Concerns rise over Syed Mokhtars debt load
December 30, 2010KUALA LUMPUR, December 30 Concerns have been taking flight over the growing debt bucket in Tan Sri Syed Mokhtar Al-Bukharys companies now which the tycoon is approaching to snap up the multi-billion ringgit tunnelling stipulate for the citys RM36 billion train use as good as the Penang port.Singapores Straits Times reported currently which the Kedah-born businessmans debts could be as tall as RM25 billion, with RM21 billion itself incurred by his flagship MMC Corp nonetheless his officials claimed many of it is due to plan financing.There have been the horde of corporate governance issues which disease his organisation as good as the chief between them is the taking flight debt load, pronounced the single chief executive of the boutique monetary consultancy.The fright is which his organisation could be the Renong of this decade, pronounced the comparison statesman from Umno, referring to the politically well-connected firm headed by office worker Tan Sri Halim Saad.Renong feasted upon infrastructure projects dished out by former premier Tun Dr Mahathir Mohamads government. But when the regional crisis hit in mid-1997, it was crippled by outrageous debts as good as was eventually bailed out with public funds.
The Singapore every day reported which in the past year Syed Mokhtar (picture) had emerged as the single biggest customer of state contracts as good as concessions worth billions of ringgit, creation him Malaysias many favoured corporate son as good as the governments partner of choice.But tighten associates of the lanky as good as indifferent tycoon insist the debt concerns have been misplaced as good as he is not satirical off some-more than he can chew.The journal pronounced they concurred which the debt bucket of Syed Mokhtars corporate flagship, publicly-listed MMC Corp, which stands during just over RM21 billion, may appear high. But the lions share of the de! bt is pl an finance, the complex form of financing indifferent for large-scale infrastructure projects where the debt is typically repaid from supports generated from the businesses.The debt bucket is manageable as good as is tall since of the nature of the businesses the organisation is involved in, pronounced the comparison corporate lieutenant of Syed Mokhtar, who insisted it can easily raise supports to monetary destiny projects.But the little Kuala Lumpur-based bankers have been not so sanguine, observant which the monetary returns from many of the groups resources such as the power plants have been poor yielding, as good as which the ports, which have been not behaving well, could suffer should the global economy enter the slump.The journal additionally pronounced the shares of the listed companies in Syed Mokhtars corporate sovereignty do not appear to interest to conservative foreign as good as domestic account managers.Born to the family of traders with roots in Bokhara, in present-day Uzbekistan, Syed Mokhtar began his business career peddling Thai rice to the state governments in northern Malaysia prior to riding the bang upon the batch marketplace in the 1990s.The collateral from trade in bonds supposing him with monetary heft for his initial major venture: the squeeze of the pier in Johor which currently is the Port of Tanjung Pelepas.The Straits Times pronounced by leveraging upon his strong ties with politicians such as Dr Mahathir as good as stream Deputy Prime Minister Tan Sri Muhyiddin Yassin, who during the time was the mentri besar of Johor, Syed Mokhtar moved into other areas.Admirers as good as tighten associates told Straits Times which Syed Mokhtar is often favoured since of his lavish donations to Islamic causes as good as political contributions.His companies contributed around RM350 million final year to his own foundation, which focuses upon preparation as good as eremite causes, the journal reported.However, it pronounced critics disagree which the businessmans clout illustrates how! the old clientele complement where business as good as politics engage in Malaysia remains in force.He is the master during the political diversion initial as good as only afterwards the businessman, pronounced the monetary consultant who has finished work for Syed Mokhtars group.
The Singapore every day reported which in the past year Syed Mokhtar (picture) had emerged as the single biggest customer of state contracts as good as concessions worth billions of ringgit, creation him Malaysias many favoured corporate son as good as the governments partner of choice.But tighten associates of the lanky as good as indifferent tycoon insist the debt concerns have been misplaced as good as he is not satirical off some-more than he can chew.The journal pronounced they concurred which the debt bucket of Syed Mokhtars corporate flagship, publicly-listed MMC Corp, which stands during just over RM21 billion, may appear high. But the lions share of the de! bt is pl an finance, the complex form of financing indifferent for large-scale infrastructure projects where the debt is typically repaid from supports generated from the businesses.The debt bucket is manageable as good as is tall since of the nature of the businesses the organisation is involved in, pronounced the comparison corporate lieutenant of Syed Mokhtar, who insisted it can easily raise supports to monetary destiny projects.But the little Kuala Lumpur-based bankers have been not so sanguine, observant which the monetary returns from many of the groups resources such as the power plants have been poor yielding, as good as which the ports, which have been not behaving well, could suffer should the global economy enter the slump.The journal additionally pronounced the shares of the listed companies in Syed Mokhtars corporate sovereignty do not appear to interest to conservative foreign as good as domestic account managers.Born to the family of traders with roots in Bokhara, in present-day Uzbekistan, Syed Mokhtar began his business career peddling Thai rice to the state governments in northern Malaysia prior to riding the bang upon the batch marketplace in the 1990s.The collateral from trade in bonds supposing him with monetary heft for his initial major venture: the squeeze of the pier in Johor which currently is the Port of Tanjung Pelepas.The Straits Times pronounced by leveraging upon his strong ties with politicians such as Dr Mahathir as good as stream Deputy Prime Minister Tan Sri Muhyiddin Yassin, who during the time was the mentri besar of Johor, Syed Mokhtar moved into other areas.Admirers as good as tighten associates told Straits Times which Syed Mokhtar is often favoured since of his lavish donations to Islamic causes as good as political contributions.His companies contributed around RM350 million final year to his own foundation, which focuses upon preparation as good as eremite causes, the journal reported.However, it pronounced critics disagree which the businessmans clout illustrates how! the old clientele complement where business as good as politics engage in Malaysia remains in force.He is the master during the political diversion initial as good as only afterwards the businessman, pronounced the monetary consultant who has finished work for Syed Mokhtars group. 
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