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Wednesday, 30 December 2015

Almost at the end: The RM12.35b final step in the 1MDB rationalization

1MDB has just announced that it has signed to sell a 60% stake in the 486 acre Bandar Malaysia to a 60-40 consortium of Iskandar Waterfront Holdings Sdn Bhd and China Railway Construction Corporation (CRCC).

The deal was announced after an international open tender - which attracted initial interest from dozens of parties - called by 1MDB as part of its rationalization exercise.

IWH is the holding company for listed  company Iskandar Waterfront city Bhd and is 60% owned by tycoon Tan Sri Lim Kang Hoo and 40% owned by Johor Govt's Kumpulan Prasarana Rakyat Johor (KPRJ).

In Oct, 1MDB had announced that they have finally received planning approval from the govt for Bandar Malaysia, which includes a 4.05 gross development ratio and the planned HSR terminus, and two MRT stations.

40 per cent of the land is taken up by infrastructure such as transport facilities, parks, schools, and police and fire stations - leaving 60% of the land for development.

With the planning approval raising and giving certainty to the value of the land, 1MDB had initially expected a value of RM11.5b.

But after a keenly fought competitive tender, the IWH-CRCC consortium emerged the winner with the bid for 60% of Bandar Malaysia at RM7.41b - which values the project at RM12.35b.

3 1/2 years ago, 1MDB had paid an estimated RM1.6b (RM400m cash plus buying various pieces of land for MINDEF- including a 750 acre new RMAF airbase in Sendayan, a plot for a PDRM airbase in Subang and the 31 Royal Artillery Regiment base in Kajang.

On top of that, 1MDB also committed to pay RM2.1b to build and equip 8 military sites for MINDEF as compensation which brings the estimated cost of the land to RM3.7b.

But selling it for RM12.35b is a significant gain for 1MDB since it only had a RM4b valuation in their last financial statements.

This would mean that 1MDB could potential post a profit of RM8.6b out of this transaction.

After selling the 60% stake, the remaining 40% stake will be retained by 1MDB and will probably be eventually transferred back to the 1MDB's sole shareholder, the Ministry of Finance - thus Bandar Malaysia will be 76% owned by Malaysia and 24% owned by the Chinese firm.

And since the Johor state govt owns a 40% stake in IWH, this means that Bandar Malaysia will still be 54.4% owned by government.

It is anticipated that CRCC will be bringing in about RM3 billion of foreign direct investment into the country for this deal.

And if you add that to the Edra deal bought 100% by China' CGN group for RM9.83b (plus assuming debts of RM8b), that would mean a total of RM12.8b worth of foreign investments will come into the country just from 1MDB's last two deals.

This Bandar Malaysia deal is the 3rd major rationalization step for 1MDB and also fulfills Najib's promise to settle 1MDB by the end of this year - a move forced on Najib and 1MDB amidst heavy and sustained political attacks:
  1. Asset-swap deal with IPIC signed in May 2015 - RM16b
  2. Sale of Edra in Nov 2015 - RM17.3b
  3. Today's Sale of Bandar Malaysia - RM12.35b
All in all, those 3 deals means that about RM46b of value (either cash or assuming of debt) had flowed to 1MDB - which vindicates 1MDB's frequent claims that their asset is worth more than their debt.

It also proves that despite Tun Mahathir's frequent and ever-changing claims, RM42b or RM27b or billions didn't lesap - in fact there is a surplus!

After those 3 deals, 1MDB will still be left with 100% of the TRX project with remaining plots to be sold and construction well in progress, the RM300m Pulau Indah and the RM1.1b Penang land to be sold - meaning more billions to be gained too beyond the 3 milestones.

Here's a video of the TRX construction progress as at Nov 2015.

After today's signing, there would no longer be any fears that 1MDB will be a financial problem or sovereign risk for the government or for Malaysia anymore or any problems related to contingent liabilities related to 1MDB.

There should also be no more concerns that those bonds and loans given by KWAP, EPF, Tabung Haji etc would be at risk.

And hopefully, people finally realizes that no GST money was used to "bail out" 1MDB.

There's no doubt about it. Najib and 1MDB had worked hard and have delivered on their promise to "solve" 1MDB - exactly on schedule.

Here is wishing the Bandar Malaysia and TRX development all the best! Eventually, we will be left with two major developments that will help drive continued growth for Malaysia.

Here's a video giving you an idea of what TRX, the planned Islamic Finance Capital of the world, will look like when completed:

At this stage where the majority of the debt have been settled, 1MDB will still have:
1) 100% of TRX that will continue to be developed and bring economic gains and spin-offs to Malaysia
2) 40% of 1MDB with another effective interest of about 18% by Johor State Govt - that will continue to be developed and bring economic gains and spin-offs to Malaysia
3) delivered 8 military facilities to MINDEF
4) Pulau Indah and Penang land yet to be sold off/developed

All the above for initial RM1 million capital injection and two land deals.

It was never 1MDB's initial intent to have gone on to this rationalization plan but the continued political attacks on 1MDB, which prevented 1MDB from receiving a much-needed capital injection and unable to tap capital markets further, have forced the govt hands to do this.

For me and the Malaysians who wishes to see our economy not be affected by this in any way, we rather the debt be settled.

But in the end, what is important is the debt is resolved but many people will still be unhappy with 1MDB - which begs the question of what do they want?

That 1MDB's RM42 debt be resolved or for 1MDB's RM42b debt not to be resolved?

You can never please them.

In fact, many people would not like the RM42b debt to be settled and for it to remain. They will reject all sorts of moves to settle the debt and will give whatever reasons why this debt should remain unsettled - mainly because they do not want to be proven wrong or continue to use this RM42b debt as an excuse to slam the government.

Tuesday, 29 December 2015

1MDB: LSS asks and WSJ's Tom Wright answers

Today, Tom Wright from the Wall Street Journal hosted an online Questions and Answers session on FaceBook at 5pm Malaysian time.

Tom Wright is the chief author of the frequent 1MDB articles featured in the Wall Street Journal including the RM2.6b "expose".

I posted 10 questions for him and he tried to answer as many as he could.
Could you shed some light into these questions that I long had:
On the PetroSaudi-1MDB JV
1) Why would the owner of PetroSaudi, Prince Turki the 7th son of their absolute monarch and Governor of Riyadh, their largest province and city, want to collaborate with a Chinese Malaysian to steal Malaysian money? Doesn't the Kingdom of Saudi Arabia with sky-high oil prices then have enough money that it need to steal a mere USD1.83b?
2) Is it possible that the PetroSaudi-1MDB JV is a Government-to-Government initiative with the backing of the King of Saudi and the PM of Malaysia? Both leaders had met quite frequently during the exact period where 1MDB-PetroSaudi JV was created. 
3) What is your evidence that Good Star is owned by Jho Low? 
4) Is it possible that Good Star was an investment vehicle still fully owned by PetroSaudi but they had engaged Jho Low or his team to manage any funds in there? As I remember from the Sarawak Report expose, there was an agreement for such fund management services. 
This is also possible as Jho Low had made his name prior to the Terengganu Investment Authority (TIA), the predecessor to 1MDB was even founded or Najib became Prime Minister 
He had used Arab money related to various middle-east royal families to buy over three publicly listed companies in 2007-2008 which is even before 1MDB existed. 
On Abu Dhabi's IPIC5)  Why is it that IPIC had never made any public statement confirming that they have lost billions as alleged by yourself? 
6) Since IPIC bonds are listed on the London Stock Exchange, losing up to USD2.4 billion as alleged by you, would be a cause for at least a query by the London Stock Exchange to IPIC but there was none. Why is that? 
7) If Billions are missing, would would IPIC continue to pay USD1 billion in cash to 1MDB in June and still take over their USD3.5 billion of bonds and even paid the bond interest for them in Oct and Nov recently? 
8) Why is it that after four or five years being existed by the biggest and 2nd biggest audit company in the world, KPMG and Deloitte, none of them could find any evidence of missing billions over so many years? 
9) What is the global implications if both KPMG and Deloitte was found to be negligent and could not detect your alleged fraud of this scale of billions of dollars missing? I remember Enron was not even this scale and it was just one of the big audit companies which closed down causing havoc to the worldwide finance industry during that time. 
10) Since you mentioned multiple times in your article today that there does not seem to be any Malaysian laws broken, what is your personal motivation to continue pursuing this 1MDB story in a passion that no one else has? Are you in communications with Clare Brown as it seems your articles are coordinated with Sarawak Report. For example, Sarawak Report came out with their own report on the USD850m that you allege to be missing within mere minutes of your WSJ article being published. 
Thanking you in advance for your answers.
Tom replied and the following are his answers.

