Tuesday, October 28, 2014

Call for a review of Felda Global Ventures Holdings Bhd (FGVH)


BY JENNIFER GOMEZ. Published by The Malaysian Insider on 28 Oct 2014.

DAP is calling for a review of Felda Global Ventures Holdings Bhd (FGVH), saying it has failed Malaysians given the recent collapse of the plantation giant's share price.

It said the drop resulted in losses of billions of ringgit for Felda settlers and pension funds such as Employees Provident Fund and the Pensions Fund.

The party's national publicity chief Tony Pua said that the share price had dropped from its offer price of RM5.39 on June 28, 2012, to RM3.67 on September 11 this year.

Pua said this was a shocking 40% decline in price in just over two years, despite the company’s 2012 Annual Report stating that “FGVH's stunning debut on the main market in Bursa Malaysia in 2012 was a global sensation. This is just the start of our metamorphosis into a global powerhouse”.

Pua said that the performance of FGVH over the past two years reduced the statement to a laughing matter.

"It was a big boast, for not only did the company fail to become a 'global powerhouse', it was a trailing laggard even in Malaysia.

"Datuk Seri Najib Razak, as prime minister and finance minister, who promised Felda settlers the stars during the listing exercise, must take decisive action to reverse the decline in the company before the rot continues and becomes irreversible," Pua said at the parliament lobby today.

He said the parliamentary reply given by Deputy Minister in the Prime Minister's Department Datuk Razali Ibrahim two weeks ago that the decline in the share price was because of the drop in the global crude palm oil prices from US$930 (RM3,044) in June 2012 to US$670 (RM2,209) was unacceptable.

"The excuse of the prime minister that the decline in the global CPO price caused the drop in the  stock price is unacceptable because the decline in global CPO prices affected all plantation companies, not just Felda.

"And yet Felda's performance was by far the worst among all the plantation companies on the stock exchange."

He said that the company cannot be allowed to fail as it would affect the performance of EPF and also cause a drop in government revenue.

"Felda settlers own 18.9% of the company as well, we cannot ditch it. The company must be rescued and it starts from the management, their performance should be reviewed and under-performers should be removed."

Pua said that in the past six months, FGVH was the worst performer of all plantation stocks listed on Bursa Malaysia and that since mid-October, its price had dropped by 29.1% compared with its peers – IJM Plantations (-6.3%), IOI Corp (-2.7%), Genting Plantations (-9.4%) and Sime Darby (-1.6%).

He added that the closest poor performer to FGVH was KL Kepong, which saw its share price drop by 16.6% during the same period.

Pua said FGVH had the advantage of captive land in the form of settlers’ land with rentals below market rate yet it failed to capitalise on it.

"By right, it should beat the market because it has advantages over other private companies but instead, it has performed badly.”

He said FGVH’s share price was an embarrassment because of the solid support of government-related funds, such as EPF, KWAP, Lembaga Tabung Haji and other state funds.

The share price drop had resulted in losses of about RM1 billion for EPF, KWAP and Tabung Haji, he said, adding that the management failed to generate sufficient returns for the people compared with  other companies.

"We do not want FGVH to become another company which is completely dependent on the government like Proton or worse, like MAS.

"Action must be taken now as the management has failed to perform over the last two years.”

Link: http://www.themalaysianinsider.com/malaysia/article/dap-wants-felda-global-reviewed-after-plunge-in-share-price#sthash.c5w3pLkM.BYeRqhcw.dpuf

Published by Free Malaysia Today on 28 Oct 2014.
DAP publicity chief Tony Pua today questioned the Finance Ministry’s honesty in explaining why the share price of Felda Global Ventures Holdings Bhd (FGVH) had dropped 40% in just two years.
He noted that the price had fallen from the initial offer of RM5.39 on June 28, 2012 to only RM3.67 last Sept 1 although KLCI had appreciated from 1,599 to 1,855 points over the same period.
Referring to the Finance Ministry’s explanation that the decline was due to the drop in the global price of crude palm oil from $930 to $675, Pua said this was a “less than honest” answer to a question he posed in Parliament.
If that was the case, he said, then other plantation companies would have been afflicted with a similarly poor performance.
Relevant posts: 
FGVH, 3rd largest IPO in Malaysia, shares dropped again!
EPF buying Felda shares as stock price hits NEW LOW

Monday, October 20, 2014

Malaysia lawyers march against Sedition Act


By Sumisha Naidu. Posted on 16 Oct 2014 18:10 by Channel NewsAsia.

