Tuesday, 5 January 2010

Are you blaming the wrong person for the sugar price increase?

Many people are cursing Mr. Robert Kuok over the recent sugar price increase. I find that absurd. And then I realise… many people out there didn’t know the news…

Please be informed (and please inform others) that Robert Kuok has
“sold” his entire Malaysian sugar business to FELDA in October 2009. And, you would also be interested to know that he has been asking for a price increase in sugar for a long time but the govt has rejected his plea all this while.

However, once the sugar business has moved from Mr. Kuok to FELDA, the govt then approved the price increase. Is that a co-incident or what?

Also, what’s the reason behind Mr. Kuok “selling” his sugar business to FELDA? Now, that’s the million-dollar question, isn’t it?

By the way, the increase in price also coincides with the announcement that a Space City worth RM13 billion is to be built in Seremban. Wait, you mean you didn’t read about it?

28 comments:

MKL said...

On a random note: I thought Malaysians prefer spicy food over sweet. So that increase should not affect the average Malaysian ;)

Pinknpurplelizard said...

Sugar is another subsidised thing in this country. The gov should float all things to market price instead of suppressing prices thru subsidies. I actually wish that they would've increased it by RM1-2 so that ppl will eat less sugar and Msia can be a less diabetic nation.

day-dreamer said...

I chose to quote you: sam jiu la... :P

Jerine said...

@MKL: Malaysian also cannot live without teh tarik and kueh. So it's a big deal.


Mr. Kuok sold his sugar business to Felda because he kena diabetes.

Thomas Chan said...

I guess Mr Kwok was given an "offer that he cannot resist", GODFATHER style, to ensure the safety of his great grandchildrens and generations to come that carries his sirname.

Swowly, maybe, the next two generations, we will see Genting, Maxis, Tanjong and other big chinese owned conglomerates being owned by "Insert your own race/names" here. I'm not suprised after what they have done with a couple of "Banks" and "Sime Darby" a few decades ago.

oh..nvm..like u said before..lets stuff ourselves with nasi lemak, roti canai and bak kut teh while we are still alive.

Mabs N Cals said...

yeah but I thought Mr Don rather take his money and start a sugar factory elsewhere. Which is what he in fact did.
I think the celestial stars got a say in this coincidental occurrence, may its just the stars.

Anonymous said...

The coffer is dry after so many years of plundering and looting, so subsidy got to be withdrawn stage by stage.

Mickeymiao said...

I read this few weeks ago

http://www.bizedge.com/features/153785-cover-story-the-reason-for-kuoks-exit.html

blackjack said...

ThomasChan is darn right. Before long, you will be seeing the Lim family exiting Genting. But I wonder, how will the halal issue be handled since Genting is in gambling business.

Jennifer said...

Mr Kuok is going to sell off all his business in Malaysia because doing business here sucks. The playing field is not level. They make the regular businessman vomit blood because the power/decision maker always favor the one giving the biggest kick backs. You need a direct cable to that decision maker and his bank account number. I feel sad that the taxes I pay is going down the drain to some fat cat's pocket and not back for the betterment of society. Screw bolehland.

Umar_LoveIja said...

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InjusticeSistem said...

Yes spot on! But you forgot to tell your readers one more thing. Their tax money is being used to finance the whole deal. And i believe now the new sugar king is Syed Mokhtar. One of UMNO's biggest cronies.
How our tax money is used to finance this deal? Syed Mokhtar aint gonna buy with cash, bank loan! Which bank? And we all know when GLC bank dont mk money, who is gonna bail them out? NOOOO not da govt....YOUR TAX MONEY....Yeah aint this dandy....
I use UR MONEY to buy a company and this company immediately get govt consent to increase price to sell their product BACK TO YOU.
Robert Kuok did not get a good deal. He got muscle out. He wanted price increase, govt say no. So he sell da company base on the current sugar price and how long it takes da buyer to recuperate his investment.
Using my limited economic understanding...dis is how i see it...Eg.say Kuok sold it for 500million or wateva, at previous sugar price Syed will tk 10 yrs to recuperate his investment. After the purchase, govt increase price,now Syed only need 7 yrs to recuperate,next 2 months increase price again giving the buyer maybe ONLY 3 yrs to recuperate his investment. Robert Kuok definitely got the shorter end of the deal, but stl,it is better to sell off than to continue doing bisnis here in Malaysia.
Oh ya by da way Syed Mokhtar also control BERNAS, yes u got it right, da rice u eat today, he control da price.
So if any of u smart ass think you can escape the hands of these cronies, your are wrong....you will never escape as long as you live here in BolehLand.....touche
Hows zat doomsday demoralising comment to kickstart da new yr eh Zewt

tomatoinc said...

