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Koon Yew Yin's Blog

Author: Koon Yew Yin   |   Latest post: Mon, 19 Aug 2019, 9:55 AM

 

Koon Yew Yin’s statement to the police - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Mon, 19 Aug 2019, 9:55 AM


I am nearly 87 years old and I am a patriotic citizen. I am an old businessman and with my experience I am confident that I can help our government to improve our economy. In fact, I have financially supported the Pakatan Government in the last general election as shown in the photos below. 

After I have seen what our former Second Finance Minister Datuk Johari Abdul Ghani said that currently we have the largest civil service relative to our population in the world, the largest per capita in the world. I wrote and posted my article “My proposal for the reduction and improvement of our civil service” on the 10 Aug 2019.

Datuk Johari said quote “We have a total of 1.6 million civil servants – that is one government servant to service 19.37 Malaysians. For comparison, the proportion of civil servants to the national population in other countries is 1 to 71.4 people in Singapore, 1:110 in Indonesia, 1:50 in Korea, 1:108 in China, 1:28 in Japan, 1:84 in Russia and 1:118 in Britain.

The bloated civil service has caused government expenditure to increase yearly, leading to the escalating drop in revenue. Already 80% of the Federal Government’s annual budget goes towards operating expenditure and a large chunk of this is to pay for salaries and pensions.” Unquote.

In my article, I wrote the following 6 useful proposals for the new Pakatan Harapan Government to reduce and improve the bloated civil service, created by the previous Barisan Natinal Government.   

1 Stop the employment of new civil servants and gradually the number will reduce as more and more employees retire to receive pension.

2 The Government should seriously look through the list of employees in each department and give notice for retirement to those redundant employees.

3 As you know, the armed forces personals are doing nothing except eating and sleeping. In fact, almost all of them have never fired a shot except at target practice. Some of them should replace the foreign workers in the FELDA plantations.

4 Implement the NEP as originally proposed to eradicate poverty on a non-racial basis. It should not be exclusively for Bumiputeras. If some non-Malays are employed in the civil service it will improve its efficiency. Managing the country is like managing hundreds of companies in doing various kind of businesses.

5 The Government must practice meritocracy in the selection and promotion of employees. By this way, the whole civil service will improve and less employees are required.

6 Education is the key for success in every nation and teachers play a very important part. Currently almost all the teachers are Malays. The Government should not employ teachers based on race but based on meritocracy. 

My reason for asking the armed forces to help in FELDA is that FELDA has been losing billions of Ringgit every year and its 2017 annual report shows that it has accumulated RM10 billion in losses and RM12 billion in debt. FELDA is still losing billions of Ringgit every year. I believe the soldiers can prevent theft of palms oil and supervise the huge work force.  

The BN Government created the largest number of civil servants per capita in the world. My object in making my 6 proposals is for the new Pakatan Harapan Government to reduce administration cost and improve our economy.  

I regret that I used insulting words in asking the armed forces which is a large part of the civil servants, to help in FELDA. I have absolutely no intention to insult anybody. I am very sorry for my mistake. I truly appreciate the sacrifice and contribution of the armed forces to the nation. 

I have written to apologise to the armed forces for my mistake which has been published by all the media a few days ago. 

Teo Seng's Future Depends on Egg Prices - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Thu, 15 Aug 2019, 12:44 PM


The egg price chart shows that the price of eggs has been dropping quite rapidly. As a result, Teo Seng’s share price also has been dropping. Investors must be aware that the share price depends largely on the price of eggs. 

 

 

 

Labels: TEOSENG

More Hands Less Work - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Mon, 12 Aug 2019, 7:39 PM


Last night one of my young friends, Dr Sean Chan gave my wife and I a very good dinner. He has a PhD in electric engineering from UK. He is an electric contractor and he is a specialist in certain testing process. When he heard that IEM invited me to give a talk on 5th October, he offered to take me there from Ipoh. He is a committee member of IEM Perak and he   asked me whether he should get more involved with the Institution of Engineers, Malaysia. I told him that he should do so, so that he could make more friends and hopefully some of them can help him expand his business quickly.

