Klik GAMBAR Dibawah Untuk Lebih Info

Sumber Asal Berita :-

Malaysia Today - Your Source of Independent News

The journey in life is never a straight line (PART 11)
The journey in life is never a straight line (PART 10)
The journey in life is never a straight line (PART 9)
The journey in life is never a straight line (PART 8)
The journey in life is never a straight line (PART 7)
The journey in life is never a straight line (PART 6)
The journey in life is never a straight line (PART 5)
The journey in life is never a straight line (PART 4)
The journey in life is never a straight line (PART 3)
The journey in life is never a straight line (PART 2)
The journey in life is never a straight line (PART 1)

The journey in life is never a straight line (PART 11)

Posted: 03 Dec 2012 06:33 PM PST

It was a win-win situation. The Minister got to hand over RM6 million worth of engines to the fishermen. The fishermen could get delivery of the engines only when they needed them and not too early. I got my RM6 million order although I did not yet have RM6 million worth of engines in stock. And Barisan Nasional won 34 of the 36 seats in the Kelantan State Assembly leaving PAS with only two seats -- the first time since Merdeka that Umno ruled Kelantan (at least for 12 years until 1990 when they lost the state again to PAS).

NO HOLDS BARRED

Raja Petra Kamarudin

By 1977 I already owned my first Mercedes Benz, a light blue 204D. A Mercedes is a mark that you have 'arrived'. Nobody would take you seriously if you drove a Fiat like me. That is a playboy's car. So I brought a Mercedes, which I brought second-hand from the Speaker of the Terengganu State Assembly who was given a state car -- so he no longer needed to keep his old car.

I paid RM30,000 for that car, quite pricey for a second-hand or used car. But I was paying for the number more than for the car (TC 848), which the Chinese appeared to like a lot. (They say it means prosperous and even after you die still prosperous -- which means prosperous for many generations). In fact, Dato' Salleh Speaker (that's what they called him) wanted the number back but I told him that I only wanted the car if it came with the number.

That was the car I drove up and down Malaysia and to every fishing village in Terengganu and Kelantan. They just needed to see that car on the horizon when they would shout, "Taukay Yanmar datang!" That car practically became my trademark. And they knew that the owner of that car could give them loans to build their fishing boats and to buy the engines and/or fishing nets.

I suppose I was like Santa Claus coming to town. And I made sure that all those who came out to greet my arrival walked away with something -- caps, T-shirts, calendars once a year at the end of the year (showing half-naked Japanese girls -- a girl for each month of the year), and so on. (Trust me, when it comes to half-naked girls, those Malay fishermen are no racists).

I would walk into the favourite watering hole of the fishermen just off their shift or about to go on shift and would tell the coffee shop owner that everything was on me. No one left that coffee shop having to pay for what they ate and drank. This was not just about marketing my Yanmar engines. This was about 'winning an election' -- me, the new kid on the block, versus the 'old boys'.

It was no longer enough that I was Taukay Yanmar. I had to be the Taiko of the Taiko, meaning the Taipan. And little did I know that in a mere few months I was going to become the Taipan Yanmar and would 'clean up' the market and monopolise the entire industry.

They say 'man proposes but God disposes'. And I learned the real meaning of that phrase that same year, November 1977 to be exact. And this is how the story goes.

In 1973, Barisan Nasional was formed and PAS, an opposition party, decided to join the ruling coalition. Three years later, PAS decided that the relationship with Umno was not working out so they decided to leave Barisan Nasional and go back to being an opposition party. Hence Kelantan, which was part of the ruling coalition, now became an opposition state, the only state under the opposition (since Gerakan still remained in Barisan Nasional).

Umno needed to grab Kelantan. But first they needed to bring down PAS.

A no-confidence motion against the Menteri Besar was tabled in the Kelantan State Assembly. 20 PAS State Assemblymen supported the motion while the 13 Umno and the solitary MCA assemblymen walked out in protest.

However, Mohamad Nasir, the Menteri Besar, refused to resign. He then requested the Regent of Kelantan to dissolve the State Assembly to make way for fresh state elections. His Highness refused and Mohamad Nasir's supporters retaliated by demonstrating in the streets resulting in violence, looting and burning.

(Actually, this whole thing was engineered by Hussein Ahmad, the Umno Kelantan warlord, but made to appear like it was a PAS 'internal conflict'. And the 'looters' and 'rioters' were gangsters brought in from Thailand).

On 8th November 1977, His Majesty the Yang di-Pertuan Agong declared a state of emergency in Kelantan. The State Assembly was suspended and the Emergency Powers (Kelantan) Act 1977 was passed by Parliament the following day giving the Federal Government power to govern the state.

In March 1978, state elections were held in Kelantan (more than three months ahead of the July 1978 General Election). PAS was successfully toppled and Umno took over the state (and held it for 12 years until 1990 when PAS-Semangat 46 ousted Umno).

Now, at this point, some of you would probably be asking: what has all that got to do with me? Well, as I said earlier, man proposes but God disposes.

Meanwhile, a month after the Kelantan Crisis, on 4th December 1977, Malaysia Airlines Flight 653 crashed in Tanjung Kupang, Johor, and in that tragedy the Minister of Agriculture, Ali Ahmad, and a few of his senior officers were killed. His Deputy, Sharif Ahmad, was then appointed the new Minister of Agriculture with Khalid Yunos as his Political Secretary.

Kelantan was about to face a state election in March 1978 followed by the general election soon after that in July. And Umno wanted to make sure that it won both Kelantan and Terengganu, strongholds of PAS. And the critical task of ensuring that the fishermen in both these states voted Umno -- who form a very large number of the voters -- was given to the new Minister of Agriculture.

So they needed to 'buy' the goodwill of the fishermen voters. And to buy this goodwill they needed to give them engines, fishing nets, boats, and whatnot. Basically, they needed Santa Claus to go around the fishing villages with handouts.

The Minister then asked his Political Secretary to find out who the biggest Yanmar engine supplier was. And everywhere they asked the name Raja Petra popped up. In January 1978, out of the blues, Khalid Yunos phoned me and asked me to go down to Kuala Lumpur to meet up with him and his Minister.

I was, understandably, extremely surprised. Never in my life has any Political Secretary phoned me to ask me to make a trip to KL to meet his boss. Very nervously I reported to the Minister's office.

The meeting was about only one thing. They wanted to know how many Yanmar engines I had in stock. I asked them how many they needed. They gave me the figure and it was huge. I would need at least a year or more to supply everything they wanted. But they wanted all that supplied within just two months, a month before the March 1978 Kelantan State Election.

Whether I got the business or not depended on whether I was able to supply their RM6 million or so order in a mere two months. I could not do it, of course, but I told them that I could.

I got the order and went home wondering how I would supply the engines in two months. They then sent me the schedule of delivery. The Minister would be touring from fishing village to fishing village over a period of a month to personally hand over the engines to the fishermen in a handing over ceremony. It was going to be a big show. And my engines were going to be the centre of attraction.

I almost had a heart attack. All I could put together was one lorry-load of engines, not the 20 or 30 lorry-loads like what they wanted. Hence I would have to perform a sort of magic trick to pull the wool over everyone's eyes.

I knew that the fishermen did not really need the engines delivered by February or March 1978. Some were halfway through building their boats while some had not even started construction yet. So, realistically, they would need the engines delivered in six months time or maybe even in a year or 18 months.

I went to meet the fishermen and told them that the engines come with a warranty. But the warranty starts from the day they take delivery of the engines. So better they take deliver only when they needed the engines or else the warranty would be 'wasted' and may even expire before they can install the engines into their boats. As a 'mark' or 'token' of delivery we would hand over just the propellers.

The fishermen agreed and on the day of the handing-over ceremony we parked the lorry-load of engines in front of the stage and handed over the propellers to the Minister who then handed them to the fishermen as a ritual of handing them the engines. We then drove the lorry to the next venue and the following day we did the same thing.

The same lorry was sent from fishing village to fishing village. Actually, it was only one lorry made to look like it was 20 or 30 lorries. No one noticed that the lorry had the same registration number or even bothered to check the serial numbers of the engines on the lorry.

Our explanation to the Minister was that the engines were too heavy to lift and we would need a crane to lift them (which was true). So better he just handed the propellers to the fishermen -- which in itself were quite heavy already. In fact, the Minister could not lift the propellers all by himself. He needed two other people to assist him.

And that was the day my friends called me 'The Six Million Dollar Man', a popular TV series at that time. I suppose, in business, you need to show confidence and pretend that you know what you are doing and can handle any assignment they give you even when you do not have the winning cards in your hand. After all, is that not how poker is played?

And now do you know why I do not want too clever people to become Ministers? I could never pull something like that off if smart people ran the government.

TO BE CONTINUED

The journey in life is never a straight line (PART 1)

The journey in life is never a straight line (PART 2)

The journey in life is never a straight line (PART 3)

The journey in life is never a straight line (PART 4)

The journey in life is never a straight line (PART 5)

The journey in life is never a straight line (PART 6)

The journey in life is never a straight line (PART 7)

The journey in life is never a straight line (PART 8)

The journey in life is never a straight line (PART 9)

The journey in life is never a straight line (PART 10)

The journey in life is never a straight line (PART 10)

Posted: 02 Dec 2012 04:07 PM PST

So, no, I did not make my first million getting contracts from the government, as many people may have thought. I did it by changing the way we did business in the fishing industry. In time, the 'old boys' no longer regarded me as a wet-behind-the-ears new kid on the block. And imagine my pride when the 'old boys' who had been in business before I was born offered me Chinese tea and called me 'boss'.

