Debt-ridden TRI leads list of controversial Msian investors in Cambodia
A debt-ridden Malaysian company touted as having the biggest joint venture project in war-ravaged Cambodia has violated several of the country's laws, claimed award winning South East Asian journalist Salil Tripathi.
In his article 'Malaysian Investment Overseas' in the recently published book Ugly Malaysian? South-South investment abused , Tripathi revealed that a RM38 million (US$10 million) deal that allows Malaysia Airlines (MAS) a free hand in running Royal Air Cambodge (RAC) "violated four articles of the Cambodian constitution".
The Indian-born journalist, who was among the winners of the Citibank Pan-Asian Journalism Awards for economic writing, said RAC's launch also meant that the privately-held Cambodia International Airlines (CIA) had to cease operations.
He added this prompted CIA's managing director Udom Tantiprasongchai, a Thai national, to say: "I am shocked. [This is] not international practise."
The company behind Cambodia's national carrier RAC's launch is the infamous Technology Resources Industries Bhd (TRI) owned by embattled Malaysian business tycoon Tajuddin Ramli.
The ex-millionaire recently dogged media headlines for his failure to keep MAS afloat.
But according to the journalist, in 1995, Tajuddin stepped in to revive RAC when a proposed deal between Singapore Airlines and Cambodian authorities was aborted.
TRI-affiliate Malaysian Helicopter Services Bhd (MHS) owns part of RAC, whose fleet is on lease from MHS-controlled MAS.
Controversial businessman
Tajuddin courted controversy when he failed to meet a RM34 million payment deadline recently, paving the way for others to take over 13 percent of his total 17 percent stake in TRI the country's second biggest mobile telephone firm.
The tycoon, a close associate of former finance minister Daim Zainuddin, is currently under police investigation for failing to disclose his interests in a German cargo firm which MAS had contracted as its European cargo hub.
The probe, which came following an audit report ordered by the new management after the government bought back control of the airline company early last year, is focussing on possible contraventions of the Companies Act when Tajuddin was in charge.
Tajuddin sold his 29 percent stake back to the government at more than twice the price on the prevailing market value.
Another TRI subsidiary, TRI Cellular Communications Cambodia Co (Trielcam), runs one of the country's cellular phone networks.
Meanwhile, Malaysia's second largest timber group the Sarawak-based Samling Corporation Bhd owned by tycoon Hiew Teck Seng, has won the right to extract and process logs from two big timber concessions in the neighbouring country.
And Cambodia's Pochentong International Airport is being redeveloped by a Malaysian-French consortium.
Apart from these, the politically well-connected Francis Yeoh also has an interest in the country. His YTL Corporation plans to transform the Khmer Rough-infested Siem Reap province by building a RM3.8 billion (US$1billion) convention centre and staging a nightly sound and light show in Angkor Wat an ancient temple which is the world's largest religious building.
While V V Nathan's Delcom Bhd which has a joint venture with Penang-based Leader Universal to supply electricity to Phnom Penh, is prospecting for gold in Cambodia.
Low-profile Ariston Bhd, owned by Chen Lip Keong of FACB Bhd, is Cambodia's biggest independent foreign investor.
In the media industry, Malaysian businessmen own three of the country's 20 newspapers.
Raised eyebrows
Collectively, Malaysia commands 74 percent of committed foreign investments worth RM9.5 billion ( US$2.5 billon) in Cambodia, a country "where accountants and lawyers fear to tread", said Tripathi.
"But Malaysian influence in Cambodia has raised eyebrows," he added.
Ugly Malaysians
, edited by Universiti Malaya's Prof KS Jomo, and published by Durban's Institute for Black Research, seeks to understand and document the reasons for growing resentment abroad to various instances of direct investment by Malaysian firms.
"To put things in balance perspective, it should be emphasised that not all Malaysian investments abroad have generated similar levels of criticism," said Jomo in his introduction.
"Some Malaysian investments, especially some state-owned enterprises notably Petronas, have actually been welcomed and appreciated as an attractive, even superior alternative to other options typically dominated by private, commercial and other considerations," he added.
Noted for his bold censures of Prime Minister Dr Mahathir Mohamad's economic policies, Jomo said Malaysian manufacturing investments in other parts of East Asia have not been subject to criticism and some like Ingress, manufacturing automotive parts in Thailand, have had impressive successes.
"It is, therefore, important to put Malaysian investments that have generated adverse reactions abroad in some comparative perspective," explained the academician who added that the book represents an initial survey of several types of such controversial investments by Malaysians abroad.
Well-connected groups
Meanwhile, Tripathi said in the most controversial deal so far, Ariston has won the bid to develop Sihanoukville.
Ariston's Chen has committed RM4.9 billion (US$1.3 billion) to build casinos, highways, a new airport and telecommunication links, he added.
The journalist said that Chen has apparently roped in well-connected groups like Faber Bhd and Tenaga Nasional Bhd to set up a hotel and power plant respectively.
"Within four months of securing the contract, a floating casino in Phnom Penh flanking the historic Cambodiana Hotel on the famed Mekong River, has begun operations," he said.
"Discounting doubts of his ability to deliver, Chen says he controls nearly 51 percent of FACB, which gives him sufficient resources to carry out the project," he added.
Tripathi, who is currently working on a novel set in Southeast Asia, said critics alleged that "making money quickly and running the economy like a corporation (some say a privately held corporation) are the cornerstone of new Cambodia".
This is the second part of a four-part series based on the book Ugly Malaysians? South-South investment abused (Institute for Black Research, Durban, 2002) which highlights the growing resentment abroad to various foreign direct investments by Malaysian firms.
Tomorrow's article will focus on Malaysian investments in Tanzania and is available only for malaysiakini subscribers.
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