Some Ships are Listing ...

And a Light House?


As a business journalist at a certain MSM for some years, Desi has had some opportunities to interact a li'l with a well-quoted but forthright economist who has distinguished himself as a voice many quarters listen to...as the MIER executive director.

From theedgedaily.com, Oct 18, 2006~~

18/10: Examine actual wealth distribution, says academic


Malaysian Institute of Economic Research (MIER) executive director Dr Mohd Ariff Abdul Kareem wants to see a more equitable distribution of wealth among the people so that no one will be marginalised.

He personally believed it was imperative to discover whether the wealth accumulated through the equity ownership actually trickled down to the community as a whole, both bumiputra and non-bumiputra.

He said immaterial of the ethnicity, it was important that wealth distribution must be enjoyed by all. "Nobody should be marginalised," he said.

"There must be an examination of how corporate equity ownership averages translate into actual distribution of wealth into the community as a whole," he said, adding that there is no such thing as a flawless or impeccable methodology for calculating equity ownership.

"Certain data constraints do affect the methodology," he told reporters in Kuala Lumpur today after chairing the MIER third quarter 2006 economic outlook briefing.

On the controversy surrounding the study by Asian Strategy and Leadership Institute's (Asli) Centre for Public Policy Studies, which found that bumiputra corporate equity ownership could be as high as 45%, instead of the government's figure of 18.9%, Mohd Ariff said it would be unethical for one institute to comment on another.

"As an academic, however, I think the inclusion of government-linked companies (GLCs) in the calculation of bumiputra equity ownership is questionable," he said, reiterating that the views were his own capacity.(DESI: I urge my ER to note this point.)

He said it would be good if the government disclosed its methodology in calculating the contested equity ownership to put the issue to rest.

Asli had included government-linked companies (GLCs) in its calculation of bumiputra equity ownership.

Following objections from the government, and a statement by Asli president Mirzan Mahathir that the report - Corporate Equity Distribution: Past Trends and Future Policy - was flawed in its methodology and assumptions, its research director Dr Lim Teck Ghee tendered his resignation.

Lim stood by the report which stated that bumiputra corporate equity ownership could be as high as 45% and not 18.9% as stated in government statistics.

"There is nothing wrong if the government wants to take affirmative action to help a particular segment of the community. However, the real issue is that the particular community as a whole has access to the wealth and that it is not confined to a privileged few," Mohd Ariff said.


DESIDERATA:

Here is one economist who has given a "balanced" view to the ongoing ASLI-Dr Lim Tech Ghee saga, though he said he's speaking in his personal capacity, not as an MIER executive director.

And too certain parties saying such issues are best debated out of public eye, Desi says that we are no more living in the 1970s-1980s of fixed line telecommunications. It's the Internet Age, when communications is almost "instantaneous" around the world, remember? Global Village, remember?

Information and Rational Discourse should be expanded, not narrowed, or to be treated as an Elitist privileged domain. Even the villager now has access to the PC/Internet via the Cyber cafes in the city centre a bus-ride away, and why do these "privileged" quarters think the rural voice is less eduacted than his urban one? Rural is not necessary raw, neither is urban naturally urbane.

Yesterday I offered The TITANIC; today I think I see some listing ships:



From theedgedaily.com again, Oct 18, 2006 about 11.25AM as I copied this from its webpage:

Tiong takes control of Nanyang Press (Updated)


The control of one of Malaysia’s oldest Chinese newspapers, Nanyang Siang Pau , has changed hands after Huaren Management Sdn Bhd sold a 21.01% stake in Nanyang Press Holdings Bhd to Ezywood Options Sdn Bhd, a company believed to be closely associated with the family of Sarawak tycoon Tan Sri Tiong Hiew King.

The price tag for the block of 15.4 million shares is RM64.68 million or RM4.20 each. Nanyang Press has a paid-up capital of RM77.45 million. There was no trade of Nanyang Press shares on Oct 17. Its last traded price was RM4.

In a statement on Oct 17, Nanyang said upon the completion of the proposed acquisition, the collective interest of Ezywood and persons acting-in-concert in Nanyang would increase to 44.76% from 23.74%.

The proposed transaction triggers a mandatory general offer (MGO) for the remaining shares in Nanyang. Ezywood will serve the notice of MGO on the Nanyang Press board upon the conditional share sale agreement becoming unconditional.

Following the sale, Huaren Management’s stake in Nanyang was reduced to about 20% from 41.95%. Huaren Management is the investment arm of political party MCA.

Meanwhile, Sin Chew Media Corporation Bhd announced on Oct 16 that it had sold its entire investment of 243,250 shares or a 0.6% stake in Nanyang Press to Tiong for RM3.80 cash per share. Tiong is also the executive chairman of Sin Chew.

The latest development confirms persistent talk of Tiong’s interest in taking control of the 83-year-old newspaper.