Suited up, under the blazing sun, hundreds of Malaysia's lawyers and their supporters marched on Parliament on Thursday (Oct 16) in a rare demonstration of discontent against the nation's Sedition Act.

Chris Leong, President of Malaysian Bar Council, said: "The Sedition Act is repugnant because the Sedition Act seeks to compress and restrict democratic space. It punishes speech. It punishes expression of thought by thinking Malaysians."

This was only the fourth time in the Malaysian Bar Council's more than 60-year history that it has staged a demonstration such as the one on Thursday. But the Council said the protest was necessary to pressure Prime Minister Najib Razak's administration to fulfil its promise. Mr Najib had pledged to repeal the Act two years ago - an Act the British had introduced in the 1940s to curb dissent against colonial rule.

But since March last year, the Council believes at least 30 people have been investigated or charged for sedition. One of them was student activist Adam Adli, who has been sentenced to a year in prison for allegedly seditious comments he made during a talk about the results of Malaysia's 13th general elections.

"The way I look at it was that I didn't really create any unrest among the people," he told Channel NewsAsia. "What I did was I create unrest among the government, those in charge in the office, and that's why I was charged and convicted."

Aidila Razak, a journalist, said: "My colleague Susan Loone, she's also assistant editor at Malaysiakini, she heads the northern bureau. She's been arrested for actually just doing her job, and I think that's really repulsive. It has nothing to do with sedition, she was just reporting what other people had said."

Dubbed the "Walk for Peace and Freedom", representatives from the Bar Council had hoped to submit a memorandum to Mr Najib. But they were just as happy that a Minister in the Prime Minister's Office, Mah Siew Keong, had received them. "We had a fruitful discussion and he had assured us that all of [the lawyers'] views contained in a memorandum addressed to the prime minister will be conveyed to the prime minister," he said.

The Malaysian government has said it will consider abolishing the Sedition Act when its intended replacement, the National Harmony Bill, is ready. But analysts suspect the prime minister may renege on his pledge to repeal the Act altogether.

There are many strong advocates for the Act within Mr Najib's party. And they argue the Act is to safeguard national unity. "Walk against sedition has not made an impact because most Malaysians want safeguards against racially/religiously offensive speech," tweeted Youth and Sports Minister Khairy Jamaluddin.

Tricia Yeoh, Chief Operating Officer, Institute for Democracy and Economic Affairs, said: "There would be some quarters who believe the Sedition Act should either be abolished, or maybe tempered down, so that it's not so harsh. But that would receive a huge backlash from other side of the ruling party, which believes that there should be a stronger reaction from the government when there are criticisms being made."

Still, the Malaysian Bar Council is undeterred. It says the walk is just the beginning of a long and sustained campaign, one that it hopes will lead to the revoking of the Sedition Act once and for all.


By Shannon Teoh. Published by The Straits Times on 16 Oct 2014.
NEARLY 500 Malaysian lawyers braved the noon day heat in their suits and ties to protest this year's "sedition blitz" outside Parliament building on Thursday morning, saying they were dutybound to fight an unjust law.
Over 20 people, including academics, lawmakers and students, have been hauled up for questionable offences under the Sedition Act, such as insulting the ruling Umno party and saying top judges have erred in case decisions. Some of them have been convicted.
This is despite Prime Minister Najib Razak's pledge in 2012 to repeal the law as part of a raft of democratic reforms to win over liberal voters in last year's general election. Critics say the Sedition Act is used to stifle political dissent.
Link: http://www.straitstimes.com/news/asia/south-east-asia/story/malaysia-lawyers-protest-against-sedition-act-urges-najib-honour-his

