Adsense top

Thursday, 21 November 2013

Chanond Ruangkritya and Ananda Development Company Limited 阿南達開發

Ananda Development Company Limited (ADC) was founded in 1999 by Chanond Ruangkritya. Ruangkritya family has been in the real estate business in Thailand far more than 20 years. The development under its credential including the golf course and housing estate to name as a few Green Valley Bangkok, Green Valley Rayong, Green Valley Chiengmai, Windmill, Saint Andrew etc.

The second-generation property developer has carved a niche for his company by building affordable condominiums near to train stations for the country’s emerging middle class, from first jobbers to single urbanites and cosmopolitan couples.

Last year, Ananda accounted for two-thirds of Bangkok’s new property launches sited within 200 meters of train stations. Life wasn’t all smooth sailing for Chanond. His parents divorced before he turned 10.

He uses a Thai saying to explain their separation: “Two tigers cannot live in the same cage.” Raised in a broken family with four siblings, Chanond quickly developed a rule of life. “You need to be strong and look after yourself. This sense of survival and independence has always been with me.”

He attended a local school in Bangkok before going abroad to study in the United States and London. “I wasn’t sent abroad, I chose to (go),” he emphasizes. “There’s a critical difference.” A talent for strategic calculation emerged during his college years. The young Chanond worked hard at the beginning of the school term to achieve a grade-A average.

Then he was able to compromise, aiming to reach only grade B over the remaining time, giving him the chance to party with friends. He explains that this strategy optimized time by “balancing academic life with youth and enjoyment”.

Chanond-RuangkrityaChanond returned home the year that Thailand plunged into depression, due to the Asian financial crisis in 1998. Being the eldest son in the family, he was entrusted with restructuring his father’s realty company, which builds luxury residences for Thailand’s upper class.

The 25-year-old finance graduate, the eldest of five siblings, was put in charge of restructuring the business. He spent the next two years staunching the red ink as he retrenched staff and negotiated with creditors in a bid to keep the company afloat. With minimal support from his parents, Chanond started his own company from scratch in 1999.

In 1999, he left to start his own firm, which became known for building mass-market condominiums within spitting distance of almost every electric train station in Bangkok. The units sold like hot cakes. “It wasn’t handed to me on a silver plate,” he says.

“I took a lot of bank loans … It involves a lot of sweat and groundwork, risk-taking, persuasion to convince bankers to back you up and older people to work for you.” Chanond’s solution was simple: wake up early and work hard. “All I have is a massive amount of self-control and lots of energy,” he says.

From a relatively small startup of just 30 people, Ananda has mushroomed into a sizable developer with a workforce expected to be around 800 people by the end of this year. The company, Ananda Development, went public last December.

Mr Chanond Ruangkritya, now 39 and married with an 18-month-old son. Mr Chanond looks back at the first few years of his working life with relief and some satisfaction. Life then was a matter of "waking up and not seeing the light at the end of the tunnel and just hacking away, day by day", he recalls. He was driven by a sense a duty.

  "I got to where I am in life because of my parents," he says. "Whatever services I can provide, I think I owe it to them." Yet those difficult years also helped him acquire a reputation as a "young kid" who "took the plunge... (and) stuck to it". It sells condos at prices below 3 million baht on a basic principle: the closer to the train station, the more expensive it is.

The Ideo condos, first launched in 2007, are within 300 meters of the nearest train station. The less-expensive Elio options are within 600 meters. These are studio apartments with average size of just 30 square meters. Underneath the buildings are club houses, coffee shops and supermarkets that offer residents convenience at their fingertips. Chanond is more interested in making housing affordable than helping to create property bubbles.

“We are not in a race to build the most extravagant high-rise, gold-painted sanitary wear,” he says. “We try to get a basic bathroom — less expensive, most functional and durable. That’s the race we are in. How can you make bubbles by building more economical units for people?”

Achieving a balance between home and work is difficult, and the high-flying CEO admits he hasn’t spent enough time with his family. “It’s a sacrifice,” he says. He is married to former beauty queen Pailin Rungratanasunthorn with a toddler son.

"Today, senior bankers know what I did, and they always back me up in what I do. I'm very candid and honest in my approach," says the economics graduate from the University of California, Berkeley, who also has a master's degree in finance from the London School of Economics.

