Share This

Tuesday 7 March 2017

Rich Gen-Y kids making their own success


SINGAPORE: One of Rachel Lau’s strongest childhood memories is the smell of newspaper. Her father, driving her to school each day in Kuala Lumpur, would make his sleepy daughter open the paper, go through stock quotes and do mental math.

“He would be, like, How did KLK do today? OK, if it’s up four sen and I’ve got 89,000 shares, how much did I make?” Lau recalled. The daily ritual continued through her teenage years. Her father Lau Boon Ann built his fortune in real estate and by investing in companies like Top Glove Corp Bhd, which became the world’s biggest rubber-glove maker.

Some days, he would stand in front of an empty lot with his young daughter and challenge her to imagine a building there rather than watching the chickens running around.

Lau, now 31, is one of the three millennial co-founders of RHL Ventures, along with Raja Hamzah Abidin, 29, son of prominent Malaysian politician and businessman Datuk Seri Utama Raja Nong Chik Raja Zainal Abidin and Lionel Leong, also 29, the son of property tycoon Tan Sri Leong Hoy Kum.

They set up RHL using the wealth of their families with a plan to attract outside capital and build the firm into South-East Asia’s leading independent investment group.

“We look at South-East Asia and there is no brand that stands out – there is no KKR, there is no Fidelity,” Lau said. “Eventually we want to be a fund house with multiple products. Venture capital is going to be our first step.”

RHL has backed two startups since its debut last year. One is Singapore-based Perx, which has morphed from a retail rewards app to provide corporate clients with data and analysis on consumer behaviour. Lau is a member of Perx’s board, whose chairman is Facebook Inc co-founder Eduardo Saverin.

In January, the firm invested an undisclosed amount in Sidestep, a Los Angeles-based startup that’s also backed by pop-music artists Beyonce and Adele. Sidestep is an app that allows fans to buy concert memorabilia online and either have it shipped to their home or collect it at the show without having to wait in line.

“RHL guys are really smart investors who are taking their family offices to a new play,” said Trevor Thomas who co-founded Cross Culture Ventures – a backer of Sidestep, together with former Lady Gaga manager Troy Carter. “What attracted the founders of Sidestep to RHL was their deep network in South-East Asia.”

A lot of startup founders in the United States want to access the Asian market, said Thomas, but they often overlook the huge South-East Asian markets and only focus on China. “Rachel and the team did a great job of explaining the value of that vision and providing really great access to early-stage US companies,” he said.

In South-East Asia, RHL has positioned itself between early-stage venture capitalists and large institutional investors such as Temasek Holdings Pte. Hamzah said they want to fill a gap in the region for the subsequent rounds of funding – series B, C and D. “We want to play in that space because you get to cherry pick,” he said.

RHL’s strategy is to take a chunk of equity and a board seat in a startup that has earned its stripes operationally for at least a year, and see the company through to an initial public offering.

Summer camp

RHL’s partners represent a new generation of wealthy Asians who are breaking away from the traditional family business to make their own mark. They include billionaire palm-oil tycoon Kuok Khoon Hong’s son Kuok Meng Ru, whose BandLab Technologies is building a music business.

RHL’s story begins in 2003 at a summer camp in Melbourne. During a month of activities such as horse riding and playing the stock market, Lau struck up a friendship with Hamzah, unaware that their parents knew each other well.

Their paths crossed again in London, Sydney, New York and Hong Kong as they went to college and forged careers in finance – Lau at NN Investment Partners and Heitman Investment Management, where she currently helps manage a US$4bil equity fund; and Hamzah at Goldman Sachs Asset Management and Guoco Management Co. Together with their mutual childhood friend Leong, the trio would joke about all returning to Malaysia one day to start a business together.

That day came in 2015 when Hamzah called up Lau in Hong Kong and said: “Yo! I’ve moved back. When are you coming back? You haven’t lied to me for 15 years, have you?”

They decided their common trait was investing.

Hamzah shares Lau’s passion for spotting mispriced assets by analysing valuations. Lau says she trawls through 100-page prospectuses for fun and values strong free cash flow – the cash a company generates from its operations after capital expenditures. Leong helped structure debt products at Hong Leong Investment Bank before joining his family’s real-estate business to learn about allocating capital to strategic projects.

