Tun Daim Zainuddin - Daim and His Banks

Taken from  http://daimzainuddin.com/DaimandHisBanks.htm

 After several aborted plans to own banks in Malaysia, former finance minister Tun Daim Zainuddin gets a promising banking network in place with his Swiss-based ICB Group.

Stories by Halim Wahab

THE International Commercial Bank Group (ICB) is as much a mystery as the man behind it.

It carries his traits and pursues his ambitions, but little is known about the group except that it is closely linked to former two-time finance minister Tun Daim Zainuddin.

Despite lacking the size of top players, the achievements of the Swiss-based banking group have been quite impressive in their own way, with total assets growing at an average of 60% per year.

It traces its history to the opening of its first bank in the Czech Republic in 1993. Anchored by this, a decade later the group spread its wings to eight countries spanning cities like Prague and Budapest in Eastern Europe and Conakry and Accra in Africa.

Yet, ICB’s network of banks in these emerging markets did not attract media attention until late last year, when it teamed up with Singapore’s Temasek Holdings in a Sorak Financial Holdings Pte Ltd consortium to acquire Indonesian bank PT Bank Internasional Indonesia.

The partnership has put the spotlight on both ICB and Daim, whose foray into Indonesia includes a controlling stake of 57.9% in another Indonesian bank, PT Bank Bumiputera Indonesia.

It appears that while Daim has gone low profile since his resignation as finance minister in 2001, conversely ICB has been building its reputation as a credible global player, teaming up with major foreign partners to expand into the Southeast Asian region.

As former Prime Minister Tun Mahathir Mohamad’s chief economic trouble-shooter, Daim was credited with pulling Malaysia out of the recession in the mid-80s, then by slashing public debts and relaxing investment rules, and again in the late 1990s.

Being the entrepreneur that he is, is there more than meets the eye with ICB expanding its banking empire closer to home?

Stamping its mark

Daim’s close associates describe him as a person ‘who is in love with banks’. But, as the man operates his ventures very much like his nature, privately, there is scant information on the past performance of the banking group. Nonetheless, this is set to change soon.

In a rare insight into ICB’s operations, Malaysian Business reveals for the first time why Daim picked Eastern Europe and Africa as the launching pad for his international banking business. We also provide a glimpse of the group’s growth prospects, future direction and plans.

Since Daim declined to be interviewed, we spoke to the general manager of ICB Global Management Sdn Bhd, Harith Harun, who oversees ICB’s global network from Kuala Lumpur. (See excerpts of interview on page 31)

‘ICB will continue to expand in markets where it sees ample opportunities for growth. We are fairly strong in Africa, in six countries now, and we plan to open in several more countries in the next few years,’ Harith says.

Consequently, in the next five years, ICB aims to consolidate its operations worldwide into a successful and respected global banking group and be identified as a key player in emerging markets.

Going by the extensive network that Daim has built up in the past 10 years, it looks like it’s just a matter of time for this plan to reach fruition. In any case, with stakes in two banks in Indonesia and a total of 24 branches in Hungary, Albania, the Czech Republic, Ghana, Guinea, Tanzania, Mozambique and Sierra Leone, ICB already earns recognition as the first Malaysian-owned global bank.

Harith declines to provide profit and asset figures, but  says the return on equity (ROE) of the respective banks has ranged from 5% to 20 % on average over the past three years. Likewise, growth in assets, revenue and income has been within expectations, with total assets growing at an average rate of 60% a year.

‘It has to be noted that the loan growth was funded entirely by customers’ deposits. Hence, the substantial increase in deposits indicates that the public has confidence in us,’ he says.

Interestingly, while the investment holding company of the banking group, ICB Financial Group Holdings Ltd, is located in Zurich, Switzerland, the hub and nerve centre of its sprawling network is in Kuala Lumpur, where ICB Global Management is located.

For the group, this is about logistics and strategy. Harith says the company was set up in 2001 to provide technical support and consultancy services to the banks under the group. It acts as liaison between the management of the banks, its shareholders and directors and conducts feasibility studies, manages the establishment of new banks and seeks new business opportunities for the group. The company has 10 employees.

A year ago, following the steady expansion of his international banking network, Daim set up ICB Financial Group as an investment holding company to rationalise his investments in the respective banks. According to Harith, Daim wholly owns ICB Financial Group.

‘Daim is principle shareholder of these banks. In some countries, the law sets a certain limit on the maximum shareholding by a single shareholder and in such instances, other Malaysian shareholders have taken up stakes in the bank,’ he says.

A check reveals the presence of several Malaysian shareholders in some of these banks. For example, IC Banka in the Czech Republic, in its FY2003 annual report, lists Daim’s long-time associate Robert Tan Hua Choon, or the Casio King, as a shareholder together with former Czech Prime Minister Dr Marian Calfa.

The ‘interrupted’ banker

For the record, before ICB came into the picture, the 66-year-old Daim had already owned stakes in two banks, albeit briefly as he had to dispose of them when he was made finance minister.

Perceived as an influential player due to his close ties with top party officials and businessmen, Daim took control of Malaysian French Bank in 1982 when it was incorporated to take over Banque Indosuez, a privately owned French bank in Malaysia.

