while the law enforcers stood idly by. Instead of clamping down on the interlopers, the organisers were given the stick. Any attempt to show up the weaknesses of the government were foiled by thuggish third parties. Yet again, the government is displaying the same pattern of loutish behaviour when Bersih announced it will take its peaceful fight in the open. It tacitly encouraged the trouble makers to jump into the fray and organised its own rally. Right on cue, the seemingly concerned ministers raised the alarm that the country is heading towards the brink with two opposing rallies on collision course. Perkasa, helmed by an addled brain demagogue, and all the other like-minded dimwitted firebrands are determined to turn the walk for democracy into a run for life.
|
| You are subscribed to email updates from Malaysia Today - Your Source of Independent News To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
0 ulasan:
Catat Ulasan