In what was probably expected to be his most significant statement since assuming the post, the Minister of Finance I appears to have made very tepid comments on the state of play of the Malaysian economy.
Like his boss, the Prime Minister and, his nemesis, the Opposition Leader, the MOF I appears to have fallen victim to a new disease called calendaritis. This hitherto rare disease is said to exhibit a characteristic symptom in its victims. The symptom is a propensity for identifying future dates after initial deadlines are reached with nothing to show.
In an act that confirmed his being afflicted with this disease, MOF I is reported to have said that the details of the stabilisation plan will be announced on November 4 in his winding-up speech in Parliament for Budget 2009.
RM5 billion for Valuecap Sdn Bhd
While making generalisations on the state of the economy, MOF I was very specific on one matter. RM5 billion will be injected into Valuecap Sdn Bhd.
If you visit Khazanah Nasional Bhd's website here, you will, upon scrolling down, come upon this description of Valuecap Sdn Bhd:
Established in 2002, Valuecap is a fund management company which was created to invest specifically in the Malaysia equities market. Owned jointly by Khazanah, PNB and KWAP, Valuecap’s key mandate is to undertake investments in equities listed on Bursa Malaysia on a portfolio basis, based on superior fundamental investment research.
It is not as if Valuecap Sdn Bhd is a great White Knight in shining armour as the innocuous description above suggests. The venerable DAP Adviser, Lim Kit Siang is on record as having made this statement on Valuecap Sdn Bhd at the time of its inception in January 2003. There was also an interesting letter written to Malaysiakini on January 15, 2003 cautioning on the role and scope and mischief that could befall Valuecap Sdn Bhd.
I am sure that others will have plenty to say about the rationale for MOF I to be so specific about Valuecap Sdn Bhd receiving RM5 billion while remaining sagely nebulous about other key areas of the Malaysian economy, preferring to wait until November 4. Read additional information on Valuecap Sdn Bhd furnished by a commentator by clicking the link here.
Source of the RM5 billion?
By the way, where's the RM5 billion coming from? Petronas Bhd?
Focus on the real economy, please
MOF 1 should ignore the capital market. As Wall Street and ALL bourses have shown, the capital market is NOT the barometer of confidence. It has turned out to be the barometer of greed and fear. THEY are the ones talking up a recession. I suggest that MOF 1 save the RM5 billion and inject it into a more worthy vehicle like the EXIM Bank to support SME exporters, instead. Focus on the real economy, please.
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Meanwhile, I read with great pleasure that the Selangor State Government is tabling a BALANCED BUDGET of RM1.4 billion. Whatever detractors say about Tan Sri Khalid or the Selangor Pakatan government, this is the most complete answer to their criticism. At times like these we need less politicking and fuss over party elections. We need more economic management, please. As a Selangor voter, I am heartened to see that the state is being managed by a conscientious and competent economic manager. Read more here.
Like his boss, the Prime Minister and, his nemesis, the Opposition Leader, the MOF I appears to have fallen victim to a new disease called calendaritis. This hitherto rare disease is said to exhibit a characteristic symptom in its victims. The symptom is a propensity for identifying future dates after initial deadlines are reached with nothing to show.
In an act that confirmed his being afflicted with this disease, MOF I is reported to have said that the details of the stabilisation plan will be announced on November 4 in his winding-up speech in Parliament for Budget 2009.
RM5 billion for Valuecap Sdn Bhd
While making generalisations on the state of the economy, MOF I was very specific on one matter. RM5 billion will be injected into Valuecap Sdn Bhd.
If you visit Khazanah Nasional Bhd's website here, you will, upon scrolling down, come upon this description of Valuecap Sdn Bhd:
Established in 2002, Valuecap is a fund management company which was created to invest specifically in the Malaysia equities market. Owned jointly by Khazanah, PNB and KWAP, Valuecap’s key mandate is to undertake investments in equities listed on Bursa Malaysia on a portfolio basis, based on superior fundamental investment research.
It is not as if Valuecap Sdn Bhd is a great White Knight in shining armour as the innocuous description above suggests. The venerable DAP Adviser, Lim Kit Siang is on record as having made this statement on Valuecap Sdn Bhd at the time of its inception in January 2003. There was also an interesting letter written to Malaysiakini on January 15, 2003 cautioning on the role and scope and mischief that could befall Valuecap Sdn Bhd.
I am sure that others will have plenty to say about the rationale for MOF I to be so specific about Valuecap Sdn Bhd receiving RM5 billion while remaining sagely nebulous about other key areas of the Malaysian economy, preferring to wait until November 4. Read additional information on Valuecap Sdn Bhd furnished by a commentator by clicking the link here.
Source of the RM5 billion?
By the way, where's the RM5 billion coming from? Petronas Bhd?
Focus on the real economy, please
MOF 1 should ignore the capital market. As Wall Street and ALL bourses have shown, the capital market is NOT the barometer of confidence. It has turned out to be the barometer of greed and fear. THEY are the ones talking up a recession. I suggest that MOF 1 save the RM5 billion and inject it into a more worthy vehicle like the EXIM Bank to support SME exporters, instead. Focus on the real economy, please.
----------------------
.Meanwhile, I read with great pleasure that the Selangor State Government is tabling a BALANCED BUDGET of RM1.4 billion. Whatever detractors say about Tan Sri Khalid or the Selangor Pakatan government, this is the most complete answer to their criticism. At times like these we need less politicking and fuss over party elections. We need more economic management, please. As a Selangor voter, I am heartened to see that the state is being managed by a conscientious and competent economic manager. Read more here.
4 comments:
I read your previous post, and what was there to say? Thought I'd wait till the wise one spoke.
So, I still wait lah. And what is this Value Cap that it qualifies for RM5 bil? And that's a good question: from where is it coming all this mullah?
Like all other members of the workforce, I've money in EPF. I wonder about that sometimes. How safe is it, is what I wonder.
And while we wait for the sage one, our economy is sound ah? We can afford to wait, ah? Cool. Or, is it?
Pat
I agree with you..
Focus should be on real economy and not on share prices.
I hope the 5B won't be utilize exactly the way they did in the past.
Another Renong or MAS? Selective bailing out of individual..
Honestly, I won't be surprise if it head that way.
Lets see..
http://ifile.it/xmz1why
Valuecap's job is to support share prices.
How many times much we tell them that the share market is not important.
Focus on the real economy, stupid!
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