The French Government had then nationalised all French banks, but as Malaysian laws did not allow banks owned by foreign governments to operate in the country, Daim bought it from its owners. He later sold the bank to Multi-Purpose Holdings Bhd in 1984.

The other bank was United Malayan Banking Corporation (UMBC), then Malaysia’s third largest bank, which Daim acquired the same year. However, his appointment as finance minister soon after gave rise to allegations of conflict of interest. He subsequently sold his UMBC stake.

But Daim’s association with local banks did not end there. In 1997, he was linked to the acquisition of a controlling stake in Hock Hua Bank (Sabah) by Langkah Bahagia Sdn Bhd. One of Langkah Bahagia’s shareholders, Mohd Nasir Ali, had then publicly declared that he was acting on behalf of Daim, who was at that time Economic Adviser to the Government. Daim later sold the stake when he was appointed finance minister in 1999 for the second time.

Despite Daim’s assertion that he was no longer linked with Langkah Bahagia, the market still sees his fingerprint on the company. In the years that followed, Hock Hua Bank, which became International Bank Malaysia, merged with Multi-Purpose Bank that was later renamed Alliance Bank Malaysia.

Langkah Bahagia has since sold its 15.37% stake in the bank’s holding company, Malaysian Plantations, to Temasek. Interestingly, the Singapore investment company had teamed up with ICB in a consortium that acquired PT Bank Indonesia in November last year.

Why Eastern Europe and Africa?

As Daim had little success in owning a Malaysian bank in the past two decades because of the interruption by calls to serve the country, his involvement in ICB may be a natural progression.

A close associate offers an explanation for Daim’s decision to focus on the Eastern European and African markets. ‘Daim is shy and he doesn’t like crowded places. So, Eastern Europe and Africa are natural destinations as hardly anybody knows him there,’ he notes.

Still, they are not exactly traditional financial centres where Malaysian banks are willing to tread. A case in point is that one of the biggest banks in the country has branches in Cambodia, Vietnam and Papua New Guinea, to name a few, but not in Eastern Europe or Africa. Unless properly managed, retail banking is a high-risk leverage business and this is true in Malaysia or anywhere else.

An industry observer says although it usually takes one to two years for a new branch to break-even in Malaysia, the gestation period differs from country to country based on the customer profile, make-up of business and economic growth.

‘Local banks generally do not blaze the trail, but tend to follow the client to provide support to their existing customers who have expanded overseas. It is tough especially if it is a single-bank operation,’ he says.

Thus, he contends that despite ICB’s modest size, the banking group should be commended for being able to build up its business over the years.

Aptly, the group’s model in these countries has been to set up banks rather than to acquire them. For this reason, Harith says, ICB is able to exercise control over the cost, recruitment of staff and policy and direction of the banks. It also does not inherit the work culture or bad-loan portfolios.      

He underscores ICB’s optimism in these markets, which he feels provide relatively greater opportunities for growth in the long term.

‘Of course there are risks operating in these new, non-traditional markets. But we are selective in terms of the countries in which to invest. Based on the performance of the banks in the ICB Group, we can say that we have made the right choice,’ he observes.

From a different perspective, Harith  points to one of ICB’s primary objectives, which is to help promote the development of bilateral trade and investment between Malaysia and the host countries.

‘In this instance, we have assisted some of our customers in Africa and Central Europe to find new suppliers as well as buyers in Malaysia. Their Malaysian counterparts feel more comfortable knowing they are dealing with a Malaysian-owned bank in these countries,’ he says.

In April 1997, Daim led a private visit of Malaysian businessmen to nine countries across Africa in an effort to enhance bilateral and trade relations as well as to seek investment opportunities. Guests included close friends and the London-based New Straits Times correspondent. There were many follow-up visits by Daim since.

Inadvertently, those visits have given rise to the perception that Daim had used his influence to meet with the leaders of these countries to set up businesses there. But a banker downplays such talk. 

‘There is no need to use influence to set up banks in these countries. There is no conflict of interest as anyone can open a bank in those countries,’ he says.

Generally, ICB’s ventures in the emerging markets are seen in a positive light by the host countries. Foreign embassy officials from countries where ICB operates not only praise the group, but also say ICB helps boost bilateral trade between their countries and Malaysia.

‘ICB is an example to other Malaysians who may want to consider investing in Ghana. Many think Ghana is a backward country but it is not,’ says an embassy official in Kuala Lumpur.

He feels Daim’s investments in Ghana, including those in social development projects that benefit both parties, reflect his support of the country and Africa in general. ‘People consult him if they want to go to Ghana,’ he says.

It is the same in Albania. An official from the embassy says it is important for a Malaysian-owned bank like ICB to be in Tirana as it acts as a platform to enhance trade and investment between the two countries.

Bracing for competition

ICB set up its first two banks in Prague and Budapest respectively in 1993, at a time when both the Czech Republic and Hungary were emerging from the shadows of the communist empire and were opening up their economies to foreign investors.

Likewise, the group expanded to Africa in 1996 when the Malaysian Government was actively encouraging local companies and businessmen to invest there.

As such, according to Harith, ICB has acquired a fairly good knowledge of the local business conditions and practices, having invested substantially in people and systems.

