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The future of FELDA after the listing

By Sakmongkol AK47 | March 01, 2012
The Malaysian Insider

MARCH 1 — The question we should ask all thought leaders of FELDA is this. Why should a loss-making business entity, be allowed to do a reverse takeover of FELDA holdings? FGV owns 49 per cent of FELDA Holdings which has been making money all the time. FGV hasn’t got a track record and has no standing at all to come out with this proposal in the first place.

FGV is the business unit formed while Datuk Bakee (who is now Sime Darby CEO) was in FELDA. The idea of forming FGV to carry out international businesses was proposed by Ethos Consulting group. That adds some flavour to the meal.

Can FELDA tell everyone, how much did FGV lose really? We were only told of losses amounting to RM500 million. One thing we do know is, FGV is consistent. It has CONSISTENTLY lost money for five consecutive years. Perhaps Datuk Sabri Ahmad can disclose fully and honestly, how much FGV lost during those five years. Maybe he has gone to the PM and reported everything is OK sir. Najib is pleased to hear that kind of story.
Continue reading “The future of FELDA after the listing”

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The Superhumans of Malaysia

— Sakmongkol AK47
The Malaysian Insider
Feb 29, 2012

FEB 29 — We have two super humans in Malaysia. Each is said to be able to give guarantees. In the case of Dr Mahathir Mohamad, he guaranteed the loan given to Tajudin Ramli to acquire 32 per cent share of MAS in 1992. The guarantee was in the form of an overriding indemnity provision to Tajudin Ramli protecting him from losses should he mess up the acquisition.

Now, that is the type of captain needed by Dr Mahathir to drive his NEP.

The current prime minister can also give guarantees. He can guarantee that when FGVH lists, the returns to Felda settlers will be assured. That means, while Dr Mahathir can walk on water, the current PM is given the attribute of someone who can control the free market.

Adam Smith, the man accepted by many as the Father of the science of Economics wrote about the invisible hand that regulates free enterprise. He got the name wrong. The invisible hand is Najib Razak. That superhuman attribute was given to Najib Razak by Felda chairman Isa Samad. Continue reading “The Superhumans of Malaysia”

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Raking in the Bounty of FELDA’s IPO

By M. Bakri Musa

In the run-up to the Initial Public Offering (IPO) of FELDA Global Ventures Holdings (FGH), there is little, in fact no discussion on how the exercise would benefit FELDA settlers. Surely that should be the foremost consideration. The only criterion upon which to judge the wisdom or success of any FELDA initiative, including this proposed IPO, would be to assess its impact on the settlers.

Instead the focus has been on bragging rights, as with trumpeting FGH to be the biggest IPO for the year, among the top 20 on the KLSE, and the world’s biggest plantation company. Such milestones are meaningful only if achieved as a consequence of the usual business activities and not through fancy paper-shuffling exercises. Apple recently surpassed Microsoft in market capitalization, but that was the consequence of Apple’s much superior products like iPads, iPods, and iPhones. Contrast that with earlier achievements of such now-defunct financial giants as AIG and Lehman Brothers that were based on fancy “financial engineering” instead of solid products and services.

Instead of delineating the potential benefits that would accrue on the settlers from this IPO, its proponents are content with dismissing the critics and imputing evil motives on their part. There are legitimate concerns that this exercise would prove to be nothing more than yet another fancy scheme for the politically powerful to cash out on a lucrative but under-priced government asset. We already have many ready examples of such greed. Continue reading “Raking in the Bounty of FELDA’s IPO”

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Budaya vandalisma semakin berkembang

— Aspan Alias
The Malaysian Insider
Feb 23, 2012

23 FEB — Apabila terfikir kembali tentang isu penyenaraian FELDA, saya tidak dapat melihat apa kah sebabnya yang kerajaan mahukan penyenaraian ini dilakukan dalam apa juga keadaannya. Saya tidak faham kenapa setiap badan-badan serta agensi kerajaan yang maju sentiasa berakhir dengan kerosakan.

Dulu MAS merupakan sebuah syarikat penerbangan yang premium jika berbanding dengan syarikat-syarikat penerbangan lain di dunia ini. Oleh kerana MAS begitu berjaya di bawah pengurusan Saw Huat Lai dan kemudiannya dikembangkan lagi oleh Tan Sri Aziz Abd Rahman maka setiap mata mereka yang meleleh air liur telah menjualkannya kepada Tajuddin Ramli. Sejak penyerahan MAS kepada Tajudin Ramli, MAS telah menjadi apa yang kita lihat pada hari ini.

MAS mengalami kerugian sehinggakan kerajaan terpaksa melakukan “bail-out” dengan membeli kembali saham-saham syarikat itu dengan harga yang sama yang dijual kepada Tajudin sebelumnya. Kerugian yang dialami oleh MAS begitu besar sehinggakan MAS tidak lagi boleh bangun sampai ke hari ini. Continue reading “Budaya vandalisma semakin berkembang”

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Warkah dari warga Felda

— Sakmongkol AK47
The Malaysian Insider
Feb 07, 2012

7 FEB — Ini warkah dari warga Felda yang saya turunkan secara verbatim. Tidak syak lagi, walaupun selesai penyenraian FGV kelak, isiu nya tidak akan reda. Mudah mudahan ianya akan meningkatkan kesedaran politik warga Felda yang lain. — Sakmongkol.

