No subsidy, more debts for Malaysians

Khazanah plans sukuk sale for Parkway buy
Published: 2010/06/02

Khazanah Nasional Bhd, Malaysia’s state investment company, may sell as much as S$500 million (US$354 million) of Islamic bonds, or sukuk, to take over Parkway Holdings Ltd, according to two people familiar with the matter.

CIMB Investment Bank Bhd is among banks that may arrange the sale as soon as this month, said one of the people, who asked not to be identified because the
discussions are private.

Khazanah offered S$1.18 billion to more than double its holding in Parkway to gain control of Asia’s biggest hotel operator, Singapore-based Parkway said on May 27. Credit Suisse Group AG recommended that Parkway shareholders accept the offer, which would let Khazanah overtake India’s Fortis Healthcare Ltd as Parkway’s largest shareholder with a 51.5 per cent stake.

The Kuala Lumpur-based company now owns 23.2 per cent of Parkway while Fortis has 25.4 per cent, according to data compiled by Bloomberg.

Mohd Asuki Abas, a Khazanah spokesman, declined to comment on the company’s funding plans. -- Bloomberg


While Malaysians sweating, screaming, protesting and being useless labelled as subsidy-addicts cum spoilt brats that will ruin the country, we are being saddled by more debts as Khazanah, after private discussion, will bind all members of Malaysian public to another round of debts, to be arranged every so consistently by CIMB. (read my previous posts, I am fed up of saying who is the main man in CIMB)

In other words, we will bear S$1.18 billion or @RM2.32 = S$1--> RM2,737,600,000 (which is about RM101.39 per person so you and your 3 school going children now owes god knows who RM405.57) excluding interest expense and expensive professional fees earned by CIMB.

To add salt to injury, the money will go to some foreigners who are holding the existing shares in Parkway and I strongly believe that no Ali, Chong, Samy, Gurmit, De Souza or negrito will taste, feel or touch any direct benefits whatsoever associated with this cash outlay.

Parkway Holdings Limited provides health care services throughout Asia, while also managing Parkway Life REIT and providing health care education through Parkway Education Pte Ltd so perhaps from business point of view, it can be lucrative.

However, have any Malaysians ever remember getting some sort of benefits from national state investment arm?

According to Khazanah's website:

Khazanah Nasional is the investment holding arm of the Government of Malaysia and is empowered as the Government's strategic investor in new industries and markets. As trustees to the nation's commercial assets, our main objective is to promote economic growth and make strategic investments on behalf of the Government which would contribute towards nation building.

Khazanah is also tasked to nurture the development of selected strategic industries in Malaysia with the aim of pursuing the nation’s long-term economic interests.

Khazanah has investments in over 50 major companies, both in Malaysia and abroad, and our companies are involved in a broad spectrum of industries.

Khazanah is also the key agency mandated to drive shareholder value creation, efficiency gains and enhance corporate governance in companies controlled by the government, commonly known as Government-Linked Companies, or GLCs

Some of the key listed companies in Khazanah's investment portfolio include UEM Group, Telekom Malaysia Berhad, Tenaga Nasional Berhad, CIMB Group, Proton Holdings Berhad, PLUS Expressway Berhad, Malaysia Airlines System Berhad, Malaysia Airport Berhad, PT Bank Lippo, and Time dotCom Berhad

If you read the mission statement or whatever you can call it, Khazanah define itself as a trustee to the nation's commercial interest and pursuing long term national interest.

From what I see in Khazanah's staple:

* TNB being the cash cow to IPPs

* Proton Holdings Berhad export price is cheaper than local prices (so I heard), result in Malaysians buying substandard cars at inflated prices since the 1980's, pushing up the price of imported cars and created a wonderful environment for AP kings to flourish

* Plus Expressway....need I say more?

* PT Bank Lippo .. has any Malaysians received any return from our government investment in Indonesia? While our top SPM scores are put through the customary emotional torture in annual JPA scholarship no enough, read this:

Lippo Bank (LB) Scholarship 2008

PT Bank Lippo Tbk (“LB”), a major investee company of Khazanah Nasional Berhad, Malaysia, believes in developing the human capital in The Republic of Indonesia. In this regard, LB is pleased to offer scholarships and financial assistance to deserving Indonesian students who intend to pursue their tertiary education at selected university in Indonesia

note: the key word is "deserving"; not "quota" Eat your heart out, you top scorers!

After all the bad things, to even up, I gotta write something good, right? So here goes....

This is what I call having the nation's financial interest at heart - sharing the fruit of gain with the population:

Growth Dividends, Life Bonuses for Singaporeans
By Asha Popatlal, Channel NewsAsia Posted: 15 February 2008 1733 hrs

SINGAPORE: The Singapore government has unveiled what can be called a 'surplus sharing' national budget for financial year 2008.

Finance Minister Tharman Shanmugaratnam, in delivering his Budget Statement in Parliament on Friday, said the government had a surplus of $6.4 billion for the financial year 2007 - the largest since the FY1999 - thanks to the strong economic growth.

Singapore's economy had an exceptional growth of 7.7% last year, with the largest boost to revenues coming from an exceptionally buoyant property market.

The government will share the budget surplus with Singaporeans. It will give away a total of S$1.8 billion to individuals and households, in particular to the elderly, poor and needy to cope with rising costs.

- so far only the state government of Penang has emulated this feat (well done Pakatan!), turning the projected deficit into a surplus and giving RM100 to the old folks and some heartless robbers .....

or what the Norwegians are doing:

Investing petroleum wealth for future generations

11/10/2009 // Revenues from Norwegian oil and gas activity are invested in a government pension fund, ensuring that the country’s petroleum wealth will benefit future generations. The fund serves as a resource as it makes long-term investments in solid companies throughout the world. Openness and ethical considerations are cornerstones in the fund’s investment strategy.


Khazanah accounts should be tabled in the Parliament so that the wakil rakyats can scrutinize debate and decide if there is a way to change how it is being run so that the benefits will be cascaded to Malaysians who after all, contribute to the existence of Khazanah.


  1. This is nothing new to talk about. It is a foregone conclusion that this country is a gonner.

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  5. with the continues happening in the world market and economic crisis no wonder even malaysians were suffering as well..

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