Wednesday, October 10, 2018

Is Pakatan government ruling by law?

FMT - Which contractor would dare sign contracts with PH now? by Koon Yew Yin

Koon Yew Yin is a retired chartered civil engineer and one of the founders of IJM Corporation Bhd and Gamuda Bhd

I refer to the FMT article saying: “Lim Guan Eng today played down concerns of potential job loss following Putrajaya’s termination of MMC-Gamuda’s contract to build the underground portion of the MRT Line 2 (MRT2).”

The finance minister said a majority of those affected by the contract termination could be re-hired by the new contractor.

Yesterday, MMC-Gamuda said the termination would result in “immediate job losses” to over 20,000 people involved in the project from a supply chain of over 600 Malaysian companies.

“If the project continues, many of these workers can be employed when the contract is awarded,” Lim told reporters when met on the sidelines of the “Malaysia A New Dawn” forum.

On Sunday, after announcing the termination of MMC-Gamuda’s contract, Lim said all unfinished underground work would be re-tendered via an international open tender process.

Putrajaya terminated MMC-Gamuda’s contract after the two parties failed to reach an agreement over cost reduction and related issues.

Lim said the decision was made after the government felt it could achieve “further significant savings”, compared with the offer made by MMC-Gamuda, through re-tendering the underground work package.

MMC-Gamuda said the termination would unjustifiably expose MMC-Gamuda to “a flood of lawsuits for compensation from terminated employees, sub-contractors, suppliers, manufacturers, and so on, whose contracts will similarly be terminated due to no fault of theirs”.

My advice:

Since the announcement of MMC-Gamuda’s MRT contract cancellation a couple of days ago, Gamuda’s share price has plunged from RM3.20 to close at RM2.38 per share. It has dropped 82 sen, nearly 11%. Its total issued shares is about 2,468 million. Its market capitalisation has been reduced by RM2,023 million.

MMC’s share price has also plunged from RM1.38 to close at RM1.14, a drop of 24 sen or 17%. Its market cap has been reduced by RM730 million. Together with Gamuda’s loss of RM2,023 million, this makes RM2,732 million.

You can imagine the number of shareholders who have lost a total of RM2,732 million.

I have not worked out the loss of value in Gamuda warrants.

Many people have asked me if I am affected. Although I was a co-founder of Gamuda, I do not own any Gamuda shares. I am writing this article with good intentions and I do not have any ulterior motive.

Besides the termination of Gamuda’s MRT contract, the government has also terminated several other contracts.

Obviously, Lim does not realise the shareholders of MMC and Gamuda have lost a total of RM1,000 million. He also does not know the complexity of terminating and re-tendering partially completed contracts.

Lim must be super-efficient to get the successful new renderer to commence work after six months from termination date.

In the meantime, will he provide food on the table for all workers and their families while waiting for the new contractor to start work?

In addition, what will Lim do if the new tendered sum is higher than MMC-Gamuda’s price?

The Pakatan Harapan (PH) government is handling all lopsided multi-billion contacts wrongly by picking on local/foreign contractors instead of MACC directing the previous lawmakers (who executed the lopsided contracts) to explain why the prices were exceptionally high and the contract terms and conditions lopsided.

Of course, the multi-million ringgit contract terminations please the people who voted for PH in the last general election. But the PH government must also realise the complexity and seriousness of the matter.

I hope the PH government and Lim realise that their promise to rule by law is not just hot air but must include respect for all the terms and conditions of multi-billion contracts in Malaysia.

Moreover, the PH government must bear in mind that if you can simply terminate the contracts signed by the Barisan Nasional government, no respectable contractors would dare sign contracts with the PH government for fear that the next government can also terminate the duly signed contracts.


  1. " Which contractor would dare sign contracts with PH now?"

    Does anyone knows what is the break even point and the contractors Margin of Profit? I am sure any Govt. knows based on any major projects because costing estimates are always made.

    Now, if the Govt. calls for price negotiations on the original or adjusted workscope and the Contractor thinks that the Govt. is being cruel by denying Contractors a fair price and profit margin, they are at liberty to give it up. No contractor will want to do business when the risks are too high or their profit margin Tak berbaloi.

    There will always be other Contractors other than Gamuda/MMC who are available to take on any projects by the Govt. for it's a matter of cost, risks and profit margin.

    It is still early and we are yet to see whether the FM knows about all these and when a new Contractor is appointed with their pricing whether he is a FM who knows nuts like Ahjib or he is truly worth his salt as an accountant and a good Finance Minister.