In Hungary, the group made some strategic changes in the bank to prepare for the continuing consolidation and rising competition in the banking industry in anticipation of the country’s entry into the European Union (EU) in May 2004.

It acquired several branches of a savings cooperative to expand the branch network and customer base, replaced the old IT system with an integrated on-line system, hired a new and skilled workforce and introduced new products such as bankcards and Internet banking.

Although the larger than usual expenditure had contributed to a loss in FY2002, the bank’ performance has improved markedly since then, with total assets increasing by 100%. The bank is expected to return to the black this year.

The respective banks under the group have generally performed to expectations. A few have achieved recognition for their excellent performance. ICB Guinea, for instance, has won The Banker magazine’s annual award for ‘Bank of the Year in Guinea 2004’, while the bank in Ghana is a member of the ‘Ghana Club 100’, which gives recognition to successful organisations based on growth and profitability.

Still, there are challenges looming over the horizon, particularly in the Eastern European market.

‘The entry of Hungary and the Czech Republic into the EU has to a certain extent changed the banking landscape. Large multi-national banks are squeezing out the smaller ones to the periphery. To survive, we have to be an efficient and innovative niche player,’ says Harith. But, he contends that ICB has anticipated these changes and has already put in place strategies to face the challenges.

In view of the changing trends, Africa will be the thrust of ICB’s expansion drive. The group will be operating in two more countries in the continent soon, in Sierra Leone this month and The Gambia in November. It also expects to receive licences to operate in three other countries in Africa later this year.

Harith says based on the performance in recent years, growth will be more significant from the African operations, which, it is understood, offers a lot more scope and better margins.

Today, at group level, ICB employs over 1,100 people in 10 countries. However, for Eastern Europe and Africa, due to the lack of experienced personnel, ICB still relies on Malaysians to manage the banks. Hungary and the Czech Republic are exceptions, as operations there have reached a level where local managers are now capable of taking over.

The future

It looks like while Daim prefers to remain low key, ICB may take a higher profile in the near future following its partnership with Temasek, and its foray into Indonesia. 

Incidentally, Temasek is now seen as a serious investor in the country following the warmer relations between Malaysia and Singapore. Temasek noted recently it would co-invest with companies that are interested to invest internationally, away from their home bases.

This has heightened speculation that there is a good chance of ICB teaming up with Temasek again, or any other foreign players for that matter, as the former is already seen as a reputable and credible player given its extensive network and international relationships.

‘Indonesia will not be ICB’s last bus-stop. There is more to come,’ says an observer.

Perhaps, his remarks will ring true sooner than expected as the banking group is already eyeing new opportunities.

‘Indonesia is our first investment in Southeast Asia. However, we are not limiting our expansion to the region but are also looking for opportunities in other parts of Asia,’ Harith says.

Analysts feel ICB would do well to look at China, Asia’s fastest growing economy.

This notwithstanding, Daim seems to be having better luck with ICB so far, having maintained a tight grip on the group for the past 10 years. It will be interesting to see if he will continue to do so over the long haul, in view of the big plans that have been laid out for the group.

( This article appeared in the September 2004 issue of Malaysian Business magazine. )

Tun Mahathir dan Anwar : Antara Realist dan Populist

Kalau hangpa kaji jenis2 ahli politik samada dalam dan luar negara, hangpa akan jumpa 2 jenis ahli politik iaitu ;

Populist

Realist

Ahli politik yang populis ni selalunya retorik dan suka bagi kenyataan2 yang popular dan ahli politik yang realist ni dia lebih kepada realiti dan kerja. Orang putih cakap “Facts and Figures”. Ahli politik yang populis ni selalunya mempunyai penyokong yang ramai pada peringkat awal dan berkurangan pada peringkat ahkir. Ahli politik yang realist pulak pada peringkat awal memang takde @ kurang penyokong sebab kenyataan realitinya, tetapi pada peringkat akhir penyokongnya jadi ramai sebab hasil kerjanya.

Ok sekarang kita ambik contoh, Tun Mahathir adalah ahli politik realist. Beliau ni jenis realiti, bekerja dan cakap tentang facts and figures je. Pada peringkat awal, ramai orang tak suka Tun Mahathir sebab kenyataan realiti beliau yang tidak popular contohnya Melayu dalam dilema. Masa tu Tun kena teruk. Setelah masa berlalu, orang dah nampak hasil kerja Tun (orang putih panggil ‘result’). Bila beliau jadi PM pun hasil kerja beliau orang dah nampak dan penyokong semakin bertambah. Bila Tun bersara, penyokong Tun bertambah secara mendadak sebab hasil kerja beliau. Orang2 yang anti Tun pada tahun 1997 pun jadi penyokong tegar beliau. Secara amnya, Tun Mahathir adalah ahli politik pencen yang paling popular dalam sejarah Malaysia. Blog Che Det mencecah 8 juta view dalam masa 8 bulan berblog, walhal Anwar punya blog yang dah bertahun tu tak sampai pun jumlah tu. Itulah contoh ahli politik yang realist, pada peringkat awal takde penyokong, tapi pada peringkat akhir karier akan menjadi lagenda. 

