Dear all,

https://edition.cnn.com/2019/08/23/politics/donald-trump-china-tariffs/index.html

Quote, “Earlier Friday, Trump ordered US companies doing business in China to find an "alternative" and had promised to deliver further action after he met with his economic team at the White House.

"We don't need China and, frankly, would be far better off without them," Trump tweeted. "Our great companies are ordered to immediately start looking for an alternative to China, including bringing your companies HOME.

Trump again attacked Federal Reserve Chairman Jerome Powell over interest rates, which Trump insists are too high even after a rate cut last month. "My only question is, “who is our bigger enemy, Jay Powell or Chairman Xi?" the president tweeted referring to Chinese leader Xi Jinping. Unquote”

Trump’s US is no longer the leader of neither free world nor standard bearer for democratic ideals, freedom, liberty and justices. You cannot even count on US to honor international treaty or commitment. It is now America first, makes America great again and you are either with me or against me. Under such backdrop no deal trade war is imminent and the only light at the end of tunnel is for America people to kick out big bully Trump from the white house come 2020 US president election.

Before that, let’s examine the economic model of China and US.

The People’s Republic of China is governed by the CPC top elite, elected by the CPC members but for the people of China.

China economy system is basically Capitalism/Socialism with Chinese Characteristics. https://en.m.wikipedia.org/wiki/Beijing_Consensus

China’s economic strategy is creating free-market capitalism with an authoritarian one-party state that prioritizes political stability. The three broad guidelines for economic development are:

1. Commitment to innovation and constant experimentation.
2. Sustainability of the economic system and an even distribution of wealth.
3. Policy of self-determination.

Basically China rapid economic advance is due to stability provided by CPC government and their commitment to innovation and experimentation.

People of China support the CPC government because of sustainability of the economic system and an even distribution of wealth. https://www.unescap.org/blog/towards-sustainable-future-case-china-s-economic-transformation

President Trump will be forgiven for thinking that he can impose his one-sided trade deal with China for CPC will hold steadfast to their policy of self-determination and never again falling for a lopsided treaty.

The western democratic government is slowly turning into Government of the 1% business elite, by the 1% business elite, for the 1% business elite.

https://en.m.wikipedia.org/wiki/Washington_Consensus

A democratic government with free market-based approach economy (sometimes described as market fundamentalism or neoliberalism) has given rise to oligopolistic and monopolistic economy where the rich will get richer and poor become poorer.

https://en.wikipedia.org/wiki/Wealth_inequality_in_the_United_States#Wealth_and_income

In 2017, an Oxfam study found that eight rich people, six of them Americans, own as much combined wealth as half the human race

A 2014 study by researchers at Princeton and Northwestern concludes that government policies reflect the desires of the wealthy, and that the vast majority of American citizens have "minuscule, near-zero, statistically non-significant impact upon public policy … when a majority of citizens disagrees with economic elites and/or with organized interests, they generally lose

According to a June 2017 report by the Boston Consulting Group, around 70% of the nation's wealth will be in the hands of millionaires and billionaires by 2021

Back to Malaysia economic policy/model I would like to quote:

“Insanity is doing the same things over and over again and expecting a different results”- Albert Einstein

https://www.theonlinecitizen.com/2019/05/10/dr-mahathir-announces-new-economic-model-for-malaysia-to-achieve-shared-prosperity-by-2030/

In a special address on the first anniversary of ‘Malaysia Baharu’ which commemorates the country’s first change in government since its inception, Prime Minister Tun Dr Mahathir Mohamad announce a new economic model which advocates shared prosperity with the aim of providing a ‘decent standard of living for all Malaysians’ by 2030 across economic class, race and geographic location. The “shared prosperity 2030” will replace the Vision 2020 model which was used in the past decade but failed to accomplish its mission and is no longer achievable

The new economic Model “Shared Prosperity 2030” is achievable provided we Malaysians are prepared to adopt a new mindset starting with racial unity, needs base policy, shared responsibility, shared destiny and getting our education priority right for knowledge-based economy.  An education that prepared Malaysian for Industrial Revolution 4.0 and an education that open mind, empower our children with the ability to think critically, logically, wisely and to make their own informed decisions, no matter the situation. We must raise a new generation of inclusive leaders and great thinkers able to understand and empathy across the racial divide.

