[Kenapa asyik gagal sahaja projek penswastaan negara yang berjuta-juta? Kenapa KWSP melabur dalam projek yang diceburi oleh kroni yang langsung tidak pandai berniaga?

Di negara maju projek sebegini sentiasa memulangkan keuntungan yang tidak terjejas pun oleh kemelesetan ekonomi. Kalaulah projek ini dipantau dari mula ini semua takkan terjadi. Itu tidak dilakukan kerana tujuan sebenar LRT adalah untuk membuncitkan diri dan kroni. Itulah kerja sebenar Unit Perancang Ekonomi yang berada di bawah ketiak Perdana Menteri. - Editor]

http://www.iht.com/articles/31169.htm

Kuala Lumpur Revives Rail Takeover Plan

Bloomberg News
Saturday, September 1, 2001

Bailout Would Represent 10% Reduction of Malaysia's Corporate Debt Burden

KUALA LUMPUR Malaysia has revised a plan to take over two rail companies and convert $1.4 billion of their overdue loans into bonds in what would be the country's biggest corporate rescue.

The government plans to acquire 80 percent of Kuala Lumpur's light rail system, leaving Renong Bhd., Taylor Woodrow PLC, state-run pension funds and other shareholders with the rest, according to a document obtained by Bloomberg News.

The revised plan was outlined in the 14-page document by the state-owned debt mediator and dated Aug. 29.

The bailout would be cheaper for the government than initially planned because by guaranteeing the bonds, it will pay creditors a lower coupon rate.

The takeover would cut by about 10 percent the country's 60 billion ringgit ($15.79 billion) worth of bad loans, a legacy of the 1997 financial crisis in Asia, and would help banks stem a decline in profit as the economy slows again, analysts said.

"It will help restore the stability of the banking system," said Sebastian Chang, research head of Vickers Ballas Research (M) Sdn. "With this kind of infrastructure it's difficult to make money. It should be in the hands of the government."

The rail plan is part of the government's effort to reduce debt at Renong Bhd., Malaysia's biggest industrial group.

Last month, the government offered to buy a Renong unit, United Engineers Malaysia Bhd., to reschedule debts, hasten asset sales and wrest control of the parent from its chairman, Halim Saad.

Renong is Malaysia's most indebted company with more than 20 billion ringgit worth of liabilities. The market value of the company has declined 50 percent in the past 12 months. On Wednesday, it reported a loss of 331.9 million ringgit in the year to June 30, hurt by falling revenue, higher interest charges and development costs in its transport business. Renong shares fell 2.8 percent Thursday. The stock market was closed Friday for Malaysia's independence day.

Three months ago, Prime Minister Mahathir bin Mohamad deferred a 5.5 billion ringgit bond sale, first announced in December, to fund the complete takeover of the rail systems because it was too expensive.

The rail system is run by Projek Usahasama Transit Automatik Sdn., owned by Renong, and Sistem Transit Aliran Ringan Sdn., which is owned by Taylor Woodrow; Employees Provident Fund, Malaysia's biggest pension fund, and other state-run funds.

http://business-times.asia1.com.sg/news/story/0,2276,19857,00.html?

September 1, 2001

KUALA LUMPUR

Malaysia revives bailout plan for railway firms

Govt to acquire 80% of light railsystem and convert loans into debt

MALAYSIA revived a plan to take over two rail companies and convert US$1.4 billion of their overdue loans into bonds in the nation's biggest corporate rescue, according to a document obtained by Bloomberg News.

The government plans to acquire 80 per cent of Kuala Lumpur's light rail system, leaving Renong Bhd, Taylor Woodrow Plc, state-run pension funds and other shareholders with the rest. The plan is outlined in a 14-page document by the state-owned debt mediator and dated Aug 29. The bailout will be cheaper for the government than initially planned because by guaranteeing the bonds it will pay creditors a lower coupon rate.

The takeover would cut by about 10 per cent the nation's RM60 billion (S$27.4 billion) of bad loans, a legacy of the 1997 financial crisis in Asia, and help banks stem a decline in profit as the economy slows again, analysts said. 'It will help restore the stability of the banking system,' said Sebastian Chang, research head of Vickers Ballas Research (M) Sdn. 'With this kind of infrastructure it's difficult to make money. It should be in the hands of the government.'

The rail plan is part of the government's effort to reduce debt at Renong Bhd, Malaysia's biggest industrial group. Last month, the government offered to buy a Renong unit, United Engineers Malaysia Bhd, to wrest control of the parent from its chairman Halim Saad, reschedule debts and hasten asset sales.

Renong is Malaysia's most indebted group with more than RM20 billion of debt. The market value of the company has halved in the past 12 months.

The Corporate Debt Restructuring Committee, or CDRC, presented the revised plan for the rail companies on Wednesday to lenders including Bayerische Landesbank, RHB Bank Bhd, PhileoAllied Bank Bhd and the Employees Provident Fund. Azman Yahya, chairman of the government's debt mediator, wasn't available for comment. Other officials declined to comment.

Three months ago Prime Minister Mahathir Mohamad deferred a RM5.5 billion bond sale, first announced in December, to fund the complete takeover of the rail systems because it was too expensive. Some investors said the move favoured businessmen such as Mr Halim. In 1999, one of the two groups managing the longest driverless rapid transit rail in the world defaulted on a debt payment after passenger traffic fell.

Under the new plan, the government's Ministry of Finance Inc will own 80 per cent of Syarikat Prasarana Negara Bhd, which will buy the rail companies, the documents said. Syarikat Prasarana will then buy the loans from creditors by issuing bonds to them in four tranches with a maturity of between five years and 15 years, at coupon rates of between 4 per cent and 5.4 per cent.

The rates are lower than the previous 5.8 per cent and 7.2 per cent because the government will guarantee the bonds. The creditors are expected to decide on the plan in the second week of September. The bonds will be issued at the end of the year. Creditors won't be asked to take any losses on the principal amount, though they will be asked to waive any penalty interests.