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Showing posts from October, 2005
Divine Intervention As A Corporate Strategy

MAS incoming managing director, Idris Jala, plans to tap into talent inhouse at MAS using the same five “ingredients” he used to turn around Shell MDS (M) Sdn Bhd. His 5-prong plan to turn MAS around include:

1) Going for the impossible
2) Anchoring everything (ranging from strategy, plan, activities, processes, structure and culture) on a profit and loss statement
3) Instituting discipline in action in a rigorous and relentless manner
4) Changing one’s leadership style depending on the team development
5) Praying for divine intervention

As he was addressing a group of academics, plus the fact that he is NOT officially managing MAS yet - I will give him a bit of leeway in his plan to turn MAS around (it is still full of generalities). I have no problem with Points 2, 3 and 4. Point 1 - Going for the impossible - sounds a bit like a someone's been to too many "self-improvement" courses (if you know what I mean)... I think I will start …

Rebuttle To 'King Of Emerging Markets' On Liquidity

The KLCI traded sideways for the past few weeks. One after another, foreign research units have downgraded Malaysian equities in preference for other bourses (e.g. Merrill Lynch, UBS and CLSA). Mark Mobius is the closest thing "emerging markets" will get that resembles Donald Trump. The traveling emerging markets' hero could easily pass as a "baddie" in a James Bond movie. Yet, what he says is followed closely by the international media... cos ... there is no one who champions the emerging markets quite like Mobius. The savvy self-promoter does very well for himself and his company (Templeton Emerging Funds Inc) - the firm probably lets him have a high profile as that would bring in the business, no doubt.

The Edge did an interview with Mobius (Oct 17, 2005 issue) and he highlighted a few interesting factors to explain why foreign funds are shying away from Malaysian stocks.

MM: " lack of liquidity ... need to grow the market... need to privatise the pension…
Buy "ME" Pleaaassseeeee ...

What is this fixation with certain Malaysians that foreign funds MUST/SHOULD buy Malaysian stocks... is it a patriotic kind of thing, somehow "they love us more" if they do,... and if they don't buy, it means "we are not worthy... enough". Get out of the pre-independence, second class citizenry, developing country mentality. Stock markets are just a structure where shares are bought and sold, whether foreign funds come in or not DOES NOT mean we are running companies with "world's best practices/standards" or we are making strong strides in the respective industry's competitive landscape. NO, it does not mean that, one way or another.

People buy stocks if they think it is going to make them money - even if we have very good companies, people might not buy because we might be overvalued already. There are tons of options for the global investors, and Malaysian market is just a little thing. Get over yourself.…
Of Road-Shows, Dream Teams, Foreign Funds & Research

ECM Libra and Merrill Lynch led 'a dream team' to make pitches to players in London on Sep 12 and New York a day later. The team was led by our Prime Minister Datuk Seri Abdullah Ahmad Badawi, atgged along by Azman Mokhtar, the head of state investment agency Khazanah Nasional; Lim Kok Thay, the head of gaming conglomerate Genting; Francis Yeoh, the owner of power and infrastructure company YTL Corporation; Ralph Marshall, the chief executive of satellite TV provider Astro All Asia Networks; Ahmad Zubir Marshid, the chief of Sime Darby; George Ratilal, the finance head of oil company Petronas; Nazir Razak, the head of investment bank CIMB; and Tony Fernandez, the chief of budget airline AirAsia.

A week after the road show, Merrill Lynch downgraded Malaysia to 'underweight' while upgrading that of South Korea. The Singapore Business Times opined: "With one voice the global investment bank Merrill Lynch sings pr…