Well, that's it. Tom sort-of answered 5 out of the 10 questions and skipped the rest. He then thanked me for the very thoughtful questions.

Personally I am not happy with his answers and had wanted more details and more convincing answers.

I thanked him for the answers and asked him to feel free to add to his questions when he has the time later.

To be fair, I can't be hogging all his time as he needs to answer the rest of the world on this 1MDB issue.

Let's see if he will come back and answer more. I will update this blog if he does.

I did notice that the likes of Muhyiddin Yassin, Tun Mahathir, Tony Pua, Rafizi Ramli and the rest who wanted to so desperately seek answers about 1MDB were not there to take this opportunity to ask though.

Perhaps they are on their holidays.

There was an interesting question from The Malay Mail Online.

So, let it be on record that so far no one has threatened to harm the WSJ's journalist.

Wednesday, 23 December 2015

林冠英不起诉Nasrudin Hassan意味着指控是真的?

A translation into Chinese by persons unknwon of my blog-post yesterday titled  "Dear CM, would you like to borrow my pen?"

2014年8月6日在雪兰莪民联危机时,雪兰莪伊党淡马鲁州议员Nasrudin Hassan指控槟州首席部长林冠英关于槟城隧道工程问题:

  • 为何槟州海底隧道未曾公开招标?
  • 为何槟州海底隧道没有咨询民意?
  • 槟州海底隧道总费用为四十六点三亿令吉(全程6.5公里)是否被高估?
  • 为何槟州政府预算出现赤字?

关于这些问题,林冠英显得非常生气,并在第二天召开双语新闻声明否认上述所有的指责。要求Nasrudin Hassan24小时内道歉。他也表示,槟州海底隧道只花了三十六亿令吉,而不是四十六点三亿令吉。

第二天,Nasrudin Hassan说,他拒绝道歉,并进一步澄清之前对林冠英的指控

  • 槟州海底隧道仍然被高估,林冠英说只是海底隧道的造价介于RM36亿(海底隧道总造价约RM63亿),那么就意味海底隧道平均每公里就需要RM5.53亿令吉的成本构建,再加上连接隧道的道路全程20.8公里也将花费RM27亿或每公里RM1.3亿 。 这是绝对是一个惊人的数字。
  • 槟州海底隧道工程还没有进行公开招标,林冠英就和北京城建集团有限责任公司(北京城建集团)签署谅解备忘录 -。
  • 槟州政府预算出现严重赤字,如果不是售卖土地,赤字从过去的几年中增长了303%。

这使得林冠英更生气,他在2014年8月9日的第二天,要求他的律师起诉Nasrudin Hassan。

林冠英说他别无选择,只能起诉Nasrudin Hassan。

这一次,林冠英没有说谎,他的律师确实起诉Nasrudin Hassan。因为关于RM6.3亿槟州海底隧道事件,Nasrudin Hassan对他的指控形成了诽谤。



根据伊党党报HarakahFree Malaysia Today说,林冠英和他的律师“忘记”签字,然后发出了自己的传票纸!



当今大马和马来西亚局内人就像之前“忘了报道”马来西亚有史以来最大规模的纪录诉讼案,其中主角就是公正党沙巴州副主席Christina Liew 被高级法院下令罚款RM5.57亿元,罪名是她勾结工作人员骗取819名穷苦的百姓的土地。


林冠英的律师当时说:“只要我们收到法院的文件,我们会重新发出的诽谤诉讼给Nasrudin Hassan”。


今天已经到了2015年12月23日 - 过一年之后的今天,媒体也没有报导关于这场“忘了签名”的官司。

我认为,行动党和伊党互既然不和,为何不起诉伊党的议员诽谤?把伊党的议员控上法庭就能证明伊党的议员就是个骗子- 但奇怪的是林冠英并没有利用这次的机会。


现在,使用如同反对派支持者和领导者的相同的逻辑,林冠英不起诉Nasrudin Hassan意味着指控是真的?











该案件很可能在大马提交 - 就像之前新加坡政府如何向新加坡的华尔街日报提出诉讼并赢得官司。当然,新加坡政府也耗了数月或整年的准备才正式提出诉讼,华尔街日报是一家来自美国的外国新闻机构,要起诉的确必须下一番功夫。





Tuesday, 22 December 2015

Dear CM, would you like to borrow my pen?

Would you believe it if a Chief Minister very angrily says he wants to sue you because you slandered him but then he and/or his lawyers forget to sign on their own court papers? This is a true story. Read on.

In the middle of the Selangor MB crisis, on 6th August 2014 the PAS Member of Parliament for Temerloh, Nasrudin Hassan made these allegations against Penang Chief Minister YAB Lim Guan Eng regarding the Penang Tunnel Project:

  • The Penang Tunnel was awarded without open tender
  • The Penang Tunnel did not have sufficient public consultations
  • The Penang Tunnel at RM4,63 billion (for 6.5km) is overpriced.
  • The Penang State Govt keeps running budget deficits.
Lim Guan Eng got very angry and issued a bi-lingual press statement on the very next day denying all the above and gave Nasrudin Hassan 24 hours to apologize. He also stated in his denial that the tunnel only cost RM3.6 billion and not RM4.63 billion.

You can see Lim Guan Eng's press conference with the 24 hour ultimatum to Nasrudin here:

The next day, YB Nasrudin said he refuses to apologize and made further clarification on his allegations including:
  • The tunnel is still overpriced and worse, the figure of RM3.6 billion (for the tunnel portion out of the total RM6.3 billion project cost) given by Lim Guan Eng would have still mean a total cost of RM553 million per km to build while the 20.8km of above ground roads connected to the tunnel would cost RM2.7 billion or RM130 million per km - a staggeringly high figure.
  • That the award of the Penang Tunnel project is still not an open tender as Lim Guan Eng had signed a MOU on the Tunnel with Beijing Urban Construction Group Co. Ltd (BUCG) - one of the consortium member of the winning party on 28 April 2011 - a full 6 months before the project pre-qualification on 14 Nov 2011 - and a full two years before the project was awarded in 2013.
  • The Penang State Govt would have been in budget deficits if not for the revenue from the yearly sales of state land that has increased by 303% from the past few years.
For avoidance of doubt, the Penang state govt is paying RM6.3 billion worth of land to the private company to build the Penang Tunnel and accompanying roads. On top of paying RM6.3 billion, the Penang state govt will also give a 30 years toll concession (despite this being against Pakatan manifesto) to the private company to collect tolls.

When asked the reason why the 30 years toll concession was given on top of paying the full cost of the tunnel, Lim Guan Eng had given the official excuse that he doesn't want Penang bridge operators to use him, - which of course makes no sense at all.

