Malaysia Today - Your Source of Independent News
Malaysia Today - Your Source of Independent News |
- AirAsia-MAS share swap: The barbarians have entered the gates
- A wish list of freedoms
- Malay liberty, its trust and faith in Umno
- Merdeka! Are we truly free?
- Malaysians mark independence in shadow of ethnic distrust
- Malaysia in the Era of Globalization #80
| AirAsia-MAS share swap: The barbarians have entered the gates Posted: 31 Aug 2011 04:44 PM PDT
Unlike the RJR Nabisco takeover where there was a fierce battle for control of the company, in the fight for control of Malaysia's skies, AirAsia were allowed to enter the MAS gates without hindrance. The gates protecting MAS's control of Malaysian skies were opened wider and wider for AirAsia over the past 10 years due to inconsistent government policies. William Leong, The Malaysian Insider SEPT 1 — In the 10-year war for control of the Malaysian skies, while a besieged MAS was desperately fighting for survival, someone opened the gates for the barbarians to enter. Barbarians at the gates The AirAsia-MAS share swap reminds me of the takeover saga of RJR Nabisco. The company was a merger of RJ Reynolds, the tobacco company selling "Camel", "Winston" and "Salem" cigarettes and Nabisco, the biscuit company selling "Oreos", "Ritz Crackers" and snacks. The financial firm of Kohberg Kravis Roberts & Co (commonly referred to as "KKR") made a hostile takeover bid for the company. There was a fierce battle for control of the company. The board, in protecting the company's and shareholders' interest, drove KKR and the other bidders to increase their bids several times until KKR won with a bid of US$31.1 billion (RM93.3 billion). It was the largest leverage buyout in history and the record stood for 17 years. RJ Reynolds was subsequently spun out of RJR Nabisco due to tobacco legislation. Nabisco is now owned by Kraft Foods. The RJR Nabisco leverage buyout was considered to be the pre-eminent example of corporate and executive greed. The events were chronicled in a book called "Barbarians at the Gate: The Fall of RJR Nabisco". The fight for control of the Malaysian skies has been an uneven battle from the beginning. In the end those responsible for MAS's defence not only did not put up a fight but opened the gates to allow AirAsia into MAS's management. The share swap has given rise to concerns on the pricing and whether it will benefit the public-funded MAS. Pricing issues One of the favourite sayings of corporate raiders and businessmen is "OPM", that is to operate using "Other People's Money". In the case of the AirAsia-MAS share swap, it is the people's money because MAS is funded by taxpayers. The pricing of the share swap has raised eyebrows. The parties, in using the August 5 closing market price of both airlines as the basis for the share swap, have raised several concerns. Datuk Seri Anwar Ibrahim, in his August 10 article "MAS-AirAsia share swap deal raises serious concerns over effective control and governance", referred, among others, to issues of insider trading and asset stripping. A look at the price charts of the two companies for the past six months supports Datuk Seri Anwar Ibrahim's concerns. The MAS share price fell sharply on May 30, 2011 to RM1.34. It continued to be in the doldrums until August 5, the date of the share swap announcement. AirAsia's share price was on a steep and sharp climb from May. It surged to a height of RM4.20 on August 4, 2011. This is on the eve of the announcement. There may be good reasons for the share prices of the two counters moving the way they did. However, it seems improbable for this to be coincidental. AirAsia's price was trading around its highest and MAS among its lowest when the share swap took place. AirAsia's price fell immediately after the announcement. It could be that those who held AirAsia shares did not like the deal. It could be whoever was playing up the AirAsia shares stopped doing so. There is therefore cause for investigations to be made. Others have raised concerns with the price. Khazanah exchanged 20 per cent of MAS at RM1.60 per share for 10 per cent of Air Asia at RM3.95 per share. They believe the price should not have been based only on the closing market price of the two counters on August 5. They point out that MAS in fact is worth more than the price traded because it is an asset-backed corporation. It has a paid-up capital of RM3.34 billion represented by fixed asset value at RM8.4 billion, net asset at RM6.92 billion. AirAsia, on the other hand, is a debt-laden company. It has borrowings of RM7.7 billion. MAS's cash position is RM2.086 billion while AirAsia's is RM1.7 billion. Those who approved the deal will need to justify the pricing. One other issue on pricing is the timing of the deal. The share swap was announced on August 9. This was within 30 days before both AirAsia and MAS announced their respective 2nd quarter financial results on August 23. Under the Bursa Malaysia Listing Requirements, this is known as the "closed period". Those in possession of the financial results during the closed period are not allowed to deal with the shares until the results are announced. This is to prevent insider trading by those with possession of price-sensitive information. Those who trade in the shares with such information will be taking unfair advantage of the public who are unaware of the situation. Paragraph 14.08 of the listing requirements allows principal officers who do not possess the information to deal during the close period by giving the requisite notification. Although the listing requirements allow such dealings, it would have been