Politics >>>

Perak, PR, BN and Gamuda – It’s all about Business, Stupid

Dubai is probably the best yardstick to measure the economy of the Gulf region; at least Dubai was the most prosperous city within the region. People might not know where Oman is but they can’t miss Dubai. For years people have been flocking to this city hunting for their first pot of gold. As with the normal cycle property market was booming with tons of first-time speculators snapping up properties as if they were buying tiramisu cakes. Money was stretched to the limit in order to buy maximum number of properties possible. These properties would then be rented out without much problem, thanks to the booming economy, and thus generating positive cash-flow. It was a no-brainer method to generate wealth until now.

Now that the property bubble has burst, thanks to global economy recession, these novice speculators are selling their once-cash-cow to anybody at fire-sale discount. Effectively most of Malaysian construction companies were crying as projects agreed got hold or cancelled. Gamuda Berhad (KLSE: GAMUDA, stock-code 5398), the country’s largest construction and engineering with interests in construction, water, toll and property development is feeling the heat (7% of Gamuda’s outstanding order book comes from the Gulf region) after the WCT Berhad and Meydan LCC joint venture to build a RM4.6 billion race-course in Dubai was cancelled. Gamuda generated investors’ interest recently when the founder and Managing Director Lin Yun Ling cashed-out early 2008 sending the stock price to the south.

Another interesting fact about Gamuda – the largest shareholder is also the second richest woman on the 2008 Forbes 40 Richest Malaysians at #35 spot. She is Raja Datuk Seri Eleena Raja Azlan Shah, the daughter of the Sultan of Perak, Raja Azlan Shah. She was worth RM773 Million ($228 Million) at #25 spot in 2007’s 40 Richest Malaysians but this figure dropped to RM510 Million ($150 Million) in 2008 at #35 spot. Based on today’s stock price of RM1.91 a share her fortune is only at RM287.46 million based on her remaining stake of 7.5% in Gamuda via Generasi Setia (M) Sdn Berhad. Naturally when his father refused to dissolve the state assembly for a fresh election various rumors and speculations began its circulation.

Read more >>>

This may explain why a sultan with wisdom like Sultan Azlan Shah turned his back against the rakyats.

The comment board with Facebook account.
syahirghani says:

errr… is in UAE not Oman.