NO HOLDS BARRED

Raja Petra Kamarudin

I was the new kid on the block. I was only 24 years old. And I was trying to break into the market that is older than I have been alive. And it is a very Chinese dominated market, too, on top of that.

After Michael Toh agreed to create Account A and Account B, I had to now take over the business from my partner who had been running it before me. It is not that I wanted to. It is that Michael had agreed to suspend all my debts and will allow me to stay in business only if I took over the business and ran it myself.

I confronted my partner. I knew I would never get my money back but at least I could oust him from the company. And he agreed to sign all the papers and I took control of the company. Once I took control of the business I now had to make it viable.

I drove up and down Terengganu and Kelantan and visited every single fishing village, even the most remote village along the Malaysian-Thai border. In the beginning it was just that -- 'study tours' of sorts. I needed to not only learn the trade, which I knew nothing about, but I also needed to get to know my potential customers.

Most of them were very nice and humble people. Many were simple fishermen. Some were fishing taukays who had started life as fishermen and now owned a fleet of fishing boats that were operated by other fishermen on a profit-sharing basis.

It was almost like the serf system that the peasants of Europe were subjected to 200 years ago except that they were free to terminate the arrangement any time they wished to and would not be put to death if they 'ran away'. The majority were Malay taukays but there were many Chinese as well although Terengganu and Kelantan were predominantly Malay states.

Breaking into the market was not that easy. These fishermen or fishing taukays had a decades-old relationship with the 'old boys' who had been around even before I was born. Some of the players had been dealing with each other since the first generation so we were now talking about the second generation that had inherited all this 'goodwill'.

I discovered that 'old ties' meant a lot in business. People were not prepared to sever old ties and transfer their business to a still-wet-behind-the-ears new kid of the block. I had to earn their respect and confidence. I had to have something new and something better to offer before people would end 20- or 30-year old relationships and deal with you instead.

I was beginning to wonder whether my effort was futile. An added problem was I could not beat their prices. I was puzzled as to how the other dealers could sell at cost. And if I wanted to beat their prices I would have to sell below cost. This would have been disastrous.

Then I discovered that the others could sell at cost because they were getting 90 days credit and they just wanted the quick cash. They collected cash in advance before they ordered the engines. That gave them an additional 30 days. Then they would 'drag' their payment and get an additional 30-60 days. Then they would pay by post-dated cheques.

All in all they got to use the cash for roughly six months or so. They then lent this cash on a '10-4' basis. Basically, it was a loan-shark operation and it worked like this.

Petty traders who needed quick cash -- and they could not get it from the bank for obvious reasons -- would borrow, say RM2,000, from these money lenders. The borrowers would be charged 4% interest a month or 48% interest a year. (That is why they called it '10-4').

They would then receive the RM2,000 minus the interest. Hence they would not receive RM2,000 but just slightly over half the amount. But the 48% interest a year is charged on RM2,000, not on the RM1,000 or so that they receive.

It was a real cutthroat business (hence it is called 'loan shark' business). And that was why they did not care whether they made any money on the sale of the engines. They were not interested in making money on the sale of the engines. They were using the engine business to raise cash and it was by lending out this cash that they made money.

And we must remember that the cash was 'free', at least for six months.

I needed an incentive to get the fishermen and fishing taukays to give me their business. My competitors were selling for cash. I needed to sell on credit. But I was 'broke' so how could I do that?

One day I saw an advertisement in the newspapers. It was an advertisement by M&F, a finance company wholly-owned by the Hongkong and Shanghai Banking Corporation (now called HSBC). I wrote them a letter applying for finance facilities.

The Kwailo running M&F phoned the Kuala Terengganu branch manager of the HSBC to ask him whether he knew whom I was. "I think he may be an old school friend of mine from MCKK," replied the branch manager.

The HSBC manager then phoned me to confirm that I was from MCKK. I replied that I was and he was delighted. "But how come you are not banking with us?" he asked. "I want you to open a bank account with us today."

I went over to the bank and opened an account. In those days you needed RM1,000 to open a company bank account so, invariably, I had to pawn some of Marina's jewellery to raise that RM1,000. I have to admit that walking into a pawnshop was a most embarrassing experience.

A few days later, the Kwailo made a trip to Kuala Terengganu to meet me. He was not only very pleased that the HSBC manager was an old school friend of mine but when he found out that my mother was from his same 'kampong' in London he was so delighted. (Soon after that he visited my mother for Hari Raya and invited her to the Paddock in the Kuala Lumpur Hilton for dinner, with Marina and I as well, of course).

The Kwailo told me he will start us off with RM200,000. Once that is fully used up he would increase it. Eventually I was rolling with RM2 million of the bank's money, a king's ransom 40 years ago.

There was another issue to resolve first, though. The fishing boats that we were going to finance needed to have insurance. But no one in Malaysia does fishing boat insurance. I searched high and low but could not find a company that would issue insurance for fishing boats. It was too high risk.

Unless I could find a company that was prepared to issue insurance for fishing boats my deal with M&F would never get off the ground.

I approached a friend of mine who was one of the leading insurance brokers in Terengganu. He had never heard of any company doing fishing boat insurance but he promised me if there was then he would be able to find one. However, it would all depend on the amount of business I expected.

I promised him RM1 million a year in business (insured value) and fully secured. (Actually, I tembak only because I did not know, but I had to 'play poker' to entice them with the belief that the 'stakes' were going to be very high.)

I then laid out my plan. I would take land from the fishermen as security (almost all the fishermen had land) and with this land as security I would underwrite any potential loss that the insurance company would suffer in the event of a claim. (In all that time we suffered only one claim, less that 1% of the total premium we collected over those many years).

So now I was not only in the engine financing business. I was also in the fishing boat financing business as well as the fishing boat insurance business. I not only gave out 100% financing on the engines. I also financed 50% of the cost of the construction of the boats. Sometimes I even financed the fishing nets, which at times could be more expensive than the fishing boats.

But all this must be backed with insurance plus land, which I valued myself and took at the lower value. Hence if they defaulted I would be able to sell off the land at twice what they owed me. In all that time I never once had to sell off any land to recover what they owed me.

Overnight, our modest business became a multi-million business. I soon had millions floating in the market -- all the bank's money, of course. Each deal gave me a profit of 30-40%, although collectable over 3 years. And from that day on the fishermen in Terengganu and Kelantan knew me as 'Taukay Yanmar'.

Fishermen and fishing taukays lined up to see me, not to buy engines from me but to obtain loans to finance the construction of their fishing boats. However, to qualify for the loan, they would first need to buy their engines from us. And they no longer cared about the price of the engine. I was pricing my engines 25-30% higher than my competitors. But my competitors collected cash in advance. I allowed my buyers to pay me monthly over three years.

The only thing is, I did not charge loan shark rates, though, because we were bound by Bank Negara's rules, which was 10% per year fixed-rate interest, which more or less came to 18% per year based on reducing rate.

Eventually, some of the fishermen offered me shares in their fishing boat. They felt honoured to have the Taukay Yanmar as their partner. At the 'height' of my fishing business I had a stake in no less than five fishing boats. And we ate fresh fish every day because the fish were delivered to our house straight from the fishing boat.

And the irony of this whole thing is I did not like fish. I only ate chicken and beef. Nevertheless, one can't say that my business dealings were not 'fishy'. Whatever it may be, though, that resulted in me making my first million within just three years.

That was worth more than the money I was making. I suppose when money is no longer the criteria you aspire for recognition.

And I never realised the goodwill I had made until I returned to Kuala Terengganu in 2008 to campaign in the Kuala Terengganu by-election. Those who I had known back in the 1970s and 1980s still called me 'boss', even 20 or 30 years later, and they voted for Pakatan Rakyat (PAS) just because 'the boss said we must vote for PAS'.

And when the by-election result was announced I cried like a baby because it was not just about winning the by-election but about the people who voted for PAS did so because I wanted them to. (I think Eechia took a photo of me sitting there and crying).

Ah well, I am a sentimental old fool, am I not?

TO BE CONTINUED

The journey in life is never a straight line (PART 9)

Posted: 01 Dec 2012 07:17 PM PST

My father now had no choice but to buy me that motorcycle he had promised me. And I became the 'King of the Road'. My father received countless complaints from the police and I crashed 12 times during the first two years. My father was so pissed he told me if I want to race then go race in the Malaysian Grand Prix. And in 1968 I did, with my father as my 'pit crew' and timekeeper.

NO HOLDS BARRED

Raja Petra Kamarudin

I had my first girlfriend when I was nine. Well, it was not actually a girlfriend in the hold-hands sort of way. It was more like I would hand her a love letter in class and she would hand it to the teacher.