more prudent not to enter into the share swap during the closed period. If the share swap was made after the financial results of both airlines were announced, the market price may have given a better reflection of the share price of both airlines. This may be seen from the share price of AirAsia after the results were announced on August 23. Although AirAsia announced it made a profit, it was 48 per cent less than the previous year. The AirAsia share price fell to RM3.57 at 9.04am on August 24, the day after the results were announced. Those involved will have to explain why the share swap was done before the 2nd quarter results were announced. Opening the gates for the barbarians Unlike the RJR Nabisco takeover where there was a fierce battle for control of the company, in the fight for control of Malaysia's skies, AirAsia were allowed to enter the MAS gates without hindrance. The gates protecting MAS's control of Malaysian skies were opened wider and wider for AirAsia over the past 10 years due to inconsistent government policies. Regulation determines airlines' fortunes International air transport operates within the framework of the 1944 Chicago Convention for International Air Transport. Governments enter into bilateral agreements setting out the landing rights, restrictions on capacity and pricing. Sectors within a single country are normally denied to foreign airlines. This restriction is called cabotage. It is recognised that cabotage is the prerogative of the domestic carrier. The system of bilateral agreements between two governments has led to the aviation industry to be highly regulated. There has since been a change towards deregulation and liberalisation. Nevertheless, the industry remains one where regulation plays an important role. Regulation is thus a critical determinant of an airline's performance. It can determine how competitive the market is as well as constrain an airline in its choice of fares, capacity and frequency. Most governments impose entry controls which are usually applied to particular routes. Most governments usually permit one airline to operate a route. The government therefore plays a critical role in determining the fortunes of an airline by deciding on the routes to be given to the airlines. Golden service takes a beating MAS's finance and operation problems to a significant extent are due to the government's inconsistent and contradictory air transport policy. Such decisions gave the MAS Golden Service a beating while AirAsia became the Golden Child. The main asset of any airline is its route networks. The government first allowed AirAsia to compete with MAS and then gave MAS's domestic routes to AirAsia and had its route networks reduced while AirAsia increased theirs.
|
| Posted: 30 Aug 2011 04:05 PM PDT
By Marina Mahathir, The Star We still need the fundamental freedoms that every human being desires, especially freedom of speech and expression. Our foreparents understood 54 years ago that we had a fundamental right to freedom and self-determination. FIRST of all, let me wish everyone Selamat Hari Raya Aidilfitri. Also, as the days happen to almost coincide this year, Selamat Hari Merdeka. In many ways, this is very significant. Raya is the day we free ourselves from a month of abstinence and restraint. Ramadan is a time for reflection on what good we have, or have not, done over the past year. It is a time to ask for forgiveness for our past sins and mistakes, and hurt we may have caused others. Sadly, this Ramadan has hardly been an exemplary one. With insults galore, shouting and screaming, burning and threats, it has hardly been one of restraint and reflection, at least on the part of public figures. Nor was there any sense of shame at these violations of the good and holy month. Since Raya coincides with Merdeka this year, I thought I would write a list of freedoms we should give ourselves in these coming months, besides the freedom to now eat. First, let us have Freedom from Imagined Slights. I am sick and tired of the people who have nothing better to do than scour the media for all sorts of insults, while at the same time feeling entitled to slight others. Some people's skin is stretched so thinly over their rounded bulks it's a wonder it hasn't ripped. Every little imagined offence calls for protests and demos, almost always outside mosques after Friday prayers. One wonders if God feels slighted at this trespassing on His property, which should be oases of calm and tranquility. As a corollary to that, let us also have Freedom from One-Sided Prosecutions. For example, some people seem to insist on having the monopoly on being sensitive. Everyone else is assumed to have thick skin, so much so that it is now apparently OK to insult people to their faces. Thus, action is taken only when they have been offended, but never when they offend others. One has to wonder what is so great about displaying such thin skin? Won't you wither under the sun? Let us also demand Freedom from the Forgetful Politician, that is, those who forgot who voted them in. First off are those who insist that we should be grateful that they are there to lead us. Talk about a circular argument! Then there are those who, although usually insisting that Malaysians are a unique species of people, totally different from everyone else in the world, are then quick to equate those same Malaysians with the worst of foreigners, those who riot, loot and destroy property. Makes you wonder how that gels with our tourism campaigns. Are we supposed to be nice hospitable people or rioters? One great freedom that I really wish we would give ourselves is Freedom from