Tuesday, January 05, 2016

"Selling out" to China

Bandar Malaysia will make not only Johor rich

KL, Tues 5 Jan:
One ex-Minister making such a din about 1MDB "selling out" to China amuses me to no end. The ex-Minister refused to even listen to any explanation that the parties involved in the Bandar Malaysia deal. "No need to clarify, 1MDB has sold us out!" the ex Minister exclaimed. "The nation has lost billions!"

Has the nation, now?

This is the problem with most of the oppoents of the 1MDB, from YB Tony Pua to Perkasa chief Ibrahim Ali. They ask questions but don't want answers. They will believe only if the answer confirms their claims and supports their allegations and results in one man - PM Najib Razak - quitting his post. The deal on Bandar Malaysia is between 1MDB and a China--Malaysia consortium but they insist that Arul Kanda has sold us out to the Chinese. 

Aiyah. Doesn't sound so rational to me. 

In any case, here's 1MDB's latest explanation about the latest ruckus over the deal on Bandar Malaysia:

Clarification on Bandar Malaysia
1MDB notes that certain quarters have attacked the RM7.41 billion land sale valuation contained in a recent announcement on the successful Share Sale and Purchase Agreement executed with the IWH-CREC Consortium for 1MDB to sell 60% of the equity in the Bandar Malaysia project. These appear to be last ditch attempts by members of the opposition to undermine the company's rationalisation process.
The valuation contained in the announcement made by CREC to HKEx refers not to the land sale valuation, but instead to their estimated share of the net equity value of the Bandar Malaysia project, based on certain assumptions, which are subject to further negotiations during the Completion period between January and June 2016. The starting point of any net equity value calculation, is the land sale valuation of RM12.35 billion, of which the Consortium’s 60% share equates to RM7.41 billion. This is the basis upon which the 10% deposit of RM741 million has been calculated and agreed upon by all parties.
During the Completion period, adjustments may be made to the RM7.41 billion land sale valuation, depending on whether or not certain Bandar Malaysia related liabilities can be passed to the Consortium e.g. the remainder contract costs for relocation of the existing facilities and the Bandar Malaysia sukuk debt. The agreement executed between the parties on 31 December 2015 provides for a robust and objective mechanism to determine, amongst others, these matters, which all parties have committed to.
1MDB is focused now on taking the necessary steps and to procure the relevant consents in order to implement the legally binding agreements executed in 2015 for the sale of Edra, the debt for asset swap with IPIC and the sale of 60% equity in the Bandar Malaysia project. We intend to issue further updates on this in due course.

p.s. What the ex-Minister should do is ask the Johor Menteri Besar why he's so excited about the Bandar Malaysia deal. If Khalid Mohd doesn't want to layan him, go seek an audience with the Sultan of Johor. You think Tuanku Yem will allow a Johor party to get involved if the deal amounts to selling out the nation? Bandar Malaysia to make Johor rich, The STAR 4 Jan 


  1. Anonymous3:38 pm

    Tahun 2016 ini kita dpt bayangkan akan ada berita2 yg hangat akan ditampilkan walaupun Najib dgn bangga menyatakan pelan rationalisasi nya telah berjaya dgn penjualan aset2 negara utk tutop hutang.

    Tetapi cerita ini akan ada penyambung episod yg ramai percaya penjualan aset2 ini ada yg tak kena dan semalam hari ketiga 2016 kita dikejutkan dgn berita pihak FBI sdg menyiasat anak tiri Najib dan saya yakin ada lagi beberapa pihak diluar negara juga sdg menunggu masa dan waktu utk membongkar segala aktiviti 1mdb yg membabitkan Najib.

    Ini kerana pihak2 yg berkepentingan sudah boleh membaca kenapa aset2 negara dijual kpd pihak dari China dan mungkin kita juga dpt membacanya tujuan dijual kpd pihak2 ini. Demi masa segala nya akan terjawab tak payah nak tunggu siasatan oleh SPRM atau AG kerana ia juga akan memalukan tahap profesionalisma pihak berkuasa di Malaysia.

    1. Wah! I think this comment must be from FBI or CIA director then..haaaaa

  2. Anonymous3:45 pm


    That's your local partner, right there.

    Less "alif ba ta", more "Ali-Baba" would you say?

    (But really, really heavy on the Baba side....)

  3. Anonymous3:49 pm


    Don't feel bad about being savaged re: your "Malaysian of the Year" / To Watch" nominations.

    The readers of Rakyat Post were far kinder to you.


    You only made 78% of them angry, in contrast to about 94% of your own readers.

    Some people, huh....cheh....

  4. Tolong la rocky,

    Jangan la nak bodek bos sgt. Mana janji janji bilionaire UAE yang kata nak invest dalam bandar Malaysia dulu? Sampai skrg kena jual majority stake kepada China. Kalau yer pun nak hidup jangan jual maruah bangsa ko. Ko ingat agenda bumiputera akan dijaga ke utk jualan property bandar Malaysia kalau dah pemilik pun dari China.