zewt, do u find it funny that robert kuok sold all the sugar business for Rm1.29billion? When u read the report more:

"Its sugar refining and cane plantation business contributed 27 per cent to the group's revenue of RM3.46 billion and 36.5 per cent to its operating profit of RM431.2 million in the fiscal year ended December 31 2008."

On an annual basis, the sugar business generates 934mil revenues and 157.4mil profits in a year of recession. Considering most of the business sold consist of tangible assets (land, factory) - robert kuok didn't make any profits from the sale.

why did he sell then? :)

Anonymous said...

bottom line is malaysia sucks...australia good

T said...

I guess Robert Kuok has had enuf and not going to "t*u" Malaysian government no more.

Anonymous said...

Ooh, now only i see, didnt they say its for our own good health, we will consume less if the price is increased!(in a perli-ing tone)

deusXmachina® said...

what the hell when people has been advised to reduce the sugar's use in the food???

i dun think malaysian can eat the kuih without or sugar less

stupido governmento

jam said...

Basically, it is another story of government lack of money and want to squeeze our hard earned money.

eiling lim said...

I find our society has always be misinformed. That is why I never trust the mainstream medias. Many malaysians are still too naive la...

Pinknpurplelizard said...

Any bets on how long it'll take Felda to really muck up the whole sugar empire? XD

I feel this is a small move en route to a bigger plan for Felda or the gov.

fufu said...

erm i think the people should get the information from malaysiakini or insider blablabla... stop misleading the people....errhhhh

autumn said...

oh, such a coincidence eh *rolls eyes*

omg, RM13 billion?! gosh, im so behind the news, i din even know who was robert kuok until i read the whole post =.=

j_yenn said...

Heard about it, read about it. SAD!!!

goingkookies said...

seriously.. wat's new??

i bet in ur line of work.. u re privy to more "disgusting" news that u can't share.

i wonder wat can be done for a change.

zewt said...

MKL - sugar is important to make teh tarik... crucial to the mamak culture.

pinknpurplelizard - that's a good perspective.

day dreamer - haha... you have truly learned well my paduwan.

Jerine - there you go... jerine got the message haha!

Thomas Chan - strange though, someone studied the financials and he didnt appear to have been offered a good deal. i personally doubt it.indeed, it wont be long before the rest are being "purchased" too. yeah... nasi lemak coming up :)

Mabs N Cals - the stars can be wrong :P

zewt said...

anon @ 6/1 8.47am - dried right to the bottom!

Mickeymiao - hello there... your picture looks familiar...

blackjack - no prizes for correct guesses...

Jennifer - hahaha... i can sense the anger... just make sure u vote ok?

Umar Lovelja - hello... ok.

InjusticeSystem - i must say, that is a very good analysis. one that i missed out. i will quote you should i visit this notion again. well, things here are always depressing, new year or old year.

zewt said...

tomatoinc - there you have it... forced!

anon @ 6/1 7.52pm - not bottom line... top top line already like that lor.

T - hahahaha... he already tiued long ago. moved his operations to HK. this is the last straw.

anon @ 6/1 11.25pm - you believe them?

duesXmachina - kuih mesti ada gula... takde gula, mana sedap :)

jam - and it's all well planned.

zewt said...

eiling lim - thus we need the internet.

fufu - i am glad you follow that even when you are in germany :)

autumn - you dunno robert kuok **zewt faints**

j_yenn - SAD indeed.

goingkookies - hehe... yeah, how i wish i can share. maybe when i resign or leave for good...