Snoopers, especially those intent on sticking their noses into our private lives. If one wants to create a moral society, then let's widen that definition to include ethics instead of just keeping it totally focused on our sex lives. A moral society is not just one where everyone behaves well sexually, if such a thing even exists, but also where people feel a strong civic duty to uphold the law, not be corrupt, treat the poorest and most vulnerable well, and protect and preserve the environment. Instead, we have increasing official "busybodiness" coupled with the encouragement of society to be busybodies. Thus our young feel that they are constantly under suspicion of doing something bad, even when they are not. Does this stop all sorts of social ills? Of course not. Indeed we should also demand Freedom from the Ostrich, the stick-their-heads-in-the-sand attitude that insists that some things just don't exist in our country. On the one hand there are people who see a conspiracy under every pebble and on the other there are those who just refuse to connect the dots. For example, young people don't have to become pregnant outside marriage if we educate them and provide the services they need to make the best choices. Instead, we refuse to educate them and then blame them for having babies out of wedlock. Some even insist that the solution is to marry them off early. That's where we need Freedom from the Short-sighted, those who only think in terms of short-term solutions and not the harm that will come many years down the line. At heart, however, we still need the fundamental freedoms that every human being desires, especially freedom of speech and expression. Without these, the Snoopers, Ostriches, Short-sighted and all these others will continue to thrive and make our lives miserable. Our foreparents understood that we had a fundamental right to freedom and self-determination 54 years ago. Let's not forget that the next time we vote. Merdeka!
|
| Malay liberty, its trust and faith in Umno Posted: 30 Aug 2011 03:02 PM PDT
After more than 50 years of independence, wealth distribution among the races and within the Malays themselves is not improving. How does the Malay understand the concept of a Malay nation? Looking from a Malay perspective, the following are the traits of a Malay nation. They understand it as being the homeland of the Malays, where the religion is Islam, its culture as that practised by Malays, Bahasa Melayu is the official language. Mohd Ariff Sabri Aziz, Free Malaysia Today What does Umno mean to the Malays and to me? Like the American declaration of independence, Malays hold some inalienable rights, among these are the right to protect the religion of Islam, the rights on the Malay language, culture and ethnic identity and finally the right over this country. And to secure these rights, Umno was formed. Umno is relevant for as long as it remains loyal to these rights. Or if it can reinterpret these rights better. These fundamentals on which Umno was constructed can be said to be the ABC of Umno's mission. 'A' stands for agama or religion, 'B' is for bangsa, bahasa and budaya (race, language and culture) and C is the country. Some of the readers may find the comparison between the fundamentals of Umno's creation with the American declaration of independence disrespectful. America, after all, is the most powerful nation on earth. It is the only superpower. My response is why should we be ashamed of declaring what we stand for? This is the basic fault of the current Umno leadership – it no longer gives effect and substance to these fundamentals. Right to self-determination Looking from a Malay perspective, the following are the traits of a Malay nation. They understand it as being the homeland of the Malays, where the religion is Islam, its culture as that practised by Malays, Bahasa Melayu is the official language. They understand it to be a land where the monarchy system remains an integral part of their cultural and political heritage. They understand it to mean that Malays will control some degree of the economy. They understand it further as an embodiment of the inalienable right of self determination. Having understood this, in the end, the unpopular idea of a Malayan Union was rejected way back in history. Umno was the driving force behind this rejection. The Malay race is indebted to Umno. After the first general election in 1955, Umno led the other non Malay political parties to form the government. In 1957, Umno gained independence for us. Since then, this country has developed in leaps and bounds. Yes yes, the Umno Rottweilers and Dobermans can repeat ad nauseum the achievements of the government – Felda land schemes, modern amenities, schooling etc etc. Yes, we are indebted to Umno but never, never were we enslaved by, nor were we hostage to Umno. Trust must be protected This is the overriding thread that binds all other Malay interests. All other interests are subsumed under the force of nationalism. Malay nationalism is about primacy of Malay interests. They must be protected, expanded and defended. This was the basis of trust given by the Malays to Umno. I fear these interests are perceived as being watered down by the Malay public. It is watered down by weak implementation, failure by Umno to provide leadership, by rhetoric more than substance, by mere words more than action. These sentiments and emotions emanate from the breasts of ordinary man, not those in the halls of Putra World Trade Centre. These powerful forces can only be sustained on the backs of economic and educational strength, areas in which the Malays are weaker by the day.