Property developer's concept of 'mass transit living' helps Bankok urbanites maximize their time. “The name of the game is optimizing your own time,” says Chanond, 39, from his new office in the Bangkok business district of Asok.

Traffic in the Thai capital has long been a powerful force in everyday decision making. A survey by Ananda highlighted an alarming fact: Bangkok residents waste 44 days a year stuck in traffic. Chanond’s concept of “mass transit living” begins from there. “The principle is to live, play and work around an efficient mass transit system,” he says. “You gain your life back.”

Born and raised in Bangkok, Chanond recalls growing up in the traffic-choked city. He would leave home by 6 am, drop his younger sisters off at their schools after spending one hour in traffic, followed by another 30-minute journey to his own school. “That’s it for the morning. You do the same in the afternoon,” he says. In the last 30 years, the situation hasn’t improved much with the development of highway networks. Only one-tenth of the land in Bangkok is allocated for roads, he says, which is less than developed countries.

The Thai government also provides incentives for first-time car buyers. “It’s all these policies that contradict each other, and Bangkok residents continue to suffer from traffic problems,” he says. It targets Bangkok's middle-class buyers by keeping home prices below 3 million baht (S$127,000), he says.

The condos are located within specific distances of Bangkok's skytrain and subway stations and marketed accordingly. Its Ideo condos, for example, are within 300m of a skytrain station, while its cheaper Elio condos are within 600m of one. Developers tend to fudge the distance between their projects and train stations, he says with a laugh.

"When we came into the market, we said it was 25m, 30m or 2m from the station. We use exact metres." Proximity is prized in Bangkok, whose notorious round-the-clock jams can turn a five-minute ride into a half-hour crawl. But land around transit hubs is expensive, so there are nips and tucks to keep prices below the 3-million-baht ceiling.

One way is to build them small. The tiniest unit measures just 21 sq m. "The city is your living room. You zip around on the train, you go to Paragon, to Central World," he says, referring to two popular malls. One gets the sense that Mr Chanond wants to populate Bangkok with his condominiums much like the 7-Eleven stores that dot every strategic street corner.

Thailand is planning a massive rail expansion that could more than quadruple the existing 80km of subway and skytrain lines in the capital over the next six years. Ananda has built 12 developments, is completing eight others and plans to launch five more this year. But "if they have 200 more stations, we need to build 200 more buildings", Mr Chanond says. It's like buying toothpaste. "If you need to brush your teeth, why don't you use Colgate? If you need to be close to a train station, why not buy an Ideo?"

Mr Chanond thinks Bangkok's home prices are still too high, which is probably why about half of its residents are forced to rent. On the drawing board of his mind is an alternative housing solution. Just suppose, he says, a company can offer you different types of housing to suit your needs as you age - for a monthly "fee".

The amount will vary according to the type of housing. But unlike rent, the money remains in your name. It is reinvested by the company and returned to you together with investment gains at a future date. Now suppose the scheme is tied to health insurance. And the rights to the scheme are tradable.

Mr Chanond chortles at the mental gymnastics required to digest this radical idea. "It's theoretical," he says. "But it's something… I think about all the time." If his ideas are anything to go by, this real estate tycoon may be offering more than brick and mortar in the future.

Top Japanese developer investing in three Asean countries
Somluck Srimalee
The Nation
Tokyo August 30, 2013 1:00 am

Mitsui Fudosan, Ananda join forces for Bt6.5 bn condo on Rama IV

Mitsui Fudosan Residential Company is confident in the continued growth of the ASEAN economies and is expanding into Thailand, Indonesia and Malaysia this year after first investing in Singapore 40 years ago.

"We are confident that ASEAN countries' economies will still grow, especially the Asean-5 countries - Thailand, Singapore, Indonesia, Malaysia and the Philippines - by the targeted 5 per cent next year. Although they are facing low growth in the second half of this year, it is a short-term situation," group chairman and chief executive officer Kiyotaka Fujibayashi said.

The group early this year invested more than Bt10 billion in residential and retail projects in Thailand, Indonesia and Malaysia.

In Thailand, Mitsui Fudosan set up a joint-venture firm with Ananda Development, Ananda MF Asia, with registered capital of Bt900 million. The Japanese company holds a 49-per-cent stake in the JV, 49 per cent is held by Ananda Development, and the rest by minor shareholders.