This made Lim Guan Eng even more angry and he announced the next day on 9th Aug 2014 that he has already got his lawyers to sue Nasrudin Hassan.

Listen to LGE as he holds yet another press conference - this time saying he has no choice but to sue Nasrudin.

This time, Lim Guan Eng did not lie and his lawyers did indeed continue to sue Nasrudin Hassan over this RM6.3 billion overpriced no open tender allegation and a defamation suit was issued to Nasrudin Hassan.

However.... horrors of horrors !!!

A little over a month later on Sept 30th 2014, we learned that the high court has thrown out this defamation case against Nasrudin by Lim Guan Eng and fined Lim Guan Eng RM500 for wasting the court's time!!

This was reported by PAS newspaper Harakah and Free Malaysia Today saying that the reason was that Lim Guan Eng and his lawyers "forgot" to sign on their own summons paper which they issued against Nasrudin!

On 2nd Oct 2014, the Malay edition of MalaysiaKini also reported this and quoted Lim Guan Eng's lawyer as saying it was a genuine mistake that they forgot to sign:

As a side-note, it is important to point out that this particularly fishy and highly embarassing piece of news of "the Chief Minister LGE and his lawyers forgetting to sign on their own summons" which they themselves issued was never reported by the English version of MalaysiaKini or Malaysian Insider nor in any official Lim Guan Eng or DAP statements or media.

Exactly like how MalaysiaKini and Malaysian Insider "forgot to report" on the biggest ever record lawsuit award in Malaysia where the PKR ADUN for Api-Api and PKR Sabah Deputy Chairperson Christina Liew was ordered by the High Court to pay RM557 million for colluding with her staff to cheat 819 poor landowners out of their land.

Okay.. back to the LGE "forgot to sign" lawsuit...

LGE's lawyer at that time said that "as soon as we receive back the documents from the court, we will re-issue the defamation suit to Nasrudin Hassan again".

That was on 2nd Oct 2014.

Today is 23rd Dec 2015 - and more than a year later, there are no media reports about this defamation law-suit ever being re-issued and there is no trace of this lawsuit in the courts systems.

And I thought that DAP and PAS hated each other now. Suing the PAS MP for defamation and humiliating him would help LGE and DAP prove what "liars" PAS leaders are - but strangely LGE didn't take this opportunity.

Despite multiple press conferences and press statements and angry threats initially saying he will sue, when it comes down to actually suing LGE went all quiet.

Why is this? Nothing for over one and half years?

This leads me to ask Lim Guan Eng and his lawyers this following question:
Now, using the same logic of opposition supporters and leaders, does Lim Guan Eng not suing mean that what Nasrudin accused LGE of is true?

That the allegations by PAS Nasrudin Hassan are true? 

"RM6.3 billion Penang Tunnel project is way overpriced, that the project was awarded without open tender and that Penang State Government would be running annual deficits without selling state land?"

Now, many people have alleged PM Najib Razak of not suing over WSJ's July 2015 allegation that Najib supposedly stole RM2.6 billion from 1MDB is proof that Najib is guilty.

The latest update however is that last month, Najib's lawyers are advising PM to saman WSJ in Malaysia.

Najib's lawyers to advise him to sue WSJ in Malaysia, not US

There is nothing wrong with this as each and every one of Singapore govt's four defamation cases against Wall Street Journal which they won were also all filed in Singapore: THIS IS HOW SINGAPORE DOES IT.

It also took months form the date of the original article before Singapore officially filed their charge.

But in the meantime, over the past two years, Najib has sued the following persons for defamation:

Najib also sued PKR's Secretary General Rafizi Ramli for defamation for publicly saying in ceramahs that Najib steals money from public to buy diamond rings for Rosmah.

After being sued, Rafizi's official excuse in the court proceedings was an incredible "I was just joking".

Thus, Najib does indeed have a very good track record in following-up with his threats to sue others for defamation.

I believe it is also a matter of time before their lawyers file suit against Wall Street Journal's article which suggested that RM2.6 billion of money from 1MDB went into Najib's personal account (the MACC has already said the money was not from 1MDB).

The case would probably be filed in Malaysia - just like how Singapore's leaders filed and won defamation suits against WSJ in their own country and remember that Singapore leaders also took months or up to a year before officially filing suit agaisnt WSJ too as suing a foreign news agency from the USA is easier said than done.

But at least Najib and his lawyers did not give lame excuse as "forgetting to sign" on their own law-suits.

I do find it amazing thought that people are more concerned about a lawsuit by Najib over RM2.6 billion but do not seem concerned that a RM6.3 billion overpriced project no open tender award allegation law-suit did not proceed for over 1 1/2 years based on a "forgot to sign own saman" excuse.

Malaysians are strange but I am confident that not many of my fellow Malaysians are so foolish to believe a "forgot to sign on own court summons paper" excuse.

Or it could be the opposition-friendly media did not play up this issue and kept it well-hidden in order to continue misleading and using the opposition supporters.

Wednesday, 16 December 2015

Chedet comments on "UCAPAN PRESIDEN UMNO"

After 5 days of silence, Chedet has finally posted his criticism of the UMNO General Assembly speech by Najib.

By and large there was really nothing new in this posting save from recycling the same allegations of RM2.6b and "billions" missing from 1MDB. It is incredible that Tun M went from RM42 billion lesap to RM27 billion to a rather ambiguous billions missing.

Compared to his past posts this particular post was a rather disappointing affair - to the extent of dissecting the English translation of the Malay word "Tolong" and what he believes it means.

Tun M also complained why DPM Zahid is apparently asking Police to question him alone and not questioning the other BERSIH supporters and football fans who also wants Najib to resign as PM.

This is where it gets confusing.

Tun M clearly knows as he has been told numerous times that he is being questioned by police for what he said in his public statement at BERSIH where he alleged that all UMNO division leaders took bribes..

He is not being questioned by PDRM because he wants Najib to resign.

Why doesn't Tun M understand this simple answer?

In fact, when questioned by police on his allegations that UMNO division leaders too bribe, Tun M refused to answer the police's questions !!!

And later when asked why he doesn't make make a police report when he says billions are missing from 1MDB and went to Najib, Tun M said he had no proof!!

What an amazing person this Tun Mahathir is! Keep saying he is being silenced but when given the chance to prove his allegations and speak out to the correct authorities, he keep quiet pulak!

However, in this blog post, he also confirmed that UMNO presidents have received donations in the past but he claims that these donations have been put into the Tabung UMNO.

But it would be interesting to see if the RealMild (which owned MRCB, NST and TV3) shares worth billions held via proxy in his own personal name and the shares of UEM-Renong then were indeed put into the Tabung UMNO and whether Tun M had disclosed these assets in UMNO's books or announced to his UMNO supreme council then how much these billions of shares were actually worth.

I am sure there are provisions withing ROS and UMNO constitution that allowed such actions under the law or Mahathir could already have gone to jail then.

In any case, 1MDB's rationalization exercise have proceeded with pace and even Bloomberg and the financial markets deem the "1MDB mess have been fixed". 

Malaysia's Credit default risk swaps and bond rates have also normalized as the Financial Markets finally comes to their senses that 1MDB is just a political distraction and are convinced that it is being solved.

In addition, the bi-partisan Parliament PAC inquiry into 1MDB have resumed with speed. Arul Kanda, Sharol Halmi, Jho Low, Suboh, Nik Faizal, a dozen other persons - and even Najib has been questioned by the authorities. 

BNM have investigated and found no evidence of money laundering except that BNM did not receive the full information in the forms filled in by 1MDB during certain transfers 6 years ago. 

