A group of disgruntled Japanese golfers want the federal government's involvement in solving the Kristal Golf Resort scandal once and for all. If no action is forthcoming, they are threatening to take their investments elsewhere.

The group, comprising Japanese corporate bodies and expatriates in the northern region, want the federal government to compel the resort's current operator, Syarikat Mustapharaj Sdn Bhd to either reopen the golf resort in Sungai Bakap or refund their membership fees, collectively estimated at some RM50 million.

"The Malaysian government is friendly towards Japanese investors but the sudden closure of Kristal Resort and the management's refusal to refund our membership fees or reopen the resort contradicts the government's policy," they said in a letter of appeal submitted to the state government today.

They claim since the resort is still being maintained by Syarikat Mustapharaj, the golf club should be opened to members.

japanese corporate community memo in penang 071108 group Their appeal letter was handed over at a press conference to Chief Minister Lim Guan Eng's representative, Bukit Bendera Member of Parliament Liew Chin Tong, who raised the issue two weeks ago in Parliament.

Deputy Prime Minister and Finance Minister Najib Abdul Razak has yet to address the issue.

The original Japanese investor of the resort, Sakakibara Kokusai Co Ltd, spent RM80 million in 1991 to develop the resort's club house, golf course and surrounding infrastructure.

During the financial crisis of 1997, the then newly formed government financial arm, Danaharta, took over the resort, which was at the time deep in financial crisis. The resort was then sold off to Syarikat Mustapharaj for RM21 million.

The deal has been widely described as "scandalous".

"The resort could easily fetch more than RM50 million," Japanese golfers claimed, lamenting that the transaction between Danaharta and Syarikat Mustapharaj was neither transparent nor fair to its original Japanese investor.

They said Syarikat Mustapharaj should not have closed down the golf resort without first negotiating with members, an action that contradicts contractual principles stated in the Companies Act.

Japanese community disgusted

japanese corporate community memo in penang 071108 kenichi matsuno Kulim-based Fuji Electric (M) Sdn Bhd senior general-manager, Kenichi Matsuno ( left ), said the Japanese corporate community in the country was utterly disgusted with the whole affair, which has cost them millions in membership fees.

Syarikat Mustapharaj ceased golfing activities in the resort in July last year without refunding membership fees to its estimated 1,400 members, who are mostly Japanese.

"The scandal has tarnished Malaysia's image in Japan," said Matsuno, who foresees the scandal affecting Japanese investments in the country.

Besides Fuji Electric, Kristal's other corporate members include industrial giants Pen Group, Texchem, Renesas Semiconductor and Sony.

Prior to its closure, a lifetime membership at the resort cost between RM40,000 and RM50,000. Individual memberships cost between RM1,500 and RM3,000 annually.

japanese corporate community memo in penang 071108 tathushi yamamura Senior citizen Tatsushi Yamamura, who paid RM3,000 for an individual annual membership in 2006, has only managed a few rounds of golf in the club before the resort was shut down.

Like many of his countrymen, Yamamura, is an avid golfer and has adopted Penang as his second home.

"Inexpensive golfing is the main attraction luring senior Japanese citizens to come out of their retirement and choose Penang as their second home.

"The sudden closure of Kristal Resort creates a negative image of Malaysia," he said.

Stressing that golfing is the social and cultural activity of choice for the Japanese, Yamamura added that the "closure of golf clubs was unacceptable".