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Thursday, 27 November 2014

Bank should waive online account fee from 2 Jan 2015

After we published our blog post  Petroleum price drop below Malaysia subsidy level on 28 October 2014. One reader or cyber trooper Wow123 commented that our post just another  talk syior sendiri lio lor .

One of veteran TV host (guy) on Astro AEC's Evening News, Gan, even comment within 24 hours of our blog post that, While petroleum price is dropping, one country, China, is accumulating stock of petroleum. This mean China do not think the current low petroleum price level would be prolong. And he laugh after he said

  On 21 November 2014, Malaysia government announced that retail prices for RON95 petrol and diesel will be fixed according to a managed float effective Nov 2014. This proof every comment above wrong. We thank Malaysia government to lift burden of Malaysia, which have been pressured by inflation and price increase recently. But what next?

Effective 2 Jan 2015, those issuing a cheque will be charged a 50 sen processing fee by commercial banks.  The fee was in addition to the existing 15 sen stamp duty per cheque.

Bank Negara announced this measure on March 20, 2013 to promote the use of electronic payment (e-payment) while capping the fee for interbank GIRO transactions performed via Internet and mobile banking at a maximum of 10 sen from May 2, 2013.

Thank you, Bank Negara. As some bank charge RM2.00 per transaction compare to RM0.15 per cheque than.

However, Bank still charge a monthly fixed charges despite transaction fee cap at RM0.10 per transaction. This is still a burden to Small and Medium Enterprise ( SME ) especially those issue less than 20 cheque per month. This act as a deterrent to SME who have less than 20 transaction per month to switch from issue cheque to e-payment.

Nanyang did a survey on 23 February 2014. Maybank charge minimum RM10.00 per month, plus transaction fee ranging RM78.00 to RM128.00 per month.UOB charges RM10.00 per month to be able to view transaction and check balance online, If want online transaction additional RM50.00 per month will be charges. Public Bank charges RM50.00 on first month and RM20.00 every month subsequently. RHB Bank charge RM30.00 per month regarless any transaction or not.

Cash in current account do not earn you any interest. Bank able to make use of the cash and need not pay any interest to account holder. Now for online account. Bank will charge you money even if you have money in bank and bank able to make used of your money to earn interest for them.

This does not encourage business to switch from cheque to e-payment, especially SME who issue less than 20 cheques per month.

Association of Banks Malaysia (ABM) said cost of processing each cheque amounted to RM3.00 per cheque compare to extra RM0.50 charges. Bank still incurred RM300 million per year in processing cheque.  This mean bank in Malaysia will safe RM300 million per year if all company shift from cheque payment to e-payment. Then, shouldn't bank be the one who absorb the cost of of developing the software by waiving all the monthly charges on business as  bank have RM300 million saving in cost per year and should not pass the cost of software to business.

We urge Bank Negara and Association of Banks Malaysia (ABM) to waive all monthly charges to account holder effective 2 Jan 2015. Same date when extra RM0.50 charge on each cheque issue.

Update :收50仙支票费 国行设立基金 明年奖掖电子付费
 Steps unveiled to speed up migration to e-payments
郑己胜:鼓励客户使用 政府应吸纳电子付费成本

Monday, 17 November 2014

CapitaMalls Malaysia Trust (CMMT) severely affected by Sungei Wang Plaza poor performance

 CapitaMalls Malaysia Trust (CMMT) , a REIT by Singapore's CapitaLand, manages Gurney Plaza in Penang, a majority interest in Sungei Wang Plaza in Kuala Lumpur, The Mines in Selangor and East Coast Mall in Kuantan, Pahang, a portfolio with a total net let table area of over 2.5mil sq ft.

Sungei Wang Plaza continued to suffer negative rental reversion. The mall continues to be plagued by the MRT construction which resulted in a decline in shopper traffic, thus leading to the negative rental reversion .

AmResearch said CMMT had achieved an overall positive rental reversion of +3.3% for the nine-month financial year 2014 (FY14) period – Gurney Plaza (+7.7%), The Mines (+7.4%), East Coast Mall (+13.5%) and Sungei Wang Plaza (-7.3%).

Sungei Wang Plaza Merchants Association Kuala Lumpur (tenant) claim poor management by Property Manager CB Richard Ellis(Malaysia)Sdn Bhd (CBRE).

Sungei Wang Plaza Merchants Association Kuala Lumpur claim some lot able to command RM25,000 per month but now no taker even at RM6,000 to RM10,000 per month. They claim the plaza have few hundred vacant lot (excluding 6th floor), of which, 70%  of vacant lot own by CMMT and the balance of 30% vacant lot own by private individual owner. Sungei Wang Plaza have 600 lots. This seem more severe than AmResearch of -7.3% base on 3rd quarter result.