The Auditor-General have pretty much finished their special audit on 1MDB and should be giving the final report to the PAC soon.

MACC have also investigated and have committed to deliver their report in about two weeks time before the end of the year.

Therefore, if there were any laws that were broken and billions missing from 1MDB, I am sure these will be disclosed soon.

The UMNO Supreme Council and the recent UMNO Assembly have also shown great support for Najib while a recent "vote of no confidence" by proxy via voting down the 2016 budget in Malaysia's parliament have fallen flat in the face for Pakatan where only 20 MPs out of 87 bothered to attend the final vote - causing great embarrassment for Pakatan.

Even Pakatan gave up fighting to remove Najib via a parliament vote
But to Tun Mahathir's credit, he still soldiers on.

All because he wants a compliant PM who will listen to a Council of Elders - perhaps chaired by him.

Of all the countries in the world, only Iran has a Council of Elders to advise their president - and I am not sure I want Malaysia to be governed like Iran since Iran's system also have a Grand Ayatollah.

Which comes to my next question: 

Who would be the best candidate to be the Ayatollah for Malaysia should we ever follow Iran's system?

Tuesday, 15 December 2015

One Legacy Problem Solved: The impact on PLUS Highway tolls after the 2011 Govt and EPF take-over

Plus Highway Berhad is the largest highway operator in Malaysia and ASEAN - owning the North-South Highway. Expressway Lingkaran Tengah Sdn Bhd (ELITE), Linkedua Second Causeway highway, Lebuh Raya Butterworth-Kulim (BKE), the Federal Highway extension and the Penang Bridge

PLUS started with the privatization of the North-South Highway where in 1986, despite the government paying for and building half of the North-South Highway it was mysteriously privatized to known Mahathir-crony, Halim Saad for 30 years from 1988 to 2018 and the new company company was allowed to collect tolls for the entire stretch - with the excuse that MHA was not building it fast enough.

One of the public complaints for this toll-concession and others was the lop-sided toll concession agreements that allowed toll rates to increase like clockwork every few years.

Under the agreement, toll rates for the North-South Highway was allowed to increase 10% every three years.

In 1999, amidst mounting public complaints, Tun Mahathir himself extended the toll by 12 years to 2030 to avoid toll increases as per the agreement (which Tun M himself signed in 1998).

In 2005, it was Pak Lah who signed to extend the toll by another 8 years to end 2038 to avoid toll increases as per the agreement (which Tun M himself signed in 1998).

In fact, it was reported in 2005 that if govt was to freeze all toll increases for the North South Highway, the government would have to pay RM38 billion as compensation to the private owners based on the original agreement signed by Tun Mahathir! 

Thus the extension was agreed by Pak Lah.

Like the KLIA express rail link which had a big increase in rates recently or govt has to pay RM2.9b or extend the concession by 30 years to the private company YTL, this PLUS Highway concession agreement is yet another legacy issue that Najib had to deal with

In 2008, it was scheduled to increase again but new Prime Minister Najib did not allow this increase and devised a plan to buy back PLUS Highways Bhd.

(although UEM was taken over by the government as part of the bail out in 1998, PLUS was privatized and listed on the stock market in 2002 to help reduce UEM/Renong's mounting debt then).

This deal was completed in 2011, and the Ministry of Finance (via 100% owned UEM) now owns 51% and EPF owns 49% of PLUS Highways Bhd.
Nov 16 2011 — UEM Group Berhad and the Employees Provident Fund (EPF), the new owners of the assets of PLUS Expressways, have waived their right to some RM6.5 billion in compensation in exchange for extensions to the concession periods for the Penang bridge and two other highways. UEM and EPF also said that toll increases for the North-South Expressway (NSE), the crown jewel of PLUS, will be lowered from 10 per cent every three years to five per cent at the same intervals, while the Penang Bridge will see no increase. The government owed PLUS billions in compensation due to the decision to freeze unpopular toll hikes that were stipulated in the original concession agreement, until 2015. 
As part of this deal, EPF financed the RM23 billion purchase by subscribing to bonds issued by PLUS and govt is now fully in control of it - making negotiations much easier since government will essentially be negotiating with government.

Thus, RM6.5b owed by Government as compensation since 2005 has now been waived and the govt went ahead and renegotiated the concession agreement.

As a side-note, contrary to public perception and in order to increase transparency and fairness, when Najib became Finance Minister in Sept 2008, one the first thing he did was to declassify all toll agreements.

These are the changes to the toll rates increase after PLUS Bhd was taken over in 2011 and the rates renegotiated:

A) North South Highway toll rates increase revised down from 10% every three years to 5% every three years with no further extension. 

Given the length of the toll concession and its compounding effect, this revision is very significant, as you can see from the simulation below:

With the revision, the toll you pay for travelling from Jalan Duta to Ipoh South 23 years later in the year 2038 would be RM39,15 instead of RM83.17 as per Tun M's agreement - up from RM26.50 now.

In fact, an increase of 5% every 3 years is just 1.7% per year increase - much lower than inflation.

Future generations of Malaysians should be giving thanks to Najib.

As part of the above negotiation package, other toll roads that PLUS Bhd owns were also revised:

B) Singapore Linkedua Second causeway toll rates increases revised down from 25% every 5 years to 5% every 3 years with no extension to the concession period.

C) Elite Highway toll rates increase revised down from 10% every 3 years to 5% every 3 years but the toll concession period was extended by 8 years from 2030 to 2038.

D) The Butterworth-Kulim Expressway (BKE) Toll rates increase was reduced down from 25% every 5 years to 5% every 3 years but concession period was extended 12 years from 2026 to 2038.
E) Penang Bridge toll increases revised down from 10% every 5 years to no increase forever but the concession period was increased from the year 2021 to 2038.

And in 2013, PLUS also discounted the toll by 20% - from RM7.00 to RM5,60 if you use a Touch and Go card for those who work or stay in Penang.

All in all, the government has negotiated well on this to provide overall big savings to the public while still being fair to EPF and the government.

EPF gets a great investment with a minimum internal rate of return (IRR) on the investment in PLUS to be at least 10% in accordance with EPF's general guidelines - meaning continued good dividends for the EPF account-holders.

Although Govt now controls PLUS, it cannot abolish all tolls on this as the company still needs to pay off the RM23 billion debt which was mostly subscribed by EPF and used to buy the highway company. To abolish this now would mean not being fair to EPF holders.

And even with this much revised down toll-rates increases allowed, PLUS Bhd can still continue to maintain the highways as well as fund current and future highway expansions including the additional lanes for the Penang Bridge as well as along the North-South Highway.

In fact, tolls on the North-South Highway have not increased since the year 2005 - 11 years ago now.

At least in the case of the North South Highway, which is an inter-city (toll ANTARA bandar) highway, there may not be an increase.
"Works Minister Fadillah added that the Works Ministry intends to honour the promise made by the ruling government in 2013 that they will gradually reduce rates on intercity expressways by 2018."
Again, this is one of the legacy problems left behind that Najib had to solve where lop-sided toll concession agreements owned by private companies had caused hardship for the public or the government.

In the case of toll highways, Najib had started with the largest toll operator PLUS but it remains to be seen if government will also continue to restructure other toll highways in Malaysia still owned by private companies.

At the very least, the 2,200km Pan-Borneo Highway being built by Najib Govt will be completely toll-free and financed using alternative models - with no privately-owned company operating this ala Tun Mahathir.

"This is one of thing that we need to correct. What you have is a cabinet which is not very knowledgeable all the time because it is not made up of experts but politicians (and) some politicians like myself can sometimes be stupid," he said when told by reporters that all the five tolled expressways were constructed during his 22-year tenure as prime minister. 
"The cabinet merely gave approvals in principle and never really studied the implications in some parts of the agreements."