    No Contractor can ever bring any Govt. to it's knees by playing on sentiments and emotions issue to influence a Govt. decision not to award a certain project to them. Just show all the business facts of the project and see whether you are being discriminated or not.

    Alternatively, another solution would be to go to court to see restitution if being victimised.

    KYY may be a successful businessman for years but I must question in this case, why is he talking politics and not real business facts.

    1. Wakakakaka…

      Tony Phua's letter to mmc-gamuda jv!

      Chicken little again, anyone?

    2. OK! Tony Pua graduated with a degree in philosophy, politics and economics from Keble College, Oxford but from the looks of his various statementsit, he's not particularly strong on economics.

    3. TP’s Cybervillage suffered six straight years of continued losses from 2002 to 2007, whereafter he packed his bags, left Singapore for Selangor and joined DAP to bless the party with 'his technical expertise on financial matters', wakakaka.

      I first heard about TP and his losses in TP’s Cybervillage from blogging matey Jed Yoong years ago. Jed was an accountant who revealed in her blog TP's losses in his dot-com business, so much for his economic-business expertise. I believed then she disliked TP for his arrogance.

      above extract from my post

    4. Ktemoc is an ignoramus dunce who wants to attack Tony Pua.

    5. poor panicky monsterball - worried he might not be doing his duty well and be cut off from his dedak - thus he has accelerated his attacks on me

    6. Wakakakaka……

      New tech economy works differently with the textbook cases of old economy.

      Is Facebook making money since its inception?

      Is Tesla making money since its founding?

      Closer to home, is Grub making money?

      AND r these companies going to the dogs?

      Thus u DONT get old economists & risk aversion accountants to start ANYTHING new as in Industrial4.0!

      They r old school & too comfortable to work with the old ways of doing business.

      Real followers & dynosaurs in business sense & will NEVER achieve anything significant in life except ranting about other's success via frustrated envy!

  2. Once Chinese Malaysians open Pandora's Box by electing Pakatan there is no return. The consequences will reverberate for 40 years. The Hulk politicians of DAP is the norm.....running roughshod over dissenting views a la PAP LKY. What did masochistic Chinese Malaysians expect? DAP is an offshoot of PAP Singapore. The elites will flog the masses just to elicit an ounce of profits for themselves. 20,0000 be dammned!!

    1. Najib was a gentleman politician who protected national interests (providing employment to masses, creating programmes for masses, GST was fair because rich would be taxed insteading of employing tax consultants to escape taxes) whereas Pakatan is seen as vengeful, spiteful and favouring cronyism, connections and clique interests

    2. Electoral laws will be changed to suit Pakatan; the first pass the post system abolished and replaced with Iranian-style elections i.e legal disenfranchisement of many Malaysians will be legislated. You can kiss goodbye to electing BN/MCA in future because they will not get certificates of eligibility to stand for elections.

    3. The 70% Malays will gradually flock to PAS because the 94% Chinese had stupidly rallied around Loutish Hulkish DAPpelganger Politicians with absolutely no finesse in behaviour and personal communication. The Hulk=LGE=Tony are all cut from same militant mould. The rise of DAP = Rise of PAS

    4. Malaysia will fall under American control and that is BAD NEWS for Chinese Malaysians....

    1. I hate to say this but based on your synopsis and Moon watching "You still have a lot of growing up to do overseas" to convince readers of this blog towards your point of view.

      And stop belittling the intelligence of 70 % Malays who did not vote for PH to your own morals of supporting Kleptocratic and corrupt Holy man.

      They are much better than you for they are beginning to see and understand hidden truths slowly emerging and know what is Right and what is wrong.

  3. No winners here. Either way Malaysians suffer. Tua Tiow Sai's fault. He say can blame everything on him. So I will.

    As for Gamuda and MMC I won't shed a tear for them. Their share price shot up when they were awarded the contract, shareholders all made money but kept very quiet, now share price has dived they complain loudly, hey that's the stock market, everyone knew this hotshot Harapan government was re-negotiating all big ticket items, so smart shareholders would have wisely exited.

    As for the MMC-Gamuda JV employees, I wonder how many percent of that 20,000 (?) are Malaysians and how many foreigners. Malaysian taxpayers don't owe anyone a job via "lopsided contracts with exceptionally high contract terms and conditions" (Koon's words, not mine, see above, he suggested MACC investigate). Why should taxpayers cough up an additional 5B via lopsided agreement so you can have a cushy job? Stiff Shit.

    As for EPF, PNB, KWAP etc if you really held on to Gamuda and MMC shares after Harapan government took over then your investor team is stupid and should be sacked. You saw what happened to ECRL and HSR. Open your eyes, buck up and do a better job. I still want 6% dividend for 2018, minimum.