If you were to ask me when I would consider as my most embarrassing moment in life, I would probably have to reply that that would be when my teacher showed my love letter to another teacher and they both looked at me and giggled.

I was in the Alice Smith School at that time (then behind the Agong's palace and near NAAFI) and the girl of my dream was Sarah Chin. Alice Smith was a Kwailo school and there were only three Asians in that school, two Chinese and one Chap Chong Kui, me.

Invariably, my parents were informed about my 'indiscretion'. I still remember the beam on my father's face as he told my mother, "That's my son," and she responded with, "A chip of the old block, for sure."

It was then that I received my first lesson in philosophy: right and wrong are subjective and mere perceptions.

Actually, my father was more buddy than dad to me. For example, when I raced in my first Grand Prix in 1968 (the Malaysian Grand Prix), my father was my timekeeper. As I did my practice laps, he would record each lap with a stopwatch.

In another incident, my class teacher in VI (Victoria Institution), Miss Siew, who also taught us English, complained to my father that every day I sleep in class. There was not a single day she did not catch me sleeping.

My father came home to tell me about the meeting he had with Miss Siew and about her complaint regarding me perpetually sleeping in class all day long. "Miss Siew is so pretty," said my father, "I just can't understand how you can sleep when she teaches."

I never did understand the relationship between the first part of that statement and the second part.

When I took Marina (now my wife) out on our first date, my father chauffeured the car to take us to the dance (since I was only 17 and did not yet have a driving licence -- although I already had a motorcycle licence). He insisted that I sit behind with Marina, who was then 14, like how it should be when you are chauffeur-driven to a dance and are on your first date.

He then fetched us after the dance and when we reached Marina's house in Brickfields he stopped the car on the corner and did not drive right up to the house.

Marina got out of the car and after the usual exchange of pleasantries she was about to close the car door and walk off when my father said to me, "You are not going to allow her to walk all alone are you? Go walk her to the door."

I was too dumb to realise that my father was giving us some privacy so that I could attempt a good night kiss or something like that. It did puzzle me at first as to why he stopped the car so far from the house.

Anyway, I was not really too interested in girls after that very embarrassing disaster involving the love letter. My real passion was motorcycles.

I rode my first motorcycle when I was ten, a Honda Cub 50cc. This was when I visited my grandfather during the school holidays, who was then the Governor of Penang. I blasted down the Residency grounds and my grandfather was furious. He called motorcyclists 'temporary citizens', probably meaning they die too early.

I kept bugging my father to buy me a motorcycle and after constant nagging he said he would get me one only if I were to pass my LCE (form three) exams. I don't think he expected me to pass my LCE exams because the headmaster, Murugesu, had written in my report card 'the least likely to succeed'. Furthermore, other than perpetually sleeping in class, I failed all my monthly tests and trial exams

When the results came out and were displayed on the notice board, my father scanned through the list of 'fails' but could not find my name. He then looked at the 'C' list and still could not find my name. The 'B' list also did not reveal my name.

"Did you sit for the exam or not?" my father asked me. I then asked him to look at the 'A' list and he gave a grunt that sounded like 'hmph' or something like that. However, lo and behold, my name was on the 'A' list.

"How the hell did you do that?" my father asked, "Did you cheat?" He could not understand how, from primary school right up to form three, my school reports were so bad and yet I passed both my 11-plus (standard six) and LCE exams and got 'A' on both occasions.

It was then that my father probably realised that I was not one for academic excellence but put me through the test and I will sail through with very little effort.

In 1968 I was already 'going steady' with Marina and she refused to support me or go see me race. In fact, she was very angry with my father for encouraging me. When I crashed and broke my left wrist my father drove to Marina's house to inform her that I was in the University Hospital.

Marina refused to go see me in hospital and my father had to beg her, "Please lah. He is in great pain. Go visit him in hospital." Marina finally agreed but only so that she could gloat and tell me, "I told you so." Until today, "I told you so" is my favourite phrase, in case many of you have not realised this by now.

Marina was fiercely anti-motorcycle. It took a year before she would agree to climb onto the back of my motorcycle. She realised that to love me means you have to also love my motorcycle. Our wedding vows were probably the only one that went "To love, honour and obey Raja Petra Kamarudin and his motorcycle and till death do you part."

I suppose Marina's main concern was that the 'till death do you part' part of that vow may come earlier than planned if you only know two speeds -- full speed and full stop.

Actually, Marina and I met quite accidentally, almost literally, when I almost knocked her down with my motorcycle. I was tearing down the road at full speed and she was running across the road to catch her school bus. I hit the brakes and skidded while missing her by inches. She let fly with a few choice four-letter words (and I don't mean U-M-N-O) and I shouted, "Stupid girl! Nak mati ke?"

I suppose most people will relate their story of love at first sight while ours was love at first fight.

TO BE CONTINUED

The journey in life is never a straight line (PART 8)

Posted: 30 Nov 2012 07:02 PM PST

I really did not care too much whether Anwar was going to spend the rest of his days in jail. I felt he deserved jail anyway, if not for sodomy at least for helping Dr Mahathir screw up the country and for making his friends and family rich. But Anwar had started something here, which could be useful to the cause of unseating Dr Mahathir and kicking Umno out. So why not ride on that Reformasi wave and take advantage of it?

NO HOLDS BARRED

Raja Petra Kamarudin

By mid-1990 I had already wound down most of my businesses or sold off those that could be sold. Fortunately, that was just two years or so before the 1997 Asian Financial Crisis. The bankers I met told me I must be a genius to be able to anticipate this crisis two years before it happened and to get out of the market in time.

The truth is I just no longer had any interest in business. Business sickened me. I felt nauseous when I looked at my business.

Nevertheless, I did not correct this misperception by the bankers. I allowed them to continue to think that I am a genius who anticipated the 1997 Asian Financial Crisis two years before it happened when even the world's best economists could not see that -- or even Malaysia's greatest leaders such as Tun Dr Mahathir Mohamad and Anwar Ibrahim.

A friend of mine told me that my enemies had got a bomoh (witch doctor) to charm me with black magic ('kena buat', as the Malays would say) so that my heart 'turned' and I felt 'sick' with business. And that is why I just write and write and neglect my business, my friend said.

That was quite true. I did feel sick with business and I was writing and writing, day in and day out. But I am not too sure whether this was because a bomoh had 'buat' me. Anyway, I have seen stranger things in my 62 years, some which defy explanation. I would like to believe, though, that there were no magic spells involved in my 'change of heart'.

Just to digress a bit, another friend told me that every time I came near him he felt that something was 'wrong' (ada tak kena). He said he suspected I 'kena buat orang'. He insisted he take me to meet a 'gifted' person who is known to have the ability to exorcise 'demons' from 'orang kena buat'.

I have always been a curious person who would not hesitate to try anything new, at least once. So I agreed to the exorcism. The 'exorcist' just touched my big toe lightly and I began sweating profusely and wailed like a banshee. My friend could not stand the sound of my screaming so he left the room. He later told me that the scream did not sound like me one bit. It was a most unusual scream that did not sound human at all, he told.

I am not one to believe in the supernatural. But there you are. Believe it or not, that happened, and I still do not know what to make of it. The church, however, believes in such things, as do the majority of Muslims. As far as I am concerned, though, I had found my new 'calling' -- a political activist cum political writer -- and I found this life more interesting than the life of a businessman, something I had been for 20 years.

I think, at 45, I just needed a change, that's all. Call it mid-life crisis if you wish. Or maybe it was because I was almost the same age as when both my parents died so I wanted to do something different before I died. Or call it possession by demons, if you also wish. Your choice!

Anyway, back to the issue of my businesses. For companies like Maroda Sdn Bhd, the Mercedes Benz dealership, I sold my interest to my partner. That was actually a very profitable company and what I regarded as my 'flagship', as I mentioned in the earlier episodes of this series of articles.

I did not make any profit on those shares I sold to my partner. In fact, I made a loss because I transferred my shares at RM1 per share even though I had held on to those shares for more than ten years and a Mercedes Benz dealership is worth at least a million or two in 'goodwill'. Nevertheless, I took a 'haircut' because my partner could not possibly have forked out RM1 million or RM2 million if I had asked him to pay me that.

I practically 'gave' that company to my partner, a result of my disgust regarding the state of affairs. Hmmm…or maybe it was my partner who had got the bomoh to buat me. (Joke only lah).

Another factor that prompted me to sell off my shares in Maroda is the fact that my partner was an Umno man and he was facing a lot of problems from Umno for partnering with an opposition supporter, meaning me. In fact, Umno was lobbying Cycle and Carriage to terminate Maroda's dealership and to give the dealership to an Umno company. Hence, if I had stayed his partner, Maroda would have probably lost the agency anyway.

In fact, Umno had been trying to block Maroda from getting the Mercedes agency since 1980. Shahrir Samad, the then Deputy Minister of Trade and Industry, can confirm this because he told my partner so. To be fair to Shahrir, though, he did not do what Umno asked him to do -- to deny Maroda the agency. So not all Umno people are scumbags -- at least not Shahrir Samad, whose brother, Khalid Samad, is the current PAS MP for Shah Alam.

By mid-1998 I was totally retired except for a bihun (fine noodles) factory that I still owned. But I was not involved in the running of that factory. I had a manager to take care of it.