BY MUZLIZA MUSTAFA. Published on 16 October 2014 by The MalaysianInsider.
For the fourth time in its history, the Malaysian Bar today rallied, this time, against the Sedition Act 1948 demanding that Putrajaya repeal the colonial-era law, which in recent weeks had been used against opposition politicians and activists.
In a fiery speech at the start, Bar Council president Christopher Leong said the act was created to shut people up and Putrajaya was using it just to do that.
“This is an unprecedented abuse against lawyers, students, journalist and civil society. We are here to claim back the democratic public place. As much as you may try, you cannot stop our freedom of expression, our thoughts. We will ask why," said Leong.
Despite the heat, hundreds of lawyers in suits gathered at Padang Merbok from 9.40am today for the “justice and freedom walk against the Sedition Act”.
The Malaysian Bar previously walked in protest against the Peaceful Assembly Act in 2012, against allegations that judicial appointments were fixed in 2007 and amendments to the Societies Act in 1982.
The group began walking towards the Parliament at about 11.40am, with lawyers holding placards and banners, chanting "Hidup Hidup Rakyat" (Long live the people) and "Mansuh Mansuh Akta Hasutan" (Abolish Sedition Act).
About 10 of them will be going into the Parliament to hand over the memorandum to the representative of the Prime Minister's Department, calling for the Sedition Act to be abolished.
Leong said the group then met with Minister in the Prime Minister's Department Datuk Mah Siew Keong and handed him the memorandum that called upon Prime Minister Datuk Seri Najib Razak to repeal the Sedition Act as he had promised in 2012.
In the memorandum, the Malaysian Bar also urged Najib and Putrajaya to commit and promote the building of a fair, just, harmonious, unified, moderate, progressive Malaysia and reject all forms of bigotry, racist and religious extremism.
After the meeting, Leong, in a statement, admitted that changes would take time and said that the Bar Council would continue to play its role within the period.
"We are saying that you cannot punish people because they are expressing their thoughts, because you did not like what they said or because you did not agree with what they said.
"The Sedition Act is in fact a counter-productive measure to better Malaysian.”
He said the Malaysian Bar was aware that there were some fault-lines when it came to a multiracial country but the fault-lines should not be dealt using the act.
"We have to deal with it through dialogues and exchanging of ideas.”
Putrajaya embarked on a sedition blitz in recent weeks even after Najib had continued to give assurance that he would abolish the draconian law.
However, Putrajaya was also facing pressure from Umno grassroots and some Malay groups to retain the law, which they said would protect the position of the Malays, Islam and the monarchy.
The prime minister also appeared to renege on his promise with a statement from his office that said Putrajaya would tread carefully with the Sedition Act as it had not yet decided whether to go for a complete repeal, to retain it with amendments, or to introduce new laws.
The statement was contradictory to Najib's pledge two years ago to repeal the Sedition Act and replaced it with a National Harmony Act.
Among those who have fallen under the sedition dragnet are PKR vice-president N. Surendran, who was charged twice last month with sedition, Shah Alam MP Khalid Samad, Seri Delima assemblyman RSN Rayer, Sabah politician David Orok, and Universiti Malaya law professor Dr Azmi Sharom and preacher Wan Ji Wan Hussein.
Published by Today Online Singapore, on 17 Oct 2014.

Ten lawyers acting as representatives for the group then delivered a note to Mr Mah Siew Keong, Minister in the Prime Minister’s Department, who received the document on behalf of Mr Najib.

Saying that the parties had a “fruitful discussion”, Mr Leong added that Mr Mah had given his assurance that he would convey the views of the Malaysian Bar, which represents 16,000 lawyers in Peninsular Malaysia, to the Prime Minister.

“We ask the Prime Minister and government to take into account our views and that he remains steadfast in his pledge and promise made in July 2012 to repeal the Sedition Act,” said Mr Leong outside Parliament.

The lawyers also called for a moratorium on the use of the law, which dates back to 1948 when Malaysia was under British rule.

Before the march started, Mr Leong told reporters that about 13 foreign Bar associations had written to Mr Najib in support of the Malaysian Bar’s campaign.

The Prime Minister described the Sedition Act in July 2012 as the representative of a “bygone era” and said he would replace it with legislation aimed at preventing incitement of religious or ethnic hatred.

However, last month, his office said there would not be a rush to change it, as human rights group Amnesty International and Malaysian civil groups called on him to honour his earlier vow, with more people being charged under the law in recent months.