Well, someone has to clean up the many mess Tun Mahathir left behind - and much work has already been done by the Najib government on these including car prices, unfair IPPs, Approved Permits (APs) etc.

I will write more about these in future.

Note: the above toll calculations are based on Publicly available  information. It is best-effort basis and I make no warranties that the calculations above are 100% correct. I may be making changes on these should further information be made available or others point out errors in it.

Note 2: Contrary to public perception, when Najib became Finance Minister in 2008, the government had declassified all toll agreements.

Sunday, 13 December 2015

Sarawak Report has fighting spirit!

Perhaps disappointed that the UMNO Assembly did not proceed as per their plans and that PM Najib came out the clear winner, it looks like Clare Brown has gotten really desperate and published this "major exclusive  (her words)" Jho Low Is Confirmed As The Sole Shareholder Of Good Star.

To recap, Good Star inc is the company that Sarawak Report has alleged to belong to Jho Low and th company where USD700 million was deposited into it by 1MDB as part of their Joint-venture agreement with Saudi Arabia's PetroSaudi.

I admire her unwillingness to give up and her fighting spirit but don't you think the timing is suspicious? This story really sounds like an after-thought and really cannot accomplish much.

She should have published this before the UMNO assembly started rather than on a Sunday after the event. What else would make the UMNO delegates more angry than Najib allowing a fat Chinese boy colluding with a bunch of dodgy Pak Arabs to steal billions of Malaysia's money?

Anyway, back to her story. She says that she now have proof that Good Star is owned by Jho Low but she does not explain the following:
  • Why would Prince Turki, the governor of Saudi Arabia's largest province and capital city Riyadh and 7th son of Saudi Arabia's absolute monarch King Abdullah wants to pakat with a fat Malaysian Chinese boy to steal Malaysia's money?
  • How come PetroSaudi never complain that they were not paid as per the Joint-venture agreement and that money belonging to them was diverted to Jho Low but continued on with the joint-venture for 3 years?
  • How come PetroSaudi itself has confirmed multiple times that Good Star Inc has always belonged to them?
  • Why is it that 1MDB received back all the USD1.83 billion that it put into the JV and even made USD488m of profits with the remainder balance all guaranteed by the Abu Dhabi Govt?
  • Why over the course of 5 years two of the largest international auditor firms (KMPG and Deloitte) and our own Auditor General could not detect any trace of missing billions?
So what proof did Sarawak Report say they have that Good Star belongs to Jho Low? 

In their words, their proof is "documentation submitted to various international regulators.."!!

That's her proof! No documentation, no certificates, no testimony - nothing. We are expected to trust her words.

Clare doesn't mention who are these international regulators and neither does she say why these international agencies would even bother giving her all these details of their confidential investigations.

In fact, this picture of her "proof "(or perhaps secara hiasan) she posted in her Sarawak Report article is really just a company incorporation document with the name of the company blacked out!

Jho Low Is Confirmed As The Sole Shareholder Of Good Star - MAJOR EXCLUSIVE!

Not only that but in her article, she accused one of the world's leading and oldest law-firm, the New York-based White & Case (founded 1901) of deliberately making a mistake to say that Good Star is owned by PetroSaudi and perhaps also collaborating with Jho Low to cheat 1MDB.

For good measure, she also accused RBS Coutts, one of the oldest banks in the world (founded in the year 1692) and at that time owned by  The Royal Bank of Scotland of conspiring with Jho Low to steal 1MDB's money.

This is what Clare Brown wrote:
"Yet again, private banks appear to have worked hand in glove with off-shore havens and the UK based incoporation agency (Offshore Incorporations Limited) to assist the transfers of enormous sums of money of dubious origin."
And finally, this is where it gets really scary....

Clare Brown apparently got very angry at prominent British businessman Rick Haythornthwaite. which she claimed is PetroSaudi's president.

She apparently wrote an email to Mr Haythornthwaite and got a rude reply, 

This was the email that Clare Brown published in Sarawak Report.

From: Rick Haythornthwaite <>Date: Thu, Dec 10, 2015 at 10:43 AM
Subject: Re: Letter sent by PetroSaudi claiming ownership of Good Star Limited, Seychelles
To: Sarawak Report <
Dear Mrs Rewcastle 
Having now done some research into your background, it is clear that you are an active campaigning blogger rather than an objective journalist with a desire to understand the true facts behind this matter. 
That your email to me contains fundamental factual errors – not least suggesting that I am, or have ever been, chairman of PetroSaudi International – reinforces my concerns about your credibility. 
Therefore, even if I were to be in possession of information relevant to your query, I would be unwilling to assist you in your questionable activities. 
Essentially in that email, Mr Haythornthwaite is calling Clare Rewcastle Brown:
  • not a journalist who wants to understand the true facts
  • has many fundamental factual errors in her accusation
  • has questionable credibility and engages in questionable activities
Clare Brown (right) being called no credibility, flawed facts and have no desire for the truth by MaserCard Chairman
This means Clare Brown was called a lying person with a hidden agenda with no objective to find out about the true facts.

This made Clare Brown really really angry and she wrote that she is revealing Mr Haythornthwaite' email address and is asking her Sarawak Report readers to spam him:
"And we offer readers of Sarawak Report Mr Haythornthwaite’s email address, so that they can let him know that this blog is not alone in its concerns over what happened at this company under his watch and that it is to add insult to injury to trivialise and ignore the theft of billions from Malaysia’s development fund."
This is one very vindictive and vicious lady indeed!!!

Now, "Rick" or full name, Richard Haythornthwaite is no ordinary businessman. You can read his biography in Bloomberg here.

On top of being a director in many very large companies, Mr. Haythornthwaite is the current Chairman  (since 2006) of MasterCard International (yes, Visa card's competitor) and the current Chairman of UK's largest gas supply and electricity company Centrica PLC with about £30. billion (or RM200 billion) per year revenue.

Being called a "lying woman with a hidden agenda with no objective to find out about the true facts." by a person as credible as Rick Haythornthwaite must have really hurt,

Add this hurt to the recently-concluded UMNO General Assembly where Najib came out the true winner and stronger must have forced Clare Brown to grasp at straws and post this completely ridiculous allegation today on Sarawak Report.

Give it up, Clare Brown and Sarawak Report! 1

1MDB is already fully investigated and everyone connected have already given their testimony. It is already well on its rationalization plan with more than RM30 billion of its debt resolved.

Even Bloomberg said last week that "1MDB mess is fixed"

Stop your nonsense Miss Brown the game is over. It is check-mate already.

You are starting to sound even more ridiculous - bordering on the insanely vindictive.

Friday, 11 December 2015


English version here: "From strong allies to bitter enemies: the Four Strikes that caused PAS and DAP to split apart"

A Malay version was also translated by unknown persons: "Dari sekutu kuat menjadi seteru ketat ... Empat peristiwa besar yang menyebabkan PAS dan DAP bersengketa."



















公正党和拉菲茲如何能錯把穆斯林開斋节倡导“寬恕原諒”,卻与他們作出的“无条件 道歉”混為一談,这是真正的厚顏。他們竟然將之稱為“雙方向对方道歉”。





























Only morons would say that Malaysia is a failed state or pengemis country

Jebat Must Die (JMD), a known Tun Mahathir blogger has just posted an article titled "Failed State, Pengemis dan Najib Razak". This is my reply to him.
Note: JMD says that article was not written by him but by a fan of him.  To me, it makes no difference. For him to post it in his blog means he agrees and takes responsibility for the contents. Once you post it as your blog entry, you cannot hide behind the cowardly excuse "But it wasn't me?" You post it, you take responsibility.
The desperation of Tun Mahathir's camp is reaching sky-high and have yet again resorted to lies and half-truths - this time way worse than before - thinking rakyat is stupid to believe them.