The bihun manufacturing business was not too bad, although you can't become a millionaire in that business -- because it was very competitive and monopolised by the Chinese. Around 50% of our market was our own branding while the other 50% was contract manufacturing -- which means we manufacture for others.

You can't really make money in contract manufacturing because the selling price is too low. But it allowed you to cover your fixed costs such as salaries, etc. Hence you can make a decent profit from your own brand -- which you can sell at a higher price -- and since the fixed costs are already taken care of you only need to worry about the variable or material costs.

1998 was also the time that Anwar Ibrahim was sacked from Umno and the government -- 2nd December 1998 to be exact. And that was a day of celebration for me.

You see, over the three years before that, I had been whacking Anwar Ibrahim kau-kau. I condemned him and even exposed his wrongdoings and revealed details of how all his cronies and family members were getting rich. My 'flagship' article was called 'The Rise and Fall of Anwar Ibrahim', which was published in Harakah, the party organ of PAS.

Anwar's people were, understandably, furious.

In that article I had predicted Anwar's downfall. I also revealed why he was going to fall. I revealed that Anwar was plotting behind Dr Mahathir's back and that the old man took two months leave and appointed Anwar the Acting Prime Minister as a trap for Anwar to walk in to. I then predicted that Dr Mahathir would make his move on Anwar and would finish him off, once and for all, once he returns from his two months leave.

Hence, when it happened exactly as how I predicted it was going to happen, I felt that that was a cause for celebration. I was right and now I could tell everyone, "I told you so!" And when Anwar launched his Reformasi Movement on 2nd September 1998, culminating in the massive rally at Dataran Merdeka on 20th September 1998, I did not 'go to the ground'. I stayed home and watched Anwar get demolished by Dr Mahathir.

It was when I saw Anwar's black eye and we were told that he was handcuffed, blindfolded and beaten up by no less than the IGP himself that I became outraged. I was also quite surprised by the massive turnout at Dataran Merdeka on 20th September. It was then that I realised that Anwar had created a wave of dissent and that there was a strong likelihood the Reformasi Movement could be a platform for our opposition to Umno.

Okay, maybe my reasons for rallying to Anwar's side were less than noble. It was not so much to see justice for Anwar (who did not understand the meaning of the word anyway) but to 'use' Anwar, the new icon of dissent, to further our own cause, which I had personally been involved in since the 1970s. Anwar was using us anyway to fight the system that he was once part of and which he exploited for his own interests. Hence, since he was using us, it was not unfair if we too used him. It was a win-win situation, as they would say today.

So I decided to come out and become active in the Reformasi Movement. But then that triggered other problems for me. My bihun customers began cancelling their contracts. They were under pressure to kill our business.

I met up with the GM of our biggest customer, Anwar Ibrahim's schoolmate in the Malay College Kuala Kangsar (MCKK), and he advised me to remove my name from the company. As long as my name was still in the company they can't give me any more business.

I discussed this matter with another of Anwar's classmates, Lt Kol Yunos Othman, and he agreed to become one of my nominees. I would transfer 500,000 of my shares to him and another 500,000 to another person. He would also take over the running of the business and I was not to show my face at the factory to prove that I had 'sold' the business.

He then told me he needed RM500,000 working capital to finance the business and he brought me to meet someone high up in the bank, another classmate of Anwar. The banker agreed to give the company RM500,000 but they would need security. His bank would give loans based on 50% of the security value if it is vacant land. So the land must be at least RM1 million in value.

I agreed to lend the company my land and the company got the loan. The bihun contracts were reinstated and with a price increase on top of that. And every month I would receive a 'salary' of RM5,000 as agreed.

After a few months the RM5,000 stopped coming. I then found out that the 500,000 shares of the second nominee had been transferred to Lt Kol Yunos. I spoke to my second nominee and she denied that she had transferred the shares. I then went to meet the Company Secretary, Ong Keng Tong, and he said that my nominee had signed the transfer forms in front of him -- which she, again, denied.

Later, I received a letter from the land office informing me that the bank was auctioning off my land. I found out from the bank that not a single Sen of the loan had been paid.

By then I had other problems on my hand -- my detention under ISA -- so I decided to call it a day and just move on. I never spoke to Lt Kol Yunos again and till today I do not know what happened to my factory. I just did not care any more. To me that was my 'previous life' and I no longer wanted to be concerned about my previous life.

Or maybe it was the charm that the bomoh put on me that made me not care.

TO BE CONTINUED

The journey in life is never a straight line (PART 7)

Posted: 29 Nov 2012 06:57 PM PST

Ibak had been watching this mafia for quite some time and had decided that enough is enough. He opened up the meter business to the non-cartel members and we managed to squeeze in. Within three years we walked away with RM40 million in business. But I was the most hated supplier because I ignored the mafia and refused to join the cartel in the price rigging.

NO HOLDS BARRED

Raja Petra Kamarudin

When I reflect on my corporate life, I can probably summarise it as 20 years of the 62 years that I have been walking the face of this earth. I became a businessman at age 24 and 'retired' at age 44. Considering that my father and mother died at ages 46 and 47 respectively, I regarded myself as almost reaching the end of my life.

Hence, maybe, a change of career was in order.

However, I have to admit that my retirement was not actually my choice but the point of frustration that I had reached. When I first started my business in 1974, you could make it with sheer hard work, ingenuity, and plenty of guts to venture into areas where angels fear to tread. However, by 1994, it was no longer about know-how but about know-who.

If you were not aligned to those who walk in the corridors of power then the doors would be closed to you. And mere 'alignment' was not enough. There were also the contributions you had to make to various political funds, all to be made in cash and not with traceable cheques.

I, too, was not exempted from having to 'buy' contracts. In the beginning it was not too bad. A RM500,000 donation to Umno for a RM30 million contract where you earn at least 8% or RM2.4 million was affordable. You still had some money left in your pocket. But when margins dropped to less than 5% and the commissions (or kickbacks) increased to 10%, it was pointless to continue with that type of business.

My wife, Marina, was actually the one who 'pulled the plug', so to speak. As I wrote in the earlier parts of this series, we became 'Born Again' Muslims in the late 1970s and by the early 1980s I was practically a radical Muslim who believed in the Iranian Islamic Revolution and dreamed of such a revolution in Malaysia.

I also became closer to PAS, although still very much a 'closet' supporter because of my business activities. I so very much wanted to come out into the open but I would first have to get out of business to do that. Hence it would have been just a matter of time before I made this switch.

One day, Marina asked me how we could consider ourselves as true Muslims and at the same time indulge in haram activities. When she said haram activities she meant indulging in bribes and giving money to Umno, the enemy of Islam.

What she said made sense but I needed a 'trigger' to spur me into doing the right thing. And that 'right thing' offered itself in the early 1990s. And that story goes as follows.

By 1990, I felt that a change of course was required. For the past 16 years we had been acting as a mere dealer, distributor or agent. No doubt not all our businesses were government business -- maybe about 20% or so -- but we were just selling 'other people's products' and, therefore, were at their mercy.

We needed a product of our own.

I spoke to a friend in TNB and, interestingly enough, he told me that a certain 'mafia' monopolised the electricity meter business and they had formed a cartel and was rigging the price. TNB, therefore, was at their mercy.

I then spoke to someone in GE Singapore who gave me a list of all the electricity meter manufacturers in the world. I found that one manufacturer, Schlumberger from France, was not marketing their meters in Malaysia. (There were many others, of course, but Schlumberger was the best amongst them).

I flew to Paris and met up with a man named Arman Carlier. I proposed a partnership with Schlumberger to manufacture their meters in Malaysia and to try to break into the TNB market.

Arman did not think it was viable. Even 'strong' companies like George Kent (M) Bhd (a company linked to Prime Minister Najib Tun Razak) failed to break into the TNB market. And their meters are actually very good -- Landis and Gyr. So what makes me think we can succeed where others have failed?

I told Arman that our meters must be fully manufactured in ASEAN, with maybe 30% of the components locally manufactured in Malaysia -- and the local content to be increased as we go along. We must then 'dive' at least 20% below the prices of the cartel (they all tender at almost the same price with a couple of Sen price difference).

I was confident we could demolish the cartel and beat the 'mafia' that was merely importing their meters and doing a 'bolt-and-nut' operation. But Arman was still not sure. He knows the TBN market, as Schlumberger had done other business with them, so he knows the mafia has a strong hold on the meter business.

I told Arman that if Schlumberger agrees to set up a factory in Malaysia and they fail to get any business, I was prepared to underwrite the entire operation and reimburse them for all their expenses.

Arman finally agreed and said that he will give the Malaysian operation one year to get the business and that if we fail he will then close the factory down. We sealed the deal and then went to 'Le Crazy Horse' (SEE HERE) to celebrate our new partnership.

The factory was set up but after one year we got nothing. So much time and money spent with nothing to show for it. Arman told me it was time to close shop unless I could assure him we would be able to get at least some business.

I asked him for an extension of three months and he agreed. But that was it. Another three months and then they were going to close shop.

The mafia was determined to keep us out. In the meantime, the cartel was laughing all the way to the bank. I was bracing myself for bad news at the end of that three-month extension.