Kita ambik pula contoh jenis ahli politik yang populis iaitu Anwar Ibrahim. Pada peringkat awal, Anwar Ibrahim memang ramai penyokong sebab kenyataan2 popularnya dan beliau adalah anak muda yang popular di Malaysia. Apabila masa telah berlalu, orang mula mempersoalkan tentang beliau iaitu mana hasil kerja beliau? Cakap2 beliau kita dah dengar, tapi hasil kerjanya mana?? Pada 1997, Anwar telah membuat kenyataan popular iaitu nepotismela, rasuah la, relevanla, macam – macam untuk tarik penyokong.  Bila dah menang besar pada 2008, orang mempersoalkan balik, “Dulu hang habaq Umno amalkan nepotisme, tapi apsai anak bini hang jadi pemimpin tertinggi dalam parti?” “Mana janji2 hang dulu?” “Mana hasil kerja2 hang?” Dan kita dapat lihat, ramai yang mula meninggalkan parti PKR dan penyokongnya semakin berkurangan. Inilah contoh ahli politik yang populis, di mana pada peringkat awal ramai penyokong, pada peringkat akhir karier, jadi nobody.

Kesimpulannya, pemimpin yang realist bila mereka cakap, mereka akan buat (walk the talk). Pemimpin yang populis pulak, bila mereka cakap, mereka akan cakap lagi.

Tun Mahathir pilih Anwar bukan berdasarkan merit, tetapi berdasarkan karektor Anwar yang nampak BAIK dan ISLAMIK, serta nampak macam ada HARAPAN. Enjin ekonomi telah dibina, cuma Anwar sahaja yang perlu belajar dan memacunya setelah Tun Mahathir resign. Tun Mahathir ialah seorang doktor pada asalnya, bukan seorang ahli ekonomi. Tetapi Tun belajar dan meminta nasihat dari pakar2 ekonomi. Samalah juga harapan Tun pada Anwar ketika dulu, semasa melantik Anwar menjadi Menteri Kewangan. Tapi apa yang Anwar dah buat? Dia bukan belajaq pun, dia duk bagi idea2 bodoh, nak ambik IMF la, naikkan cukai la, apa lah. Apa daa …

100% ahli politik yang dilantik di seluruh dunia oleh rakyat pada asalnya tidak mempunyai kepakaran dalam kementerian masing2. Obama tidak mempunyai pengalaman dalam ekonomi atau ketenteraan. Lee Kuan Yew pun sama, Tun Mahathir pun sama. Apabila mereka dilantik, mereka mempunyai penasihat dan kementerian masing2 untuk membantu mereka menyesuaikan diri dan selepas itu bergantunglah terhadap kebijaksanaan masing2 untuk menguruskannya.

Betul ke Malaysia Berdagang dengan Israel??

Isu mainan pembangkang : Koleksi kapal Israel yang datang ke Malaysia

Kalau nak menipu pasal industri perkapalan, pastikan tiada professional dalam bidang perkapalan dalam dunia cyber. Sekarang ni aku nak tanya, bagi aku 1 je, kapal ni semua Port On Call atau asal Port Authority mereka dari pelabuhan Israel? Kalau setakat nak kecoh pasal pemilikan, semua syarikat2 perkapalan antrabangsa termasuk Maersk Sealand ada pemilikan pelabur Yahudi :D

Dari gambar ni je aku tahu pembangkang ni kaki tipu. Sejak bila air laut kat pelabuhan2 Malaysia, terutamanya Port Klang ni jernih oii? Warna kren pun tak betul, apa daa. Ntah port mana punya gamabaq ni depa cekup .. hehehe.

Hangpa boleh check NOTICE TO MARINES untuk info port on call dan kalau boleh manifest diorang, betui ka Malaysia berdagang dengan Israel? Kalau pasai ownership kapal, semua syarikat2 besar antarabangsa ada pelabur Yahudi/Israel, kecualilah syarikat2 milik GLC seperti COSCO, MISC.Nak cari “Notice to Mariners” ni senang je, pergi Jabatan Laut Malaysia punya website, email diorang pasai detail kapal movement, diorang bagilah info. Bukan susah, tak sampai pun 10 minit. Lagi satu cara senang, setiap kapal kalau nak berlabuh di mana2 pelabuhan di Malaysia, mesti ada kebenaran berlabuh dan kebenaran berlayar. Click je mana2 pelabuhan, wujud tak kapal Israel yang pembangkang duk konar tu? Hehehe … aku check takdak pun :P 

Notice to Mariners, Kebenaran Berlayar dan Kebenaran Berlabuh adalah informasi antrabangsa untuk rekod keselamatan / perjalanan kapal di laut antrabangsa, mana boleh sorok kalau kapal tu dah set ETD dan ETAnya … HAHAHAHA … lain la manifest. Mana boleh pandai2 tukar, nanti syarikat insurance tak mau bayaq kalau ada masalah. Lagi satu, port persinggahan mesti nak report tu jugak.

