edteam
09-12-2002, 10:01 AM
<font size="+1">Who came to Pak Lah's Raya open house this year, and why?
Mark this space!</font>
BUSINESS TIMES Singapore
December 9, 2002
KL political patronage on the wane?
Investors should not place too much premium on the stocks of politically well-connected businessmen
By Eddie Toh
LAST week, Malaysian police detained a man for allegedly impersonating the political secretary of Deputy Prime Minister Abdullah Ahmad Badawi in a land deal.
The man isn't the only one to see the benefit of being associated with the heir apparent even before Prime Minister Mahathir Mohamad steps down next October.
Many corporate figures and politicians are also seen to be gravitating towards Mr Abdullah ever since Dr Mahathir dropped his retirement bombshell in June.
Mr Abdullah's itinerary is a testimony to his growing influence.
Last week, he witnessed the signing of a pact appointing Edaran Otomobil Nasional, the distributor of Audi and Volkswagen cars in Malaysia. In the past, Dr Mahathir invariably appeared at major car-related events. After all, the national car Proton was Dr Mahathir's brainchild.
Mr Abdullah also graced a low-key event organised by Syed Mokhtar Al-Bukhary, the man who controls Port of Tanjung Pelepas (PTP) and a slew of infrastructure projects in Johor. Syed Mokhtar has been entrusted by Dr Mahathir to spearhead the drive to turn the southern state into a major transportation and distribution hub to rival Singapore.
To be sure, the appearance of Mr Abdullah at some of these events could be due to the fact that his boss has other priorities before retirement. Dr Mahathir is in the midst of reforming the education system, which has turned out to be a political hot potato.
Nevertheless, many businessmen are expected to intensify their cultivation of the future premier in a country where politics and business are closely interlocked.
In fact, many acknowledge the need for such a system despite its flaws, as was seen during the regional financial crisis four years ago.
Vincent Tan of the Berjaya group gave an excellent exposition of the system when he told Malaysian Business magazine in his first-ever press interview recently: 'It's important to be friendly with the government of the day. I'm fortunate that the prime minister and other leaders have confidence in me. People always say that I get projects because I'm close to the PM. Do you think I would keep getting projects if I didn't deliver them successfully?
'I submit a lot of projects and business proposals to the government, and some are accepted. I believe if you keep knocking persistently, some doors will open. It's the law of averages. Edison once said, 'Genius is one per cent inspiration and 99 per cent perspiration'. When we undertake a project, we do it well. And if I fail, I must not burden the government. I act responsibly.'
While businessmen will continue to knock on the doors of the future premier, it's still unclear how Mr Abdullah - dubbed Mr Clean - will handle the entrenched system of patronage.
He is expected to continue Dr Mahathir's legacy of appointing professionals to clean up debt woes in the corporate sector. But will Mr Abdullah select a new crop of businessmen to spearhead the privatisation drive or take over certain strategic companies?
It's still too early to pick the corporate winners and losers, as not many businessmen are known to enjoy special ties with Mr Abdullah.
One litmus test could be the restructuring of Malaysian Resources Corporation Bhd, which is in the midst of hiving off its media arm in a move that could see the emergence of a new media mogul in Malaysia.
The new owner is likely to need the blessings of Mr Abdullah to control Sistem Televisyen Malaysia, popularly known as TV3, as well as the influential newspaper publisher, The New Straits Times Press.
Another sign could come from the next government's treatment of Syed Mokhtar, who has earned the envy of many businessmen. Detractors of the self-made tycoon charge that he is being allowed to bite off more than he can chew, thanks to political patronage.
While Malaysia's first leadership change in 22 years could alter the corporate landscape, investors should not place too much premium on the stocks of politically well-connected businessmen.
In the final analysis, old and new tycoons must be able to stand on their own two feet regardless of the government of the day.
SOURCE:
http://business-times.asia1.com.sg/views/story/0,2276,66202,00.html?
Mark this space!</font>
BUSINESS TIMES Singapore
December 9, 2002
KL political patronage on the wane?
Investors should not place too much premium on the stocks of politically well-connected businessmen
By Eddie Toh
LAST week, Malaysian police detained a man for allegedly impersonating the political secretary of Deputy Prime Minister Abdullah Ahmad Badawi in a land deal.
The man isn't the only one to see the benefit of being associated with the heir apparent even before Prime Minister Mahathir Mohamad steps down next October.
Many corporate figures and politicians are also seen to be gravitating towards Mr Abdullah ever since Dr Mahathir dropped his retirement bombshell in June.
Mr Abdullah's itinerary is a testimony to his growing influence.
Last week, he witnessed the signing of a pact appointing Edaran Otomobil Nasional, the distributor of Audi and Volkswagen cars in Malaysia. In the past, Dr Mahathir invariably appeared at major car-related events. After all, the national car Proton was Dr Mahathir's brainchild.
Mr Abdullah also graced a low-key event organised by Syed Mokhtar Al-Bukhary, the man who controls Port of Tanjung Pelepas (PTP) and a slew of infrastructure projects in Johor. Syed Mokhtar has been entrusted by Dr Mahathir to spearhead the drive to turn the southern state into a major transportation and distribution hub to rival Singapore.
To be sure, the appearance of Mr Abdullah at some of these events could be due to the fact that his boss has other priorities before retirement. Dr Mahathir is in the midst of reforming the education system, which has turned out to be a political hot potato.
Nevertheless, many businessmen are expected to intensify their cultivation of the future premier in a country where politics and business are closely interlocked.
In fact, many acknowledge the need for such a system despite its flaws, as was seen during the regional financial crisis four years ago.
Vincent Tan of the Berjaya group gave an excellent exposition of the system when he told Malaysian Business magazine in his first-ever press interview recently: 'It's important to be friendly with the government of the day. I'm fortunate that the prime minister and other leaders have confidence in me. People always say that I get projects because I'm close to the PM. Do you think I would keep getting projects if I didn't deliver them successfully?
'I submit a lot of projects and business proposals to the government, and some are accepted. I believe if you keep knocking persistently, some doors will open. It's the law of averages. Edison once said, 'Genius is one per cent inspiration and 99 per cent perspiration'. When we undertake a project, we do it well. And if I fail, I must not burden the government. I act responsibly.'
While businessmen will continue to knock on the doors of the future premier, it's still unclear how Mr Abdullah - dubbed Mr Clean - will handle the entrenched system of patronage.
He is expected to continue Dr Mahathir's legacy of appointing professionals to clean up debt woes in the corporate sector. But will Mr Abdullah select a new crop of businessmen to spearhead the privatisation drive or take over certain strategic companies?
It's still too early to pick the corporate winners and losers, as not many businessmen are known to enjoy special ties with Mr Abdullah.
One litmus test could be the restructuring of Malaysian Resources Corporation Bhd, which is in the midst of hiving off its media arm in a move that could see the emergence of a new media mogul in Malaysia.
The new owner is likely to need the blessings of Mr Abdullah to control Sistem Televisyen Malaysia, popularly known as TV3, as well as the influential newspaper publisher, The New Straits Times Press.
Another sign could come from the next government's treatment of Syed Mokhtar, who has earned the envy of many businessmen. Detractors of the self-made tycoon charge that he is being allowed to bite off more than he can chew, thanks to political patronage.
While Malaysia's first leadership change in 22 years could alter the corporate landscape, investors should not place too much premium on the stocks of politically well-connected businessmen.
In the final analysis, old and new tycoons must be able to stand on their own two feet regardless of the government of the day.
SOURCE:
http://business-times.asia1.com.sg/views/story/0,2276,66202,00.html?