    Aku benci orang hipokrit mcm ko.

  5. Anonymous5:02 pm


    Whatever people will say about you, there's one thing for sure:

    You will never, ever be as stupid as RPK.

    Here's his latest gem:

    "Now that is what a rationalisation and debt-reduction program or a turn-around exercise is all about. So what is it that 1MDB did that is not normally done by all turn-around managers? I did the same thing 30 years ago. Lee Iacocca did it in 1979 when he turned Chrysler around."


    Hmmmm, I wonder what Lee Iacocca would have thought of the 1MDB business model - i.e. buy up national assets at "donation prices" given by the govt, sell out nation, get investigated in 6 countries, then do an emergency clearance sale of all your assets to foreigners at a loss. And of course, don't forget to run up nearly RM46 billion in debt, with the consequent interest payments on that.


    Would Chrysler have started out with a paid up share capital of US$300,000, then borrowed US$11 billion, and in a matter of 2 years, started selling off national assets gifted to it by the US govt, in a fire sale to repay debts?

    I don't think Lee Iacocca did it that way, and nor would Chrysler have wound up operations at the end of it.

    Hilarious, truly.

    But ask RPK, the corporate turn-around king even Lee Iacocca would look up to.

    PS: RPK is also thoroughly confused, because the MACC never investigated 1MDB. Only SRC and the 2.6 billion. Keep up, sonny. Make an effort. How can a 66-year-old be more senile than a 90-year-old? Makes no sense.

  6. Anonymous5:10 pm

    Sell more assets to China and the Chinese here will be very happy with the govt. it's better then boycotting anything Chinese like just after the last elections. Never know maybe if China buy more of Malaysia assets the Chinese will vote for Najib in the next elections.

  7. Anonymous5:20 pm


    Official 1MalaysiaDahBocor Press Release:

    "The 1Malaysia Development Berhad Group (“1MDB”) today executed a Share Sale and Purchase Agreement to sell 60% of the equity in Bandar Malaysia Sdn Bhd (“BMSB”) to a Consortium comprising Iskandar Waterfront Holdings Sdn Bhd (“IWH”) and China Railway Engineering Corporation (M) Sdn Bhd (CREC).

    "The IWH-CREC Consortium has valued 100% of the Bandar Malaysia land at RM 12.35 billion. Accordingly, its 60% share of land will cost RM7.41 billion. 1MDB will receive a 10% deposit of RM741 million upon execution of the Share Sale and Purchase Agreement, with completion of the transaction expected by end June 2016."


    If 10% of the total is RM741 million, then the ALREADY FIXED SELLING PRICE is 7.41 billion.

    Then, why on earth did 1MDB today suddenly release a press statement saying that “the valuation contained in the announcement made by CREC to HKEx refers not to the land sale valuation, but instead to their estimated share of the net equity value of the Bandar Malaysia project, based on certain assumptions, which are subject to further negotiations during the Completion period between January and June 2016.”?

    "Malaysian To Watch 2016?"

    No arguments there.


  8. Anonymous7:08 pm


    Th kena bayar 100% upon signing S&P , when come to Bandar Malaysia , this chinese fella only need to pay 10%. Melayu kena kelentong lagi.

  9. Anonymous7:28 pm

    Let’s look at the ownership of Bandar Malaysia now:

    40% – 1MDB

    60% – CREC & IWH Consortium

    Majority of Bandar Malaysia is now in the hands of private sector.

    Breakdown of CREC & IWH Consortium:

    40% – CREC

    60% – IWH

    Majority of the Consortium is owned by IWH, a private + Johor state venture.
    Breakdown of IWH, the controlling company in the Consortium:

    60% – owned by Lim Kang Hoo via Credence Resources

    40% – owned by Kumpulan Prasarana Rakyat Johor Sdn Bhd

    Therefore, in reality, Lim Kang Hoo owns the controlling stake in Bandar Malaysia Sdn Bhd.

    And since he is the private sector and controls the majority shares in IWH, what will stop him from selling more shares to foreigners?

  10. Anonymous7:32 pm

    Say "hello" to the new de facto owner of the bigger chunk of Bandar Malaysia:


    "Lim Kang Hoo's net worth drops by nearly 40%. Nearly all of his wealth is tied up in the giant Iskandar property development across from Singapore, and slowing demand and fears of a glut are hurting values there. He's a cofounder and executive chairman of Ekovest, a civil engineering and construction outfit that controls Iskandar Waterfront Holdings, master developer of 4,000 Iskandar acres."

    If Mr Lim plays his cards right, he avoids the glut in Iskandar by taking on a piece of junk off a desperate 1MDB. The bigger prizes are yet to come - the fabrication of the high-speed link to Singapore, the building of properties to take advantage of that.