  4. The 20,000 who will be unemployed, mostly voted for PH. And I was informed MMC staffs have been paid only half of their salary for a few months already.

    1. You mean 15k Banglas voted for PH? If so please make police report.

    2. Kena tembak Kerala bodoh sombong.

      Lagi marah take berhenti2¡

      Memang retard.

    3. What did you say GONADBUSTER? Wakakaka...

    4. One retard asking another retard, when both r also suffering from rd!

      Hence gonadbuster an unknown.


    5. I'm pretty sure most of us (including myself) voted PH and are now being right royally screwed. Not that we weren't being screwed under by the previous BN governments but it looks now that either way we are being screwed.

    6. what do you expect - same UMNO PM, wakakaka

  5. Koon Yew,

    At least you have the guts to point out things not right despite voting for PH.

    But they won't listen to you coz the sequence in events - cancelling the mega projects, new car, new taxes plus selling the country's key assets, etc - are all in their cards.

    They won't listen to you. Only voters in GE 15 can vote them out.

    The present Chinese zombie brigade will just brand you as another "traitor" as they did others.

    Don't you wish you had voted otherwise?

  6. The Chinese who voted PH in do not realise they are sitting on shifting sand that will liquefy any minute once the Malays realised how easy it is to stop the minority race from ruling over them.

    Just a matter of time.

    1. Actually Anon, It was the Malay supporters of Maddey who previously voted for UMNO or BN because Maddey was with UMNO, who voted for Pribumi or Pakatan because Maddey had switched to Pakatan who played a major part in tipping the scales in favour of Pakatan, plus some Malays, especially rural and semi-rural Malays who voted Pakatan due to unhappiness with inflation and high rising costs under the Najib administration, as well as the multi-cornered contests involving PAS split the Malay vote in the rural and seni-rural constituencies to allow Pakatan to win enough of them, some by a wafer-thin majority, to capture the federal government.

      Most Chinese, Indians and others such as myself are mostly urban and semi-urban based and even if all of us voted Pakatan, still, Pakatan would not win enough seats in parliament to form the government.

      If the Malay vote, especially in the rural and semi-rural constituencies swings back to UMNO or PAS in GE15, Pakatan could well lose the federal parliament or Malaysia could end up with an unstable minority government.

      I am not pro-BN or pro-UMNO but I'm pretty pissed off with what Pakatan has done since it won the federal government, especially what it's doing now and also with what it has not done in the people's interest, especially the interests of the lower income group, for the working class, for the environment and so forth.

      Just look at how the Pakatan state government of Penang is trying to push through the Penang Master Plan and elevated highway against the people's objections and they have been in power in Penang since 2008.

      "Draft Penang Structure Plan 2030: Official feedback session cut short after barrage of questions"

      Pakatan has shown itself to not be a party of the people but a group of parties which serve the interests of sections of the Malaysian capitalist class in competition with UMNO and BN capitalists for access to the economic pie.

      The recent moves announced by Lim Guan Eng that the government will scale down its participation in business and the economy allows private capitalist interests to get at a slice of this economic pie.

      Just wait and see whether or not the people will gain anything substantial from all this. I say we will not benefit much, if at all or may even be more heavily burdened and inconvenienced.

  7. Meanwhile, self appointed judges like tony phua further erodes confidence in Gamuda by spewing stuff to degrade it further.

    These folks are plain selfish and inrresponsible - Koon, you know how much time and effort is spent to build up the company to waht it is today.

    LGE et al just tears it up at will.

  8. Khazanah MD just confirmed Khazanah money is public money so cannot use for new national car. TDM the Chairman just got checked and balanced by his MD.

    I’m Lovin’ It.

    1. unless one is Raja Bodek of Maddy, one would shun Car No 3 like the plague

  9. "A Bill to abolish the death penalty is expected to be tabled at the next Dewan Rakyat sitting, Minister in the Prime Minister’s Department Liew Vui Keong said today."

    Well done KT dear...

    1. PH government is good at abolishing the death penalty, ending sedition act, legalising medical marijuana, whilst it's also good at screwing the rakyat and screwing up the economy kau kau.

      Next the PH government can legalise marijuana so we can all get stoned and forget the economic pain.

      Might as well also cut taxes on alcoholic drinks so we can all get pissed drunk ignore the economic pain.

      You should read Aldous Huxley's novel "Brave New World", which has turned out more real today than George Orwell's "1984" - i.e. the ruling powers encourage hedonism and indulgence to distract citizens and make them remain docile.