I wish to take this opportunity to write this article to benefit all my readers.

Everyone needs help from other people. No one can go through life without any help from others. For a start, your mother needed help to give birth to you and you needed constant care. Even now when you wake up in the morning, you need some one to produce the clean water for you to drink.

A MBA graduate told me that during his 1year, one of the earliest lesson was “how to get more people to share your work”.

So, you can see the importance of getting someone to help you to complete any task. One of the most useful books I have read is called “ How to Win Friends and Influence People” by Dale Carnegie.

When I started working, I used to give a copy of this book to each of section leaders so that I could perform more effeicetly. I strongly recommend you to read it if you have not read it before.

Let me give you the summary of this book. 

Techniques in Handling People

  1. Don’t criticize, condemn or complain.
  2. Give honest and sincere appreciation.
  3. Arouse people’s interest.
  4.  

Six ways to make people like you

  1. Become genuinely interested in other people.
  2. Smile.
  3. Remember that a person’s name is to that person the sweetest and most important sound in any language.
  4. Be a good listener. Encourage others to talk about themselves.
  5. Talk in terms of the other person’s interests.
  6. Make the other person feel important – and do it sincerely.

Win people to your way of thinking

  1. The only way to get the best of an argument is to avoid it.
  2. Show respect for the other person’s opinions. Never say, “You’re wrong.”
  3. If you are wrong, admit it quickly and emphatically.
  4. Begin in a friendly way.
  5. Get the other person saying “yes, yes” immediately.
  6. Let the other person do a great deal of the talking.
  7. Let the other person feel that the idea is his or hers.
  8. Try honestly to see things from the other person’s point of view.
  9. Be sympathetic with the other person’s ideas and desires.
  10. Appeal to the nobler motives.
  11. Dramatize your ideas.
  12. Throw down a challenge.

Be a Leader: How to Change People Without Giving Offense or Arousing Resentment

  1. Begin with praise and honest appreciation.
  2. Call attention to people’s mistakes indirectly.
  3. Talk about your own mistakes before criticizing the other person.
  4. Ask questions instead of giving direct orders.
  5. Let the other person save face.
  6. Praise the slightest improvement and praise every improvement. Be “hearty in your approbation and lavish in your praise.”
  7. Give the other person a fine reputation to live up to.
  8. Use encouragement. Make the fault seem easy to correct.
  9. Make the other person happy about doing the thing you suggest.

On criticism

Criticism is futile because it puts a person on the defensive and usually makes him strive to justify himself. Criticism is dangerous, because it wounds a person’s precious pride, hurts his sense of importance, and arouses resentment. …. Any fool can criticize, condemn and complain—and most fools do. But it takes character and self-control to be understanding and forgiving.

That reminds me of this famous quote by Thomas Carlyle: “A great man shows his greatness by the way he treats little men.”

On dealing with people

When dealing with people, let us remember we are not dealing with creatures of logic. We are dealing with creatures of emotion, creatures bristling with prejudices and motivated by pride and vanity.

On influence

The only way on earth to influence other people is to talk about what they want and show them how to get it.

On the secret of success

If there is any one secret of success, it lies in the ability to get the other person’s point of view and see things from that person’s angle as well as from your own.

 

Hong Kong Dilemma - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Fri, 9 Aug 2019, 7:05 PM


The Hong Kong protest has been going on for 7 weeks and it does not look like it will end soon. Many people are hoping the silent majority will come out to stop the protest. The protest is escalating into heated confrontations between police, democracy activists, pro-Beijing triad gang members, and local residents. As demonstrations continue, protestors have increasingly called for direct elections to choose Legislative Council members and the Chief Executive, an issue that itself triggered mass protests in 2014.

Most Hong Kong people are anglophiles. They worship the British and the West. They look down on the Chinese from the mainland. Many of the elites and civil servants including Chief Executive Carrie Lam and her family, have foreign passports.

