Will UMNO lose control of its businesses to Anwar Ibrahim, and what role for Rahim Ghouse - GE 15 has serious implications for business in Malaysia, even if Anwar pretends that its about human rights, , unity , and world peace

 by Ganesh Sahathevan 

While Anwar Ibrahim has promised a brighter, more free, prosperous, inclusive Malaysia (see above) the real issue, which he is unlikely to say anything about is the matter of which UMNO businesses his people and he will want control of. That is likely to be decided during the granting of cabinet positions, but as one recalls from the mid 90s when Anwar was Finance Minister, Team Anwar's control of assets, such as the Realmild-NSTP conglomerate, are likely to be held via a web of trusteeships(or more crudely, proxies).

The apparent emergence of out bankruptcy by Vinod Sekhar provides some clues about existing structures, but the real question with regards the future is what role Rahim Ghouse will play in the management of UMNO assets that may be sequestered, and importantly in the control of Petronas' cashflows. Anwar has waited 24 years to be in the position where he and he alone controls Petronas, without any oversight.Politics and business in Malaysia are inseparable, and political influence always has a price. As Finance Minister in the mid-90s Anwar understood that well, but lack of control of Petronas limited his influence, especially after the Asian Crash Of 1997.

Terence Gomez's  Political Business in East Asia provides some indication of what assets UMNO controls, even if changes in leadership and loss of government in 2018 might have affected control of some of the assets. 

This writer would include companies in which the Malaysian Government, usually via MOF Inc, holds a golden share. A prominent example is Sports Toto Malaysia Sdn Bhd (see story below). 

 END 

Friday, April 1, 2022

Vincent Tan son's drug charges and related governance issues raise unavoidable questions about the exercise of the Malaysian Government's Golden Share in Sports Toto

 by Ganesh Sahathevan 

                                                                 

Most Malaysians today may not recall that Berjaya Sports Toto was once better known as Sports Toto Malaysia  Sdn Bhd, a company owned by the Government Of Malaysia.

That company was privatised to Tan Sri Vincent Tan, but the Government retained a Golden Share that allowed it to retain effective control . Given the current judicial scandal involving Vincent's son Nevin Tan, which as this writer says, cannot be divorced from Vincent's own  history with the judiciary, the exercise of that Golden Share comes into focus. 

Suffice to say that these issues concerning the judiciary and Malaysia's legal system are unlikely to have arisen had Vincent not had the financial power and status that have accrued to him as a result of the Sports Toto privatisation, enabled by the Government Of Malaysia.