KUALA LUMPUR: Prime Minister Dr Mahathir Mohamad today dismissed criticism over Khazanah Nasional’s possible involvement in the third national car project, saying the sovereign wealth fund is “free to do business”.
He was responding to MCA deputy president Wee Ka Siong who said the government’s decision to name Khazanah subsidiary Silterra as a possible partner for the project cast doubts on Putrajaya’s promise that public funds would not be used.
Not only was Silterra a wholly-owned subsidiary of Khazanah which Mahathir chairs, Wee said, it was also one of its biggest loss-making companies.
To this, Mahathir said: “If there is a company interested, they can invest.
“Khazanah is not the government. It is a company which is free to do business,” he said after chairing a Pakatan Harapan presidential council meeting at the Yayasan AlBukhary building here.
He was responding to MCA deputy president Wee Ka Siong who said the government’s decision to name Khazanah subsidiary Silterra as a possible partner for the project cast doubts on Putrajaya’s promise that public funds would not be used.
Not only was Silterra a wholly-owned subsidiary of Khazanah which Mahathir chairs, Wee said, it was also one of its biggest loss-making companies.
To this, Mahathir said: “If there is a company interested, they can invest.
“Khazanah is not the government. It is a company which is free to do business,” he said after chairing a Pakatan Harapan presidential council meeting at the Yayasan AlBukhary building here.
Mahathir appointed himself as Chairman of Kahzanah and coopted Azmin Ali.
From Malaysiakini:
Referring to Mahathir, the MCA leader posed another question peppered with sarcasm, “I wonder who appointed himself as chairperson of Khazanah recently?”
“How can it be that Khazanah has nothing to do with the government?” he added, ending his Facebook post with the hashtag “#ridiculousanswer”.
Silterra was set up in 1995 during Mahathir's first tenure as prime minister and is a semiconductor manufacturer.
It appears that the firm's website has not been updated since its chairperson is listed as the late Jamaluddin Jarjis, who died in a helicopter crash in 2016.
........
Wee also questioned if this was the stand of Pakatan Harapan parties or Mahathir's personal opinion?
He recalled how Finance Minister Lim Guan Eng had assured that the third national car project would not involve public funds.
“As far I know, BN, during its rule, never sold Khazanah to the private sector. Since when has Khazanah been owned by the private sector under the Harapan government?” he asked.
This old man simply cannot tahan if Proton-Geely becomes a success because it was Najib’s doing. So he must have his own National Car. Unfortunately this decision may cost Harapan dearly, if it goes ahead. His cabinet ministers (equals to the first PM) better reign him in.
ReplyDeleteAs for Wee Ka Siong, he is doing a terrific job as opposition MP. I hope he keeps this up for the next 20 years, as opposition MP. Because as a government MP he said nothing about Khazanah bailing out MAS and till today MAS is bleeding rakyat’s money.
1 conclusion we can see is there r no diff btw mca n dap, the good thing is perhaps we can have a rather clean govt for the first term, which would follow with bangaloo, merc, wife brother sister mama papa son daughter become director of tis n tat. the people must quickly foster a strong opposition, the sadden part is what we have now r 2 that talk abt race n religion all the time.
DeleteBring back BN and Najib as soon as possible.
Deletein a way, najib know car more than mahathir. no need let him come back, follow his way is good enough.
DeleteI don't think TDM cronies can have the New National Car 3.0 made in time even for use as his funeral hearse.
ReplyDeleteSyed Mokhtar Albukary seems to have his hands in this private project.
The actual company involved may not be Siltera but CTRM currently making aircraft parts.
I wonder how much TDM owes the Malay Arab in donations for the recent GE 14 elections?
Vietnam is bringibg out Vinfast as a private investment to jump start her automobile industry.
ReplyDeleteVietnam has about 3x the population of M'sia (96/31). But her GDP per capital is US$7k against M'sia's US$29k.(2017 data)
Thus M'sia has a better car market than Vietnam as reflected in the actual numbers of car ownership.
This was almost the same economic environment during the time when SKorea & M'sia started to invest heavily into automotive industry.
SKorea's car industry flies to stratosphere while M'sia's sinks to the deep ocean trench!
Many also forgetting about the latecomer, China, who also strikes gold in her automotive industry.