JMD listed a bunch of reasons to vainly and very weakly justify Tun Mahathir and Muhyiddin's insane claim that Malaysia is a failed state and negara Pengemis.

Firstly, it is important to note that Lim Kit Siang has said the very same thing for 40 years already - but yet, we have not become failed, bankrupt or beggars.

In fact, Lim Kit Siang is very fond of saying it and in his blog there are literally thousands of references to "bankrupt" and "failed state" over a time period of decades.

Not only has Malaysia not become a failed state but it is important to note that after 40 years of saying the same thing,, Uncle Lim himself is now a millionaire. his son is also a millionaire and his co-founder of DAP, the founding Chairman and current life-time adviser of DAP Chen Man Hin and his family have netted hundreds of millions of Ringgit in 2013 after selling their company Pontian Plantations to Felda for RM1.3 billion.

RM1.3 billion! Not bad for an opposition politician whacking this "racist" government and saying Malaysia is a failed state for 40 years straight huh?

Anyway, it looks like Tun Mahathir and Muhyiddin, in great desperation, has borrowed Uncle Lim Kit Siang's decades-old time-tested "failed state bankrupt" slogan.

I call them the Barisan Orang-Orang Tua Hampa Malaysia
Okay, let me get back to answering JMD's post and his many allegations and outright lies.

JMD LIE NUMBER ONE: 41% of rakyat gets BR1M hence this is evidence of pengemis people.

BR1M is NOT a poverty eradication programs (Malaysia have many other such programs) but for the 40% lower income groupM (Below 40% or B40) in Malaysia.
No matter how rich or poor the country is, there will always be a group of people who are the bottom 40% income group (and also top 40% group too). 
I do not believe you can call households earning RM4,000 per month as poor people or those in poverty. 
BR1M is a targeted assistance to the Rakyat who needs assistance the most and was put in place instead of inefficient blanket subsidies that benefit the rich more.

It has also been proven to be an effective policy tool to help reduce income inequality by transferring more of the country's wealth to the lower income group away from the higher income groups. Don't believe me? Read IMF 
Essentially, programs such as BR1M directly transfers wealth from the richer 60% (via reduction in subsidies, income tax and GST) to the lower 40% income houses (via BR1M) - thus the yearly income inequality in Malaysia has narrowed.

In this lie, he gave a funny anecdotal example saying  "Contohnya gaji pekerja di Selangor hanya naik RM 20 sebulan pada tahun lepas."

I don't know how that can be considered proof though. Whose wage? what industry? what company?

Ridiculous. Please bro, be professional and cite statistics instead of nenek-moyang stories.

It is definitely a fact that salaries and income have indeed risen over the years. For example, in 2009 (the year when Najib first became PM) the average household income for Malaysia was RM4,025 per month increasing to RM5,000 in the year 2012 and as at 2014, it jumped to RM6,141 per month - not a bad effort for 6 years.

And even more significantly, the median household income moved from RM2,841 in 2009 to RM4585 per month in 2014 - a sign that income inequality has improved as the lowest income group have increased their monthly income faster than the top groups.

Official statistics show the Gini Coefficient has improved significantly from 0.441 to 0.401 - meaning a more equal Malaysia in 2014 than in 2009.

Source: DOS Household income report.
Source: DOS Household Income Report 2014
Why do I think it is possible that those numbers above are real?

For the simple fact that Malaysia over the past 6 years has enjoyed full employment, economic growth for many years and that policies such as BR1M and minimum wage make it impossible that income levels did not rise.


Yes, they have increased in the Klang Valley alone. But let me tell you a story.
In the 1990s, the govt invested significantly in the public transport system for the Klang Valley.
Among these initiatives were the introduction of KTM Komuter in 1995, Star LRT in 1996, Putra LRT in 1998. The ERL to KLIA -in 2002 and KL Monorail in 2003, covering while the RapidKL bus service was introduced in 2004 to provide a comprehensive bus network in the Klang Valley.
Under Mahathir's govt, the LRT1, LRT2 and monoral companies ran up huge amount of debts and all failed - and eventually bailed out by Prasarana.
Currently, all these services, except for KTM and the ERL, are now owned by Prasarana and operated by RapidKL.
Despite these initiatives, the modal share of public transport in the Klang
Valley has declined from 20% in 1997 to 12% in 2008 due to the
population's growing affluence, easy access to vehicle financing and an
inefficient public transport system.
A 50% modal share of public transport is often seen as the benchmark of a sustainable city.
The number of cars in the Klang Valley is expected to reach 7 million by
2020, unless there is a marked shift towards public transport.
This will be a nightmare for traffic for sure - which will choke the growth of KL with congestion, pollution and wasted productivity if not addressed.
In 2009, PEMANDU targeted public transportation as a key urgent area to address in order to safe-guard the growth of the Klang Valley. SPAD was established in 2010.
Through increased investments and optimization of the current public transport infrastructure, the share of public transport has moved back up from 12% (2008) to 19.6% (2012), 20.8% (2013) and by the end of 2015, it will hit 25%.
In order reach the goal of 40% modal share by 2030, the govt has committed to invest at least RM72 billion (not counting new investment in buses, new monorail trains, new KTM trains) - many of which are already close to completion.
They are:
- LRT1 and LRT2 extension costs - RM7b (completing March 2016)
- LRT3 - RM9b (completing 2018)
- MRT1 cost - RM23b (completing July 2017)
- MRT2 cost - RM30b (completing 2022)
- BRT Sunway - RM0.634b (completed)
- BRT Federal -  RM1.5b (completing 2018)
- MRT3 (no cost estimate yet)
Knowing that the previous STAR, PUTRA and monorail failed badly and had to be bailed out, I do believe some increase in rates after 12 or 13 years is justified - if you look at the huge amount and cost of new infrastructure that is already so close to completion.
The last thing Malaysia wants is to bail-out the lines again.
These KTM Kommuter, LRT and monorail rates increase affect Klang Valley residents only but the main beneficiary of the additional revenue also benefits the Klang Valley residents only.
People outside of Klang Valley benefits nothing out of these RM72 billion investments for the Klang Valley - thus it is unfair for them to subsidize those in the Klang Valley.
FYI, RM72 billion is equivalent to RM13,680 BR1M for entire Malaysia.
Let's try to have a sustainable public transport system as the alternative is a highly-congested and heavily polluted Klang Valley that will not grow anymore.
What I really cannot understand are people asking for more public transport to be built and when announced LRT1+2 extensions, LRT3, MRT 1 and 2, all cheered and say well done kerajaan.
But when asked who pays for it, everybody quiet or get angry. lol
As for toll roads, you can blame your master.

Tun M is not very good in understanding concession agreements of any sorts - including toll agreements and not just the IPP ones.

This was finally revealed by Tun M in Jan 2007 when he said:
"Acknowledging that the government during his time may have erred in signing the toll concession agreements, Tun Mahathir urged the present government to be more careful before agreeing to toll hikes.

"This is one of thing that we need to correct. What you have is a cabinet which is not very knowledgeable all the time because it is not made up of experts but politicians (and) some politicians like myself can sometimes be stupid," he said when told by reporters that all the five tolled expressways were constructed during his 22-year tenure as prime minister.

Mahathir said the agreements were drafted by officers and submitted to the cabinet and usually the small prints are not there.