    2. Pakatan is a mix of what Anwar called 'super liberals' and the ultra conservatives, the latter of whom will object to abolishing capital punishment but who love imposing more taxes. The more liberal love the opposite

    3. "Pakatan is a mix of what Anwar called 'super liberals' and the ultra conservatives, the latter of whom will object to abolishing capital punishment but who love imposing more taxes. The more liberal love the opposite"

      Ultra conservatives love imposing more taxes? Are you sure?

      Pakatan is imposing what are in effect libertarian (socially and culturally liberal) policies and "progressive" policies with regards more taxes.

      However, I wonder how much of the revenue collected from the new taxes will be used to benefit the rakyat, especially the lower income group, to provide better public education, better public healthcare, better public transit services and so forth - i.e. basic social democratic measures.


    5. Real stench emanating from Ktemoc , who was attacking Pakatan Harapan for pulling out of GST because most countries have it.

      Well... most countries have inheritance tax...
      And it is primarily a tax on the rich, instead of taxing everybody like GST.

  10. Wakakakakaka…

    Clearly shows who's listening intelligently, who's shit-stirring, who's blind as bat but responses to the echo of the zombie hive.

    Morons beget morons, as a positive feedback chain reaction!

    1. More like echo chamber. Remember how rumpelstillskin spin straw into gold. What is the purpose this cheebye motherfucker kaytee publishing this......hahaahha

    2. aiyoh time and time again I have sworn I did NOT fCk your mother

  11. Selamat pulang ke tanah air Sirul Azhar Umar.

  12. What I am sure now any company would think twice or three times or four times about passing off price gouging or crooked contracts to the Malaysian Government.
    During Najib's Administration, many dumb , lopsided contracts were signed, because the Administration had "other objectives" which were more important than competitive contracts , namely lining Najib and Rosmah's pockets.

    1. Do what you wanna do Monsterball. I just pray and hope that you will not plunge the country into the deepest recession anyone could remember, ya Monsterball.

  13. Guanee's strategy worked. He and Toonsie played good-cop-bad-cop. Now MMC-Gamuda kuai-kuai want to negotiate again. More savings on the way. Kaching....

    MMC-Gamuda, the project delivery partners for the MRT2 project, has urged the government to invite them back to the negotiating table to study how the termination of the underground portion of the project issue can be further addressed.

    In a statement, the company further said that it welcomes the decision of the government, led by Prime Minister Dr Mahathir Mohamad, to review the underground project, and remains committed to discuss the reduction of cost, and cooperate with the Finance Ministry.

  14. no worry kyy, many will rush to sign contract with ph govt. just curious, r u oso the type that survive on govt handout, like those under nep u love to criticize?

  15. Make a guess why so much criticisms coming from Ahjib/BN/UMNO/PAS leaders as well as their cronies and Govt. officials involved in contract negotiations during the past BN regime practising widespread "Satu lagi projek untuk Kita"?

    Who wouldn't seeing their "Fulus" suddenly cut off one by one?

    If and only if all these contract re-negotiations were carried out across every Federal/State/District/Municipal/Town Govt. Ministries/departments/statutory bodies by honest and patriotic Ministers and Govt./civil servants, Malaysians would not need to continue suffering some more thru cuts in subsidies and more taxes.

    And the bulk of this responsibility actually lies in the hands of Govt. officials and civil servants in-charge of Contracts negotiations and award who need to rise and be more dedicated and patriotic towards the well being of the country.

    It is time for the honest and responsible Malaysian Civil Service to rise up and help build a New Malaysia for Malaysians where other countries and their investors will see Malaysia as a well governed and managed country bereft of Kleptocrats and corrupted leaders and officials.

    "Berkhidmat untuk Negara" and get rid of "Satu lagi projek untuk Kita".

    1. An Iraqi friend told me a story about Saddam Hussein.

      Saddam was to open an new road and drove down the road in his 4 x 4, then stopped and called the engineer responsible for the road building project, who was one of his kinsmen, to come over.

      Suspecting that the engineer had siphoned some of the money for building the road, Saddam tied the engineer behind his vehicle and dragged him four kilometres down the road as punishment.

      My friend did not say whether the engineer lived or died but if we have Saddam Hussein in charge, our highways will be smeared with the flesh, blood and gore of kleptocrats, corrupt government officials, civil servants and those who bribed them.

  16. Dear KTemoc,

    Abolish GST, re-introduce SST, tell people SST will burden rakyat less, then pile on more taxes. How "nice"!

    Here's plenty for you to comment on:-

    "Capital gains tax will harm share market, warns Najib"

    "PETALING JAYA: The Prime Minister’s remarks on the likelihood of new taxes being introduced reinforces speculation that Pakatan Harapan will likely impose inheritance tax, capital gains tax and a wealth tax in Budget 2019, says Datuk Seri Dr Wee Ka Siong."

