By KINIBIZ
Any day now, we will know for certain whether the foreign consortium edges out Tenaga Nasional to buy off ailing 1Malaysia Development Bhd’s (1MDB) power assets.
By available information the foreigners, namely China General Nuclear and Qatari outfit Nebras Power, seem likely to win the bidding. Sources say the foreign consortium is offering RM10 billion compared to Tenaga Nasional’s RM8 billion – a hefty 25% more.
As we wait, however, an important issue looms. How much will the public know of the transaction and material details involved?
In particular, there is the 49% cap on foreign shareholding that currently bars foreigners from owning a majority stake in local power plants. Recall that a motion was filed earlier this week to discuss this matter in Parliament only to be shot down by the speaker.
While the government is proposing to lift that cap, according to Pandan member of parliament Rafizi Ramli, it is unclear if it will be a one-off waiver or a policy-level decision. Either carry different implications, as we discuss further in one of our picks of the week below.
Another issue will be whether there will be side deals involved should the foreigners will. As one industry observer told KINIBIZ before, if the foreigners are able to bid such high prices compared to Tenaga Nasional then there may be risk of a quid pro quo somewhere else – and the public should be informed if so.
As we wait, however, here’s a selection of our best news, comments and analyses this past week for your reading pleasure:
Yet another convoluted deal by 1MDB. It seems that almost anything touched by 1MDB’s tentacles becomes poisoned with controversy and questions. Its entry into solar power in Malaysia is no different and leaves in its trail more questions than answers – and a link to an Obama fundraiser to boot. Read here.
TPP agreement: 4 busted myths and a pressing issue. The release of the full Trans-Pacific Partnership agreement has led to more debate and discussion, some logical but others less so. But there are four myths that need to be put aside and one serious issue that needs to be addressed – read all about it here.
Govt may set dangerous precedent with Edra sale. Any day now, the winning bid for 1MDB’s power assets is expected to be announced. By the bid figures, it would seem foreigners are the frontrunners ahead of Tenaga Nasional. But one potential aspect of the sale may lead us down a slippery slope. Read here.
Why political donations from GLCs should stop. On Nov 17, the prime minister told Parliament that donations to political parties from government-linked companies can be treated as part of corporate social responsibility. Should it? There is a very strong case to stop this practice immediately. Read why here.
How much money does a highway really need? A Sarawak minister claims RM16 billion allocated for the Pan Borneo highway is “chicken feed”, calling for the amount to be doubled at least. So how much money does a highway really need and how do we come to such estimations anyway? The public deserves to know. Read here.
Rise of Juris Technologies. When Juris Technologies Sdn Bhd chief executive officer and co-founder See Wai Hun started her career at a consulting firm, she had no idea she would become an entrepreneur. But she took the leap with some prodding from a friend and has never looked back. She tells her story to KINIBIZ here.
Fed up with the Fed. Every few months we ask ourselves the same question: will the Fed raise rates? So far, the answer has been no, but even if it did, we’d just ask if the Fed will raise rates further. Perhaps it’s about time the US Federal Reserve bites the bullet and go ahead anyway. Read here.
The property market, not policies, should adapt. Recently property developers appealed, yet again, for the government to relax lending guidelines to enable more people obtain a mortgage and buy a home. Perhaps they may try adapting to the new reality at hand instead of asking for it to be changed. Read here.
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— by Khairie Hisyam Aliman, News Editor
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