As I said earlier, a drowning man can come up only three times before he goes down for good. I had gone down twice so far, once in 1975 and again in 1985-1987. It looks like this time I was going to go down for good.

Then, suddenly, the unexpected happened. The General Manager, who was not supposed to retire yet, retired. He got a 'golden handshake' involving a large coal supply contract to prompt him to retire. His deputy, Datuk Ibak Abu Hussein, took over as the new number one.

What a stroke of luck! Schlumberger was just days away from closing down the operation. And that would have meant I would have lost my pants, for the third time. But fate decided it was not yet time for me to die.

Unfortunately, Ibak did not last long as the head honcho of TNB (the mafia hated him as well). He was 'pushed' into retirement and Ani Arope, a Tun Dr Mahathir Mohamad-Anwar Ibrahim man, took over (the first time in history an 'outsider' was appointed as the head of TNB).

And that allowed the mafia to bounce back and go for me with a vengeance.

We soon began to lose tender after tender even though our price was the cheapest by far. By the third tender we lost, the TNB mafia approached Schlumberger and told them that as long as Raja Petra Kamarudin is their partner they are never going to get any business from TNB. We also lost the fourth tender and this convinced Schlumberger that the mafia was serious about it.

The second unfortunate thing was that Arman Carlier had been transferred to another division and was no longer heading the meter business in France. The new chap had no 'history' with me so there was no sentimental attachment. Hence he made the decision to 'file for a divorce'.

Schlumberger took on a new Malaysian partner who was 'highly recommended' by the TNB mafia. I found out later that his new partner was linked to Anwar Ibrahim. So it was an 'inside job' after all.

I was so furious I decided to get out of this whole 'rat race' once and for all. This was getting very stressful. Fighting your competitors is one thing. But when your 'own people' stab you in the back and grab what you painfully built up with a lot of risks involved, there was just no point in continuing.

I never forgave Anwar's people for taking away my last shot at making it in the business world. Anwar was the Finance Minister and TNB reported to him. But I never once walked into his office to ask for any help all that time he was Finance Minister (Anwar actually complained about this to one ABIM chap). But for his people to take away what I felt belonged to me was something so intolerable that I decided to throw in the towel and go for a career change.

And this new career change was to become a political activist and political writer. I was part of the corrupt system. I worked within that system that eventually 'ate' me up as well. Now I was going to fight that very system I had operated in.

That was 18 years ago in 1994. Today, I am still doing what I started 18 years ago back in 1994. I now have very low tolerance for abuse of power and corruption, even when committed by those from Pakatan Rakyat. And trust me, it does happen in Pakatan Rakyat as well. After all, many of those Pakatan Rakyat people are the same people who 'makan' me back in the 1990s.

TO BE CONTINUED

The journey in life is never a straight line (PART 6)

Posted: 29 Nov 2012 03:49 PM PST

Actually, I blame the banks for all this. Back in the 1980s, around ten years after starting my business, bank managers were coming to see me to invite me to lunch. They would practically beg me to 'give them some business'. Over lunch they would confirm RM2 million or RM3 million without even asking me what I would do with the money.

NO HOLDS BARRED

Raja Petra Kamarudin

People assume that since I am Malay therefore all my business must have come from government contracts. That is stereotyping and as 'fair' as assuming that since you are Indian you are a drunkard who beats his wife or since you are a Chinese you are dishonest because you worship money.

I do not deny that I did do some government business. Even Chinese and Indians do government business whenever they can. So this is not really a crime. Nevertheless, over 20 years from 1974-1994, my companies did about RM300-350 million in turnover with maybe about 20% of that in government contracts.

And government contracts are really not that profitable, mind you. Sometimes we get away with a profit of only 2.5%. To make 10% or more from a government (supply) job was a rare thing indeed, especially in those 'early days'.

Government jobs are good when you need to go to the bank to raise funds. If you won, say, a RM30 million government contract, this would allow you to borrow RM6 million or even RM10 million.

In those days, even when I did not need the money (since the supplier gave us credit of 60-90 days anyway), I would still go to the bank to borrow. I would use the funds and then pay back what I used within the same month. This would impress the bank like hell -- although they are not too happy with this since they would earn very little when you pay back almost immediately.

The reason I did this was so that, next time, when you really do need funding, you can go back to the bank and get a loan. In the beginning I borrowed RM2 million. By the time I decided to call it a day, I was rolling with RM20 million, all borrowed funds.

You see, branch managers had a quota to fill and they were trying to use me to fill their quota. So they would offer me facilities in the millions even though I did not need the money and would not have known what to do with it anyway.

Once I was even invited for lunch in the executive suite of HSBC in Kuala Lumpur. The Kwailo then asked whether his bank 'could be off assistance' to me. He then offered me RM3 million and instructed his Chinese officer to follow up on this 'application'.

The Chinese officer followed me back to my office and sat down with me to work out the details. But we had one problem. We could not justify the facilities. In other words, we could not show that I needed the money. After cracking our heads for an hour, I told the officer to just forget it. Actually I don't need the money.

I felt good to be able to tell HSBC that I don't need their money. That boosted my image and even more bank managers came a courting when they found out that I told the Kwailo from a Kwalio bank that I don't need their money.

Yes, bank managers get an orgasm when you tell a bank you don't need their money.

It came to a stage that all I needed to do was to phone the MD or GM of the bank and over the phone I could raise a million or two with no questions asked. Of course, I was not the only one enjoying this VIP treatment. All over town banks were throwing money our way.

Then, in mid-1980, the folly of this attitude hit us. Many of us were over-geared. No doubt our loans were 'backed by assets'. But these so-called assets were 'paper assets'. They were stocks and shares trading at ten or twenty times their value -- or worse.

No one cared about PE ratios. In the UK, you may be looking at PE ratios in the single digit. In Malaysia (plus Singapore and Hong Kong) the PE ratios of the 'darlings' of the stock market were sometimes in the triple digits.

That was crazy. Banks should not have touched such company shares with a ten-foot pole. But who thought that the bubble was going to burst? We were on a roller coaster ride and it was going up, up and up. Then, in 1985, it went down, down and down.

It was then that I understood the meaning of 'fair weather bankers'. They invite you to lunch and beg you to borrow from them when you do not need their money. However, when the market turns, they become your 'wakeup call' early in the morning when they phone you to inform you of the 'margin call'.

If you do not 'top up' by the time the market opens for the day, expect them to 'force-sell' your shares. And the more they force-sell the more depressed the market gets and the more depressed the market gets the lower your shares go and the lower your shares go the more margin you need to top up -- and so on and so forth. It basically becomes a vicious cycle.

Now that you need the money the banks no longer want to deal with you. The banks do not want to give you money because you need the money. They only want to give you money when you do not need it.

I was only 35 then and about ten years in business. But I was very rapidly finding out that another word for 'banker' is 'shark'. When they smell blood they go into a feeding frenzy. And when you are floundering in the water trying to keep your head up so that you do not drown, these sharks come up from behind you and bite off your balls.

Yes, we were greedy. I admit that. We may even have been inexperienced and were taking too many risks. But when you are still quite young and new to business, you tend to be like this. That is what being young is all about.

But the banks were also greedy. These banks that have been around for a long time and have seen many recessions come and go should have practiced prudent banking. They should have known that bubbles eventually burst. And they should not have been the ones to inflate the bubble and then, as soon as it shows sign of deflation, they prick the bubble by pulling the rug from under our feet.

Many suffered. Almost everyone, regardless of race, collapsed. Many saw their companies change hands. Some were even unfortunate enough to end up in jail. As I said, at 35 I could afford to pick up the pieces and start all over again. Those who no longer had the luxury of time chose the easy way out by ending their life.

We would have imagined that by 1985-1987 the banks would have learned their lesson. Apparently they did not -- as 1997 and now, 2012, have proven. Banks will still be banks and risk-takers will still be risk-takers.

I am just glad I am no longer in the game where we live day-to-day with the anxiety that when we wake up the following morning we are going to find out that the bottom has fallen out of the market.

As they say: let the borrower beware.

TO BE CONTINUED

The journey in life is never a straight line (PART 5)

Posted: 28 Nov 2012 09:56 PM PST

I had never tendered for fishing nets before so I was not too clear of the costing. I sought the advise of a friend who gave me the previous year's prices and asked me to drop my bid 7% below that price so that we can be the cheapest bidder. That was the most screwed up advice I ever received, as I would soon learn.

NO HOLDS BARRED

Raja Petra Kamarudin

Most Malays are Ali Baba businessmen, said Chia Kim Peong a.k.a. Ah Piow. The Chinese use the Malays to get business. You, however, are a Baba Ali businessman. It is the other way around. You use the Chinese to do business. And you do all the work while I just sit back and collect my dividends. Ah Piow probably found that very amusing.

That quip was triggered by an episode involving the fishing net business that I started. I tried to get supplies from the Fusan fishing net manufacturer in Port Kelang but they told me that Nam Lee was their sole distributor.

I tried to meet up with Nam Lee but they refused to see me. They told me they were not interested in my business because they already had more than enough business to handle.