Ananda MF Asia has set aside an investment budget of Bt1.8 billion, half from the company's capital and the rest borrowed from the major shareholders, to develop Ideo Q Rama 4, a condominium project worth Bt6.5 billion near the Sam Yan MRT station. The project will open to presales in the fourth quarter, and plans to be complete and transferred to customer in 2016 at a starting price of Bt2.89 million per unit. A project loan from Bangkok Bank has already been approved.

"We also plan to develop an average of two residential projects worth Bt10 billion a year by way of our joint-venture firm," Fujibayashi said.

Ananda MF Asia is also interested in developing office and retail projects in the future.

In Malaysia and Indonesia, the group is also investing through joint ventures with local partners to develop the both residential and retail projects, Fujibayashi said.

Mitsui Fudosan Residential is a leader in the Japanese property market. The group recorded total sales this fiscal year (April 2012-March 2013) worth Bt466 billion. It develops and transfers to customers 5,000-6,000 residential units a year.

Ananda Development president and CEO Chanond Ruangkritya said the JV firm would focus on large residential projects worth more than Bt5 billion, while Ananda Development itself would continue to develop condominium projects worth up to Bt3 billion.

"To expand our investment into larger projects, we needed a partner to reduce our business risk for the long term," he said.

Ananda Development plans to launch nine new condominium projects worth Bt10 billion in the current second half, two of which opened last week worth Bt3.2 billion.

It will deliver Bt10.2 billion worth of homes to its customers this half, including Bt1.02 billion worth in the current quarter. The remaining Bt9.2 billion worth will be booked as revenue in the fourth quarter. This will result in a net profit for the full year, he said.

Ananda Development recorded revenue of Bt1.9 billion and a net loss of Bt91.3 million in the first half.
Buy -
政局紧张外资急撤 泰国股汇债全倒
Thai stocks rise after PM dissolves parliament


2013-07-30 10:31:59

【本報訊】阿南達開發(ANAN)於昨(29日)上報證交所,公司在同日斥資14億1,780萬銖買進一塊土地,款項來自於內部流動現金。占地面積近5.4萊,位置距離藍線MRT的拉瑪4路車站僅270米之遙。這塊土地原本由ANAN的合資企業,Ananda MF亞洲公司持有,該公司由ANAN和三井不動產集團聯合設立。



ANAN於2012年12月正式在泰股大盤掛牌交易,名列房地產類股名下。迄今為止的市價對淨值比為1.77倍,市值達89億9,910萬銖。公司始建於1999年,第一大股東為Mr. Chanond Ruangkritya,持股率高達53.74%。摩根士丹利(Morgan Stanley)為第2大股東,控股率為5.83%。剩餘股份分散在眾多小股東手中。

政局紧张外资急撤 泰国股汇债全倒

Tuesday, 19 November 2013

Corporate Princess 8 : Titijaya's Charmaine Lim Puay Fung 企业公主系列8: 帝亿成功置地集团林贝芳

Datuk Lim Soon Peng with daughter Charmaine Lim Puay Fung in front of a model of First Subang - 2007

Launch of Prospectus and press conference. From left Titijaya Land Bhd executive director Chermaine Lim Puay Fung, COO Lim Poh Yit,  group MD Tan Sri Lim Soon Peng and Alliance Investment Bank CEO Rafidz Rasiddi
Launch of Prospectus and press conference. From left Titijaya Land Bhd executive director Chermaine Lim Puay Fung, COO Lim Poh Yit, group MD Tan Sri Lim Soon Peng and Alliance Investment Bank CEO Rafidz Rasiddi

Charmaine Lim believes there is no full-stop when it comes to success.
Founded in the 1980s by Tan Sri S P Lim, Titijaya has completed more than RM1 billion worth of properties, mainly medium to medium-high-end projects, in the Klang Valley.

It is always heartwarming to learn how someone rose from poverty and hardship to attain success and affluence. Such is the story of Datuk S P Lim, founder and managing director of Titijaya Group.

What started out as a small construction sub-contracting outfit is now a property development company, with completed projects worth over RM900 million, mainly in Klang, Selangor, Lim’s hometown. The group is now set to expand to Sabah and possibly Kota Baru in Kelantan.

