Pic 01: If I can do it (Succeed), so can anybody!
New generation of Bumiputera risk-takers (in a good way) as entrepreneurs are emerging in Malaysian Corporate scene. Read on to know an outstanding businessman. Also a question on Risk Assessment is included to pique and pick your mind- to test your knowledge and especially application which is so crucial to P1 (ACCA) Professional Accountant subject.
Empire Builder (Chandler)
IF WHAT has been said and reported about Tan Sri Syed Mokhtar Albukhary (Picture 01) is true, then he is worth RM971 million - on paper at least. Touted as the new `Bumiputera' corporate player in town, Syed Mokhtar rose to prominence last year. The 50-year-old tycoon is more heard than seen. He is said to be behind three public listed companies and the RM2.4- billion Port of Tanjung Pelepas (PTP) in Johor. Syed Mokhtar's interest is masked under myriad private companies with Seaport Terminal Holdings Sdn Bhd and Impian Teladan Sdn Bhd being the main ones. The latter owns a 19.9-per cent stake in Malaysian Mining Corporation Bhd (MMC). Seaport Terminal controls 52 per cent of Johor Port Bhd and 70 per cent of PTP. Recently, MMC acquired a 50.1-per cent stake in PTP from Seaport Terminal with combination in shares and cash.
With the deal, then Seaport Terminal will control 28.8 per cent of MMC. This will lead to Syed Mokhtar controlling 49 per cent of MMC directly and indirectly. Besides MMC and Johor Port, Syed Mokhtar is also said to own a substantial stake in second boarder Amtek Holdings Bhd. Syed Mokhtar's direct and indirect stake translates into RM733 million on MMC. Add this figure to Seaport Terminal's interest in Johor Port and his holdings, through nominees, in Amtek Holdings, and Syed Mokhtar is worth nearly RM1 billion. And these are only his listed assets. He has some valuable private projects on hand like the proposed RM7-billion power plant in Pulau Bunting, Langkawi. Nobody can ever tell conclusively the true worth of the self-made tycoon as his name is not found in the shareholdings of any of these companies.
Humble History
Syed Mokhtar rose from humble beginnings in Kedah. He had to venture into small businesses to sustain his education which went no further than secondary school. He was transacting almost anything in his early days to pay his school fees. After school, he found a niche in the rice milling business, which paved the way for his rise. He was peddling rice all over the country when he got to know Tan Sri Muhyiddin Yassin, then a high ranking civil servant in the Johor State Government. Syed Mokhtar's fortunes rose when Muhyiddin became the Menteri Besar of Johor.
A late bloomer, Syed Mokhtar only got married a few years ago to the daughter of Datuk Syed Kechik Syed Mohamed, who at one time was said to be one of the richest Malays. Based on the list of richest Malaysians, Syed Mokhtar may not be far from emulating the feat of his father-in- law.
Horrible prospects to Singapore’s logistics industry
Empire Builder (Chandler)
IF WHAT has been said and reported about Tan Sri Syed Mokhtar Albukhary (Picture 01) is true, then he is worth RM971 million - on paper at least. Touted as the new `Bumiputera' corporate player in town, Syed Mokhtar rose to prominence last year. The 50-year-old tycoon is more heard than seen. He is said to be behind three public listed companies and the RM2.4- billion Port of Tanjung Pelepas (PTP) in Johor. Syed Mokhtar's interest is masked under myriad private companies with Seaport Terminal Holdings Sdn Bhd and Impian Teladan Sdn Bhd being the main ones. The latter owns a 19.9-per cent stake in Malaysian Mining Corporation Bhd (MMC). Seaport Terminal controls 52 per cent of Johor Port Bhd and 70 per cent of PTP. Recently, MMC acquired a 50.1-per cent stake in PTP from Seaport Terminal with combination in shares and cash.
With the deal, then Seaport Terminal will control 28.8 per cent of MMC. This will lead to Syed Mokhtar controlling 49 per cent of MMC directly and indirectly. Besides MMC and Johor Port, Syed Mokhtar is also said to own a substantial stake in second boarder Amtek Holdings Bhd. Syed Mokhtar's direct and indirect stake translates into RM733 million on MMC. Add this figure to Seaport Terminal's interest in Johor Port and his holdings, through nominees, in Amtek Holdings, and Syed Mokhtar is worth nearly RM1 billion. And these are only his listed assets. He has some valuable private projects on hand like the proposed RM7-billion power plant in Pulau Bunting, Langkawi. Nobody can ever tell conclusively the true worth of the self-made tycoon as his name is not found in the shareholdings of any of these companies.
Humble History
Syed Mokhtar rose from humble beginnings in Kedah. He had to venture into small businesses to sustain his education which went no further than secondary school. He was transacting almost anything in his early days to pay his school fees. After school, he found a niche in the rice milling business, which paved the way for his rise. He was peddling rice all over the country when he got to know Tan Sri Muhyiddin Yassin, then a high ranking civil servant in the Johor State Government. Syed Mokhtar's fortunes rose when Muhyiddin became the Menteri Besar of Johor.
A late bloomer, Syed Mokhtar only got married a few years ago to the daughter of Datuk Syed Kechik Syed Mohamed, who at one time was said to be one of the richest Malays. Based on the list of richest Malaysians, Syed Mokhtar may not be far from emulating the feat of his father-in- law.
Horrible prospects to Singapore’s logistics industry
Pic 02 (left) :Maersk switch port location to Tanjung Pelepas. Major impact on Keppel Port
Pic 03 (right) : Ever busy 24/7 Keppel Port, Singapore
Singapore’s Port – a hub is primarily dominated by Keppel Port Limited. It’s the main driver to Singapore’s port making it the 3rd busiest port in the world, using hub-&-spoke system where feeder ships come to Keppel Port and the ocean liners [huge ships] takes inter-continental routes. Dr. Mahathir, then Prime Minister of Malaysia, was never too pleased to see the neighbouring port’s success as he viewed that it’s nothing more than a middle-man specialising in trade. He opines that Malaysian companies should not take the full risks of investing and manufacturing only to let Singapore port benefit from importing from them and re-export to the rest of the world particularly 2 richest continents - America and European Union.
In response to reduce dependence on Singapore, three rival ports were built in Malaysia namely Johor Port, Bintulu Port and Tanjung Pelepas Port. Specifically to reduce Keppel Port’s dominance. Tanjung Pelapas, Syed Mokhtar’s cash cow have had a strategic alliance with Freight Forwarders Maersk. Shipping rates have increased 80% over 2 years and there is no sign of abating in early 2008.
Pic 04: Collaborative Opportunity with Chinese Government (Beijing) Singapore government is considering developing a new port in China in alliance with the Chinese government (Picture 04) . It will rival the size of Shanghai port but it targets the northern part of China. Recent trends have indicated more investment up north and inner west are picking up, thus the need to justify port infrastructure.
Pic 05: Dr M - always in Action! Most powerful Bumiputera Leader
Required:
a) Prepare a Risk Map and classify the various risks that the company is facing giving reasons for your classifications. (8)
b) State the level of Board’s considerations for managing these risks. (4)
c) State the risk exposure, risk appetite, risk strategy, risk capacity and finally risk residual of the Keppel Limited considering its expansion into China. [13]
a) Prepare a Risk Map and classify the various risks that the company is facing giving reasons for your classifications. (8)
b) State the level of Board’s considerations for managing these risks. (4)
c) State the risk exposure, risk appetite, risk strategy, risk capacity and finally risk residual of the Keppel Limited considering its expansion into China. [13]
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