Thank you

PS: Let’s we start this shared prosperity with a new mindset, when we invest in a company, we own part of that company and we are partly responsible for how that company progresses. If we believe there is something going wrong with the company, then we, as shareholders, must become active and vocal in holding Board accountable and responsible. Taking them to tasks for their promised/AGM presentation and demanding the controlling shareholder to share the wealth of the company with all the shareholders.

Below are part of my email to SC and Bursa.

I would like to suggest to Bursa to make the protection of minority shareholders interest a sacred duty and responsibility of Bursa. For far too long Bursa had allowed controlling shareholder running the company to indulge in excessive corporate abuse, inter-companies, friendly parties transactions that benefit major shareholder and his friendly parties at the expanse of minority shareholder interest.

Example:

1.    BJland

I refer below bursa timely announcement on Bjland public shareholder spread of Bjland is now below 15% and Bjland will seek the approval of Bursa Malaysia Securities Berhad for an extension of time to comply with the approved minimum public shareholding spread requirement.http://www.bursamalaysia.com/market/listed-companies/company-announcements/6244125

I did not fault Tan Sri Vincent Tan for acquiring Bjland share from open market because looking at huge volume of sell key in every trading day, some syndicate is trying to press down the Bjland market price. What I am object to is why Bjland Board of Director did not activate the mandated share buy-back to give confident to market that Bjland is serious to defend the interest of its shareholders? Will Bursa now grant extension time for 6 months and continues this grant extension every-time Bjland Board applies for extension?

2.    TAE MGO.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5900521

The Offer Price of RM0.66 is lower than and represents a significant discount of RM1.93 to RM1.94 or 74.5% to 74.6% to the estimated fair value per Offer Share of RM2.59 to RM2.60.

Based on the above, BDO is of the view that the Offer is NOT FAIR and NOT REASONABLE. Accordingly, we advise and recommend that Holders to REJECT the Offer.

May I ask why Bursa did not have rule to make sure MGO is at price fairer to minority shareholders (mandatory clause of readjust MGO offer to XX% of fair value)?

3.    KSL: Chairman’s statement: 2014 Annual report

I am also pleased to announce that the Group has adopted a dividend policy of distributing 40% of the Group’s annual net profit after tax from operations (excluding any fair value gains) to shareholders in the form of cash dividends.

This dividend policy was broken in 2016, 2017 and 2018 with reason KSL is currently developing a huge integrated commercial complex with hotel (proposed name KSL Esplanade Mall) in Klang. It is under active construction and targeted to be completed in year 2021. Total estimated capital expenditure for the above complex is approximately RM 500 million. We need to set aside our reserves for the above projects and working capitals. Hopefully, it will generate huge income once in full operation and enhance our future earnings.

The excuse is pure nonsense when KSL can afford to pay Executive Chairman, CEO and Executive Directors (3 brothers) RM 10 million each in director remuneration and bought vacant land:

Mukim of Pulai vacant free hold Land held for Development 8,208,099 sq ft: Net book value RM 180,674,963. RM 22.0 per sq ft. Date of acquisition: 20.03.2018

Mukim of Tebrau vacant lease hold Land held for Development 5,137,998 sq ft: Net book value RM 134,021,551. RM 26.1 per sq ft. Date of acquisition: 12.03.2018

The three brothers are now happily collecting the depressed KSL share form open market. May I ask why Bursa did not set guideline on the need of dividend policy? Limit the remuneration of controlling shareholder run companies? And take them to task for not sharing the wealth with minority shareholders through dividend after all they will received the lion share of dividend as major shareholder.