Pikir logikla, kapal Israel mestilah lebih minat Pelabuhan Singapura, sebab lebih canggih dan lebih dalam, lebih cepat. Bukan jauh pun dari Malaysia, yang tu pun tak boleh pikiaq kaa .. Takdelaa nak pening kepala nak layan rakyat Malaysia yang anti Israel, apa daa. Ingat kapal Israel tu nak pening kepala dan rugi sebab lambat hantar barang, nak layan karenah rakyat Malaysia yang anti Israel? Kalaulah kerajan Malaysia jemput pun, diorang takkan datang punyalah. Macam kita jugak, kita nak hantaq kapal ke Israel yang rakyatnya ramai tak suka Islam? Buat lambat dan pening kepala je, baik terus ikut Terusan Suez. Pikiaq logik laa .. 

Ni dia database dari Port Authority Singapore. Berjuta kapal Israel berlabuh kat Singapore, type je nama kapal Israel tu, lepas tu dapatlah info yang hangpa nak, kapal dari mana, di mana, nak ke mana. Dari berjuta kapal tu, bagi aku satu je kapal Israel yang pernah berlabuh / berdagang di Malaysia. Takkanlah Singapore Port nak sorok jugak kot .. hehehe …

Port Authority mana yang pembangkang nak untuk cari bukti? Indon? Singapore? Malaysia? Australia? Yang kebanyakkannya menggunakan Selat Melaka sebagai laluan, aku boleh bagi link. Semua kapal ada info ETA dan ETDnya. 

Semua kapal ada share dengan Israel, bezanya antara ownership dan akttiviti dagangan. Kalau ownership, memang kapal ni Israel punya. Macam Maersk Sealand dan lain2 kapal, sama je ada shareholder Israel jugak. Diorang ni macam servis logistic laa, sama macam Facebook, ada shareholder Israel gak. Kalau nak kata kapal yang  ownership dia  Israel je berlabuh dah kira berdagang dengan Israel, Iran pun macam tu jugaklah .. hehehe. Semua negara Arab yang boikot Israel pun macam tu jugaklah. Maersk Sealand siap ada ofis lagi tau kat Iran. 

Kapal2 ni bawak barang dagangan, bukan penjual atau berdagang. Diorang ni jalankan aktiviti logistic. Orang Palestin2 yang ambik barang kat pelabuhan Mesir kat Suez tu, barang2 diorang diangkut pakai apa? Pakai kapal2 ni jugaklan, so maknanya orang Palestin pun berdagang dengan Israel jugakla?

Kapal2 yang berlabuh di Malaysia, yang tak pergi Israel adalah kapal milik Malaysia je macam MISC, Petronas, Felda dll. Yang lain semua pergi port Israel, macam K-Line, Maersk Sealand. Dah tu kerja syarikat kapal antarabangsa, bawak barang antara pelabuhan di dunia, itu jaa.

Simple je kalau nak kantoikan yang Malaysia ni berdagang dengan Israel ke tak. Perlukan 3 dokumen ni, cukup senang je nak dapat ;

Port Clearance – data yang tunjuk kapal tu dari mana, di mana dan ke mana,

Crew list – data pelayar2 Israel dengan passport Israel bleh masuk ke Malaysia,

Manifest – data yang menunjukkan barangan dalam kapal tersebut, adakah barang dagangan itu “Made In Israel” atau tidak.

Kalau tak mampu nak bagi 3 dokumen ni, maknanya satu je, PR memang kaki kelentong!

PR sebenarnya bohong kepada semua orang, depa dok ingat semua rakyat Malaysia tak tahu pasal industry ni. Tapi mereka tersilaplah, ramai jugak yang tahu, walaupun mereka bukan orang Umno. Berapa banyak dah PR kantoi menipu .. KIH KIH KIH.

Kronisme vs Networking

Ada seorang pencacai DAP sound aku, kat Malaysia ni kalau nak jadi PM kena ada keturunan orang atasan/bangsawan, baru ada can macam Najib. Kat Amerika rakyat biasa macam Obama boleh jadi Presiden, kulit hitam lagi. Aku jawab : "IYE KE??? 

Habih datuk Obama ni sapa?? Stanley Armour Dunham ni somebody tau dalam US tu, saudara mara dengan G.Bush, Lyndon Johnson, Truman, James Madison, Jimmy Carter dan Dick Cheney. Terkebil-kebil pencacai DAP tu nak jawab, tulah lain kali study dulu sebelum cakap, kan dah nampak bodoh.

Kat US tu memang wajib kalau nak jadi Presiden, calon datang dari keluarga2 yang berprestij. Kalau asal keluarga biasa jee, sorilaaa. Ni emak Obama, Ann Dunham. Emak Obama ni tergolong dari orang atasan yang memperkenalkan "Microcredit" dan antara wanita terawal di US yang jadi VP bank2 besar kat US tu. 

Contohnya,  Tun M asal org susah, tapi tengok bini dia sapa, Tun Hasmah tu somebody. Tun M berdiri dan perform sendiri. Tapi "connection" yang ada tu mesti turut bantu sikit, betui tak?? Tak salah ada "connection" ni. Ini perkara biasa di mana-mana saja di dunia. Anwar Ibrahim pun sama, siapa bapak Azizah tu. Bezanya Tun dengan Anwar, Anwar ada "connection" tapi FAIL. Hampeh. Kalau nak naik jadi top gun, sebaik-baiknya "connection" tu kena ada, supaya org boleh ada respek sikit.