    "KUALA LUMPUR: The Malay Economic Council (MTEM) hopes the government will introduce taxes on inheritance, wealth, capital gains and carbon."

    "MTEM CEO Ahmad Yazid Othman said these taxes not only serve to contribute to national revenue but would also drive national spending and investments."

    "Who can solve Malaysia’s economic woes? Perhaps the answer is us"

    "Putrajaya mulling digital ID for online businesses, says minister"

    For the first time after a long time retail investors on Bursa Malaysia make up for foreign funds outflow.

    Ringgit has weakened to RM4.16 to the U.S. dollar

    Whilst U.S. Dollar Currency Index (DXY) goes sideways. (for a while, the rinngit's strength has been in inverse correlation to the strengtht of the U.S. Dollar on the DXY but appears to have decoupled lately)

    DJIA pulls back sharply

    Did we vote for all this?

  17. Wakakakakaka……

    Hp6 economist or just ego-blasted pseudo socialist.

    Go & google for this chart:

    International comparison of long term individual capital gains tax rates

    Prepared by American council for capital formation.

    Most of the developed nations have high CGT, especially so those of the Scandinavian states.

    Ain't Scandinavian nations yr favourite type of social welfare states?

    Just remember lah - there is no free lunch. Especially after that many rounds of incessant lunch plate filling by a couple of greedy freeloaders!

    What's yr better proposal to manage the current stage of national coffers that facing the onslaught of the overlapping waves created by that kleptomaniac own pocket-liners?

    Perhaps this:

    1. My dear CK,

      Yes. I posed the question below rhetorically.

      "However, I wonder how much of the revenue collected from the new taxes will be used to benefit the rakyat, especially the lower income group, to provide better public education, better public healthcare, better public transit services and so forth - i.e. basic social democratic measures."

      That is because, realistically, this is the most which the present "rule of law" PH government of our "New Malaysia" will be willing to do, if ever it wants to,so if we are to pay more taxes, at least let us get something back in kind for it.

      I don't always agree with Finance Twitter but in this case, I would love it if the government does what the Saudi Arabian government is doing or like the governments of the Jacobins in France, the Bolsheviks in Russia or the Maoists in China, which abolished the laws of the old regime and replaced it with their new ones, backed by a people's military.

      However, we don't have that kind of government right now, which will line the corrupt, kleptocrats and cronies up against the wall before a firing squad in public without trial, and which will confiscate the highways and abolish tolls, anull existing contracts, seize their ill-gotten assets without compensation and so forth.

      Instead, we have a libertarian one which wants to abolish the death penalty and further burden the people with new taxes.

      Will our "rule of law" Pakatan government do what the Saudi government does and can they do that under the present laws?

    2. Wakakakaka…

      Bloody bleeding heart of the blur-kind!

      "Rule of law" erh!!!

      So easy & simply. Just for frustrated farts lah!

      rule of law

      The restriction of the arbitrary exercise of power by subordinating it to well-defined and established laws.

      So, where's that well-defined and established laws in the CURRENT stage of bolihland, especially when all the laws were/are been adulterated throughout her history?

      Go back to the pommie's?

      Even they r playing with their rules of laws vis-a-vis Batang Kali massacre!

      Eat yr heart out & rant about every-&-anything under the bolihland sun for yr ill-coceived love of the simple man lah!

  18. "So easy & simply. Just for frustrated farts lah!"

    "rule of law"

    Go tell the Phuckatan Harapan to adopt the Saudi Arabian measures Finance Twitter proposed.

  19. I received this post via WhatsApp:-

    Forwarded but we share similar sentiments:

    These are my views
    1. I fought so hard for PH to win in GE14. I believe many others did too.
    2. I was even arrested by the police in BUKIT AMAN for being anti Najib and anti BN.
    3. I spent 4 days in jail. Being verbally abused on a daily basis.
    4. Now that PH has won and formed the government. I was one of the happiest person in the world.
    5. And now PH is asking the 33 million rakyat to pay additional taxes in order to resolve the issues created by group of ex ministers from those in BN who stole?
    6. Be careful PH. We the rakyat will just topple u in GE15.

    So what can PH do??

    A. Identify those thieves who stole. Najib, rosmah, zahid, jho low, sharizat etc.

    B. Identify their assets and caveat those assets.

    C. Pass a law to confiscate these assets.

    D. UK has already enforced the Unexplained Wealth Order. What is so difficult to seize the obscene wealth of the BN cronies.

    Share if you agree