Earlier, Nanyang reported that CBRE refuse to answer query from media.

Monday, 10 November 2014

Opportunity for non-lawyers to hold share in a law firm

Former lawyers from Kuala Lumpur-based legal outfit Zaid Ibrahim and Co, commonly shortened to “Zico”, are seeking to list a Singapore-based company on Singapore’s Catalist Board.

Zico Holdings Inc, integrated professional services provider, has placed out 48 million shares at 30 cents (77 sen) apiece and will be listed on the Catalist Board on Nov 11.

Malaysia's biggest law firm has come up with a novel way to tap into capital markets while adhering to local rules that forbid non-lawyers from owning law firms.

Zico’s IPO is targeted at raising S$14.4mil (RM37.18mil) from institutional investors, where net proceeds of about S$12.5mil (RM32.27mil) will fund business growth within South-East Asia via acquisitions and expansions of new services or strengthening of existing ones.

Labuan-incorporated Zico Holdings provides professional services in areas such as trust advisory, business support and advice on syariah.

The holding company, Zico Holdings Inc, is legally separate from Zaid Ibrahim, which is part of a regional network of law firms known as ZICOlaw. However, they are closely linked in terms of business; Zico provides management and business support services to ZICOlaw network firms, which remain status quo in the provision of law services.

“It wasn’t easy leaving my practice behind, but as managing director of the firm supporting ZICOlaw, there’s more flexibility in servicing our clients because of the multi-disciplinary nature of our business,” says Zico managing director Chew Seng Kok, who was formerly Zaid Ibrahim’s managing partner. Chew had to leave the law practice in order to be allowed to run Zico.

ZICOlaw, founded by controversial politician, Zaid Ibrahim, no longer have any interest in the law firm other than his name still appear as brand.. Zaid Ibrahim an ex-Minister in Prime Minister Department of Malaysia during Abdullah badawi era. He resign as a Minister to protest for government use of Internal Security Act (ISA). He joint PKR and fall out with opposition leader anwar Ibrahim when he contest for chairman of PKR. He is one of columnist of The Star

Zico and ZICOlaw firms also “cross-promote” and offer “integrated services” to each other’s customers, reported The Star.
“Most big Asean players are in Singapore. We see ourselves as an Asean player, so this ties in strategically,” Chew says.
Law firms, generally structures as partnerships, are usually limited from raising capital with the lawyers’ own funds or bank borrowings, Chew says.

He points out that law firms are typically owned by lawyer partners. That means that any money needed for an upgrade to a law firm’s information technology systems, for instance, would have to come from its partners.
But with the way the holding company is set up, ZICOlaw network firms can tap capital markets for that funding rather than partners’ pockets, he said.
In fact, it was through ZICOlaw’s network that Chew contrived the idea of creating a holding company that provided support to law firms.
“It worked out beautifully and it was unique because the lawyers were autonomous,” says Chew.
The bread and butter of the business are syariah law cases and secretarial services – typically recurring income.
“These contribute more than 50% of our revenue,” Chew says.
Pre-tax profit came in at RM13mil, up 145% from FY2011.
Zico does own some law firms in South-East Asia, but only in Myanmar and Laos, where law firms are allowed to be owned by non-lawyers. This create an opportunity for non-lawyer to become shareholder of law firm.

“No one else has done this. We have the first mover’s advantage, that’s why we have garnered so much interest,” Chew says. “We foresee other players hopping onto the bandwagon after us.”

Elsewhere in South-East Asia, the ZICOlaw network is present in every South-East Asian country except Brunei and the Philippines.
Managing director Chew Seng Kok says the IPO would also help the company retain talent in those markets by offering stock options to employees.

“We now have the ability to align the interests of shareholders with performance,” Chew says. “As we anticipate a talent war, this gives them something to hold on to. Seeing as we can’t support them enough, equity would be important to them.”

Zico’s margins are healthy at above 50% and reflective of the business it is in, Chew says.

For the financial year ended Dec 31, 2013, Zico achieved revenue of RM19.2mil, up 115.7% from RM8.9mil two years earlier.

“We need the working capital to do more. We need more capital to support our information technology support software, for instance. That would facilitate our replicating the business models,” Chew says.
Zico Holdings managing director Chew Seng Kok: The setup of our holding company enables us to be more flexible due to the multi-disciplinary nature of our business.
Chew: ‘We need more capital to support our information technology support software, for instance.(pic from The Star)

Saturday, 8 November 2014

Pauline Chai Siew Phin step sister of Tan Sri Khoo Kay Peng

High profile divorce case between Tan Sri Khoo Kay Peng, who run Malayan United Industries and Laura Ashley and Miss Malaysia 1969 Pauline Chai Siew Phin, make headline recently. People also gossip about 1,000 pair of shoes Pauline Chai claim to have.