"The cabinet merely gave approvals in principle and never really studied the implications in some parts of the agreements."
Like what Tun M said above, he and his Cabinet members then were "stupid" (Tun M said himself, not me) and did not read the toll concession agreements properly before signing then.

Even more cheekily, Tun had then advised his predecessor governments to not to be like him and be more careful in signing future concession agreements.

However, Tun M did not comment how the present government should resolve the bad agreements he had signed before though as government cannot simply break agreements without paying compensation.

In any case, in 2011 Najib solved the biggest Toll headache by getting Khazanah (51%) and EPF (49%) to take over the biggest toll operator PLUS highway Bhd - thus renegotiating the toll rates and also making sure very dollar it makes goes back to either the govt or to the rakyat (via EPF) instead of crony companies previously.

And Najib will avoid this mistake of Mahathir by making sure the 2,200km Pan Borneo Highway he is building will be completely toll-free.

JMD HALF-TRUTH NUMBER THREE:  Subsidi beras murah untuk orang Miskin di hapuskan terus.

As for the ST15 rice subsidy scheme, The 2013 AG report clearly shows there are issues. In in March 2015, the PAC itself which includes Pakatan members has asked to stop this program.

Also, it was found out that a lot of the consumers of this rice were foreign workers and our subsidy money were going directly to them instead of to Malaysians.

This problematic scheme is being replaced with another scheme - it is not abolished. Read here for more details:

JMD HALF-TRUTH NUMBER FOUR: Subsidi tepung dihapuskan, secara sembunyi tanpa dihebahkan kepada rakyat.
This was due to certain weaknesses and leakages and everyone including the NGOs were asking government to stop this program as it was being misused.
Persatuan Pengguna Islam Malaysia (PPIM) mendesak kementerian pengguna menghapuskan subsidi tepung gandum kegunaan am dalam paket 25 kilogram.
Seorang pegawai PPIM Mohd Mustaffa Hamzah berkata subsidi berkenaan tidak memberi manfaat kepada pengguna tetapi hanya memberi keuntungan yang melampau kepada pengusaha dan pengimpot yang memonopoli industri tepung.
Subsidi itu juga tidak relevan dan membebankan kerajaan yang perlu menanggung subsidi berjumlah puluhan juta ringgit setiap tahun, jelasnya.
Sedangkan pengimport dan pengusaha tepung berkenaan tetap menjual bahan kawalan itu mengikut harga pasaran, katanya.
"Kos pemberian subsidi kepada poengimpot merugikan kerajaan. Sebaliknya ia boleh dimanfaatkan dengan pemberian subsidi kepada sektor lain yang lebih menguntungkan pengguna," katanya kepada pemberita hari ini.
And again, not only were some of the flour companies pocketing the subsidies, it was discovered that many of the buyers of the subsidised flour were foreign workers again. In fact, we ended up subsidizing Singaporeans when these subsidized flour ended up being sold in Singapore!

In any case, worldwide wheat and flour prices have fallen greatly in the past year - thus such subsidies will no longer be needed.

You must remember that this subsidy was introduced when prices of wheat (of which flour is made of) was high but since the price have dropped, such subsidies are  no longer needed.

JMD HALF-TRUTH NUMBER FIVE:  Kadar elektrik akan naik bulan depan.
In reality, it was announced this week that electricity rates base price have not increased but the rebates announced in Mar 2015 have been reduced from 2.25sen/kWh to 1.52sen/kWh - resulting in minimal increases in prices from Jan 1.2016 onward but still lower than the Jan 1, 2014 price.
2) These ICPT rebates only apply to users of electricity who consume 300kWh or more per month as prices for electricity for users using 300kWh and below have not changed since 1997- these users constitute 70.6% of all households in Malaysia.
The ICPT fund which pays these rebates are the result of continuous savings from reduced fuel cost as well as savings form IPP costs resulting from fairer IPP contracts.
3) Users whose electricity use is RM20 and below will continue to get the full rebate - meaning a bill of ZERO from Jan 1, 2016 onwards. This subsidy has been continued despite certain opposition leaders claiming otherwise.
4) The reason why there is reduction of the rebate is that there was fuel cost increases which includes some recovery of gas prices and coal prices - but the main factor is the continued reduction in subsidies to the IPP and power plants.
The price charged by Petronas to the power plants have increased from RM13.70/MMBtu before the subsidy rationalization exercise started in 2014 to RM18.20/MMBtu as at Jan 1, 2016.
The actual market price for gas at the moment is about RM33.00/MMBtu.
Gas subsidies for the power plants are a legacy from the days of the unfair lop-sided power purchase agreements signed when Tun Mahathir started the IPPs in the early 1990s - which caused Petronas to lose tens of billions in revenue every year to the IPPs.
As these lop-sided agreements have mostly expired or renewed at much fairer rates in the first ever open tender for power plants called in the year 2012 after 1MDB entered the power-generation business.
Really, with the small decrease in rebate, the increases are quite small - and only affects 30% of the highest electricity consumers in Malaysia.

It is a fact that electricity prices next month in Jan 2016 will still be cheaper than in Jan 2015 and Jan 2014.

JMD HALF-TRUTH NUMBER SIX:   tidak hairanlah apabila statistik terkini menunjukkan peningkatan sebanyak 22% orang yang tidak berkerja di negara ini berbanding tahun lepas.Kadar pengaguran makin meningkat.

This is the worse lie from them - downright dastardly. What JMD have done is to compare the unemployment numbers from Sept 2015 with the numbers from Sept 2014 - completely ignoring the fact that unemployment numbers rises and falls.

 As you can see from the graph above, the number of unemployed people rises and falls all the time and there were more people unemployed at the end of 2013/beginning 2014.

In fact, the current unemployment rate as at Sept 2015 is 3.1% - below the 4% level that economists consider as full employment. There will always be people leaving their jobs before starting a new job or graduating from school and entering the job market - hence it is impossible to have completely zero unemployment persons.

But as you can see from the chart above, total employed people have increased over the same period - showing a growing economy and not a failed state.

JMD HALF-TRUTH NUMBER SEVEN: Kadar ringgit berbanding dollar jatuh teruk. Begitu juga berbanding Pound Sterling, Euro, dan Singapore Dollar. Ini memberi impak negatif terhadap import makanan seperti susu dan daging.

Firstly, out Ringgit has dropped about 30% over the past year and a half but do you really see prices of milk and meat increased 30%?

No. Of course not. It is just more scare-mongering and lies from JMD. And the reason is simple.

Due to the very factor of low global commodity prices affecting our Ringgit, the price of most commodities including Milk and meat have plummeted too.

In fact, global milk prices have slumped and excess milk is actually being poured away.

Global Beef prices too have dropped sharply over the past year too.

Okay, what about our currency? How shitty is that?

Mahathir actually started with USD1 to RM2.40 but ended up going as weak as USD1 to RM4.88 before he cowardly pegged it at USD3.80 by implementing tough capital controls. which scared of investors for many years until he resigned. 

This was one of the first major policy reversal that Pak Lah did when he removed the peg in 2005

And this is why Najib does not want to implement a currency peg - which is the easiest thing for Najib to do amidst loud criticism by Tun Mahathir about the recent currency weakness. 

How come Tun M does not know that Najib can do whatever Tun M did by cowardly pegging the currency? 

But Najib doesn't do that as it knows the long-term harm it does for the economy and bites the bullet the let the currency find its true level amidst weakening of other currencies too.

Most people have short memories and forgot that for many years, USD1 to RM3.70 was the normal range. 

We got used to the last 6 years when our currency appreciated from RM3.73 when Najib took over to as high as RM2.96 in May 2013. Of course Najib never got praises for this.