When Lim turned 17, he decided to take up construction skills as his job at the market was only earning him RM40 to RM50 a month. “Those days, there were no concrete machines, you had to learn how to do it manually,” he recalls.When he was 22, Lim started his own small company as a sub-contractor and got his first big break. He made his first RM1 million when he was 28, building a holiday home in the hill resort town of Fraser’s Hill in Pahang. “Nobody wanted the job as it wasn’t easy transporting materials up and down the hill. With the money I made, I bought land and developed small projects like in Bukit Cheras and bought oil palm estates in Meru, Klang.”

Lim’s property development and construction business grew from there, and he professes that there is no substitute for hard work and careful, detailed planning. He believes this is the reason the company’s projects attract many repeat buyers. Among the developer’s significant projects are the new transport hub in Klang, known as Klang Sentral, and serviced apartments E-Tiara (next to Carrefour and Subang Parade) and Casa Tiara, completed in Jan 2007 and May 2008 respectively, in Subang Jaya.

Today, Lim’s daughter Charmaine and son Poh Yit helm Titijaya Group as director and CEO respectively. They lead the company’s operations in the Klang Valley,

Charmaine. Lim Puay Fung, age : 32 Charmaine serves as Sales and Marketing Director of Titijaya Berhad and TGSB Group. Ms. Charmaine has been Sales and Marketing Director of the TGSB Group since 2005. She is responsible for Titijaya Berhad's sales and marketing division and oversees it's marketing and promotional activities for its on-going development projects such as Subang SOHO and Subang Parkhomes. She has approximately 8 years of experience in the property development industry . She started her career in the property development industry with the TGSB Group. She has successfully managed the marketing, advertising and promotional activities for Klang Sentral Commercial Centre (Phase 1), First Subang, Tiara Square Business Centre, Etiara Serviced Apartments and Casa Tiara Serviced Suites. She has been Executive Director of Titijaya Berhad since December 29, 2010. Ms. Charmaine graduated from the University of Adelaide, Australia in 2002 with a Bachelor of Commerce (Corporate Finance).

Her tenth year since joining the company, Charmaine Lim now helms Titijaya Group as the company’s Director. Together with her brother, they have followed in the footsteps of their father, who founded the company in the 1980s. Having been exposed to the real estate arena at a tender age, she found her calling when she embarked on her first project as a marketing executive.

I joined Titijaya Group as a Marketing Executive back in 2003 after graduating from University of Adelaide. My first project back then was the E-Tiara serviced residence in Subang Jaya. Although a newcomer, I felt really proud as it was like my baby then. I remember clearly it was a mad race to put the finishing touches on the showroom the night before the launch, and it was such a tiring experience. But it all paid off the next day when we had an overwhelming response from eager buyers, some even queuing up since the wee hours of the morning. The moment we opened our doors, the sales office was packed.

Charmaine Lim A Bangkok-based purchaser, Lau Tian Liang, agrees; he is among the purchasers at e-tiara. "I had been looking around for an investment property and this seemed to be a good one. It is also something that I do not mind staying in." He is fully aware of the risks. "I understood `serviced apartments' were not covered by the HDA, but I took the chances and put my faith in the developer."

What is clear, then, is for home buyers to be aware of the benefits offered by serviced apartments and weigh them against potential risks. While buying a serviced apartment has its share of risk, Lau had this to say about his serviced apartment purchase. "No investment is risk-free."

My brother and I, we have been exposed to business since young. Our father used to bring us along to business functions and events. Sometimes we get to listen to serious dialogues and so on. And while he guided both of us, I think he also liked seeing us make mistakes because from the mistakes, we learn. That’s why when I joined the company, I started from the bottom, and slowly learned the ropes.

"THIS is my first job ... and it'll be my last," says Charmaine Lim Puay Fung matter-of-factly.

Philanthropist Datuk Lim Soon Peng is Titijaya managing director and both his children who are graduates are also on the board. His son, Lim Poh Yit, is the chief executive officer and daughter Charmaine Lim Puay Fung is the director.

The group, with a 20-year track record, started a trend of sorts when it launched the e-Tiara in 2004. Despite pricing the units higher than others, they were well received. Today, they have been fully sold and handed over to buyers five months ahead of schedule.

Titijaya's IPO, which is due to list on the Main Market of Bursa Malaysia this month, comprises a public issue of 81.7 million new shares and an offer for sale of 49.5 million existing shares.
For financial year ended June 30, 2013 (FY13), Titijaya Land posted a 53% increase in net profit to RM52.2 million from RM34.1 million a year ago, while revenue rose 64% to RM193.8 million from RM118 million respectively in FY12.

