Another Renong type crash in the making?

[besitai2007]

Tony Pua said today that Syed Mokhtar’s group of companies have a combined debt of RM34.3 billion or more than 10% of all local currency outstanding corporate bonds as at 2011. These companies have a total cash and cash equivalents of RM7.8 billion as at May 2012. Can't brain that..the guy has a virtual monopoly in lots of stuff..Gardenia bread, sugar, Pos Malaysia taking over Penang Port ...etc and still be in debt

[zinglicious]

Either way, Syed would not lose with the sudden riches from one right hand to the other leftover hand of debt.

[zinglicious]

More to come from AI on Syed Sugary business - http://my.news.yahoo.com/surge-in-su...082253401.html

[kuma]

More to come from AI on Syed Sugary business - http://my.news.yahoo.com/surge-in-su...082253401.html

You could say that this WSJ article [ “How Asia will fare if Europe cracks”] curated in MI is 'somewhat' related

WSJ: Malaysia needs China’s help to weather euro storm

Quote:

" Trade-dependent Asian countries including Malaysia will take a major hit if the euro zone economy collapses and will require China’s aid to hobble along, according to the Wall Street Journal (WSJ).......Malaysia has bank loans from Europe equal to 20 per cent of its gross domestic product (GDP), which it said was high for the region.....if China doesn’t open the stimulus floodgates, that would mean less of a boost for its neighbours"

"Currencies would drop, shipping lanes would empty, and consumer and business loans would dry up, slowing down economies even further, the paper said."

Read the rest of article at MI Here

[Henry T]

Who wouldn't be in debt when all those takeovers are funded by borrowings? And there are no shortage of lenders.

[cml]

You see the halims/tajuddins/amans on the streets living on hand outs. They are still cruising around in the latest cayennes and ferrati's

[Rhiga]

.. And there are no shortage of lenders.

Lenders would be delighted to lend money to them because when they can’t pay which is always the case… the gomen will repay the loan on behalf of them using my money and your money…

[Firefly]

Lenders would be delighted to lend money to them because when they can’t pay which is always the case… the gomen will repay the loan on behalf of them using my money and your money…

Would this still be possible with EPF already broke?

[cml]

They are not broke per se but all their monies are tied up in loans to the glcs and 'investments' in the stockmarkets. The reason why our bourse does not go in tandem with the regional markets is because most of the shareholdings are held by the big institutional investors who will not sell for fear of deflating the market. So the prices on our exchange are a bit stage managed to put it mildly.

[tupai]

Would this still be possible with EPF already broke?

Question of timing. EPF has about rm480billlion in reserves...so its a fat kitty bank controlled by gomen.

Yang Amat Broke TIUxlatotupai

[cupofcoffee]

The amount of debt is just mind-boggling

[PeterHng]

Question of timing. EPF has about rm480billlion in reserves...so its a fat kitty bank controlled by gomen.

but most of their reserves are tied up at the stock markets and illiquid assets. They are surviving mostly from their monthly cashflow (contributions from workers monthly deductions, pretty huge sums) nowadays if I'm not mistaken. Therefore don't count on them too much..

[zinglicious]

Would this be repeated and repeated for the proxy owners...http://www.themalaysianinsider.com/m...tajudin-ramli/