by E.S. Shankar
We must always be suspicious of prime ministers with doctrinaire agenda and a long, long history of manipulative tendencies (read as lying with tongue-in-cheek).
THE TRUTH ABOUT KHAZANAH'S PERFORMANCE
Let us look at the audited FACTS.The truth is Khazanah is on very sound financial footing, as follows:
1. Fixed & current assets of RM93 Billion
2. Govt guaranteed borrowings of RM50 Billion, creditors of RM2 billion. So net assets (93-52) of RM41 billion, represented by share capital of RM12 billion and accumulated reserves of RM29 billion.
4. Market value of investments - RM157 Billion, net worth after borrowings etc - RM116 billion.
5. Compounded average net Return on Investment ROI) of 9.6% between 2004-2017, which by any standards must be reckoned to be good.
The truth is also that ALL investment and sovereign funds, e.g. Singapore's Temasek will, every now and then lose money, big money. In 2016-17, Temasek lost RM$129 BILLION (assets RM$1 Trillion). Refer: http://statestimesreview.com/…/gic-make-record-losses-at-l…/ . No one has a 100% positive performance record.
So, Khazanah losing RM3 billion (it did later recover RM1.5 billion) in UBS shares or RM80 million in a lingerie business is a red herring put out by Mahathir and new Economic Affairs Minister Azmin Ali. It's par for the course. You can't just talk about losses and oh, so conveniently leave out that fact that the market value of Khazanah's assets grew from RM65 billion to RM116 billion between 2004, when Azman Mokhtar took over as MD, and 2017. RM1.508 billion represents only 1% of Khazanah's current RM157 billion investment portfolio value.
MAHATHIR LOST US OVER RM100 BILLION
If we add up all the losses ratcheted up by Mahathir during his 22-year tenure as prime minister - BNM forex loss, Bank Bumi, Proton, Maminco, Mimaland, Perwaja, MAS etc - it will exceed RM100 billion!
So, why has Mahathir undermined Khazanah by manipulating the removal of its MD & entire Board of Directors, while pretending it had "deviated from achieving its Bumiputra objective" when in fact, we have Permodalan Nasional Berhad (PNB), set up in 1978, to cater solely for his skewed "affirmative action program" in favour of the majority Bumiputra? Since when was Khazanah a Bumiputra fund?
What gives with the 93-yo sly manipulator, Mahathir?
MAHATHIR'S PROTON 2 CASINO GAMBLE
Is it an accident that Mahathir has been talking up Proton 2? I think not. I think we are seeing a P-Q4 chess move by which he hopes to pad Khazanah with his nominees to either:
1. Buy back 100% of Proton 1 from DBR-Geely, OR
2. Start a fresh Proton 2, AND possibly,
3. Buy out or put Perodua out of business.
Is it about developing a core of automobile engineers for the long-term? I think that will be a complete waste of Khazanah's precious capital, given our small population and that the giant auto MNCs can roam the world for outsourcing their automobile and spare parts production. Besides, the auto industry is going through a revolution switching to electric cars and eventually, solar powered ones. It would be better to develop the solar, water and alternative green energy business with our limited resources and capital.
So, is Khazanah once again going to be Mahathir's whipping boy for his favourite hobby, the ill-planned and ill-fated, Proton, by once again dipping into the Taxpayers' pockets which have already been seriously looted to bare threads by UMNO?
Well, there goes our hopes of putting an end to the RM2-4 billion Ali Baba Approved Permit (AP) rent-seeking Mafia business and cheaper, quality imported cars.
There's no limit to Man's bloated ego. So, they say. Mahathir may just prove that right, again!
NB
Khazanah's summarized audited 2017 Annual Report ( details of it's investments etc are not included in this version) - http://tkr.khazanah.com.my/…/wp…/uploads/2018/05/TKR2017.pdf