Ini orang panggil networking. Dalam business school pun org dok ajar benda ni betapa pentingnya "networking". Tapi politik punya pasal, ada yang pi pusing "networking" jadi perkataan kronisme … hahaha …

Bill Gates pun sama, kalau mak dia Mary Maxwell Gates tak tolong, memang idea Bill Gates tu orang lain punya. Mak dia big boss banyak company high tech tau dari Pacific Northwest Bell Telephone Company, United Way dan macam2. Mak dia call big boss IBM John Opel, pergi settle dengan anak dia Bill Gates. Power mak Bill Gates tu, dalam board IBM meeting, John Opel sebut je nama mak Bill Gates depan executive2 IBM iaitu "Mrs Gates", terus settle, seminggu lepas tu sign contract terus dengan Microsoft. Start daripada situ la Microsoft naik, dia dapat contract untuk develop OS system untuk IBM. Korang ingat IBM nak bagi muka pada drop out, lepas tu muda lak tu??

Tun Daim Zainuddin - A Profile

Taken from http://daimzainuddin.com/TunDaimProfile.htm

Born April 29,1938 in Alor Setar, the capital of Kedah, Daim bin Zainuddin is the youngest of thirteen siblings.  His father was a clerk in the Kedah State Service and his mother a homemaker.  Daim received his early education at the Malay Primary School in Seberang Perak, Alor Setar and then advanced to the Special Malay Class at the Sultan Abdul Hamid School, which was an English–medium school.

Being a youth of the 40’s, during a period when the British Colonial Policy encouraged Malays to attend Malay schools, when Malay parents worried about the possible influence of an English education on their children’s religious faith and cultural identity, Daim and his parents were able to transcend these limitations.  In fact, his broad-minded parents enrolled all their children at English–medium schools as they did not want their children to become “better farmers and fishermen”.   However, Daim was very much an absentee student.  He had worked out a strategic studying method whereby he would only need to focus on subjects that he would need to pass to advance to the next class and that required little effort - English and Malay languages and Mathematics.  He devoted his free time to pursuing his main interest which was sports and more sports. 

 Career-wise, Daim would have ended up as a teacher except that due to some miscommunication he had been totally unaware that his name was on the list of successful candidates for Brinsford College, England, a teacher training college. 

Throughout his youth, he was very much encouraged by a mother who wanted him to further his studies and a father who wanted him to become a lawyer. His mother sold some land to raise money for him to study law in England. Realizing that “time is money”, the former absentee student became a diligent and disciplined scholar in law who after eighteen months at Lincoln’s Inn London and at the youthful age of 21, was called to the English Bar in 1959.   It was also during his student days in London that he developed his voracious appetite for reading which till today is his favourite pastime.

Upon his return to Malaysia, he started reading in the chambers of Pillai & Co. and later, the chambers of Shearn Delamore which was then the largest law firm in Kuala Lumpur. In 1961, he decided to move and work in Kota Baru, Kelantan under the tutelage of Encik Wan Mustaffa who was legal adviser to the Pan Malaysian Islamic Party (PMIP) which later became known as Parti Se Islam Malaysia (PAS).  After his stint in Kota Baru, he joined the Malaysian Civil Service as a Magistrate, then became the President of the Sessions Court in Johor and subsequently became Deputy Public Prosecutor in Ipoh, Perak.  He resigned from the service in 1965, returned to Kuala Lumpur and joined the law firm of Allen & Gledhill for the next three years till his resignation in 1968 to start his own law practice of Daim & Gamany. In 1969, however, he decided to venture into business.

His first business venture was in salt production, partly because it seemed easy and partly because his partner’s feng shui indicated that he should work with water. They went to Thailand, Taiwan and Japan to study salt production, weather forecast, soil condition and location. During the start-up they proceeded to clear 600 acres of the coastal land of Kuala Selangor, but because the rain came unseasonably early just when the salt had began to crystallize, they were almost bankrupted by it. 

His next venture was in plastics production.  After he obtained a license however, another two licenses were issued and this instigated early and keen competition to Daim’s fledgling company.  Furthermore, the workers were incited to strike and eventually the venture proved to be another bankrupting business.  Fortunately, his other downstream ventures which included the plastic packaging company, Daibochi and the snack food factory, Sedap Food flourished and were later listed on the Kuala Lumpur Stock Exchange.  He also invested in the Ports’ downstream business with stevedoring, forwarding and low-loader licenses and had set up a manufacturing plant making steel and iron products like manhole covers and telephone posts. The success of these ventures helped towards offsetting loans and borrowings of the failed venture.

Daim’s great break was in 1971, when he decided to venture into land and property development.  Together with two other partners, he formed a company, Syarikat Maluri Sdn Bhd of which he held a 60% majority control. The Company bought and developed Taman Maluri, Cheras and Daim became the first full-fledged Malay property developer in Kuala Lumpur.  Having ventured into a predominantly Chinese sector, he might have expected to encounter insurmountable problems, but he did not. Why? Firstly, he did his calculations meticulously, paying great attention to details and had an even keener eye on the bottom line and secondly, he paid his contractors in a timely manner like any other good paymaster, and furthermore he was hands-on.  Thus, he was able to overcome earlier skepticism especially from the non-Malay buyers about Malays being able to run property development companies successfully.