|
| Posted: 30 Aug 2011 02:57 PM PDT
Corruption, nepotism, cronyism and the abuse of the judiciary and legislation have marred the significance of Aug 31. Had the country's Merdeka been given due respect, the rights and sentiments of its people of all races would have been equally respected. We would not have had the incident where former prime minister Dr Mahathir Mohamad cautioned the non-Malays to "behave" themselves if they were to continue living in this country. For Malaysia, he said, belongs to the Malays, simply because at one time this nation was called Tanah Melayu (the Malay land). Jeswan Kaur, Free Malaysia Today Aug 31 is a day of reflection, of taking cognisance of the fact that the country's independence or Merdeka can no longer be taken for granted, that too by the "keepers" of this nation. Regrettably, it is the "powers that be" that have marred the meaning of Merdeka. Corruption, nepotism, cronyism and the abuse of the judiciary and legislation have marred the significance of Merdeka, especially for the younger generation. Instead of imparting profound meaning to Malaysians, Aug 31 had been reduced from the sublime to the ridiculous by the power-hungry and "self-first" politicians-leaders of this country. The fact is Malaysia is "independent" but only in name, not in act. The existence of draconian laws that are continuously abused by the "powers that be" to safeguard its position have turned the understanding of Merdeka into a laughing stock. To worsen matters, politicians never tire of playing the racial card, not the least bothered that they have relegated the nation's Merdeka, the respect all but diminished. As for patriotism, it had become very much a case of "to each their own". Had the country's Merdeka been given due respect, the rights and sentiments of its people of all races would have been equally respected. We would not have had the incident where former prime minister Dr Mahathir Mohamad cautioned the non-Malays to "behave" themselves if they were to continue living in this country. For Malaysia, he said, belongs to the Malays, simply because at one time this nation was called Tanah Melayu (the Malay land). If Merdeka held any meaning to the country's leadership, there would have been no such case where the present deputy prime minister Muhyiddin Yassin unabashedly proclaimed that he is a "Malay first and Malaysian second". Misusing the keris Had the meaning of Merdeka been understood by Umno, the country's dominant party championing Malay rights, its key players would not have misused the keris or Malay dagger by swaying it at the party's general assemblies to remind the non-Malays to back off from questioning Malay rights. Under Article 153 of the country's Federal Constitution, the Malay rights are guaranteed, thereby creating a deadlock as far as debating these privileges is concerned. Indeed, if Merdeka truly holds meaning, the Aug 28, 2009 episode would not have happened – where a cow head that had been severed was stepped on by a group of angry Malays who could not tolerate and accept the fact that a Hindu temple would soon be built in their neighbourhood of Section 23 in Shah Alam. Merdeka, really? What was unbelievable was that such an act of desecration went on to receive the support of the Home Minister Hishammuddin Hussein. Did he not know that the cow is considered a sacred animal to Hindus? Merdeka, are we? Yes, the painful truth is that Merdeka is no longer synonymous with freedom or liberty, more recently depicted by the July 9, 2011 "Walk for Democracy" rally calling for free and fair elections. The police brutality vis-à-vis tear gas and water canons and beatings would always serve to remind Malaysians that they, albeit living in an independent and democratic nation, have no avenue to voice out their unhappiness with the government. The Barisan Nasional-government which had been ruling the country since 1957 is no longer taking any chances, not after the political debacle it faced three years ago, when it lost five states to the opposition in the 12th general election. The BN-agenda now is to, by hook or crook, silent all dissenting voices and impress a rosy picture of the country, the aim being to give BN the chance to enjoy the two-third majority that was denied in 2008. Merdeka –but from whom? The June 26, 2011 arrest of 30 activists from Parti Sosialis Malaysia under trumped up claims of waging war against the country's monarch and spreading subversive beliefs is another proof that truth has no place in the heart of the country's leadership. To summon the police to "finish off" certain people because of the "danger" they pose had put the