It is a fact that we are still trading within a +/- 20% range of the currency when Najib took over. See the graph below.

Our Ringgit has since appreciated somewhat from the low level of RM4.44 to USD4.19 close on last Friday.

And the main reason why our Ringgit have dropped was mainly because Malaysia is deemed as a major primary commodities net exporting country (rubber, timber, palm oil, oil and gas) and the world commodities prices have slumped since late 2014.

Malaysians have a very short-term view and very selective vision.

Here are the currency charts of similar primary commodities exporting countries vs our Ringgit.

The following past 5 years charts shows how much One Ringgit can buy of their foreign currency - which means the higher the chart is, the stronger our currency is against those countries.

These countries are Australia, Kazakhstan, South Africa, Brazil, Russia and the favorite of many Pakatan leaders and supporters - Norway.

As you can see from the above charts, Malaysia has appreciated against those countries over the past 5 years - mainly because those countries depends more on primary commodities exports than Malaysia.

Over time when our transformation policies take place we become more industrialized and depend less on commodities, our currency will be less volatile and will eventually appreciate too.

Summary - why Malaysia has not become worse and actually became better in the 6 years since Najib became Prime Minsiter

Here are a bunch of chart - the Stock Market and the GDP chart.

Najib first 6 years GDP

For the year 2015 so far
And strong exports growth - for example, the Oct 2015 trade results which was just announced last Friday where we completely blew away market expectations to achieve our largest surplus in 4 years.

Malaysia reported a RM12.16 billion trade surplus in October of 2015, up ten fold from RM1.19 billion a year earlier - the largest trade surplus since October 2011, as exports surged.
Malaysia's exports in October surged 16.7% from a year earlier, increasing for a fifth consecutive month, supported by demand for electrical and electronic products, government data showed today.
October's exports had the highest year-on-year growth since April 2014, more than twice the 7.9% growth forecast by economists in a Reuters poll.
Here are the car sales table since 2009,

And here is the list of shopping centers in the Klang Valley - many of which opened in the past 6 years.

1 1 Utama Shopping Centre 45 M3 Mall Gombak
2 1Shamelin Shopping Mall 46 Main Place USJ21 Mall
3 AIM Point Plaza 47 Maju Home Concept
4 Alam Sentral (Shah Alam) 48 Melawati Mall
5 Alamanda Putrajaya 49 Mid Valley Megamall and The Gardens
6 Amcorp Mall 50 Mitsui Outlet Park KLIA
7 Ampang Park Mall 51 Nu Sentral
8 Anggerik Mall 52 Ole Ole Shopping Centre
9 Atria Shopping Ctr 53 One City @ USJ 25
10 Avenue K 54 One Mont Kiara
11 Bangsar Shopping Center 55 OUG Plaza
12 Bangsar Village Shopping Centre 56 Palm Mall
13 Berjaya Times Square 57 Paradigm Mall OUG
14 Brem Mall 58 Paradigm Mall PJ
15 Bukit Bintang Plaza 59 Pavilion
16 Bukit Raja Shopping Centre 60 Pearl Point Shopping Mall
17 Cascades Kota Damansara 61 Pertama Complex
18 Cheras Leisure Mall 62 PKNS Komplex Shah Alam
19 Cheras Sentral Mall (previously Plaza Phoenix 63 Plaza Damas
20 CITTA Mall 64 Plaza Masalam Shah Alam
21 Digital Mall 65 Publika Shopping Gallery
22 DPULZE Shopping Centre 66 Pudu Plaza
23 Empire Shopping Gallery, 67 QUILL CITY MALL
24 Encorp Strand Mall 68 S*PARK (Plaza Salak Park) 3.8
25 Endah Parade 69 SACC Mall Shah Alam
26 F&N Point (pretty much empty) 70 Selayang Star City
27 Fahrenheit88 71 Setia City Mall
28 Galaxy Ampang Shopping Centre 72 Shah Alam Mall
29 Gamuda Walk Kota kemuning 73 Sogo Shopping Center
30 gateway@klia2 74 South City Plaza
31 GM Klang Wholesale City 75 Space U8
32 Great Eastern Mall Ampang 76 SS2 Mall
33 IKEA Cheras 77 Star Avenue
34 IOI Puchong 78 Star Hill
35 IOI PutraJaya 79 Subang Parade
36 IPC Shopping Centre 80 Summit USJ
37 Jaya One 81 Sungei Wang Plaza
38 Jaya Shopping Centre 82 Sunway Putra Mall
39 KL Festival City Mall 83 Sunway Pyramid
40 Klang Sentral 84 Suria KLCC
41 KWC Kenanga Wholesale City 85 The Curve and eCurve
42 Lion Klang Parade Bhd 86 The Mines
43 Low Yat Plaza 87 Viva Shopping Mall Pudu
44 M Square Puchong 88 Wangsa Walk Mall

And the above is not counting all those numerous Giant, Aeon, Tesco, Segi fresh, Mydin stand-alone complexes - of which there are many in the Klang Valley.

And not only that, these are the upcoming shopping malls due to open within the next one to two years.

1 Bangsar Trade Centre 21 Pingat Bazaar
2 Bukit Jalil City Mall (Proposed/Future) 22 Pinnacle Retail (Empire State Of Art) , Seksyen 52 PJ (On-Going)
3 CentralPlaza@i-City (i-City Mall) (2016) 23 PJ Sentral Garden City Retail (On-Going)
4 Centrus Cyberjaya Shopping Mall (On-Going) 24 Plaza Rakyat (Renovated Soon/Next Year)
5 Da: Mén USJ 25 Roppongi Cyberjaya
6 Damansara Sentral Retail Centre (Future) 26 Sky Park Cyberjaya (On-Going)
7 Datum Jelatek (2017) 27 Subang Jaya City Centre (Proposed)
8 Empire City 28 Sunway Geo (2016)
9 EVOLVE Concept Mall 29 Sunway Nexis
10 F&N City Shopper's Mall PJ (Future) 30 Sunway Nexis Phase 1/Phase 2 (2014/2015)
11 Four Seasons Place Kuala Lumpur 31 Sunway Velocity
12 Icon City PJ (2017) 32 The Altium Retail, Damansara Perdana (Proposed/Future)
13 KL Eco City (2016) 33 The Robertson KL (On-Going)
14 KL Gateway (On-Going) 34 The School @ Jaya One Enrichment Mall [Mall for Kids] (Q3 2013)
15 KL Metropolis (Future) 35 The Starling @ Damansara Uptown/Damansara Uptown Mall (2015/2016)
16 MCT Mall @ One City (Future) 36 Tropicana Avenue Retail (2015)
17 Nucleus Damansara, Mutiara Damansara (On-Going) 37 Tropicana Gardens (2016)
18 Pan'gaea Shopping Mall (2016) 38 Tropicana Metropark (On-Going)
19 Pantai Sentral Park Retail Mall (Future) 39 Tun Razak Exchange (Future)
20 Pavillion Damansara

Remember that we used to have only a few malls such as Ampang Park, Sungai Wang and Pertama complex, now there are literally more than a hundred in Klang Valley alone.

So, please tell me how Malaysia is failed state or pengemis country?

Don't tell me pengemis are the ones going to these shopping malls?

And why are they building so many of these malls?

Because the developers have done their homework and know that Malaysians have become increasing more prosperous and willing to spend their money.

PENGEMIS and FAILED STATE indeed. Only morons  and Tun M bloggers would say that Malaysia is a failed state or pengemis country

If you really want to know, in Najib's first 6 years in charge, his track record overshadows Tun Mahathir's track record, Have a read here, if you dare.