In February 2016, they started RHL Ventures – an acronym for Rachel, Hamzah, Lionel – with their own money. When their families found out about the plan, they were eager to jump in, said Lau. Now they aim to raise US$100mil more from outside investors.

The partners have roped in their family and hedge-fund experts as advisers. “We recognise that we are young and still learning,” Lau said. “There is no point pretending otherwise.”

Leong’s father runs Mah Sing Group, Malaysia’s largest non-government-linked property developer. Hamzah’s father, chairman of mechanical and electrical business Rasma Corp, is a former Federal Territories and Urban Wellbeing Minister. Top Glove chairman Tan Sri Lim Wee Chai is also an adviser, in place of Lau’s father, who died in 2008.

The other two advisers are Marlon Sanchez, Deutsche Bank’s head of global prime finance distribution in Asia-Pacific, and Francesco Barrai, senior vice-president at DE Shaw, a hedge fund with more than US$40bil in investment capital.

RHL added a fourth partner last month, John Ng Pangilinan, a grandson of billionaire property tycoon Ng Teng Fong, who built Far East Organisation Pte and Sino Group.

Ng, 37, has founded some 10 ventures, including Makan Bus, a service that allows tourists to explore off-the-beaten-track eateries in Singapore.

As well as their family fortunes, the four partners bring experience of upbringings in dynasties that valued hard work, tradition and dedication.

Ng recalls his grandfather, Singapore’s richest man when he died in 2010, would always visit a property he was interested in buying with his wife.

After driving around the area, they would sit on a bench and observe it from a distance. Then they would return to the same spot after dark.

“He said to us, ‘What you see during the day can look very different at night,’” Ng said.

Hamzah, whose great-grandfather Mustapha Albakri was the first chairman of Malaysia’s Election Commission, remembers his father’s lessons in frugality – one time in London he refused to buy a £2 (US$2.50) umbrella when it started raining as they had plenty of umbrellas at home.

Leong, scion of Mah Sing Group, grew up listening to tales of how his family business overcame tough times by consolidating and reinventing itself from its roots as a plastic trader. “It made me realise that we have to be focused,” he said.

“So with every deal we do, we have to put in that same energy and tenacity.”

Lau was a competitive gymnast as a child but quit the sport when she failed to win gold at a championship event.

“It’s one thing I regret. In hindsight, I don’t think I should have given up,” said Lau. “The ultimate champion is the person who doesn’t give up.”

One old habit however remains. When Lau picks up a newspaper, she goes straight to the business section. “It’s still the only thing I read,” she said. – Bloomberg/The Star by Yoolim Yee

Related stories:

Fostering innovation: Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah (centre) witnessing the ceremony for the establishment of the Islamic venture capital fund between Jamaludin (2nd from left) and Amir. Looking on are Mavcap chairman Abdul Rahim Hamid (left) and Elixir Capital adviser Tan Sri Datuk Dr Abdul Samad Alias.
Mavcap aims to set up RM2bil investment funds
 
Venture capitalists invest US$56b in start-ups

Chua: ‘The Government recognises the important role of the VC industry as a source of financing to emerging high-growth companiesMalaysian venture capital attracts RM7.2bil in 2015

Malaysia Venture and Gobi to focus on S-E Asia with new fund

Signs of bubble in mobile Internet start-ups

Related posts:

Lofty targets: (From left) Sin Chew Media Corporation’s Eugene Wong, co-founder and chairman Dr Wong Jeh Shyan and Yong speaking to t...

Venture scheme accelerates growth of start-ups 

Sunday 5 March 2017

N Korean envoy declared as 'persona non grata' in Malaysia

Kang Chol



KUALA LUMPUR: North Korean Ambassador Kang Chol, who has accused Malaysia of colluding with foreign powers in the murder of Kim Jong-nam, must leave the country within 48 hours.

Kang Chol, who was summoned to Wisma Putra at 6pm yesterday, failed to turn up.

And in a turn of events, the ministry sent a diplomatic note to the embassy at about 9.30pm to inform the North Korean government that Kang Chol had been declared persona non grata.

Kang Chol has to leave by tomorrow.