Its chief operating officer Lim Poh Yit said Titijaya’s current land bank totalling190.2ha concentrated in the Petaling and Klang districts in Selangor, which Lim said would be able to sustain the group until 2021.
On-going projects under Titijaya Land's portfolio currently have a total GDV of some RM1.08 billion, namely Subang Parkhomes and the current phases of Seri Alam Industrial Park and the Zone Innovation Park.
Lim said together with his father and sister Charmaine Lim Puay Fung, who is involved in the sales and marketing of the group, the family will continue to spearhead and determine the course of Titijaya Land despite the Lim family's shareholding in the group being reduced to 61.4% post-IPO from 100% currently.
On expansion plans, he said that RM30mil from the initial public offering (IPO) was allocated to acquire additional land bank.

Executive director Charmaine Lim added that the group was still focussing on prime locations in Klang Valley and its ongoing projects.

Titijaya’s unbilled sales amounted to RM500mil as at June 30, 2013.
The group set a dividend policy of up to 30%, which Lim noted meant about 4% to 5% yield.
Post-listing, the group’s net gearing would be 0.22x while gross gearing is 0.44x. Titijaya aims to raise some RM122.6mil from its IPO.

Aside from the RM30mil allocated for land acquisitions, RM49.5mil will go into Titijaya’s working capital, RM15mil for repayment of bank borrowings, RM24.3mil for repayment of advances from previous shareholders of its subsidiary Epoch Property Sdn Bhd and RM3.8mil for the listing exercise.chief operating officer Lim Poh Yit said at the company's prospectus launch.


 企业公主系列8: 帝亿成功置地集团

拉菲兹(右起) 将帝亿成功置地招股书移交予林顺平、林保亿及林贝芳。

巴生谷著名产业发展商--帝亿成功置地集团(Titijaya Land)预定于2013年11月27日在马来西亚交易所主板上市,届时对产业股情有独钟的投资者,将拥有多一只产业股可以选择。帝亿成功置地集团已经于11月11日推介招股书,并发售8千170万新股和4千950万现有股票,每股售价1.50令吉。帝亿置地成功集团首次公开发股(IPO)的截止日期为11月18日。



計劃11月底上市馬交所主要板的帝億成功置地(Titijaya Land Berhad),推介招股書獲得重量級人物如楊忠禮集團創辦人丹斯里楊忠禮、華總會長丹斯里方天興及發林集團總裁兼董事主席丹斯里林玉唐,齊來助興。



林保亿是于2004年加入父亲丹斯里林顺平的公司,并担任父亲的私人助理,学习经商的知识,并一步一步被父亲提升为帝亿成功置地集团首席营运员的职位。林保亿表示:“在担任父亲私人助理期间,确实让我学习到不少的经商知识,尽管现在父亲已经将公司日常运作的事务交给我,但是在公司长期的策略发展方面,他仍然会提供意见与看法。” -


林貝芳,32岁,毕业澳洲阿德莱德大学商业学士(企业金融),从销售和市场营销执行员做起. 现为销售和市场营销董事.
"我于2005年毕业澳洲阿德莱德大学毕业后加入第一成功置地 为市场营销执行员,第一个项目是梳邦再也 E-Tiara 服务式公寓.虽然是新人,我为这项目感到骄傲,这项目好像我的孩子.我记得发售天前一疯狂的赶着布置陈列室,那是累人的经验.当第二天急于购房者的热烈响应,一切值得.有些人甚至在凌晨开始排队.我们开门的那一刻,售楼处已经挤得水泄不通.
我的弟弟和我从年轻触商业,父亲带我们出席商业活动及应酬. 有时,我们严肃的对话. 而当他指导我们俩时,我觉得他也很喜欢看到我们犯错误.因为从错误中,我们学习.这就是为什么当我加入公司时,我从底部层做起,慢慢地学习.这是我的第一份工作...它也会是我最后一份工作"她说


第一成功置地 集團董事林貝芳說:“每當市場有新條例,消費者短期內都比較留意和關心細節。不過,長期而言,國行的多項舉措都有利于房地產領域的整體穩定性。”



Monday, 18 November 2013

How Soh Chee Wen planned his come back

After rumours of Soh Chee Wen involved in 3 designated stock in SGX. Blumont Group Ltd, Asiasons Capital Ltd and LionGold Corp Ltd.

