Friday, August 24, 2012

UMNO-NOMICS FOR IDIOTS?

1Malaysia Development Bhd’s push into the property sector is raising concerns about the company’s rising debt and a possible commercial property glut in KL.

When it was first set up, 1MDB’s initial capital of RM5bn was raised from 30-year bonds. About RM3.5bn of this was invested in PetroSaudi. It later sold this for RM4.2bn and invested in Murabaha notes.


The Edge weekly (6 August) reported that 1MDB’s total loans and borrowings rose to RM6.8bn (31 March 2011) from RM4.4bn a year earlier. 1MDB then piled on further debt of RM11bn to finance its investment in the energy sector including buying up Ananda Krishnan’s Tanjung assets for a hefty RM8.5bn. (It is now eyeing the energy assets of Genting, Sime Darby and Bukhary’s Malakoff, reports The Edge).

The company is involved in the 70-acre RM26bn Tun Razak Exchange (or TRX – previously known as the KL International Financial District) – 25 buildings and a new stock exchange – 20m square feet of floor area. It is supposed to serve as a financial services regional hub.

The Edge also reported the firm had pumped in RM194m into properties (70 acres for TRX and 484 acres of the Sungai Besi air force base in KL) but these are now revalued at RM826m! How did this happen?

Both TRX and Bandar Malaysia will require RM5.4bn funding for the first phase. Now where is 1MDB going to raise the money from? The government or state-managed funds?

In the process a new word enters our lexicon – subsidies is now replaced with INCENTIVES!

More HERE at Anil Netto’s blog.

5 comments:

najib manaukau said...

What has 1Malaysia Development Bhd. got to loose
it is all people 's money. They will go anywhere or do anything or even into business they have no knowledge at all.
To them all they want is the chance to show off how mighty they are. Just wait and see what the end results are going to be !

Anonymous said...

I may be lousy in maths but I still know how to use the calculator. The signboard "Janji Ditepati" states that the Govt. spent RM2.6b to pay out RM500 to 4million households. If so then it should only be RM2.0b (500X4,000,000). What is the additional cost of RM0.6b? Don't tell me it costs RM0.6b to print the 4million vouchers. Administrative costs RM0.6b? What kind of administrative cost? Give me RM0.1b and I'll be happy to carry out the job to distribute the vouchers.

Anonymous said...

It's called Curi-Curi 1Malaysia...

passion1 said...

Typical of them.
In the private sectors, they demand high positions, Chairman, Directors and CEO positions with high salary, only to attend meetings and sign documents that they do not understand,perhaps.
Out in the commercial market, the town council will allow them to put 'warongs', right in front of a row of shops.How do they expect the genuine restaurant operators to do business? FAINESS?
State Governments Link companies have taken over many privately owned shopping complexes, which were operating successfully in the past, and now are so run down, that even underground car parks are dirty, flooded and have minimal lighting.

MEMBAZIR (Wasting government funds, under NEP)

Anonymous said...

Good to see Zorro and anil has symbiotic relationship. But do not count on Big Dog and rockybru.

Bloggers should unite to confront the lies of mainstream media.