 

Many people expect the Chinese army to come to help the Hong Kong police to stop the protest. But I do not think so because China has given the British a 50 years extension agreement of 1 country 2 systems. The British should take appropriate action. But the British like the mainland Chinese are just watching the show as bystanders.

 

Why Are They Protesting?

The Hong Kong anti-extradition bill protests are a series of ongoing demonstrations in Hong Kong against the fugitive offenders and mutual legal assistance in criminal matters legislation (Amendment) Bill proposed by the Hong Kong Government. The amendment bill was proposed by the Security Bureau in February 2019 ostensibly in response to a murder that occurred in Taiwan previous year where the murder suspect had fled to Hong Kong. The regional government was unable to repatriate due to the lack of formal extradition arrangements between the two jurisdictions, being jurisdictionally distinct from mainland China as it maintains a separate governing and legal system under the “one country, two systems” principle. 

If enacted, the bill would allow local authorities to detain and extradite people who are wanted in countries or territories that Hong Kong does not have extradition agreements with, including mainland China and Taiwan. Opponents of the legislation fear that it would place Hong Kong residents and visitors under the jurisdiction of mainland courts (which are controlled by the Communist Party of China) and apply not only to criminals, but political dissidents as well. 

Chief Executive Carrie Lam suspended the extradition bill on 15 June and further declared it to be "dead" on 9 July. However, she did not state that the bill would be fully withdrawn from the legislative process and has not addressed other protestors' demands.

 

The protestors should worry more about their bleak future in Hong Kong.  

The stock market is dropping rapidly which is affecting a lot of people because their savings are mostly in the stock market. The Hang Seng Index is 8 months low and there is no indication that it will rebound soon. Moreover, property prices are the lowest for many years. A few years ago, Hong Kong properties were one of the most expensive in the world due to the influx of Chinese immigrants from China. Moreover, foreign businessmen who wished to do business in China would prefer to go through Hong Kong. Currently they can go directly to any city in China without any difficulties.     

The glorious days are over for Hong Kong. As a result, a large number of people are wanting to sell their properties to migrate to some other countries. In fact, most of the elites and civil servants including Carrie Lam and his family members have foreign passports.

 

How did I start investing in the Hong Kong stock market?

In 1983 when China gave notice to the British Government to recover the sovereignty of Hong Kong, the stock market crashed. The Hang Seng Index fell below 600 points. I took advantage of the cheap sales and made a lot of money. The 1st stock I bought was Hong Kong Reality & Trust (HKRT). A Jew by the name of Willock Marden was the controlling shareholder. Just before the market crash, HKRT sold the Willock House. As a result, its cash value per share was more than HK$10.00 and the share was selling at $13.50 before the crash. During the crash, I could buy it at $3.00. Within 3 years, I made so much money that I bought 46% of a small broking company called Kaiser Stock and Share Co, Ltd. Fortunately I sold all my shareholdings in Kaiser to a mainland Chinese with a reasonable profit.   

 

The Hong Kong stock market will not rebound for a long time. In view of the bleak future, I will not invest in the Hong Kong stock market until I can see a brighter future.

The Hong Kongers must remember that China gave 50 years extension to the British after the expiry of the 99 years lease in 1997. The 50 years extension will expire in 2047. Smart people are already fearful, if only vaguely, of what will happen after the "one country, two systems" framework with China, which gives Hong Kong "a high degree of autonomy," reaches its 50-year limit.

Some worry they might be deprived of the freedom they currently enjoy. Uncertainty is partly fostering pro-independence sentiment among the young. 

 

Bleak and murky future

Last year Bethy Tam, acting chairman of the Hong Kong Association of Banks, publicly called on the Hong Kong government to address the issue as soon as possible.

The first thing to be affected by the "year 2047 problem" is residential mortgages. From next year, newly signed 30-year mortgages -- the longest possible term in Hong Kong -- will include a period beyond that year.