There is a lot of traffic come to this blog via search of keyword "Soh Chee Wen". While Soh might be familiar figure in Malaysia. It might not be same for reader in Singapore.  We decided to blog about Soh Chee Wen today.

In 1979, Soh Chee Wen admitted to Universiti Malaya. However, he drop out of University after two weeks as he find passion in direct selling company ( MLM company ). He earn his first millionafter two years.

Dogged by bad publicity after the collapse of his Direct Selling company ( MLM Company ),WW Wings, he decided that getting money to pay off his massive debts would be his number one proiority.

The Batu Pahat born lost everything in 1984 after the recession wiped out of his earlier success and plunged him into debt totalling about RM6million, he remain opitimistic. "My friend Duta Yap have more than 600million debt yet survived. What is 6million" he said.

In a way , he had to because there was nothing else for him to cling to. After dimissing the fact that even a high-paying job would not solve his financial woes, he planned his comeback through other option.

Given that  there were many ailing companies in the wake of the recession, he and his associates decided to use their experience to try to revive them. Soh offered to sort out their troubles and placed classified advertisements in the newspaper with this tempting line - " Is your company in trouble?"

"We had thousands of replies, including from a few public listed companies. Almost everybody was in trouble in those days. that gave a new direction and purpose" he said.

This seemd ironic since Soh too was hit by the recession. He said :" Of course, we didn't highlight our problems. I guess there were some people who were too desperate and believed that we were sincere and committed enough to do it. the point was that they had nothing to lose.

Soh's offer to people in finacial trouble was simple. In return for taking over their financial losses, their fee was charged as contra equity in the ailing companies. this mean meeting head on with bankers, creditors and bill collectors.

In those days, accoding to Soh. there were even people who would give their companies up for free.

Soh said " So, we took over a lot of companies that way. At least,the owners had a good noght's sleep. many of these companies were small operations such as mini markets, pharmacies and services companies.

"Our basic formula was a simple one which we have refined over the years into an art form. we would offer 10 sen to the ringgit. they ( Creditors ) would be very thankful for that.

"Most creditors are fairly reasonable and basically, "They want to know what your plans are. They want to know that you are not running away. A lot of creditors usually do not say that that you have to pay 100 per cent right now. They just want an assurance that you have enough courage to face them and not run away."

After taking over, how did Soh turn around and ailing company? He said : once we reduced the debt, for example, from a million to RM100,000, we would look for ways to reduce the debt further. we would look for ways for things that are core and non-core to the business.

" We then decide waht to sell. for example, in a mini market operation we look for things that were not inuse such as spare freezers and shelves, and we would sell them.

"When this is done, you will have a clear business and next thing is you will have to work like hell to make it work. that formula never fails."
Some of the revitalised companies were sold to pay off his debts, some were kept. those which were kepr were companies with land banks or contracts with government which Soh and company could build on when the recession was over.

For instance, the Lake-view Club in subang Jaya was taken over for just RM5,000.00 (Cash portion)in 1988.

His big break came in the same year when he took over a company known as Posti bena construction Sdn Bhd which had a contract from the Royal malaysian air Force to build an 18-hole golf course and a clubhouse in Kg Subang near the air port.

With a name like Pasti Bena which literally means "sure to build," it placed Soh back on the corporate trail after successfully completing the contract for RM20million.

Soh described the contract as radical as at that time it was one of the government's first Build, Operate and Transfer (BOT) contracts.

He said: "In return for the contruction, we were given 4,000 club memberships to sell within three years. If we could do so. the money was ours to keep. Even if we had sold just two memberships, that would be the final payment. We sold the memberships for RM5,000 each. It was not easy to sell in those days but we managed to sell all.

Soh and his associates made some profit from the contract. He said : "We used the money to pay off some of our debts."

"I have sweated blood. I have gone up, down and up since 1979. the fact of the matter is that I have my second wind from 1984. Nobody can do it overnight"

Born in Petaling Jaya on Boxing Day in 1959, Soh carved out a name for himself in the corporate world here and across the causeway when in 1995, he emerged as the largest shareholder and director in Singapore-listed Inno-Pacific Holdings Ltd.

By mid-1996, he controlled no less than seven listed companies on both sides of the Causeway and another four overseas
His stable then comprised Kuantan Flour Mills Bhd (KFM), Autoways Holdings Bhd, Kelanamas Industries Bhd and Perstima Bhd, Promet.