police force in a shameful position. Deaths in police cells have become the norm more than an exception. The Najib-led government's refusal to acknowledge the importance of the Independent Police Complaints and Misconduct Commission (IPCMC) in helping reform the police force signals that all is definitely not well where Malaysia's democracy and Merdeka are concerned. Tampering with the country's judiciary to stifle the truth, as seen from the "suicide verdict" announced in the case of the DAP-aide Teoh Beng Hock and detainee A Kugan who ended up dead while in police custody give the rakyat much reason to question the validity of Aug 31. When long-serving estate workers as in the case of the Bukit Jalil estate residents are made homeless by City Hall under the pretext of development, can they be blamed for questioning if Merdeka truly exists for Malaysians? Unity vital for Merdeka Does unity i.e. camaraderie between the rakyat exist? If the non-Malays are incessantly chastised and threatened, as done by the extremist Malay-rights group Perkasa and the Umno-owned Malay daily, Utusan Malaysia and coupled with the poor example shown by the country's leaders, the answer at best is ambiguous. Name-calling and threats are not going to sustain the Merdeka spirit for long. For a nation as young as Malaysia, there is much to learn in preserving the independence it had achieved from its British masters. But it seems that the country's politicians, this includes Najib, the ever-racist Hishammuddin, Perkasa founder Ibrahim Ali and the Umno honchos are far too foolishly arrogant to want to learn from the annals of history on what it takes to promote unity and sustain the independence gained. Malaysians like Perkasa's Ibrahim through his racial discrepancies has tainted the whole struggle towards Aug 31, when the nation finally achieved independence back in 1957. The likes of Ibrahim believe their onslaught of threats would blench the non-Malays into subservience towards the dominant race, often times promising bloodshed should the non-Malays dare question Article 153 of the Constitution. The damage, however, had long been done. In 2009, churches were attacked with petrol bombs after a court lifted a government ban on the use of "Allah" as a translation for "God" in Malay-language bibles. The ban had been in place for years but enforcement only began in 2008 out of fear the word could encourage Muslims to convert.
|
| Malaysians mark independence in shadow of ethnic distrust Posted: 29 Aug 2011 05:43 PM PDT
By Julia Yeow, M&C As Malaysians mark the 54th anniversary of their independence, the usual pomp and pageantry comes at a time of increasingly tense ethnic and religious relations. Malaysia prides itself on its thriving multicultural society and the freedom of religion against the backdrop of a majority-Muslim population, but racial tensions have always simmered under the peaceful surface of this relatively prosperous South-East Asian nation. Ethnic Malays, who are almost all Muslims, make up about two-thirds of the population, while ethnic Chinese and Indians who are largely Christians, Buddhists and Hindus, constitute a large minority. A survey conducted by independent polling group Merdeka Center this year revealed that the number of Malaysians who felt that ethnic relations were good had dropped to 66 per cent, from 78 per cent five years ago. The poll also showed a particularly high level of distrust among Malaysians of different ethnic backgrounds. 'In our view, the survey findings reflect a significant shift in Malaysian public thinking - the optimism of the mid-2000s appears to have given way to increased insecurities and distrust, which is in part due to the current competitive political environment,' the centre said this month after its survey results were announced. Race and religion have always been sensitive issues here, but interracial clashes in recent years have exacerbated the growing ethnic divide and non-Muslims increasingly complain of having their rights trampled on by a majority-Muslim government. Last year, the Home Ministry appealed against a High Court decision to allow non-Muslims to use the word Allah to mean God, a ruling that had riled most Muslims. The case led to at least eight churches being attacked, including one in the capital Kuala Lumpur city which was firebombed. No casualties were reported in any of the attacks, but many observers noted that the incident brought to light the fragile and tense relationships within multi-religious Malaysia. Despite Prime Minister Najib Razak's stated commitment to closing the racial divide since he took office in 2009, Malaysia's