Automotive industry IS a known tough & competitive investment. Yet why, so many countries still want to do this 明知山有虎偏向虎山行？
The logics lie in
1)technical learning curve availability - quickest way to upskill the labour forces
2)worldwide market demands for successful products - reduces vehicle import to preserve foreign reserve
3)spillover for umbrella industries - thus mass employment
One can argue that UK & Oz have no more automobile industries & yet can still retain their economic prowess. This argument ignores
A)UK goes from manufacturing to service, especially after Maggie's Big Ben financial push. This is a logical jump to her next stage of economic development when there is sufficient skills & ready infras in the service, especially financial, sector.
B)Oz is still highly developing her mining & dairy industries. These two sectors CAN easily engaging her population's (23m) gainful employment that many others look to industry like automotive.
Mamak's thinktank has most probably identified these factors.
Next, where the money comes from?
Proton was based on the Japanese model, not ONLY in manufacturing concept BUT also marketing & administration style - heavy govt incentives (financial investmen in Sogoshosha) & preferential treatments vis-a-vis against imports.
Nothing wrong with that - as proven in Japan & SKorea.
Proton's problem IS people! U got a bunch of monkeys to run a machine shop. At the end, u had no product but also burnt down the workshop!
Will ProTiga going to walk the way of Proton is everyone's guess.
The unfortunate overlay is everyone is tired of been conned by the Proton's 阿斗 syndrome, that no one will think for a minute that ProTiga wouldn't go the way of Proton. Especially with mamak's dying wish to uplift the melayu, even though he can't remove that dragged ketuanan entitlement gene!
Khazanah like 1MDB are GLCs/GLICs, thus, though not government are near government. Wee Ka Siong is quite correct. This is a high risk start-up project. Try crowfunding.
ReplyDelete*crowdfunding
ReplyDeleteModal kerajaan, untong private. Bapak penswastaan's sop.
ReplyDeleteTDM is forever beholden to Ketuanan corporate elites sponsors who play with his nationalistic and forever inferiority complex syndrome of the Malays to become successful entrepreneurs.
ReplyDeleteWhy TDM never learns how other races, communities, cultures, countries can become successful entrepreneurs whether inside or outside of the country esp from the Jews, Chinese, Americans, Europeans, Japanese, South Koreans, Taiwanese, Singaporeans etc?
Till his death, he will forever never learn how to to build successful bumiputera entrepreneurs who can last without protection of handicaps and Ketuanan policies.
As an example, let us look at Proton (in the age old car business worldwide) which is currently owned by DRB-Hicom, Geely and the Govt. via GLCs. Just because it is not fully owned by Malaysians/Malays, his pride is dented and no more deemed a National car and thus a need for another 100% owned Malaysian/Malay car company.
His culture and his way of thinking will never change for he never knows the concept of:
"You ride with a tiger to succeed in early business ventures when you are weak in many capabilities and remember to get off the back only after you know how to be strong and able to compete with others."
TDM may be a maestro in politics but he is definitely no maestro in business/economics where his political beliefs will forever dim his thinking in the real world of economics/business.
Anyway, no one can be a "Jack of all trades" and in trying to be one, sometimes can inadventantly cause one to look rather foolish even with cheers from sychophants supporters.
Tony Fernandes and Donald Trump are examples to learn it the hard way also that finally " You don't mix business with too much politics."
It has always and forever will be the consumers of any business venture who will decide whether a business will thrive or fail in the long run whether locally or worldwide.
The answer is...it is Government funds, but not that simple.
ReplyDeleteConsolidated Fund monies can only be used for Government expenditure, and not for any business dealings.
Khazanah, which is organised under the Minister of Finance Incorporated Act, has its capital derived from Government funds. However, that Act empowers the Government to use the capital for investment purposes.
The investment can be in publically traded securities, such as Stock Market, or direct investment in companies of start-ups.
However, given that the Original capital is taxpayer funds, Khazanah must be prudent in its investments.
A 3rd National Car,where the 1st one has failed and had to be bailed out, has to be considered a high risk venture.
Norway's sovereign fund is an excellent example of a prudently managed Government investment fund.
Khazanah's Charter actually says it's Board Chairman SHALL be the Prime Minister.
ReplyDeleteSo Wee Ka Siong's ( and Ktemoc's) question " I wonder who appointed himself as chairperson of Khazanah recently?" is an exercise in ignorance.
Message to Wee Ka Siong - you and MCA are failing as an effective Opposition.
Learn from Lim Kit Siang.
Those days , he Hentam Mahathir, Badawi and Najib very effectively based in solid facts.