In Hong Kong, all land is owned by the government and leased to developers and others through auctions. In the New Territories, a suburban district, as many as 350,000 such lease contracts will expire in 2047. Banks argue that uncertainty over the legal structure beyond that year will make it difficult to extend loans, which could cause turmoil in the property market. 

In fact, it was residential mortgages that in part prompted the U.K. and China to start negotiations on the return of Hong Kong to China. Unlike Hong Kong Island and the Kowloon area, both of which were ceded to the U.K. by the Qing dynasty after the Opium War, the New Territories were leased by the U.K. for 99 years from 1898 until 1997. In the late 1970s, as the end of the lease approached, people started talking about what might happen to mortgages whose terms extend beyond 1997 -- at the time the maximum term for a residential mortgage was 15 years. Some voiced concern that lending would dry up in the New Territories because the area may be integrated into socialist China.

In 2017, Hong Kong will mark the 20th anniversary of its return to China. Though almost halfway through the 50-year term, the Chinese government has not made clear whether it will seek to continue the "one country, two systems" framework or realize the full restoration of Hong Kong.

No regulation says the Basic Law -- the effective constitution of Hong Kong -- will be annulled after 50 years, said Rimsky Yuen, Hong Kong's secretary for justice, arguing that the "one country, two systems" framework will likely continue after 2047. But that view does not always sit comfortably with people in mainland China.

 

Protestors must not forget  

The majority of Hong Kongers though living in cramped and dirty apartments have always looked down on their China cousins.  The growth of Shenzhen just across the border shows how much Hong Kong has been left behind in the past three decades and the feeling of now being bested adds to their disdain of the Chinese.

 

The elites are anglophiles. They worship the British and the Americans and are uncomfortable with China.

 

The young now see a limited future and they are taking their frustration to the streets supposedly to demand reforms etc. The sight of the protestors waving British and American flags is a PR coup for the US. and the irony is not lost on the Chinese.  These protestors seem to be oblivious of the century of humiliation of China at the hands of the West. They forgot that China ceded Hong Kong and part of Kowloon to the British because China lost in the 2 opium wars, 1839-42 and 1856-60.

 

When the Chinese refused to buy opium from the British, the British gun boats attacked Shanghai. As a result, China ceded Hong Kong and part of Kowloon as compensation.

 

My suggestion:  

 

I strongly recommend the rich Hong Kongers come to invest in Malaysia. It is so easy to get a permanent resident (PR) status. All he needs is to invest Rm 100,000 only.

 

Although Malaysia is a multi-racial country with about 75 percent Muslim, we all live in peace and harmony. A recent survey shows that Malaysia has the best health care system in the world and the 2nd best country, next to Thailand for retirement. You can even get an open-heart bypass surgery in the Government heart hospital free of charge.

 

For your information, I have a cousin who is a British citizen, had to wait for 1 month to see a cancer specialist.

 

Challenges in Marketing a New Health Care Supplement Product - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Wed, 7 Aug 2019, 12:07 PM


My purpose of writing this piece is to help a friend who is starting to produce and market a new health care supplement.

 

Malaysians are quite sophisticated and discerning. When it comes to spending their hard-earned money, they are very careful. Although Malaysia presents a strong market for growth, as well as the point of entry for a regional presence, there is already an over-supply of health care supplement products in the market.

 

Whenever I enter a pharmacy outlet, I am surprised to see a large part of the display shelves are filled with health care supplement products of various brands. Most of them are well known brands, some are less known and a very few are new brands. The new brands are always placed at the bottom shelves or less prominent places.  

 

The challenges faced by health care supplement products are indeed many and varied: from a changing retail landscape to increasingly discerning consumers. It is not easy to market any health care supplement product, let alone a new unknown brand.

 

My suggestion:

The best way to market a new product is advertisement by which the new product can become better known.

Another way is to give special discount to the pharmacies on condition they display the new product on the top shelves or more prominent places.

Another way is to sell through Alibaba, e-commerce, online shopping.