Few tycoon in Malaysia marriage a Miss Malaysia. People might be curious about their love story! How they started?

A Malaysia gossip weekly magazine, Special Weekly specifically feature their love story recently.

Photo: 第705期號外周報推出市场了。
Malaysia familiar with story of Tan Sri Khoo Kay Peng, an ex-banker who used MUI group to acquired a cement plant ( now Lafarge) and a hotel chain (Now Corus Hotel) to form a conglomerate.

However, recent Special Weekly reported that actually Tan Sri Khoo Kay Peng has a rich father. He inherited MUI ( a toothpaste manufacturing plant then) from his late father.  

His late father have a second wife, who has a daughter then. This mean Pauline Chai is step sister of Tan Sri Khoo Kay Peng and they grow up together since young age.

However, Pauline Chai is second wife of Tan Sri Khoo Kay Peng. Tan Sri Khoo have a first wife and he divorce his first wife to marriage his step sister, Pauline Chai.

Pauline chai contest in Miss Malaysia pageant 1969 and won. During media interview, media ask what is her ideal husband criteria. She reply that, if I want to marriage, I hope to marriage a man like my brother. When media reported the interview the next day. Tan Sri Khoo read it and realise her step sister actually admirer him secretly. He get touch and decided to marriage his step sister.

Christian forbid divorce and second marriage. It is not sure whether the couple baptized before or after their marriage.

Children get bully in Australia

One of the reason Tan Sri Khoo move his family from Australia to Canada because his children get bully in Australia. This is similar to what happen to Taiwan base Malaysian chinese singer Gary Chaw 曹格. Gary Chaw reveal in a radio (988) interview that his parent send him to Australia at very young age. He face racial discrimination and bully by white children in Australia's school. This seem happen regardless of whether you are rich or poor. It seem Gary Chaw do not have rich father that able to move him to Canada. Thus, he have to fight his case on his own with other schoolmate from asia. He have to fight them first, let them know that he cannot easily get bully, then he negotiate with them. Ask them whether they want to become enemy or friend with him. He suggest that it can only be Win win if they become friends rather than become enemy as they cannot avoid seeing each other everyday. Eventually, Gary Chaw become friends with his schoolmate.

It seem poor people without rich father able to face the challenge better than rich people, who give up and run away when problem arise. It doesn't mean a person have more advantage if you have a rich father. Gary Chaw, who become famous in China on TV reality show " Where are we going, Dad?"爸爸去哪兒 said he would never send his children overseas at young age alone, unless he went together to protect them 

However, people who went to UK boarding school like Air Asia's founder Tony Fernandes seem do not encounter such problem. Tony Fernandes even want to bring  Epsom College to Malaysia.

Daughter support wife

His daughter Angeline Francis appear on court and and said she support her mother Pauline Chai to divorce her father. I think she has right to support anyone as she gave a valid reason. However, what people curious and gossip is why she support the divorce case to be hear in UK but not in Malaysia? Shouldn't a divorce proceeding able to be expedite in Malaysia then in UK, if she claim her mother in a miserable marriage and desperately want to out of this marriage?

Thursday, 6 November 2014

Coastal Contracts Bhd's Ng Chin Heng, from RM500,000 to RM837million 沿海工程黄振兴从50万到8.35亿

Coastal Contracts Bhd can trace its roots to the early 1980s when former animal feed trader Ng Chin Heng, together with his wife and brothers, bought over a loss making tug and barge outfit called Coastal Transport (Sandakan) Sdn Bhd founded by a Sabahan at RM500,000.00. He only age 33 at that point.

It only had a fleet of four small tankers at the time, used mainly to ship commodities around the Borneo region. 

Ng, 66, who now holds the position of executive chairman, was previously a trader in animal feed, fertiliser and raw rubber in the 1970s. He had no prior knowledge of the shipping business.

But the enterprising Sabahan learnt on the job, and even paid visits to shipyards in Malaysia, Indonesia, Singapore and China, facilitating the group’s entry into ship fabrication in 1993.

This is like Mitsubishi Sogoshosha in Japan. which started from shipping business and then venture into shipbuilding. Another company have similar trend is Petronas controlled MISC, which also controlled Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE). 

However,I feel one company most similar to Japan's Mitsubishi Sogoshosha in Malaysia is Boustead Holdings Berhad, which has a trading house and a Banking arm Affin Bank Berhad, Other than have a naval shipyard controlled by boustead heavy industries corporation. As Mitsubishi also own a bank.

Back to Coastal Contracts Bhd and Ng Chin Heng

His fledgling marine transportation firm went on to be listed on the Main Board of Bursa Malaysia in 2003.

He and the company has survived 3 recession.

