Tuesday, 31 March 2015

Puzzling Pan Borneo Highway

Prime Minister launched the first phase of Pan Borneo Highway and said that the Sarawak portion will be toll-free.

According to an earlier report,

The RM27 billion Pan Borneo Highway project is not a privatised project but comes under the Private Funding Initiative (PFI) where the company awarded the project will have to raise the necessary funds to construct the road first. 
"I was made to understand that it is a PFI, though at the end of the day the Government will pay back the company," said Rural and Regional Development Minister, Datuk Seri Shafie Apdal. 
The only difference compared to the PFI road projects in Semenanjung, he said, was that there would be no toll in Sabah.
Why let the private company raise fund and pay them back later? The borrowing cost is unlikely to be cheaper than government's borrowing cost.

Transparency PLEASE!!!

Also in the article, it is also interesting to note that:

Fellow opposition Sabah Star head Datuk Dr Jeffrey Kitingan also said the Sabah government should insist that the Sabah section of the highway be built without any Malayan companies as the main contractor to avoid skimming of the contract sum and ending up with lower quality roads. "It should learn from the Sarawak road quality experience," he said. "No Malayan Umno companies or cronies are involved in the Sarawak section, he said: "If one were to take a leisurely drive in Lawas, Sarawak, some 850km from Kuching, one would notice that the roads in Lawas are wider by two feet and of better quality than those in Sabah. "Not only are Sabah roads narrower, they are full of potholes even in Kota Kinabalu." 
He said the roads in Sabah were of poor quality due to the practice of sub-contract over sub-contract of the project, which resulted in many being forced to cut corners due to low prices. 
"In Sarawak, they do not allow Umno-linked companies to be involved and due to the non-skimming at the top, there are better prices for Sarawak contractors," he said. 
"It was not surprising and wise of the Sarawak government to name Lebuhraya Borneo Utara Sdn. Bhd to undertake the Sarawak portion of the Pan Borneo Highway and to reject any involvement by the Malayan Umno-linked companies," he said. 
"Regardless whether they are from Umno or not, the Sabah government should adopt a similar stand to reject any Malayan company involvement in the Sabah Pan-Borneo Highway, to ensure Sabah contractors benefit from the construction and to prevent skimming of the contract sums.

Tuesday, 24 March 2015

Connectivity, Product, Brand

The real estate mantra used to be “location, location, location". I agree that "connectivity, product, brand" is a more relevant one nowadays, judging from the property buyers' response to the properties at Eco Majestic, which are priced at a premium.

Wednesday, 18 March 2015

The Director resigns because he has tendered his resignation to the Board

Paragraph 9.19(12A)(b) of Bursa Main Listing Requirements states:

A listed issuer must immediately announce to the Exchange the events set out below:

Any change in the composition of the board of directors of the listed issuer. An announcement to the Exchange -
(a) on the appointment of a director must include the information contained in Part A of Appendix 9A; or
(b) on the cessation of office of a director must include the reasons given for the cessation, including but not limited to any information relating to his disagreement with the board and a statement as to whether or not there are any matters that need to be brought to the attention of the shareholders of the listed issuer;

Is the reason for the resignation given below acceptable to you? Surprisingly, Bursa did not immediately query the company to clarify the ACTUAL reason for the resignation.

Change in Boardroom


Date of change12/03/2015
NameJohan Zainuddin bin Dzulkifili
DirectorateNon Independent & Non Executive
Type of changeResignation
ReasonHe has tendered his resignation to the Board
Details of any disagreement that he/she has with the Board of DirectorsNo
Whether there are any matters that need to be brought to the attention of the shareholdersNo
QualificationsFellow of the Association of Chartered Certified Accountants
Post Graduate Diploma in Islamic Banking and Finance 
Working experience and occupationHe began his career as a Financial Accountant with a multinational company in 1986 after his graduation. In 1989, he joined a merchant bank as an Assistant Manager in the Corporate Advisory department. He susequently left and joined public listed company as Vice President of Corporate and Business Development in 1992 and, in 1997 he joined another public listed company as the Head of Corporate Services until 2002. He is well versed in areas of corporate advisory and business development 
Directorship of public companies (if any)Nil 
Family relationship with any director and/or major shareholder of the listed issuerNil 
Any conflict of interests that he/she has with the listed issuerNil 
Details of any interest in the securities of the listed issuer or its subsidiariesHe directly holds 60,927,250 shares or 8.68% shares.
Indirectly holds 12,232,312 shares or 1.75% shares via Infra Bumitek Sdn Bhd