CUKONG BELIA FELDA JAMIN SELEPAS PENYENARAIAN BERIBU PEKERJAAN UNTUK ANAK FELDA DIWUJUDKAN? KAH KAH KAH…

Woit cukong-cukong mengaku pemimpin belia Felda! Dah buat homework belum apa yang berlaku di Felda Global Venture tentang peluang pekerjaan belia Felda akan datang selepas penyenaraian? Makin kencap kencup kempis dan terus kempis … Kah Kah Kah.

Apa bukti???? Tanya si cukong. Woitt!! Cukong-cukong tahukah apa maksud Outsourcing? Ini kata lebai Google “Outsourcing is the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees. Often the tasks that are outsourced could be performed by the company itself, but in many cases there are financial advantages that come from outsourcing. Many large companies now outsource jobs such as call center services, e-mail services, and payroll. These jobs are handled by separate companies that specialize in each service, and are often located overseas.” Apa makna ini?? Maknanya anak dara Jengka melepas jadi kerani payroll … dara sunti Trolak melepas jadi receptionist … janda berhias Lok Heng tak ada can jadi sumber manusia … Kah Kah Kah. Mat-mat belia Felda lagi la melepas terus join PAS … Kah Kah Kah. Continue reading “Warkah dari warga Felda”

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Is the Felda Global Venture Holdings listing in the interest of settlers?

— Dr Lim Teck Ghee
CPI
Jan 03, 2012

JAN 3 — During the past few months, the government and Felda authorities have been engaged in a public relations exercise aimed at persuading Felda settlers as well as the public that the proposal to float Felda Global Ventures Holdings (FGVH) on Bursa Malaysia is in the best interests of the settlers.

But is it really so?

What has emerged from the government-controlled media has been almost exclusively the government version as to why the listing should go ahead. What is missing are answers to the questions raised by the opposition and independent analysts on the real benefits to settlers as well as a credible response to allegations that the interests of settlers are being subordinated — and even marginalised — in favour of other parties.

The stakes involved in the proposed listing exercise go well beyond those of any past Bursa listing exercise. At stake are not simply concerns of how well the offering will be received by investors; the initial IPO pricing; and other market-related issues. This is not your ordinary listing exercise aimed at reconciling the interests of a small group of initial shareholders with those of other new parties; neither is it a question of how much gains the initial settlers and shareholders can make from this listing exercise. Continue reading “Is the Felda Global Venture Holdings listing in the interest of settlers?”

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FGV listing: Corporate vs. peasant settler

— Sakmongkol AK47
The Malaysian Insider
Dec 26, 2011

DEC 26 — Two upcoming events are being awaited with great anticipation:

(1) The outcome of an injunction application by a few settlers to stop the Felda Global Ventures listing, and;

(2) the January 5 extraordinary general meeting of Koperasi Permodalan Felda (KPF).

The outcome of the second event is a foregone conclusion. Chairman Isa Samad will get elected as the KPF chairman despite not having the qualifications to become an office bearer. He is not a settler nor is he a Felda employee. But the minister in charge of Felda has given his approval; what can people do? The minister is also the prime minister. He is lord over whoever lives in this land.

We must not be sidetracked by this sideshow involving the two-bit actor Isa Samad. The more pressing matter concerns the listing exercise.

Why the injunction? Why should four people extend energy and time and assume the risks of being called traitors and all that, to apply for an injunction? Greed can’t be the overriding objective. If it is, it’s more profitable for the four people to side with chairman Isa, who can be generous if he is pleased.

The object of the injunction is to stop FGV from taking over assets and shares belonging to KPF in Felda Holdings. These people believe that the 350,000 hectares of land that Felda took was actually meant for settlers.

All the assets owned by KPF in Felda Holdings will be leased to FGV for the next 99 years. They will no longer exercise control over the assets as their interests are all converted into shares. Felda Holdings is 51 per cent owned by settlers and 49 per cent owned by Felda Global.

They are willing to risk it all, because they believe settlers are being sold out. Continue reading “FGV listing: Corporate vs. peasant settler”

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FGV: Looking out for settlers’ interests

— Sakmongkol AK47
The Malaysian Insider
Dec 22, 2011

DEC 22 — I am more interested in establishing credibility in a proposition, idea or plan. Accordingly I am not fixated over an idea nor feel xenophobic on having to change my position if necessary, in the interest of achieving credibility.

For example, while I am not immediately taken in by the idea of listing Felda Global Ventures, the rational economist in me accepts that it makes good business and economic sense to restructure Felda’s business to unlock value.

I think, even while some of us differ in our views, this principle of restructuring, reorganizing, changing in order to arrive at better value, is acceptable. Also I am not averse to having experts run and operate the business.

For example, KPF is the investment entity in Felda Holdings. The members of KPF get dividends, handouts, charity, assistance, etc. They are able to enjoy because the commercial entity, Felda Global Ventures Sdn Bhd does the business for them.

KPF’s and the interests of others — public spirited individuals, minders (paid or unpaid) — are to ensure the managers of the business do their work efficiently and create shareholder value. Except that I will always be circumspect about the term “unlocking value”. Continue reading “FGV: Looking out for settlers’ interests”