In a statement, Foreign Minister Datuk Seri Anifah Aman said the Malaysian Government had demanded a written apology from North Korea for the ambassador’s recent accusations against the country over Jong-nam’s assassination at KLIA2.

That demand, he said, had been made du­ring a meeting between Wisma Putra officials and the North Korean high-level delegation on Tuesday.

“The officials, led by deputy secretary-general for bilateral affairs Raja Nurshirwan Zainal Abidin, met the delegation headed by Kim Song on Tuesday.

“The delegation was informed that should there be no response by 10pm that day, the Malaysian Government would take measures to best protect its interest.

Here you go: A North Korean embassy official (left) accepting a letter from Muhammad Haidas Muhammad Sharif Song, an assistant secretary of the Malaysian Foreign Ministry’s East Asia Division, at the North Korean Embassy in Bukit Damansara. 

“Almost four days have passed.

“No apology has been made and neither has there been any indication that one is forthcoming.

“For this reason, the Ambassador has been declared persona non grata,” said Anifah.

Persona non grata, in Latin, means one who has been declared so by the receiving state and barred from entering or remaining in the country.

It is the most serious form of disapproval that the country can apply to foreign diplomats and is often used to express displeasure at the conduct or policies of the sending state.

In his statement, Anifah also gave details leading to the move.

He said he had instructed his officers to summon Kang Chol, but neither the ambassador nor the embassy’s senior officials came to Wisma Putra.

“For this reason, the ministry – via a diplomatic note sent to the embassy this evening – informed the North Korea government that His Excellency Mr Kang Chol is declared persona non grata by the Malaysian Government.

“He is expected to leave Malaysia within 48 hours from the scheduled time of the meeting, which is 6pm on March 4 (yesterday).”

Malaysia, vowed the minister, would strongly act against any insult made against it or any attempt to tarnish its reputation.

“It should be recalled that the ambassador has alleged that the conduct of the investigation into the death of a North Korean citizen on Feb 13 indicates that the Malaysian Government had something to hide and that it colluded with outside powers to defame his country,” he said.

However, recent events, including the release of North Korean Ri Jong-chol due to the lack of evidence, was proof that the investigation was carried out in an impartial, fair and transparent manner, said Anifah.

This, he added, as “befits a country that practises the rule of law”.

Kang Chol, 64, began his diplomatic career as an assistant officer in the Middle East Department of North Korea’s Foreign Ministry.

His previous postings were in Somalia and Ethiopia and he had also served as the ministry’s director-general of administrative affairs.

Kang Chol, an alumnus of the Pyongyang University of Foreign Language (1972-73) and Somalia National University (1973-76), has two children.

Source: The Star by mergawati zulfakar, farik zolkepli, qishin tariq, jo timbuong, neville spykerman, royce tan


Related stories

We treated Jong-chol well, says IGP 

‘Malaysia didn’t breach UN sanctions against North Korea’

Unidentified man allowed into embassy

Media frenzy over five-minute note exchange

A crisis that is not going to end anytime soon 


Related posts:

Saturday 4 March 2017

No dog until neighbours agree

 

IPOH: The Batu Gajah District Council (MDBG) has become the first in Perak to require dog owners to seek consent from their neighbours if they want a dog licence.

It is now running a trial on this, covering residents who want to get a pet dog for the first time.

“This is to ensure better management of the pets and to ensure there are fewer complaints from the people,” said council president Nurdiana Puaadi, adding that the Ampang Jaya Municipal Council had a similar requirement which had been proven to be successful.

Nurdiana cited cases of a household keeping three dogs but only one was licensed, adding that the MDBG had received numerous complaints about dogs that barked non-stop.

“Once the neighbours give their approval, they cannot complain to us,” said Nurdiana, adding existing dog owners should also get their neighbours’ approval.

“This will also help keep stray dog problems in check,” she said.

The application form states that residents staying at terrace lots need the consent from neighbours from both sides.

Those staying in bungalows, semi-detached and cluster homes need the agreement from neighbours on both sides and at the back. Owners also need to put up a sign to show that they have a dog.

The types of dogs not allowed to be kept include Akita, American Bulldog, Dogo Argentino, Fila Brasileiro, Japanese Tosa, Neapolitan Mastiff, Pit Bull Terrier, American Pit Bull and Staffordshire Bull Terrier.