 

Dayang: Fund Raising Exercise Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Sun, 4 Aug 2019, 5:16 PM


 

On 17 May the company made the following announcement:

1 Proposed renounceable rights issue of up to 96,480,983 new ordinary shares in Dayang (“Dayang Shares” or “Shares”) (“Rights Shares”) at an issue price to be determined later on the basis of 1 Rights Share for every 10 Dayang Shares held at an entitlement date to be determined later (“Proposed Rights Issue”);

2 Proposed private placement of up to 96,480,983 new Dayang Shares (“Placement Shares”), representing approximately 10.0% of the total number of issued shares of Dayang (“Proposed Private Placement”);

3 Proposed subscription of new redeemable convertible preference shares (“RCPS”) of up to RM455.0 million in Perdana Petroleum Berhad (“PPB”) at the entitlement basis and issue price to be determined later pursuant to the proposed rights issue of RCPS to be undertaken by PPB (“Proposed Subscription”)

Soon after the above announcement, on 22 May, the company announced a small loss in its 1st quarter ending March 2019 due to monsoon which had affected its maintenance operation in the open sea. As a result, the price plunged to 90 sen per share.   

 

 

Since then the above chart shows that it has been going up from 90 sen to about Rm 1.50 within 2.5 months in spite of the 2 announcements.

The daily volume changed hands is several million shares. The price continues to go higher and higher because there must be more buyers than sellers. The buyers can appreciate the fund-raising exercise. Unfortunately, the sellers do not understand why the company needs to raise more money to do more business.      

Why did they are selling their shares?   

1 They believes that the controlling shareholders would like to press the price down so that they can buy the right issues (1 for 10) at cheaper prices.

Note: According to SC rule, the company can offer a maximum discount of 30% from the 5 days average price just before the X date for buying the rights.

2 They also believe that the controlling shareholders would like to press the price down to help the Sarawak Government to buy the placement shares of about 96 million shares.

Note: The buyer for the placement shares is not the directors’ cronies. It is the Sarawak Government. According to SC rule, the company can offer a maximum discount of 10% from the 5 days average price just before the X date for buying the placement shares.  

My opinion:

  1. After I have studied the details of the company’s operation carefully, I believe the next quarterly announcement should be good. It will be made before the end of the month. Dayang has the more maintenance contracts in terms of value from Petronas than any of his competitor because Petronas and the Sarawak Government are shareholders of Dayang. Moreover, I have not seen any reasonably good company’s share price dropped when the company announced good profit. In any case, readers should wait for another 3 weeks to see the good result.  
  2. From my long experience as IJM Corporation Bhd director, all company directors have the duty to make profit for the company so that the share price can go up higher and higher to benefit the shareholders. All the shareholders are the owners of the company. In other words, the shareholders are paying the salary or fees to all the company directors. The controlling shareholders or directors should want the share price to be higher and not lower.  
  3. Since the Sarawak Government and not their cronies is the buyer of the 96 million placement shares, the controlling shareholders or directors should want to sell the placement shares at a higher price and not at a cheaper price.
  4. This reminds me when I was on the IJM board of directors. As I said, our duty was to make money for the company; but we should not simply distribute all the money to the shareholders because the company could use the money more effectively to do more business to make more money. As a result, IJM’s share price continued to go up higher and higher. About 25 years ago, IJM issued shares to acquire Road Builders which had a lot of land in Negri Sembilan. IJM is now developing Seramban Phase 1 and 2 to make more money. The land value has gone up in the last 25 years because it is very near to Kuala Lumpur. I trust you can see why the IJM directors or Dayang directors wanted a high share price. Currently, I think  IJM has more land than any of its competitors in Malaysia.
  5. As I said earlier, the price has been going up from 90 sen to Rm 1.50 within 2.5 months. The price chart is showing a super bullish trend. Only ignorant investors who did not know how to read chart, would sell their shares so quickly. They will regret when they see the company make a good profit announcement in about 3 weeks’ time.       

 

 

 

 

 

 

 

Labels: DAYANG

 

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