7/05/2012

Do not underestimate the Malaysians



Malaysia just launched one of the world’s largest IPO in IHH Healthcare at $2.6b. The company will be listed in the SGX and Bursa Malaysia. What is amazing about this launch is the list of hospitals in its stable. Among the big names are Mt Elizabeth Orchard, Mt Elizabeth Novena, Gleneagles and Parkway Hospitals. If the names sound familiar, yes, they are all the top hospitals in Singapore.

Malaysia has not only bought over this strategic group of hospitals, it also owns one of our power stations, it has bought into two of our brokerages, and I am sure it is also into many other acquisitions of good Sinkie companies. With their oil money, it is quite foreseeable that it could buy up many good assets and companies here.

I see this as a brilliant strategic move. They have turned the table and thrown away their village mindset of always on the losing end when dealing with Sinkieland. They are on the offensive. When everything is for sale in Sinkieland, it is only a right thing to do for Malaysia to buy them up. And don’t forget, it is exchanging Malaysian ringgits for Sing dollar. In the long run, should the ringgit depreciated against the Sing dollar, Sinkieland will end up with much less value ringgits while Malaysia will be sitting on highly valued and well appreciated Sinkie assets.

For those who are worrying about the fate of Sinkieland remerging with Malaysia, not to worry. It need not be. It will be bought over in a matter of time. Don’t underestimate the strategic minds of the street smart Malaysians. Our book scholars will be no match to them as they only think of buying and selling for immediate and short term gains. The long term strategic thinking is somehow absent. And with so many Malaysians here as PRs or citizens, the merging or takeover will be smooth and easy.

And the Malaysians know how to buy good stuff. They don’t go around the world to buy junks or out of luck companies.

41 comments:

  1. RB, I don't think you're making a fair comparison. Singapore doesn't like low growth assets like hospitals and power stations. They prefer the high-yielding and therefore also high-risk finance assets which is in line with Singapore's status as Asia's premier financial hub. Malaysia, on the other hand, has no pretensions of being a financial centre. So, I guess they prefer boring assets like healthcare providers, power stations etc. My $0.02.

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  2. Logical, very logical. The other boring assets could be our banks, SIA, not NOL, SMRT, SingTel, Keppel,....

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  3. Think everyone is using the American dollars to exchange for our assets.

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  4. Lee Hsien Loong and Kuan Yew are really idiots who believe the lies of Milton Friedman and other neo-liberals. Not a single insider to proxy power in western countries believe in such shit. While the IMF and prostitute economist in western universities advocate foreigners should be allowed to buy any asset in a country, NO FOREIGNERS is able to hold meaning stake in any strategic western companies, other than remaining as a passive portfolio investor.

    No Aliens are allowed to buy crown jewels like mines, oil companies, power, key telcos, key defence contractor, key technological companies and farmland in western countries. While western countries uses neo-liberal economics to buy up all these strategic assets in development countries.

    Either the Lee families are cogenital traitors or they are idiots.

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  5. Sigh!
    I just wish they will buy or employ some of our Ministers or fund managers.

    But I suspect the Malaysians are only interested in good value and sound assets.

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  6. They are hedging their petrol ringgit

    sinkies only know how to gamble

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  7. The Malaysians should buy up the three local banks, repackaged it, and sell them to the world, including Sinkies.

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  8. Productive assets like power, farmland, mines and hi-tech are the key of standards of living in the countries as well as what make it strong.

    The transfer to economic clout of financial shylock obscure this fact, aided by prostitute economics professors in the universities. key assets are deliberate rigged to the downside, by banks collaborate with corrupt government. The reasons are 99% of elites are unproductive parasite who controlled land or other rentier assets.

    By rigging up rentier asset price such as land in relative to real productive asset price, economic power is transferred to parastic people, who are our elites.

    While US elites are rentier and corrupt, they required foreign government to keep their reserves in treasury bill, which US government is going to default by QE and inflation to infinity. Try buying Rio Tinto, BHP, Exxon-Mobil with our reserve and see what you get...etc

    PAP only the other hand selling out whatever they can sell. They prostitute Singaporeans to MNC driving wage low. They prostitute our power plant. PAP could one day prostitute even their own mothers.

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  9. May the Merger of the two neighbours happens as fast as possible.

    patriot

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  10. Yep, and Gintai will have his wish comes true: )

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  11. the power plant, brokerage firms and hospitals are all physical buildings in S'pore. therefore, it is not possible to move any of these buildings to malaysia.

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  12. Q: How many Millionaire Ministers does it take to change a light bulb?

    A: Change?

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  13. Why do they want to bring back to Malaysia? They are here to stay. Tomorrow they may bid for the Istana. Heard of reverse takeover?