Rottweilers are allowed but owners need to produce health reports from the Veterinary Services Department for new applications. Those who have been keeping Rottweilers can renew the licence until the pet dies.

It also states that those living in bungalows, semi-detached or terrace corner lots can keep a maximum of two dogs, while residents in terrace end lots and terrace intermediate lots can only keep one.

Other stipulations include urging owners to keep their dogs clean and healthy and to ensure pets do not disturb neighbours with incessant barking.

Owners must also ensure their dogs do not roam unsupervised and must be muzzled and leashed when they are out. Dogs three years or older found without a licence can be impounded and put down.

Owners can also be fined a maximum of RM2,000 or jailed not more than a year or both if found guilty under any provisions of the Dog Licensing and Dog Breeding House By-laws.

By Ivan Loh The Star

Related: No dog until neighbours agree - Lowyat Forum - Lowyat.NET

Related posts:

Stray dog sensation in China!
Dog attacks humans, it’s the owner, not the breed! 
How to avoid dogs attack you? 
Killer dog's owner fined and charged again 
Biting demand over dog attack; keep stray dogs off the street! 
Pit bull Terrier, a restricted breed; Time to regulate pet shops! 
American Pit Bull Kills Jogger ! 
Burglar-proof your home 
Look, man threw dog into manhole! 
How low can cruel people go?
Dogs BCG Matrix - Breed of Dog

Thursday 2 March 2017

Protecting house buyers' interest


I REFER to the reports “Court: No power to grant extension” and “A fair and right judgment, says housing developer” ( The Star, Feb 28 - Developer has to compensate buyers for delays of projects, Court says).

The High Court decision declaring as ultra vires (beyond one’s legal power or authority) the Housing and Local Government Minister’s granting of a one-year extension of time (EOT) to developers to complete a delayed housing project and thus denying house buyers liquidated and ascertained damages (LAD) provided for under the sale and purchase agreement is timely, sound and indeed meritorious. It is hoped that the decision would be maintained should the minister decide to appeal it.

The Housing Development (Control and Licensing) Act 1966 was enacted for the protection of home buyers.

The long title of the Act (paragraph stating Parliament’s intent for the Act) says: “An Act to provide for the control and licensing of the business of housing development in Peninsular Malaysia, the protection of the interest of purchasers...” This makes clear that the housing development business is regulated to ensure that the protection of home buyers’ interest is paramount.

Two eminent judges, the late Tun Mohamed Suffian, former Lord President of Malaysia, and the late Tan Sri Lee Hun Hoe, the longest serving Chief Justice of Borneo, stated this in two landmark cases respectively.

Suffian LP (Sea Housing Corporation v Lee Poh Chee): “To protect home buyers, most of whom are people of modest means, from rich and powerful developers, Parliament found it necessary to regulate the sale of houses and protect buyers by enacting the Act.”

Lee Hun Hoe CJ (Borneo) (Beca (Malaysia) Sdn Bhd v Tan Choong Kuang & Anor): “The duty of observing the law is firmly placed on the housing developers for the protection of house buyers. Hence, any infringement of the law would render the housing developer liable to penalty on conviction.”

Respectfully, it is submitted that the decision to grant the developer of a housing project extension of time and thus deny the home buyers’ statutory rights to LAD ought to be exercised with diffidence. The decision, if any, ought to be made with the Act’s long title in mind, namely, “for the protection of interest of purchasers”.

In doing so, some aspects to consider are:

> In granting EOT, how will home buyers’ interest be protected?

> LAD is agreed monetary payment for home buyers’ losses for delay in completion of a housing project. Is denying home buyers’ the LAD by the EOT tantamount to protecting their interest?

Although Section 11(3) of the Act states that the developer under “special circumstances” may apply to the Controller of Housing for EOT, it is submitted that Parliament and the long title of the Act surely did not intend LAD to be wiped out by “a stroke of a pen”.

To avoid doubt, “special circumstances” would mean act of God or natural disaster, for example earth quake or tsunami, and not business or economic related challenges or hardship.

The above view would make legal sense of Section 11(3).