In Singapore, he controlled Inno-Pacific Holdings Ltd and through Promet, Ipco International

Promet also controlled four listed entities in other countries, Wah Nam Ltd (Hong Kong), Prophill (Philippines), and DCI International and IAL Ltd (both Australia)

But all came to nought when he used a scheme to defraud Omega Securities Sdn Bhd. In April 1999 a warrant of arrest for Soh was issued but could not be executed because he had fled the country

After being a fugitive for nearly four years, he returned to Malaysia in May 2002, when he was immediately arrested by the Securities Commission at the Kuala Lumpur International Airport and charged in the Shah Alam Sessions Court on two charges

He pleaded guilty to two alternatives charges of abetting former TA Securities boss Tiah Thee Kian in submitting false information to the KLSE

He paid the maximum fine of RM6 million.

Soh also made headlines when he filed multi-million ringgit suits against then Transport Minister Datuk Seri (now Tun) Dr Ling Liong Sik, his son Hee Leong, Hee Leong's wife Carol Ong Lee Choo and Linksun Avenue Sdn Bhd.

1995 : Promet

Dato' Soh and his associates appeared on the scene in Sep 1995, when they acquired 111.1 mln shares representing a 21% interest in Promet and became the dominant substantial shareholders. The acquisition price was not disclosed, but the mass media reported the purchases at around RM250 mln, or RM2.25 per share. Promet's market price at that time was RM3.10. The old board of directors of Promet left within 2 years after the new management came in. The new management team engaged Promet in 3 activities that had detrimental effects on its viability: [1]. Increased its interest in Ipco to 75%; [2]. Began share trading using margin accounts and [3]. Bought shares in other companies. Let us examine how these activities led to Promet's downfall:

[1]. Acquisition of Ipco shares

In Nov 1996, Promet increased its interest in Ipco to 75% at a cost of RM106.6 mln cash. This was to focus on the group's core activities of marine engineering, infrastructure and construction sectors with more emphasis in the Southeast Asian & African markets. The group had around RM410 mln worth of contracts in mid-1996. However, the difficult economic conditions and currency depreciation in the region adversely affected Ipco's operations. In 1998, Ipco made an operating loss of RM75.6 mln, due to additional costs in a Nigerian project, provision for doubtful debts and deferment & cancellation of projects in Asia. In Nov 1998, Promet's interest in Ipco dropped to 25.5% due to financial institutions in Singapore selling Ipco shares that Promet had pledged as collateral for loans. Table 1 shows the major exceptional losses from 1997-1999, partly contributed by Ipco.

Table 1: Exceptional losses (RM mln)

[2]. Share trading using margin accounts

During the financial year ended 31 Apr 1997, Promet purchased shares in certain listed companies, as shown in Table 2, in which Dato' Soh had an interest in. The purchase of these shares partly contributed to the losses suffered in share trading, as shown in Table 1. In addition, in late 1999, Promet defaulted in payments of around RM478 mln, of which RM147.5 mln was attributable to share margin & trading accounts. Of this amount, RM60.4 mln was extended by Omega Securities S/B, a company associated with Dato' Soh - see last week's special selection.

Table 2: Promet�s purchases in companies related to Dato� Soh
[3]. Purchase of shares in companies

Promet entered into an agreement to buy a 32.9% interest in Westmont Industries Bhd (WIB) for RM498.4 mln cash in late 1996. In Apr 1997, Promet arranged to sell its entire 32.9% interest in WIB to Swascojuta S/B for the same amount plus costs incurred in the share transactions, thus resulting in no loss to Promet. However, an amount of RM96 mln was deemed uncollectable from Swascojuta S/B and was written off in 1999. In addition, the Group acquired a 41% interest in Nina Investment Holdings Pte Ltd in Feb 1996 for RM105.0 mln, of which RM98.4 mln was paid. The acquisition was subsequently aborted but Promet deemed the amount paid as irrecoverable and wrote off the entire RM98.4 mln in 1999.

In totality, within 4 short years, from 1997 to 2002, Promet suffered heavy losses under the new management, incurring losses attributable to shareholders of a mind-boggling RM1.01 bln. This undid all the efforts made in the early Nineties to put Promet on a sound footing.

Exit Via Rekapacific ?