I spoke to Ah Piow who told me that he knows the Nam Lee people very well. He asked me to meet him at their office and he brought me in to meet the Managing Director although we had no prior appointment. I tried many times to meet them but failed and Ah Piow can just walk in unannounced. Clearly contacts are the key to business success.

Nam Lee agreed to supply me the fishing nets on condition that Ah Piow guaranteed my company's debts. Ah Piow told me not to make him 'lose face'. 'Face' is everything to the Chinese so I have to make good my debts to Nam Lee.

Once I had learned the ins and outs of the fishing net business I participated in my first public tender. The tender was for RM12 million and seven companies participated. Amongst the seven were Pernas and Nam Lee plus companies owned by Bank Pertanian and Shamelin, an Umno-linked company founded by Tan Sri Sanusi Junid, the one-time Agriculture Minister.

The buyer called the seven of us for a meeting and I was informed that our prices were 30% below everyone else. They said I had clearly made a mistake so they were giving me the opportunity to withdraw, leaving the remaining six in the race. The RM12 million contract would then be divided six ways, around RM2 million per bidder.

I refused to withdraw and insisted that we remain in the race. I noticed the others around the table, who had been in this game a number of years, whisper and snigger. I was furious. There was no way I was going to withdraw and 'lose face'. I was going to stay and fight even if I lost my pants. And if they were right that I had made a mistake then I stand to lose quite a bit of money. But then this is about 'face', not money.

Because our price was 30% lower than all the rest, they had no choice but to give us the entire contract. The rest got nothing. With variation orders and a two-year extension, the RM12 million contract became RM20 million.

As luck would have it, Korea, which had many fishing net factories (unlike Malaysia which had only one) saw an oversupply situation when the market for fishing nets coincidentally took a dive. Fishing nets have a short shelf life so they needed to dispose off these nets as fast as possible. So now many factories in Korea were scrambling and were trying to dump their nets at fire sale prices.

The Koreans came to see me to try and get me to buy from them. They told me that based on normal pricing I was going to lose money big time because I had made a mistake in my pricing. However, they were prepared to supply me and would allow me to make 2.5% over the contract price.

I told the Koreans that their price was not attractive enough and that I could get the nets cheaper elsewhere. They told me that that would be impossible because nowhere in the world could I get nets at that kind of pricing. I told them in that case they should sit back and watch me do it.

They went off after telling me they will remain in Kuala Lumpur in case I change my mind because they were still interested in doing business with me.

I never called them back. In the meantime, the clock was ticking. I was supposed to supply the nets within 60 days and now 30 days had passed. If I can't get my hands on the supply I would default and the contract would be cancelled plus I would lose the performance bond of RM600,000.

Five days later, the Koreans called again and said they agree to my terms. They will give me 30% and supply all my requirements. But they will require a Letter of Credit. I told them, "No Letter of Credit." They were the ones chasing me, not me chasing them. If they want me to buy from them then they will have to give me 60 days credit.

The deal was sealed and I made my first delivery after requesting a 30-day extension for the first delivery and then 60 days delivery thereafter.

Fusan and Nam Lee were taught a lesson of their lives. Pernas, which had about RM500,000 in unsold stocks had to write off their fishing nets because the rats and cockroaches had eaten all the nets in their store (nets are perishable items when left in the store).

My satisfaction was not in making around RM5 million on that three-year contract that eventually totalled RM20 million. It was in teaching the 'big boys' a lesson to not snigger at me during a meeting as if I did not know what I was doing.

Well, actually I did not know what I was doing. It was just luck and a game of poker with the Koreans that prevented me from losing my pants, yet again. Needless to say, I never tried that stunt again.

TO BE CONTINUED

The journey in life is never a straight line (PART 4)

Posted: 28 Nov 2012 03:28 PM PST

This was no longer about making money. We were already making plenty of money -- Johan's turnover was in the hundreds of millions a year and our business interests were spread out in all the continents of this world. This was about which of the Taikos can become the Taipan. It was a game of prestige. I suppose at that time we felt immortal and lost focus of the objectives of doing business.

NO HOLDS BARRED

Raja Petra Kamarudin

They say a drowning man surfaces only three times. On the third time he goes down he stays down for good. He will never surface again. He will die.

It is now 1991. I was already 17 years in business and had survived two economic recessions and had fought off two bankruptcies. Therefore I could afford only one more collapse before I go down for good and never rise again.

The first crisis I faced was in 1975, merely a few months after I started my business back in 1974. And that story is as follows.

My business partner, Zulkifly Mohd Nor, an ex-Pernas officer, had cleaned out our bank account and had absconded with the company's money. This could only be done with the collaboration of the branch manager of Bank Rakyat Kuala Terengganu.

I confronted the bank manager, Ghazi, and he confirmed he had released all the payments for the sales of the Yanmar engines that we had made to the fishermen. The arrangement was: Bank Rakyat would finance our buyers and would pay us for the cost of the engines. The money was supposed to have been paid directly to the company. However, instead of paying the money into the company's bank account, it had all been diverted to Zulkifly's personal bank account.

I spoke to Michael Toh Hong Hooi, the manager of Chong Lee Leong Seng, our Yanmar supplier, and told him that the money was all gone. Zulkifly had 'kebas' the money and there was nothing left. I only had a few hundred Ringgit in my pocket, and that was all.

Chong Lee Leong Seng can choose to sue us and get us declared bankrupt or they can allow us to 'live' and I will ensure that all the money will eventually be paid back in full. I would also need them to continue giving us credit so that we can continue to trade.

Michael Toh agreed to create two trading accounts for us. 'Account A' would be the old unpaid debt while 'Account B' would be the new credit line that Chong Lee Leong Seng would extend to us. 'Account B' would have a RM30,000 limit with a 90-day credit period. Once we reach 90 days, or we reach the RM30,000 limit, we would have to pay up before more supplies can be made. But each time we paid for 'Account B' we would also have to pay for part of 'Account A'.

In time, it was hoped, 'Account A' would be fully settled.

One more condition that Michael Toh imposed on us was that I would have to take a Chinese partner and give him 30% of the company. This Chinese businessman would offer Chong Lee Leong Seng the 'comfort' of continuing to do business with us.

I was introduced to this Chinese businessman, a man named Chia Kim Peong from Sabak Bernam. Chia gave me RM10,000 as working capital and he guaranteed the RM30,000 credit line from Chong Lee Leong Seng. I would have to 'roll' with this RM10,000 and the RM30,000 credit line from Chong Lee Leong Seng.

When Chia cashed out his 30% interest in my company in 1985, he made about RM300,000 on the RM10,000 he gave me in 1975, not a bad return for just ten years.

With this new 'lease of life' in 1975, it took me three years of hard work to rise again. I practically lived in my car with my daughter, my only child then, Raja Suraya, sleeping in the back seat of the car as I drove from Kelantan to Johor to Kedah to market my Yanmar engines. In 1975, we did only RM300,000 in sales. By 1976 and 1977, we touched RM1 million a year. In 1978, our sales touched RM6 million. And in 1979 and 1980 we did about RM10 million a year in sales.

It took me three years to make our first million. That was in 1978. They say the first million is the most difficult to make. Once you have made your first million then the second million is easier. That is quite true. It took me only two years to make our second million and by 1980 we had RM3 million in cash reserves and had done roughly RM30 million in sales over those five years or so.

We were now Chong Lee Leong Seng's number one Yanmar dealer.

It was now time to go big time. And 'big time' to us then was, of course, to 'go public'. Public listed companies was the measure of a person's success and a status symbol back in 1980.

Michael Toh introduced me to his uncle, Tan Kay Hock (now a 'Tan Sri') -- yes, the man currently in the middle of the George Kent (M) Bhd/Ampang LRT controversy -- who was about to take over a dormant public listed company, Johan Tin (now called Johan Holdings Berhad). I invested heavily in Johan, mainly through bank borrowings (and the main reason for my RM20 million debts which I wrote about earlier in parts 2 and 3 of this series).

From a 'bankrupt' in 1975 to a millionaire in 1980 and a multi-millionaire in 1985 -- I thought nothing was going to stop me. The sky was the limit. I was now in the ranks of the corporate chiefs like Tan Sri Ibrahim (Promet), Vincent Tan (Berjaya), and so on. We were all 'racing' to see whose shares could go the highest. Promet's and Johan's shares had both exceeded RM10 per share but Promet's shares were RM0.20 ahead of Johan's.

This was no longer about making money. We were already making plenty of money -- Johan's turnover was in the hundreds of millions a year and our business interests were spread out in all the continents of this world. This was about which of the Taikos can become the Taipan. It was a game of prestige. I suppose at that time we felt immortal and lost focus of the objectives of doing business.

And we would soon learn that we would pay a heavy price for that arrogance.

In 1985, the recession hit us, followed by the 1987 stock market collapse. What I had made over the last ten years was lost in a mere couple of months. Our RM10 shares dived to less than RM0.50. I was saddled with RM20 million in debts but with shares that could not even cover half that amount. I had no choice but to bail out and embark upon a 'fire sale' -- as related in parts 2 and 3 of this series.

So there you are. I was now, again, broke, and would have to start from the bottom all over again. The dream of becoming the Taipan had now turned into a nightmare. But how do I bounce back with the economy and my personal finances in tatters?