Again, the High Court decision is lauded.

Home buyers’ interest is of paramount importance under the Housing Development (Control and Licensing) Act 1966. The Controller of Housing’s or Minister’s decision, although seemingly made “by a stroke of a pen”, must materialise or recognise this intent. Failing to do so would be ultra vires the Act.

May the redeeming light of the Housing Development Act (Control and Licensing) 1966 continue to shine effervescently and protect effectively home buyer’s interest for many years to come.

This letter is dedicated to the National Housebuyers Association, its great team of lawyers, professionals and volunteers for their sterling and pro-bono efforts to speak up for and preserve home buyers’ interest.

Source: ROBERT TAN,  Home buyer and author of Buying Property From Developer: What You Need To Know And Do, Petaling Jaya

Related posts:

  Take them to task: According to the liquidated damages clause, condo buyers can claim 10 per annum of the purchase price for the de...


Buy-to-let investing just became a very, very bad idea - The Spectator Buying to rent may not be a good idea RENTING out a house...

Tuesday 28 February 2017

Developer has to compensate buyers for delays of projects, Court says


 
Take them to task: According to the liquidated damages clause, condo buyers can claim 10 per annum of the purchase price for the delay

KUALA LUMPUR: The Housing Controller has no power to grant an extension of time to developers who delay the completion of housing projects, the High Court has ruled in a landmark judgment.

This means a housing developer has to pay compensation to the affected buyers for delays in the delivery of vacant possession.

High Court (Appellate and Special Powers) judge Justice Hanipah Farikullah also held that the regulation which empowers the Controller to modify terms of the contract of sale was ultra vires the Housing Development, Control and Licensing Act.

The judge said this in allowing an application for judicial review by 71 buyers of the Sri Istana condominiums in Old Klang Road against the Housing Controller and Urban Well-being, Housing and Local Government Minister.

Their lead counsel Datuk Wong Kok Leong told The Star the judge held that the minister’s decision to grant the developer an extension of time to complete the project via a letter dated Nov 17, 2015 was invalid.

In the letter, the minister had granted the developer a 12-month extension to complete the project.

“This means that the Housing Controller has no power to grant an extension of time to housing developers for any delay in completing their projects,” Wong said.

“Now, the developer has to pay the liquidated damages (a pre-determined sum) for late delivery of vacant possession of those condominium units.”

Wong called the decision a landmark judgment as many project developers seek extensions to complete their projects in Malaysia.

“This is a victory for all house buyers. With this ruling, the housing developer can’t just go to the Housing Controller for an extension of time to complete the project in order to avoid paying the liquidated damages to house buyers.

“This is because if an extension of time is allowed, house buyers lose their rights to claim damages for late delivery of vacant possession,” he added.

Wong explained that according to the liquidated damages clause, the condo buyers can claim 10% per annum of the purchase price for the delay.

In their application for judicial review, the condo buyers stated that they wanted to quash the decision allowing BHL Construction Sdn Bhd an extension of time for the delivery of vacant possession from 36 months to 48 months.

They also asked the court for a declaration that Regulation 11(3) was ultra vires of the Housing Development Act (Control and Licensing) Act.

Wong said the judge has ordered the parties to address the issue of costs on the next date for case management.

When contacted, SFC Mohamad Rizal said the judge also allowed a similar application involving another group of condominium buyers involving the same developer and project.

Source: By  m. mageswari, royce tan, thean lee cheng, eugene mahalingam, The Star

Related story:
Related posts:


Reponsible housing developers' traits and qualiies expected 

 

Who is responsible: developer, contractor, local council or house-owner for the damages? 

  Who is responsible for slope management? Does the responsibility come with the property bought by the purchaser? THE collapse of a...


House buyers, learn your rights

House buyers, learn your rights. I RECENTLY moved into our new house in Sungai Ramal Dalam. I bought the property back in 2012 and we received  

 

I REFER to the article “Local govt polls may cause racial polarisation” ( Sunday Star, Jan 25) and would like to share my views on matters. ...

 

Councillors ready to serve Penangites to make a difference? 

HE Penang Island City Council (MBPP) and the Seberang Prai Municipal Council (MPSP) see 10 new faces among the list of councillors who swo...