As a replacement to the Sedition Act, Mr Najib has proposed the National Harmony Act, which he has said would protect freedom of expression. The government has not started drafting the law, however, said a statement from the Prime Minister’s Office last month.

Before the new law comes into place, existing cases under the current Act must be tried under current rules, the government said in August.

Amnesty International Malaysia said last month that the increasing use of the act was fostering a “climate of repression”. From January to September, 12 cases — some involving lawmakers, academics and student — were prosecuted under the Sedition Act — the highest figure since 2009.

Tuesday, October 7, 2014

Malaysia’s Deplorable Sedition Act

Photo from Asia Sentinel.

Published by The New York Times on 6 October 2014. By the Editorial Board.

The Malaysian government has increasingly employed the Sedition Act, a British colonial era law, to intimidate and silence political opponents. The law criminalizes speech uttered “to excite disaffection” against the government and defines sedition so broadly that it is an invitation to authoritarian abuse.

Prime Minister Najib Razak had promised to repeal the act, but, since the general elections in May last year, his government has made full use of the law to hound his critics. While Mr. Najib’s ruling coalition, Barisan Nasional, won 60 percent of the parliamentary seats in the election, for the first time since independence in 1957, the opposition coalition, Pakatan Rakyat, won a 51 percent majority of the popular vote.

The elections seem to have shaken the government enough for it to arrest and prosecute an array of politicians, journalists, academics, students, religious leaders and civil society activists who did not advocate the overthrow of the government. For example, a senior opposition politician was charged with sedition for criticizing a decision by the appeals court in a statement to the news media. A local state assemblyman was charged for allegedly saying “damn, damn” about the government’s United Malays National Organization to several assemblymen. Since 2013, at least 14 people have been charged. Those found guilty can face up to three years in prison.

Mr. Najib’s crackdown is a deplorable attack on free speech and a serious threat to democracy. He appeared to understand this danger when he promised to repeal the Sedition Act. He should do so immediately.

Thursday, September 11, 2014

Dr M has raised questions about the heavy debt & usage of funds at 1MDB

Published on 11 September 2014 by Malaysian Insider.

Tun Dr Mahathir Mohamad has raised questions about the heavy debt and usage of funds at 1MDB in his first open criticism of the controversial government-owned investment company started by Prime Minister Datuk Seri Najib Razak.

Writing in his blog yesterday, the former prime minister noted that 1MDB had spent billions of ringgit buying power plants from Genting and Ananda Krishnan and had paid above market prices for them.

He also lamented that 1MDB is heavily indebted. It has debt of around RM38 billion after just five years in operation as the country's sovereign wealth fund.

"The money for 1MDB is not from the country's surpluses. It is debt, billions of ringgit of debt that has added to the already high national debt," Dr Mahathir wrote.

The former PM, who recently wrote he was withdrawing support from Najib, said as the government was already facing a deficit budget problem, it would not have the ability to help pay the 1MDB debt.

He also noted that a large part of the money raised from the issue of debt paper by 1MDB has been sent to the Cayman Islands, a move which many has questioned.

Critics have complained about the lack of transparency in how the money is managed out of Cayman and it has been estimated that at least RM18 billion of 1MDB's money is parked there.

1MDB is Malaysia's second sovereign wealth fund after Khazanah Nasional Bhd.

Tuesday, September 2, 2014

Lynas gets full operating licence before TOL expiry date!