Sin Chew, which is controlled by Tiong, is the publisher of the country’s largest circulated Chinese newspaper, Sin Chew Daily , and Guang Ming Daily .

Besides Nanyang Siang Pau, which was established in 1923, the group also owns China Press and 20-odd magazines.

For the year ended June 30, 2006, Nanyang Press reported a net loss of RM6.41 million compared with a net profit of RM10.43 million in the previous year on the back of a lower revenue of RM313.53 million.

***The sale of the Nanyang Press shares came some five years after Huaren bought into the company in 2001, amid strong protest by various Chinese associations. ****

Huaren paid RM296.56 million for a 92.14% stake in Nanyang Press, which it bought from Hume Industries (M) Bhd and through a general offer.

Following the 2001 changes in the controlling shareholders, Nanyang Press’ fortunes in terms of circulation and financial performance had declined.




DESIDERATA:

Note that all the highlights in the news report (THUS BOLDED) are DEsi's. My first comment relates to this highlight~~

***The sale of the Nanyang Press shares came some five years after Huaren bought into the company in 2001, amid strong protest by various Chinese associations. ****

At that time, the MCA was led by president Dr Ling Liong Sik (then Datuk Seri, now Tun, but these titles have no bearing on this story...but of course, ytou are allowed to beg to disAgree, butt do you think I care?) whose views were the key to Huaren's final decision to buy into Nanyang DESPITE the striong protests registered by the Chinese community -- plus non-Chinese media interested parties too, if I may add!

After five years, the stakeholders in Huaren and other related concerns would have paid a heavy price, in terms of monetary loss. But the price is heavier in the loss of the newspaper's integrity and reputation which one can't put down in dollars and senSE.

Desi still holds reservation that the present buyer is an INDIVIDUAL who of course is a friednly party to the MCA (to Dr Ling too, my educated guess, though some ER may think this point is not important, butt I believe is relevant, so you can still beg and beg to differ, but you finally have to defer, No?)

I have called for legislation to restrict ownership in any press by political parties, or in concert with politicians, to less than 5.00% (that is, trigger point for being a "substantial" shareholder) so tha the media/press can truly play an independent and meaningful role as the Fourth Estate member.

Just in passing, it is to be noted that The New Straits Times, controlled by UMNO and parties acting in concert, never recovered from its heyday circulations peak following the gigantic split flowing from Mahathir-Razaleight fight for UMNO presidency. This point is raised by Desi to posit my view that The Star (yes, whose major shareholder is again MCA-controlled Huaren...)became, and still is, the leading circulating English daily BY DEFAULT ... One universally-agreed feature among readers (including Desi-lah!) is its horrible English comapred with The NST's which still shows that it has maintained some quality control in language ...)

Now, back to Nanyang: My view is that it would suffer the same "credibility" problem as the NST, and will "never" recover its credibility and its circulation of its heydays from pre-Huaren buy five years ago. Even after the conclusion of this block fo shares sale to Tiong (once a Senator!), HUaren still remains a substantial stakholder with about 20%. Maybe Huaren should negoatiate to sell the remaining 20% to the DAP for a song. Okay, two songs, one in Mandarin, the other in "The Star*"-English! (What a revolution that would be!)


PS:Did I use "ship" inthe plural? Oh S***! I have to C&P another item, but jest one-line comment okay?


Lustily, from theedgedaily.com, from across the South China Sea, or the Indian Ocean -- Desi's geography not good-lah! -- ?~~

HWGB ceases casino ops

Ho Wah Genting Bhd (HWGB) has ceased the operations of its three-year-old gaming operations due to the lack of patronage to the casino-cum-hotel in Poipet, Cambodia, as well as competition from other casino operators in the same area.

In a statement on Oct 17, HWGB announced the cessation of the loss-making business operations of its 60% owned subsidiary Ho Wah Genting Casino Resorts Co Ltd (HWG Casino), with effect from Oct 16.

HWG Casino started operations on April 11, 2003. HWGB said HWG Casino had been suffering losses for the past two years.

It was of the view that it was not viable to continue operating the casino-cum-hotel, which required constant cash flow and support from the holding company.

As the group has ventured into other business ventures, it makes commercial sense for the board of HWGB to concentrate on its new businesses," it said.

HWGB said HWG Casino would surrender the casino-cum-hotel building to the landlord, Anco Brothers Co Ltd and would sell the assets and settle its debts in due course.

It said there would not be any significant financial impact on the group's results as the losses had been accounted for in the accounts of the holding company progressively upon consolidation.


DESI:

This follows many earlier Chinamen companies -- Magnum in China, another listed company I can't recall its blardy name also in China, and yes, another listed company I can't ...... in Cambodia: WHY DO YOU THINK YOU CAN JUST REAP (rip off?) PROFITS FROM JUST EMERGING ECONOMIES through GAMBLING? Ooops, it should read GAMING?