On 27 Dec 1996, Dato' Soh sold 100 mln shares in Promet to Rekapacific Bhd for RM350 mln cash. Assuming he bought his earlier shareholdings at RM2.25 per share, that would have translated to a gain of RM125 mln. Subsequently, Dato' Soh resigned from the board on 30 June 1999.

Public Reprimand And Fined

On 27 July 1998, Promet obtained a restraining order from the High Court for Promet and 3 subsidiaries to restrain any actions or proceedings taken against them by creditors. The group proposed a restructuring scheme on 31 July 1999 that involved a reverse takeover by Safuan Group Bhd but the scheme was aborted on 23 Feb 2001. On 21 July 2000, the KLSE issued a public reprimand and a RM50,000 fine on Promet for failing to issue a circular to shareholders and to obtain prior approval in a general meeting in relation to two share transactions carried out by the company in 1997 which involved the interest of past directors and substantial shareholders of the company.
Come back 2nd time?
Sources said that Soh chee Wen started invest in Innopac、IPCO International Ltd and Annica in 2000。And he only invested in Magnus Energy Group Ltd in 2003 and 2004。

IPCO International Ltd is one of the substantial shareholders of Innopac.

Sunday, 3 November 2013

Riverstone Holdings Limited and other rubber glove company targeted by internet fraud syndicate

Internet fraud syndicate like phishing usually target individual. However, it seem corporate world being targeted by such syndicate also. The recent target is rubber gloves manufacturing company in South East Asia.

Fraud 1

 On 5 May 2013, shipping assistant of Riverstone Holdings Limited's subsidiary Sinetimed Consumables Sdn Bhd issue a quotation to customer in Thailand to request payment.

On 13 May 2013, Fraudsters used same name as above shipping assistant and a similar email address send an email to above customer. stating that Monetary Authority of Singapore (MAS) is in the process of auditing company bank account. Thus, unable to process any fund transfer. The email requested customer to remit money to new bank account.

Email address of staff of company is email address of fraudsters is . Only one alphabete different. The email requested payment to Alliance Bank under a bank account of AL Solution. Transaction amount amounted to USD91,400. However,customr in Thailand have remitted money to original bank account. Thus, unable to remitted to new bank account again.

Fraudsters  reply the email by alleged the other party making a mistake. And requeted customer to remitted money again to new bank account with hostle and unpolite tone to avoid delay in delivery.

customer feel very angry, express intention to cancell all order and send an email to another manager to complaint such unpleasant incident. This make the case expose as fraud.

Company search on CCM discover that AL Solution sre a company base in Penang and company registration have expires on 9 March 2012. The company registered under two Chinese partner name.

Fraud 2

Head of customer services of Riverstone Holdings Limited's subsidiary Riverstone Resources Sdn Bhd has issued a Delivery Order to customer in US on 16 October 2013.

A fake email send under name of head of customer services has been received by customer in US on 15 October 2013 (US time) to inform change of bank account. attached with letter with company letterhead, stamp and signature. Requested customer to pay to CIMB Bank to bank account of MTD Mega Global Resources.

As customer already received announcement of company warning of possible fraud in May 2013. Customer in US become alert when received such fake email.

The customer discover that email address received  different from normal email address of the staff and suspected fraud. the customer in US counter check and confirmed the fraud.

Email address of staff is whereas email address used by fraudster is

According to website of CCM, MTD Mega Global Resources is a company base in Kajang, Malaysia

Other Rubber Glove company

According to President of Malaysian Rubber Glove Manufacturers Association (MARGMA) Mr Lim Kwee Shyan. Another member company of the association also being targeted and customer of the member company has been con amounted to several million in USD, the money has been remitted to bank in Indonesia. The member company did not make any loss as it is ngligent of it customer. a circular has been issued to all member of the Association in April 2013 to warn them of possible fraud.

However, after a police report has been made. Police informed them that they unable to investigate as the company never incurr any loss. President of MARGMA feel that despite no loss incurred. It is a matter of reputation of Malaysia and it central Bank. Bank Negara should try to investigate and get information from it Indonesian counterpart. Mr Lim also disappointed that the authority also unable to investigate in Riverstone case, even it involve local bank. How can a bank let a person with fake document to open a bank account? He feel poloce should investigation even it is no loss involve.

套取户头资料 动辄诈骗百万 “网络大鳄”入侵企业界




林魁贤:2手套公司被骗 银行应揪“大鳄”户头持有人