    Well played, Mr Lim.

    Less well played, 1MDB.

  11. Anonymous7:50 pm

    Kemudian upah pemakan-pemakan dedak menyalak kononnya masalah 1MDB dah selesai, dosa dah tertebus, janji dah tertunai dan segala-galanya beres.

    Tapi hanya orang yang tak tahu apa-apa saja akan percaya cerita karut-marut mereka.

    Yang tulis itu pun rasanya tak faham sebab mereka pun bergantung kepada penulis hantu.

  12. Anonymous7:52 pm

    for you rocky, though i know you are still a singaporean at heart

    Anak kecil main api
    Terbakar hatinya yang sepi
    Air mata darah bercampur keringat
    Bumi dipijak milik orang

    Nenek moyang kaya-raya
    Tergadai seluruh harta benda
    Akibat sengketa sesamalah kita
    Cinta lenyap di arus zaman

    Indahnya bumi kita ini
    Warisan berkurun lamanya
    Hasil mengalir ke tangan yang lain
    Peribumi merintih sendiri

    Masa depan sungguh kelam
    Kan lenyap peristiwa semalam
    Tertutuplah hati terkunci mati
    Maruah peribadi dah hilang

    Kini kita cuma tinggal kuasa
    Yang akan menentukan bangsa
    Bersatulah hati bersama berbakti
    Pulih kembali harga diri

    Kita sudah tiada masa
    Majulah dengan maha perkasa
    Janganlah terlalai teruskan usaha
    Melayu kan gagah di nusantara

    Melayu kan gagah di nusantara
    Melayu kan gagah di nusantara

  13. Anonymous8:14 pm

    Dato Rocks say..."The ex-Minister refused to even listen to any explanation that the parties involved in the Bandar Malaysia deal."

    Go to JMD blog will you...its in verbatim. Ahhh yess its in your blogroll, dont say we refused to listen, cause latest statement from "mapley" nasi kandar say "adjustment"?

    "mapley" nasi kandar say....

    "During the Completion period, adjustments may be made to the RM7.41 billion land sale valuation"

    Adjustment? Huhhh??? wet dream? Blur like our panda and penguin? What a load of rubbish!!!

    Again, go to JMD blog will you, dey mapley, thani sudah minum ka? Thannii man tamma?

  14. Anonymous9:28 pm

    Is that the best defense you can come out rocky bro? Orang lain pun buat... orang lain lagi teruk? So part of malaysia is sold. Tell me for what bro?

  15. tebing tinggi9:33 pm

    However I agreed with the ex minister .

  16. Anonymous12:54 am

    Rock...nowadays, if i want to have a good laugh + humour, i just read your blog..

  17. Alyaniff7:41 am

    So much attack by anons(read: RBA) at every of your article Dato. These dogs must be getting desperate each day. After one to another issue they will create out of 1MDB. Really shows their desperation. Hahaha. Anyway, carry on Dato.

  18. Anonymous9:03 am

    Dalam perkembangan berita yang lain, ADUN PKR Api-Api, Sabah, Christina Liew diperintah oleh mahkamah untuk bayar RM557 juta. Belum pegang kuasa, dah bedal rakyat. Ingat, rakyat hakim negara tau, hahahahahahahahah!!

  19. Anonymous9:29 am

    NAJIB for NOBEL PRIZE!!!!!
    His father must be turning har in the grave.
    Poor Tun Razak for having such a gooody-gooody son.
    Tun Razak worked hard to free Malaysia,
    anak dia work hard menjual negara.........(NANGIS)

  20. Anonymous9:51 am

    as usual, even after many many -ve comments in most of his postings,
    rocky still thinks his logic and analysis are so fantastic that he put them down in writing for all and sundry to read.

    get real, batu.
    you are utterly hopeless with your logic.
    and for one who once head a national media company, your analysis and arguments on this sale amount, you amat memalukan.

    Worst, your "skills" seems to be the norm amongst your "peers" who were given positions, unlike others who work in the real corporate world!

  21. Anonymous9:58 am

    Of course latuk loony locky will support arul kandar cos loony locky is the biggest pemakan dedak blogger in Malaysia!!!

  22. salam Dato'
    permisi untuk dimasukkan ke dlm blog saya

  23. Anonymous10:51 am

    When 1MDB started:
    1) We as in Malaysia had RM5,000,000,000 cash
    2) We had ownership of all the power assets
    3) We had ownership of all of TRX
    4) We had ownership of all of Bandar Malaysia

    1) We have no idea how much cash there still is
    2) We have ownership of the power assets
    3) We have lost ownership of 24% of Bandar Malaysia
    4) We are still in debt for no less than RM10,000,000,000

    To say that there is no net gain from the venture is an understatement

  24. Anonymous11:41 am

    Some people just want to get rich. Money is all that matters to them.Some are ball-lickers.All that matters to them is they want to look good to those in power.