In 1985 recession, few of his customers in Singapore close down, which affected his company operation. 

During Asean Financial Crisis in 1997, it is fortunated that some contract in USD has mitigate the  effect.

Subprime crisis also have little affect on the company, as company able to maintain it growth 
 in 2008/2009.

Sandakan, Sabah-based Coastal Contracts owns 100 acres of yard space where it builds tugs, barges and offshore supply vessels (OSV).

The group has over the years carved a niche in the construction of sophisticated, higher-end OSVs that deliver better margins.

Ng Chin Heng (Second from left together with board member during IPO at 2003

The company had some years ago ordered its first jack-up drilling rig, the Friede & Goldman JU2000E, costing US$210mil (RM697.2mil).

The rig expected to be completed in the third quarter of this year, has a water depth of 400 ft and drilling depth of 35,000 ft.

Ng directly and indirectly controls 49.34% of the group, filings with the stock exchange show, value at RM837million as at 31 Dec 2013. Not bad, for a company start with just RM500,000 in a loss making company.

Data from  : The Star, Nanyang


沿海工程的前身,名为沿海交通(Coastal Transport),始于1976年,由一名沙巴人开始经营,但公司蒙受亏损,原持有人决定出售公司。
获《福布斯亚洲》肯定 入榜“200大最佳公司”
例如,公司曾在《福布斯亚洲》“200大10亿美元以下最佳公司”连续6年榜上有名;毕马威(KPMG)股东价值大奖则连续5年获奖;《The Edge》10亿令吉俱乐部企业奖项的2011年“最赚钱公司奖”。
挨过三次经济风暴 沿海工程乘风破浪
拟打入油气上游 扩充造船价值链
此外,原油价格高企,加上岸外勘探活动捎来好消息,带动国际升降式钻油台(Jack-up Drilling Rigs)需求,特别是在东南亚、中东及墨西哥海湾等。
最近数年,公司也提供出租升降式天然气压缩服务单位(Jack-up Gas Compression Service Unit)。


Sunday, 2 November 2014

Corporate Princess 12 : Gadang's Kok Pei Ling and sister.企业公主系列12 : 嘉登控股郭佩灵郭佩馨

 Ms Kok Pei Ling (right) and sister (left), who are the daughter of Tan Sri Dato' Kok Onn, the Managing Director cum Chief Executive Officer and a major shareholder of Gadang Holdings Bhd - (9261) (GADANG)

Ms Kok Pei Ling, aged 31, joined the Board on 2 January 2013 as an Executive Director. She has been the Company’s Chief Financial Officer since September 2009.

According to website of Gadang. Ms Kok graduated from University of Melbourne, Australia with a Bachelor of Commerce (Finance and Management) Degree in 2003.

She began her career as a consultant for Corporate Recovery and Insolvency in BDO Capital Consultants Sdn Bhd from April 2004 to June 2006. She then joined OSK Investment Bank Berhad as an Associate for Debt Capital Markets from June 2006 to May 2007. Prior to joining Gadang in September 2009, she was the Assistant Manager (Investment Banking) of OCBC Bank (M) Berhad.

Tan Sri Dato’ Kok Onn, a Malaysian, aged 62, joined the Board on 10 March 1997 as the Joint Managing Director of Gadang and was subsequently appointed as the Managing Director cum Chief Executive   Officer on 2 September 1997.

Prior to joining  Gadang,  Tan  Sri Dato’ Kok Onn was the Group Chief Executive Officer of Bridgecon. He was also the founder of Bridgecon Engineering Sdn Bhd (“BESB”), the wholly-owned subsidiary of Bridgecon. The track record of BESB was used to list Bridgecon on the Second Board of the Bursa Malaysia Securities Berhad on 16 November 1994.

Tan Sri Dato’ Kok Onn’s exposure in the construction industry began in 1972 and has been involved in the industry for more than 40 years. 

Tan Sri Dato’ Kok Onn was also the person who transformed Bridgecon from a pure  construction  company to activities involving manufacturing and supply of readymixed concrete, concrete pumping, quarrying, property and resort  development and on international aspect.

Tan Sri Dato’ Kok Onn is an Angel investor where he invested in Green Packet before other venture capital like OSK invested in the company and before it IPO. Now, Tan Sri Dato' Kok onn still a Non-Independent Non-Executive Director of Green Packet Berhad.

企业公主系列11 : 嘉登控股郭佩灵郭佩馨
嘉登控股首席財务员郭佩灵,也是嘉登控股董事经理兼首席执行员丹斯里郭安的女儿。嘉登控股(9261)23April 2014举行股东特别大会,董事经理丹斯里郭安﹝中﹞和他的2位女儿郭佩馨(﹝左)﹞及郭佩灵﹝(右)﹞齐齐亮相。