I found out that many companies were still listing their shares but there were no takers. No one wanted to invest in the stock market. Everyone was still licking his/her wounds from the last disaster and it appeared like full recovery may take some years yet.

One company, Hexza Corporation Berhad, was facing this same dilemma. They had issued a few million shares, which the Ministry of Trade and Industry was holding on to but with no investors wanting to pick them up.

I approached the Ministry to enquire into these shares and they told me that they could let me have ten million shares at RM0.65 per share if I wanted them. The Ministry was happy to get rid of these shares that no one wanted. I told them I only wanted a million shares and they told to come back with a bank draft for RM650,000.

I went home and told my wife, Marina, about the offer. She phoned her stockbroker who told her that Hexza was trading at RM0.95 per share. She said it was a good deal and that we should pick up those shares. But let's not be too greedy, Marina said. Let's pick up just one million shares, in case.

Marina dug into her cookie jar and pulled out RM150,000. So we were still short of RM500,000. I went to Kwong Yik Bank and they agreed to give me a loan of RM500,000 -- if we hand over the RM150,000 to the bank and ask the Ministry to issue the shares in the name of Kwong Yik Nominees.

We completed the transaction over the next few days and then lodged the one million Hexza Corporation Berhad shares with the bank. I then told Marina to do what she wanted with them. By the time Marina unloaded the shares a few months later, the shares had climbed to more than RM2 per share. After paying back the bank the RM500,000 we owed them, we managed to walk away with about RM1.5 million in cash.

It was time to reinvest this money and make that RM1.5 million grow to RM15 million.

TO BE CONTINUED

The journey in life is never a straight line (PART 3)

Posted: 27 Nov 2012 07:10 PM PST

Tan Sri Basir Ismail, the Chairman of BBMB, was very angry about what I said. He cancelled my facilities with the bank and gave me 14 days to make full settlement on my loans. According to the manager of BBMB Kuala Terengganu, the interest they earn on my loans covers the entire operating cost for the branch. In fact, we were the second biggest account after the Terengganu State Economic Development Corporation -- or the biggest non-government client.

NO HOLDS BARRED

Raja Petra Kamarudin

It took me a year or so to settle all my debts with the various financial institutions. BBMB (Bank Bumiputra) was the first bank I had to pay off because they gave me only 14 days to do so. That cost me around RM6 million. MBF was another RM3 million, followed by Amanah Chase, also another RM3 million. Kwong Yik, D&C, and Bank Islam totalled RM5 million. By the time I finished with this 'cleaning up' exercise, including those smaller loans here and there, about RM20 million had been settled and that got the banks off my back.

To achieve this, I had to unload all my shares while at the same time not dump too much, too fast, lest that depress the share price. My wife, Marina, handled that part of the exercise, as she was the market 'wizard' in the family. However, we managed to raise only about RM12 million or so due to the selling frenzy at that time.

To cover the shortage, I had to sell off the four shop lots that we owned plus two condos in Kuala Lumpur, one in Bangsar and the other in Subang Jaya. The part that hurt the most was when I had to sell of my 'flagship', my 30% interest in a Mercedes Benz dealership, which was actually quite profitable.

Basically, I was forced to embark upon a 'fire sale' to clean up my debts and then try to restart from the bottom.

The RM6 million that I had to pay off BBMB within 14 days is a story by itself. Around that time, the Malay Chamber of Commerce and Industry organised a seminar, which was officiated by Tun Dr Mahathir Mohamad, and I was selected as one of the presenters.

In my presentation, I whacked BBMB and said that it had deviated from the objectives of its creation, which was to assist Malays who needed help to get into business. I talked about the BMF scandal in Hong Kong, which resulted in the tragic murder of Jalil Ibrahim, as one example of how it had deviated from its 'charter'.

Just to digress a bit, the man arrested and jailed for Jalil's murder was Dax Mark, a close friend of mine. I am still not sure whether he did murder Jalil but if the court says he did then it must be true. I suppose it is very difficult to accept the possibility that a close friend of yours could be involved in such a high profile murder. There were a few other deaths as well, although some were said to be suicides -- although you can never tell when someone is found drowned in his swimming pool whether it was a suicide or a murder.

I always found Dax quite fascinating. He was married to a MAS stewardess while at the same time he was keeping a SIA stewardess as a mistress. His wife and mistress worked different shifts so both would not be in town at the same time. I asked Dax what would happen if suddenly their shifts were changed and they both landed in town at the same time. How was he going to handle that situation? He shuddered and told me not to tempt fate.

Anyway, back to the issue of the seminar and BBMB. I went on to say that Malaysia is going through a serious economic crisis that is affecting everyone -- Malays, Chinese, Indians and all. The Chinese cooperatives are collapsing and need RM3 billion to bail them out. We are talking in terms of mid-1980s money value, mind you.

The Chinese threatened to abandon MCA and vote DAP if the government does not bail them out. Tun Dr Mahathir Mohamad instructed the banks to form a consortium to bail out the Chinese cooperatives, which they did (after all, who can say 'no' to Dr Mahathir).

The Malays, too, I said, need bailing out, just like the Chinese. If the government can bail out the Chinese cooperatives to the tune of RM3 billion (even though it was 'under duress' because of the Chinese threat to abandon MCA and vote DAP), why can't the government also bail out the Malays? Instead of bailing out the Malays, BBMB is taking legal action against defaulters and is filing bankruptcy against them, I explained.

I then quipped that BBMB now stands for 'Basir buat Melayu bankrup'. What do we have to do to get the government's attention? Do we also need to make threats like the Chinese -- threaten to abandon Umno and vote opposition?

I related this story to an old friend of my father, Chai Fook Loong. Uncle Chai was surprised. "Basir knows your late father very well," he said. "Why would he do this to you?" I replied that I did not know why (and at that time I really did not know -- I did not realise it was related to what I had said about Basir).

Uncle Chai phoned Basir and spoke to him. "Kam's son, Raja Petra, is sitting in front of me," Uncle Chai told Basir (my father's close friends used to call him Kam -- pronounced Kem and short for Kamarudin). Before Uncle Chai could say more, Basir replied, "I know who Raja Petra is. His file is on my table and I am looking at it now."

I do not know what else Basir told Uncle Chai because he refused to tell me. He looked extremely perturbed when he put the phone down and just said, "What did you do to the old man? I know him very well and I have never seen him so angry. He is actually a very nice man but today I am seeing another side of him."

I just told Uncle Chai, "Never mind. I think I know why." I did not want to say anything more about the matter. I knew I was in deep shit with Basir.

The seminar was not a total waste, though. Dr Mahathir agreed to the setting up of the Tabung Pemulihan Usahawan (TPU). Bank Negara was to be put in charge of that fund but the Malay Chamber can form its own committee to recommend those businessmen who needed help.

During the many meetings that we held to sieve through the deserving cases to assist, the Chairman told us that certain names on the list would have to be removed from the list. We were furious and demanded to know why. (My name was not one of those on the list, though, because I was not one of those who the banks were suing for bankruptcy).

There was a lot of shouting and table banging and finally the Chairman revealed that the names that are to be removed from the list are those who have been 'blacklisted' by the government. We told the Chairman that Dr Mahathir had promised us that the TPU would be 'politically blind' and that help would be given to Malays in trouble based on their eligibility and not based on their political affiliations.

We told the Chairman that we demand a meeting with Dr Mahathir to clear this matter up. Dr Mahathir had promised us RM500 million and that if RM500 million was not enough he was prepared to increase it to RM1 billion. But start with RM500 million first and see how far that goes, Dr Mahathir said. And Dr Mahathir had also promised that while Bank Negara would be the trustee of the fund, there would be no political interference from Umno.

It was then that the Chairman told us that the instruction to remove certain names from the list did not come from Dr Mahathir but from Anwar Ibrahim. And one of the people who Anwar insisted should not get any assistance was Marina Yusoff.

Imagine my surprise when around ten years or so later, when Dr Mahathir sacked Anwar, Marina Yusoff came out to support Anwar and even joined PKR (then called PKN) and became one of the Vice Presidents of the party.

I later asked marina Yusoff whether she knew that Anwar had tied to 'kill' her back in the late 1980s and she confirmed that she did. In fact, she had to request an audience with Anwar to make peace with him and he agreed to help Marina but would give her only one-third of what she needed.

One-third was far from sufficient to bail her out and eventually her business collapsed. Yet, in spite of that, she still stood by Anwar in his hour of need. And when she joined PKR and opposed Umno in 1999, the government finished her off for good and buried her.

Many say she is stupid for sacrificing herself for Anwar, a man who tried to destroy her ten years earlier. I suppose that stupidity is in most of us.

TO BE CONTINUED

The journey in life is never a straight line (PART 2)

Posted: 26 Nov 2012 10:02 PM PST

I was in dire straights with RM20 million in debts. In today's money value, that would probably be about RM100 million. RM20 million is a lot of money to pay back. However, when my shares were worth RM10.40 and I was sitting on a couple of million shares that was not an issue. Now my shares were trading at only RM0.42.