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  14. Dual passport

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  15. P.S. That is not "underestimating". That is just predicting an almost certain outcome.

    Wait and see. Kalam kabut, mesti mati-lah!

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  16. The real cockup is MS.

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  17. like what m'sia has done before, S'pore can always nationalise all these things.

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  18. Abang Matilah Singapura;

    Malaysia cuma 'Kalam kabut' ajar mah, better than mati terus right.

    I tengah cari rumah atap di-sana, ada lobang tak? Boleh tolong?

    patriot

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  19. Bang Patriot,

    Jagan sebok sama dia lah. Hari ini dia macam gila lah.

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  20. Oh please lah redbean, Malaysia knows how to buy good stuff ? Who are you kidding ? Bluff children ah ? Or bluff other ignorant and disgruntled old men? For every successful venture by Malasyaia there are probably 5 unsuccessful ones, some flop big time.

    I wait for you to blog about Bank Negara's billion losses in the forex market (I' m talking about net loss ah, i.e, P+L, not per transaction loss ok?) , Proton , Bakun Dam , Malaysia Airlines etc etc etc. Anyway these hospitals were all privately owned by Parkway holdings, if you redbean one day start a new age old age home and you privatised it, you can also sell it and make big money.

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  21. Bang Redbean;

    bagang Kali enchik Matilah ada tanah besar di Malaysia yang belum pakai, ini 'swa ku' boleh sewa murah murah dari pada dia atau jadi jaga Yamaha dapat dudok sana free leg.

    patriot

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  22. My apology,
    the Word 'Yamaha' should read as 'tanah'.

    patriot

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  23. anon 2:41,

    Are you saying that buying Mt E, Gleneagles and Parkway is a mistake?

    DBS is privately owned, so is SMRT, and so are GH, NUH, KK etc.

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  24. Only time will tell. Khazanna offered a price higher than the Singhs, a price too good to refuse, so investors sell out. Even if this turn out to be a proftiable venture, I doubt they can squeeze much juice, and one small profit can't outweigh the huge losses on others. Hardly "they know how to buy good stuff".

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  25. Tuan Bean
    Beri dia 17 tahun dan lihat dia bisa jadi gila atau tidak

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  26. By the way, their Iskander Region is for sale, so was the I.T SuperCorridor. Even Bakun Dam. Wanna buy for investment ?

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  27. Alamak! blog di sini untuk bahasa Inggeris atau Melayu? Satu satu semua pandai beri comen2 dalam bahasa Melayu.

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  28. Hahaha, maaf. Semua bohong lah. Tetapi sedikit sedikit wayang tak salah lah.

    Just having a little exercise of our rusty bahasa: )

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  29. Harlow tukang2 hisap kontol semua,

    Malaysians like to talk big. You criticise them, the more big they talk, like want to fight with you. In fact, you stand a far greater chance of being assaulted and robbed in Malaysia than you do in Singapore.

    I have "street cred". I am the de-facto Prince Of Bukit Bintang. In order to stay healthy, I rely on the "miraculous" services of the Health Centers in BB. You should also see my passport. Last time I checked I counted 5 Malaysian work permits, one current, 4 expired.

    So I think I know what I'm talking about. ;-)

    BTW, Malaysian girls are much more friendly than their Singaporean sisters. :-)

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  30. I say Red Bean, tak payah minta maaf lah, tidak apa2 yang salah!

    On the other hand, I actually enjoy reading your blog as comments are interspersed with other languages or dialects like Mandarin, Malay, hokkien, cantonese, etc. It sort of spices up topics and make boring subjects more interesting and at times hilarious! which we don't get from most other blogs.

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  31. Eh dato, terima kaseh ya. I have just exhausted my 20 word bahasa vocab except for the swear words: )

    Language is a tool that get rusty if one does not use it. Blogs just to share some views, right or wrong, sometimes deliberately wrong, to draw some comments.

    The only person that takes blog seriously is Mabok Singapura: ) Then again sometimes there are gems in the rubbish dump.

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  32. This acquisition is almost related to all the private hospitals in Singapore. Out of curiosity, the strategies may have a foothold in our healthcare sector, nevertheless, our neighboring countries such as Thailand and Vietnam are gearing up their presence too. In the end, healthcare business is just another commodity where patient can choose the countries to do specific operation such as ophthalmology, cardiology and orthopedic. Thus, a greater competition for them all.

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  33. I say give the Malaysian time and they will buy up all the good stuff worth buying here to complement their stable of low performing companies back home.

    Watch out DBS, UOB, OCBC and HSBC.

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  34. Think everyone is using the American dollars to exchange for our assets.

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