By Eileen Ng. Published by The Malaysian Insider on 2 September 2014.
The Lynas rare-earth refinery in Gebeng, Pahang has been granted a Full Operating Stage Licence (FOSL), days before its two-year Temporary Operating Licence (TOL) expires midnight today.
The Atomic Energy Licensing Board (AELB) director-general Hamrah Mohd Ali said the board met on August 21 and agreed to issue a two-year FOSL to Australian rare earth miner and producer Lynas after it fulfilled all the conditions set.
"They have complied with all the conditions set by us during the TOL stage and that is why the licence was issued," he told The Malaysian Insider when contacted today.
He said this included having a permanent disposal facility, a condition set by the TOL, which Lynas detractors had accused the Australian company of failing to comply with.
To this Hamrah said: "We work based on science and facts, not hearsay. They have submitted all the relevant documents to the board which showed they have complied with the conditions set and that is why we granted the licence to them."
Hamrah said the board could issue FOSL of between one and three years but he could not explain why Lynas was given a two-year licence.
"It is up to the board to decide on the tenure of the licences. Lynas is one of the 2,000 plants in Malaysia where we issue licences but the company can renew their licence after the two years has lapsed," he said.
The Australian mining company chose Malaysia for its operations following generous incentives including pioneer status and a 12-year tax holiday. It employs some 300 personnel in its Kuantan facility.
Despite strong protest from environmentalists, in September 2012, the AELB granted Lynas (Malaysia) Sdn Bhd a TOL for a two-year period ending on September 2, 2014.
In December last year, the board said Lynas had submitted last July the results of its research on recycling its waste for commercial purposes.
However, it said further study was needed on the findings.
The main concern over the rare-earth processing plant was contamination of the coastal environment and the adverse health impact which could result from the mismanagement of radioactive waste streams.
This fear stemmed from the experience in the 1980s at Mitsubishi Chemical’s Asian Rare Earth plant in Bukit Merah, Ipoh, which was shut down more than two decades ago and linked to cases of leukaemia because of radioactive exposure, some of which were fatal.
The board had on several occasions assured residents that it was monitoring the operations of the Lynas plant around the clock and said it had found radiation levels onsite and offsite to be within acceptable limits.
Link: http://www.themalaysianinsider.com/malaysia/article/lynas-gets-full-operating-licence-before-tol-expiry-date

RM6 billion injection of public funds into Malaysia Airlines (MAS) is a bailout or an investment?

Published by The Malay Mail Online on 29 August 2014.

The RM6 billion injection of public funds to turn around the fortunes of ailing national carrier Malaysia Airlines (MAS) is not a bailout but an investment, Prime Minister Datuk Seri Najib Razak said today. Najib said state fund Khazanah Nasional intends to fully recover the RM6 billion investment but that recovery for the ailing national carrier could take longer than the three years envisaged by the restructuring plan announced today.

“This is an investment, not a bailout,” Najib told reporters after the Umno Supreme Council meeting here. “The recovery may take more than three years. But we believe in three years we will see a positive turnaround,” he added. Najib also said that any downsizing of the company will be done in the most humane and compassionate way.

Khazanah announced today that the carrier will trim its workforce by 6,000 although Ahmad Jauhari Yahya will stay on as chief executive until July 2015. He said that a foreign CEO, if hired, will make room for a local eventually. 

Najib also claimed the plan is rooted in making MAS a commercially viable airline, and Putrajaya would need to subsidise MAS if it wants to keep certain routes. The prime minister also said that the airline is being kept alive as Malaysians want MAS as a national carrier.

Read more: http://www.themalaymailonline.com/malaysia/article/rm6-billion-mas-turnaround-plan-is-not-a-bailout-says-najib

Published by Reuters on 29 August 2014.

Malaysia Airlines (MASM.KL) (MAS) will slash nearly a third of its 20,000 workforce and cut back its global route network as part of a radical 6 billion ringgit ($1.9 billion) restructuring following the devastating impact of two jetliner disasters.

The 42-year-old company will be de-listed by the end of the year under the broad revival plan announced by state fund Khazanah Nasional on Friday that aims to bring long-elusive efficiency and global standards to the loss-making carrier.

The 6,000 job cuts were higher than expected by the industry and mark a painful new blow for staff after a traumatic year for the national flag-carrier and the Southeast Asian country. Khazanah, which owns a majority stake in MAS, said it would invest in "re-skilling" those who lose jobs and pledged to set up a panel to improve often rocky relations between unions and management.



Published by Bloomberg on 29 August 2014. By Chong Pooi Koon, Choong En Han and Elffie Chew.

Malaysian Airline System Bhd. (MAS), which lost two jetliners in air disasters this year, will eliminate 6,000 jobs as the national carrier restructures.