After gaining a foothold in the property business, he began to look for other challenges to pursue and to prove that a Malaysian of Malay ethnicity could succeed in other fields. At the same time, other corporate and political stars were rising and Daim wanted to be “the Malay to do it” and so, he forged ahead and bought a 30% equity interest in United Estates Project (UEP) now known as Sime Darby–UEP (developer of the popular ‘Subang Jaya’ township) and went on picking up stakes in the share market, mostly strategic rather than controlling stakes.

He was willing to take risks but also saw opportunities before others.  When President Mitterrand of France came into power and decided to nationalize all French banks, Daim saw an opportunity whilst others were grumbling about the new socialist policies.  He knew that Malaysian banking regulations did not allow for government-owned banks to operate in Malaysia and therefore knew that Bank Indo-Suez will either have to close its operations in Malaysia or be sold-off.  He wrote a ‘cold-call’ letter to the Chairman/President of the Bank registering his interest in the event that they would want to sell.  Of course rather than closing down the Bank they decided to sell to Daim and in 1981 he became the owner of Indo-Suez later re-named the Malaysian-French Bank.  Later when United Malayan Banking Corporation (then the 2nd largest bank in Malaysia) became available, he exchanged his majority stake in Malaysian-French Bank for a smaller stake in this larger bank. 

However he had to dispose of his stake in 1984 when he was appointed Minister of Finance.  He never lost his love for the banking industry and after he retired he started investing in small banks overseas in Europe and Africa.  As the business expanded, the banks needed to be organized under a bigger parent bank and he therefore acquired Hock Hua Bank (which he renamed International Bank of Malaysia Berhad) which was one of the smallest banks in Malaysia.  Again he had to dispose of his stake when he was reappointed Minister of Finance in 1998.  After his second retirement he is now again actively involved in the banking industry.

 Today his business interests spread far and wide both in terms of the diverse range as well as their geographical locations. The ICB Banking Group began with the issuance of a license to operate a bank in Prague, the capital of the Czech Republic in 1993, to its presence now in IC Bank Rt.(Hungary), International Commercial Bank Sh.A (Albania), International Commercial Bank Limited (Ghana), International Commercial Bank S.A (Guinea), ICB-Banco Internacional de Comercio SARL (Tanzania), International Bank of Malaysia (T) Limited (Mozambique) and International Commercial Bank (Sierra Leone) Limited – Sierra Leone.

ICB also acquired a 20% stake in Bank Internasional Indonesia through Sorak Financial Holdings Ltd and a 58% direct stake in Bank Bumiputera Indonesia. The Group has plans to acquire banks in other countries as well.

Apart from business, politics have always interested Daim. His earliest exposure was as a student in London whereby though not actively involved in politics, he shared his fellow students interests in the political issues of the day particularly independence and post-independence implications on the socio–economic and religious mosaic of pluralistic Malaysia.

His first encounter with real politics albeit covertly was when in 1966, as a lawyer with Allen & Gledhill, the firm was appointed by the Federal Government of Malaysia to act for the Governor of Sarawak in a case against the Chief Minister of that State.  Back in Kuala Lumpur, Daim was asked to attend a Cabinet meeting whereat he briefed the Cabinet members of the political situation in Sarawak and impressed upon the Cabinet the need for emergency to be declared to avert a worsening of the situation caused by the demonstrations against the Chief Minister’s minority government. Emergency was declared.  However, the security risk persisted and the Governor as advised by the central government suspended the Standing Orders of the House and called for a meeting of the Assembly using emergency powers. Daim assisted in drafting the statement of the Governor that the Assembly was to debate; the Assembly met, the Chief Minister’s government was voted out of office. Impressed by his legal skills and political knowledge, the Prime Minister offered Daim a seat in Sungai Petani in the 1974 general elections but Daim declined, choosing instead to establish his credentials in business.

Come 1977, Daim decided that he was financially comfortable enough to retire. His retirement plan then was to go back to school and so he enrolled at University of California Berkeley to pursue a course in Urban Planning. At around the same time, he enjoyed a close rapport with the then Deputy Prime Minister Datuk Seri Mahathir Mohammed.

In 1978, Daim met Mahathir in Los Angeles and San Francisco, when Mahathir urged Daim to return to Malaysia and contest in the general election that year. At the same time, Daim was also offered the Chairmanship of the Urban Development Authority (UDA) by the Public Enterprises Minister. Daim was not interested in taking up the Chairmanship of UDA which he deemed too big and widespread, too bureaucratic and doing too many things at the same time. Instead he suggested that UDA should form a holding company and transfer all its commercial property and commercial assets to it; only then would be agree to manage it. Hence, Peremba was established and Daim became its Non–Executive Chairman with a team of young and bright hand–picked officers assisting him. While not many could take his punishing rigours and demands of work and discipline, those who did went on to become successful entrepreneurs and notable amongst these were Tan Sri Wan Azmi Bin Wan Hamzah, Tan Sri Abdul Halim Bin Saad, and Tan Sri Samsuddin Bin Abu Hassan. In 1980, Daim was informed that the Prime Minister Hussein Onn had appointed him as Senator in the Upper House of Parliment.