NO HOLDS BARRED

Raja Petra Kamarudin

My initial response to Anwar Ibrahim's betrayal to the cause was that of hostility. None of us could accept his reason for deserting ABIM to join the very party he had condemned and which we called a party of infidels (parti kafir). We considered Umno a parti kafir not only because they opposed Hudud and the Islamic State but also because they collaborated with non-Muslim parties like MCA, MIC, Gerakan, PPP, etc.

There was no compromise on this issue. Malaysia has to follow the example of Iran. There were no two ways about it. During the Iran-Iraq War, some of the ABIM members made a trip to Iran and visited the battlefront (their bus was riddled with bullets and they all had to 'hit the floor' to avoid getting shot).

When the Iranians visited Malaysia they gave a talk. And I have to admit that their talk inspired me. "Malaysia, today, is like what Iran was 30 years ago. In 30 years time, Malaysia will become just like what Iran is today. We are here to export the Iranian Revolution to Malaysia."

I had goose pimples and my hair stood on end. I wished I were at the frontline with gun in hand fighting for the Iranians against the American lackey, Iraq. Yes, we need a Malaysian Islamic Revolution. And I would have to support PAS to be able to see that happen.

But why is PAS involved in the general election? Imam Khomeini did not participate in general elections. He brought down the Shah through an armed revolution, through violence. After all, general elections are a kafir creation so why are we bothering with that?

We had no choice. We did not have guns or military strength. So we had to participate in general elections as the route to power. Once we are in power we can then abolish general elections and get rid of all the vestiges of British colonialism.

I hated Anwar. He used to dress in Arab gear and would condemn those dressed in coat and tie. Those who dress like kafir become kafir, was what we were told. Now, Anwar is dressed in Savile Row suits. He not only sold out to the kafir. He was aping the kafir. He had become just like the kafir. Once the Malaysian Islamic Revolution starts Anwar must be the first we execute.

Then, one day, Utsaz Fadzil Mohd Noor bumped into Anwar at the airport and he went up to Anwar and hugged him. They then spent half an hour chatting. The PAS diehards, however, stood at one end of the airport and the Umno diehards at the opposite end.

We were puzzled. Did not the Ustaz say that Anwar's excuse for joining Umno was to change Umno from the inside and that Anwar will not only fail to change Umno but instead Umno will change him? And has not Umno changed him into the very animal that we all despise and oppose, at one time Anwar included?

Of course Ustaz Fadzil was hurt and disappointed when Anwar left ABIM to join Umno. But he did not hate Anwar. He still loved Anwar. And he still had hope that Anwar may one day return to the opposition or at least succeed in changing Umno from the inside. Most of us, however, were not that bullish.

When Anwar decided to contest the Umno Youth leadership he called upon his old comrades in ABIM to help him. The ABIM boys in Terengganu spoke to me and asked me to join the team. We are not helping Umno, they said, we are helping Anwar. We still oppose Umno and pray for its destruction. But that should not stop us from supporting Anwar and help him in his climb up the Umno ladder.

I took leave from my business and toured the country to campaign for Anwar. We also sank in quite a bit of money to hold feasts and functions for Anwar to speak at. Invariably, he won. And he won the next two rounds as well. So the effort bore results.

But that began to open up a whole new lot of problems for many of us. We were now hated by both sides of the political divide. Those in the opposition hated us for working for Umno. And those in Umno who saw us as enemies of Umno and the 'private army' of Anwar also hated us.

One of Anwar's diehards, a senior man in the Terengganu Education Department, was 'promoted' as the new Political Secretary to the Terengganu Menteri Besar. Every one knew that the MB hated Anwar like hell. We were not sure whether this 'promotion' was actually a 'buy-over' or a coincidence. Eventually it was proven that he had sold us out.

This was a man who was part of our conspiracy to promote Anwar using the Education Department as the vehicle. He knew all our most confidential plans. Worst of all, he knew all our strengths and weaknesses. So they began attacking us where it hurt most, our business activities. If they can hurt us financially then they can cripple us. And they succeeded in hurting us financially.

It was then that I realised you cannot be a businessman and oppose those who walk in the corridors of power at the same time. It must be one or the other. And I paid that heavy price when I became one of the targets that must be destroyed. In 1985, the economy took a beating and in 1987 the stock market collapsed. I lost everything and now had to start all over again.

I went to see Anwar to ask for help. "Inilah Melayu. Nawaitu kontrek. Why can't you be like the Chinese and stand on your own two feet? The Chinese do not ask for government help when they get into financial trouble."

I walked off and never looked back. I refused to beg. I got out of politics and focused on rebuilding my business. But I first had RM20 million in debts to pay off.

TO BE CONTINUED

The journey in life is never a straight line (PART 1)

Posted: 26 Nov 2012 06:50 PM PST

I delved deeply into religion and two years later, in 1982, I went to Mekah to perform my Haj (pilgrimage). There I met up with the late Haji Fadzil Mohd Noor (the PAS President who died in office in June 2002). I also linked up with Tok Guru Haji Abdul Hadi Awang, Mustafa Ali and a couple of other top PAS leaders from Terengganu.

NO HOLDS BARRED

Raja Petra Kamarudin

When I was in my teens I never suspected that life is actually quite complicated. Then, I would live day-to-day. I lived by the motto 'tomorrow never comes', which is quite true because once tomorrow comes it would be today, if you get what I mean.

Life was all about enjoying yourself -- eat, drink and be merry for tomorrow you may die. And, if you can't avoid dying, then go with a smile on your face because once you die you die, that would be the end of everything. Hence have fun while you still breath.

Then my world, as I knew it, came to an end. My father -- the only breadwinner in the family -- died. And we were all still in school -- all four siblings. That was probably the first greatest shock of my life -- other than the 13 motorcycle accidents that I had prior to my father's death.

My father was only 46. Surely that was too young an age to die, especially when my mother was only 38 and the four of us kids were still at school. That could be considered as the first 'injury' in my life. And, to add insult to this injury, the hundreds of friends and family members that my father had suddenly 'disappeared'.

You see; my father was a 'big man'. That was why I could afford the devil-may-care lifestyle. However, once the 'big man' had gone, no one wanted to know us any more.

I remember the first Hari Raya after my father died. When my father was still alive, the road outside our house would be jam-packed with cars. The place would be almost like the venue of an opposition ceramah -- crowded with people. That first Hari Raya after my father's death, however, not a single person came to our house.

My mother stood looking out the window and cried. I did not know what to do so I phone my father's 'best friend' -- a man I call Uncle Cedric and who now lives in Australia. Uncle Cedric came over to console my mother. Thereafter our days of the Hari Raya 'open house' ended. We realised that now our father had died we no longer have any friends or family members.

It hit me then that we would have to pick up what was left of our lives and get on with it. I got a job that paid RM250 a month and got married soon after that. I was forced to 'restart' my life (or 'reboot' in today's terminology) from the bottom. And it was a long and hard battle to get back to the top, the position I had always known until my father died.

Then the second blow of my life hit me nine years later. My mother, who was only 47, died. She had earlier left Malaysia and had gone back to England. She could no longer live in Malaysia, which was giving her so much 'pain'.

That was in 1980 when I was 30.

My father had died age 46 and my mother at age 47. I was 30. How much longer would I live before I too would die? What was the purpose of life if all it means is you are going to leave this world and cause your family so much pain by your death?

I needed to console myself with the fact that life was not a total waste and that we are all here for a purpose. And to find that answer I turned to Islam. No doubt I was born a Muslim but I was never really a Muslim. I 'became' a Muslim much later in life.

I spent almost a month in Mekah and Medina where I also mingled with the Iranians (who had just had their Islamic Revolution three years before that in 1979). I even joined the Iranians in their anti-Saudi/anti-US demonstration in Mekah that attracted about 100,000 protestors.

A year before that, Tun Dr Mahathir Mohamad had taken over as the Prime Minister of Malaysia and that same year I did my Haj (1982), Anwar Ibrahim had joined Umno. So this was the 'hot' discussion in Mekah and Medina.

Part of the reason I became a 'radical' Muslim was because of Anwar Ibrahim. Before he joined Umno in 1982 he was the President of ABIM and I attended a few of his ceramah, all organised by PAS, of course. It was in a way Anwar who made me 'see the light' that the future lay with Islam.

Umno was evil. Umno was unIslamic. Umno was a creation of the 'kafir' British. We must oppose Umno and 'turn' to Islam. And turn to Islam I did, in a very big way, even believing that the future was in an Islamic Revolution in Malaysia a la Iran.

Killing and dying in the name of Islam was an acceptable option. This was what I learned during my Haj trip and in my association with the Iranians. This was also what the President of ABIM, Anwar Ibrahim, had been telling us.

But now Anwar had abandoned the Islamic cause to join Umno -- the very organisation he had condemned and had told us to oppose to the death. Anwar was now with the 'infidels' in Umno. Is it, therefore, also halal (kosher) to kill Anwar?

TO BE CONTINUED

Kredit: www.malaysia-today.net

Selasa, 4 Disember 2012

Malaysia Today - Your Source of Independent News

Malaysia Today - Your Source of Independent News

Pengikut

Trafik

Live Traffic

Mesyuarat Tingkap

Archive