Chief Executive Officer Ahmad Jauhari Yahya, whose term was due to end next month, will lead the carrier until July 1, Azman Mokhtar, managing director of majority owner Khazanah Nasional Bhd., said today in Kuala Lumpur. The full impact of the disasters will only be seen in the second half, the airline said yesterday after reporting its sixth quarterly loss.

Sovereign wealth fund Khazanah made a 1.38-billion ringgit ($438 million) buyout offer this month to take Malaysia Airlines private, and the funds are part of 6 billion ringgit it is investing to return the carrier to profit in three years. Prime Minister Najib Razak has said “painful steps” need to be taken to overhaul the airline, which has racked up 4.9 billion ringgit in losses since the start of 2011.

“We believe the fastest way is actually to create a hard reset and create a clean slate,” Azman said. “We needed to have a fresh start because the current MAS, unfortunately the cost structure does not work, unfortunately the revenue has been consistently below its cost.”

The national carrier that traces its beginnings to the 1930s will cut its workforce to 14,000 from 20,000, with Khazanah setting aside funds for retrenchment costs. It’s struggling to repair its image after MH370 vanished in March and MH17 was shot down over Ukraine last month.

CEO Search

As part of the restructuring, Khazanah will review Malaysia Airlines’ services to Europe, renegotiate supply contracts and move the carrier’s headquarters and operations to Kuala Lumpur International Airport, the fund said. It will spend 1.6 billion ringgit on revamp and retrenchment costs.

Khazanah’s buyout will result in the company’s delisting, targeted for completion by year-end. The airline is expected to be relisted in three to five years, Khazanah said. A global search will be carried out to find a new CEO by the end of this year, it said.

Khazanah will invest in a “staggered and conditional basis” over the next three years, it said in a statement. “While funds have been made available, they come with strict conditions, so as to ensure that MAS truly resets its business model and cost structures, in order to be truly sustainable.”

The 6 billion ringgit it is pumping into the carrier is not a bailout, Azman said today as the fund outlined its plans in a 40-page report titled “Rebuilding a National Icon.” Shares of Malaysia Airlines (MAS) were suspended from trading today. They have lost 19 percent of its market value this year.

Tainted Image

“The need to restructure the company was accelerated” after the disasters damaged the brand, Ahmad Jauhari said in a statement yesterday. “Our company has had to undergo a thorough re-examination and re-evaluation in order to reposition ourselves as a stronger and more sustainable Malaysia Airlines for the future.”

The March 8 disappearance of Flight 370, en route to Beijing from Kuala Lumpur with 239 people on board, sparked street protests in Beijing and prompted boycotts by Chinese travelers. No trace of the plane has been found in the world’s longest search for a missing jet in modern aviation history.

The airline’s yields, or measure of ticket prices, fell 4 percent in the second quarter to 21.7 sen, the company said. It filled 73.7 percent of its seats in that period, 6.7 percentage points lower than a year earlier.

Rebuild Sales

“We expected the impact of MH370” on second-quarter performance, Ahmad Jauhari said. “Given that, our team put in much hard work and effort to regain market confidence and rebuild sales. Tragically, just as we were beginning to see signs of recovery in all regions, we were dealt the blow of MH17.”

Flight 17 carried 298 people and was shot down in Ukraine July 17 on a route Malaysia Airlines said was declared safe by the International Civil Aviation Organization. The Ukrainian government blamed the downing on pro-Russian rebels in the country’s eastern part.

Average weekly bookings fell 33 percent immediately after the incident, the airline said yesterday. Unverified images of near-empty Malaysia Airlines planes have circulated on social media since MH17 crashed. The airline will review its European routes, Khazanah said today.

Malaysia Airlines said it retired its older Boeing Co. 737-400 aircraft at the end of June, six months earlier than planned, to save fuel costs and increase productivity. It had a fleet of 127 aircraft at mid-August.

The company’s cash and cash equivalent dropped to 2.38 billion ringgit at the end of June, compared with 3.25 billion ringgit at the end of March, it said.

The net loss widened to 307 million ringgit last quarter from a year earlier, the company said. Revenue fell to 3.59 billion ringgit. The carrier will probably lose more than 1 billion ringgit in 2014 and continue to report losses through 2016, according to analyst estimates compiled by Bloomberg.