When Mahathir became Prime Minister in 1981, he sent Daim on a number of missions. The first was to the United States of America (USA) to deal with the problem posed by the USA’s General Services Administration (GSA) tin stockpile releases which caused the price of tin to tumble, thus adversely affecting the Malaysian tin industry, it being a major producer of tin. Knowing that the tin miners’ hardship would not move the Americans but that the communist threat would, Daim decided to take on this hard line in his negotiations with them. It worked and the GSA agreed to limit their stockpile releases to 3,000 tonnes a year for three years.

 In 1981, the Government of Malaysia announced the adoption of the ‘Buy British last’ policy which actually was a culmination of a series of problems with the United Kingdom (UK). Prevalent was a new spirit of Malaysian nationalism which was manifested in the acquisition of Guthrie Estate by Permodalan Nasional Berhad, the Government–owned national equity corporation; the return of Seri Carcosa (premises which had been given to the British by Tunku Abdul Rahman Putra Al–Haj, Malaysia’s first Prime Minister;) and the steep hike in fees of British Universities. To this day, very few Malaysians are aware that Daim was instrumental in working behind the scenes to resolve these issues and restore good relations with the British.

However, the event that truly launched Daim’s political career was the day before nominations for the 1982 General Elections, when Mahathir rang Daim to say that he was to contest the Kuala Muda Parliamentary seat. Within the short span of the next two years, his rise in politics was meteoric as he was appointed the Minister of Finance in 1984. At that same time the burgeoning economy kept up its momentum despite the high rate of borrowing and spending to keep the economy healthy. The full impact of the world recession on Malaysia was only felt in 1985. Internally too, there were many abuses involving the financial institutions brought about by lack of proper supervision and control. By the time he took over, Daim could not avert the scandals, crisis and failures. However, Daim set about implementing a strict code of monetary and financial management to prevent the disease from becoming terminal for the whole economy.

He stopped the practice of borrowing to beef up funds for spending, he curtailed expenditure to suit income, he slashed the allocation for the public sector – upsetting many quarters. In the years 1987, 1988 and 1989, Malaysia paid off about RM6.8 billion of her foreign debts which was earlier than scheduled, a record repayment for developing nations. Interestingly, the Far Eastern Economic Review which had made dire predictions about Malaysia’s economy in 1986, admitted in its issue of September 1, 1988 that Daim’s effective management style had contributed positively and tremendously to Malaysia’s economic recovery.

Daim resigned as Finance Minister in March 1991, and the news caused a stir both in Malaysia and abroad because it was not in the Malaysian culture to resign from a high office.  Therefore, when it happened there was a great deal of speculation as to why, and of course the most prominent was that which cited the irreconcilable differences with the Prime Minister, Mahathir Mohammed. For Daim, the reason was that he had accomplished his tasks – reorganized and improved the country’s financial position.  Further, the Prime Minister reiterated by saying that “Daim had agreed to take the post on condition that he stay only to help reorganize and improve the country’s financial position.  He said he had fulfilled this task and it was time I let him go.”  In accepting his resignation, the Prime Minister also welcomed his readiness to contribute his ideas to the nation. To crown it all, the Prime Minister recommended Daim for the “Tun” title – the highest honour of the land. And so on June 5, 1991, the Yang Dipertuan Agong Sultan Azlan Shah conferred on Daim the Seri Setia Mahkota award, which carries the title ‘Tun”.

Prior to his resignation, in 1991, Daim’s contribution was succinctly summed up as thus: “Despite having much of his tenure clouded in controversy, the outgoing Finance Minister has nonetheless earned the reputation as one of the country’s ablest economic architects, having steered Malaysia through recession into four straight years of high growth.” In another article, “Daim exits office having earned the distinction of being a hard–driving technocrat, who resisted pressure by rival ministers who wanted to alter fiscal policy for political expediency ….”

It was also recognized that during his tenure as the Finance Minister, Daim had implemented four broad strategic structural reforms during the 1986 to 1991 period namely the mobilization of the private sector, active external policies, the supportive role of the private sector and the rehabilitation of the public enterprises.  To this day, the tenets of his economic policies are held in high esteem and are continually pursued to either jump start or sustain the Malaysian economy.

Perhaps the greatest accolade was that by the late Tan Sri Zain Azraai, the Secretary–General of the Finance Ministry, who said: “He is an extraordinary man, a firm man, who came quietly to take over the Finance Ministry, did a splendid job, then left quietly.”

Although technically out of the Government, Daim was still perceived as a man to be reckoned with – an entity greater than the sum of his overt responsibilities when he was appointed Economic Advisor to the Government, Chairman of the Northern Growth Triangle, the Labuan Development Authority and the Langkawi development Authority and also the Treasurer of the United Malays National Organization (UMNO), the leading party in Malaysia’s ruling coalition, Barisan Nasional (National Front). He was also Malaysia’s representative to the East Asean Growth Area (EAGA).

In 1997 when the Asian crisis swept through Asia leaving behind devastated economics in its wake, Daim Zainuddin was recalled to public service.