political, education and economic structures continue to be deeply entrenched along racial and religious lines. Since its independence from Britain in 1957, Malaysia has been ruled by the National Front, a coalition of 14 race-based parties, all claiming to represent and fight for the cause of specific ethnic groups. Adding to the constant reminder of ethnic division is the decades-old affirmative action plan, the New Economic Policy, which favours Malays. The worrying level of ethnic tensions of late has been blamed largely on irresponsible politicians playing the race card. Government policies on almost every area - from education to economic and electoral reform - continue to be 'articulated from an ethnic framework, rather than seeking to find commonalities,' said Denison Jayasooria, a lead researcher in ethnic studies in the National University of Malaysia. 'This articulation and the attempt to champion ethnic policies has had an impact on contemporary Malaysian society,' Denison said. A poll conducted by the Merdeka Center in August also revealed that Najib's popularity has suffered, with his approval rating dropping 6 percentage points over a period of three months from May. While the rising cost of living and continued concerns of a high crime rate were some of the major reasons for the drop, observers noted that Najib's handling of racial and religious issues in recent times may have also contributed to his lagging support. His '1Malaysia' campaign, which aims to break down racial divisions and create a single, unifying Malaysian identity, has been criticised as hypocritical vote-grabbing after his ruling coalition suffered badly in the 2008 general elections. 'I don't believe in Najib's 1Malaysia. It's just lip service,' said Maria Hasan, an ethnic Malay Muslim journalist. 'The reality on the ground is that there is an increasingly wide racial divide,' she said. Denison said that while Najib had put in place positive reform policies, he continued to 'remain silent' in addressing racially tinged statements coming from members of his ruling United Malays National Organisation. But despite the grim outlook for ethnic and religious harmony, Denison said he remains hopeful that the growing number of moderate Malaysians would respond rationally to sensitive situations. 'In the long run, Malaysians will reject extremism of all kinds,' he said. 'The Malaysian spirit ... will draw us towards balance.'
|
| Malaysia in the Era of Globalization #80 Posted: 28 Aug 2011 06:08 PM PDT M. Bakri Musa Yet despite that flourishing head start and seemingly workable system, Islamic finance later went into decline. It is instructive that the decline in Islamic economics parallels the decline in Islamic civilization. Chapter 9: Islam in Malay Life Reform in Islam Islamic Financial Intermediaries Trade had been flourishing for centuries in Arabia, immediately before and after the prophet's time. All that buying and selling, together with the caravan expeditions, could not have taken place without there being a satisfactory financing mechanism. There must had been a system for connecting the owners of money (savers) and the users of cash (investors and traders). Yet despite that flourishing head start and seemingly workable system, Islamic finance later went into decline. It is instructive that the decline in Islamic economics parallels the decline in Islamic civilization. Today Western financial institutions are preeminent. Western banks and other financial intermediaries did not develop overnight. They have been refined, modified, and strengthened over the centuries. The process continues to this day. Today's banks are a far cry from what they were a century earlier. The essential ingredient to the success of banks is the faith people have in them. Absent that, not even the strongest institution could survive. All the regulations and innovations in banking serve only one purpose: to strengthen that faith and confidence. |
| 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 | |
My new book 'Patriots & Pretenders' aims to put the historical facts in perspective so that the new generation of Malaysians understands the class forces that were arraigned during the anti-colonial struggle and gets to know who the real anti-colonial fighters were.
The atmosphere of repression during the 'Emergency' provided the British colonial power with an opportunity to deflect the forces of revolt and effect the neo-colonial accommodation. The entire colonial strategy – especially the aftermath of the Malayan Union crisis – had convinced the British that the custodians of an Independent Malaya would be the traditional Malay elite.