Thursday, December 09, 2010

What Is A Rent Seeker?

Folding your arms, putting your legs on the table while rocking your chair away where meantime, money is flowing in automatically without moving your arms or legs from its comfortable positions - heard of such statement before?

There seems to be a tussle for the control of Magnificient Diagraph Sdn Bhd, the operator of Carrefour's retail business in Malaysia and Singapore.

The shareholders are:-
1) Carrefour Malaysia Sdn Bhd
2) Carrefour Nederland B.V.
3) Mildew B.V.; and
4) Hartajaya Harmoni Sdn Bhd - 30%

Shareholders no. 1 to 3 are holding a combined 70% interest.

As we all have heard that Carrefour may want to exit the hypermarket business in Malaysia and Singapore and has sought for potential buyers.

Along the way, Hartajaya Harmoni Sdn Bhd sought legal avenues in order to qualify as a bidder for the 70% from the other three shareholders.

You should read the newspaper article; Tussle for Carrefour local ops reaches courts - Star where in an affidavit, it was mentioned that Hartajaya Harmoni Sdn Bhd hasn't even paid the RM23 million that they have borrowed from Carrefour Nederland to purchase the allocated 30% shareholdings.

Who is the interested party in Hartajaya Harmoni Sdn Bhd? Star newspaper mentioned Tan Sri Abdul Aziz Shamsuddin is the one behind it. Is this the 30% interest that is supposed to be reserved for bumiputeras in Malaysia?

What a joke! The company hasn't even fully paid for their 30% shareholdings and yet want to swallow the other 70%. I wonder which local bank has volunteered to loan them the money to purchase the other 70% shareholdings.

Who was he? (as extracted from Wikipedia)
Tan Sri Abdul Aziz Shamsuddin is the former Malaysia Minister of Rural and Regional Development.

Since 1981, he had been Dr. Mahathir's political secretary. He was appointed a senator by Tun Dr. Mahathir Mohamad in 1999.

He was appointed Minister of Rural and Regional Development in 2004 following the general elections.

He is currently the political party member of United Malays National Organisation and was Member of Parliament for Shah Alam, Selangor. He was subsequent defeated by PAS candidate Khalid Samad in the 2008 elections in the constituency.

This is what 'they' have been fighting for and no wonder the Foreign Direct Investment is dropping like mad as in who would want to dispose of 30% of their shareholdings to someone else before they are even allowed to operate in Malaysia.

The National Economic Model 2 (NEM 2) that was released last week is in the sad debacle as the 30% interest reserved for bumiputeras as per the redundant National Economic Policy has been retained. Who are the real beneficiaries actually? Definitely not the general bumiputeras who are colleagues, fellow public transportation passengers or even those on the petty foodstall owners.

A renowned Malaysian economist, Tan Sri Dr Ramon Navaratnam, has given his input on NEM 2 - FDI at risk with vague NEM 2.

From National Economic Policy to National Economic Model - just a change of name ......... that's all folks!

I have no issue with the 30% interest that is being shared with the real bumiputeras that I know / see / bumped into everyday. But to benefit those in powers???

Bringing this up and disputing against this is not being a traitor. There's a saying "If Malays who questioned the special rights are traitors, what do we call those Malay leaders who manipulated the rights to enrich themselves?"

I am loyal to my country and I gladly tell people that I am from Malaysia wherever I go.



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