The King, his family and U

Or … “Who needs to be a crony when you can be a Royal Crony Pt 2”

Damansara, 6/12: Ten years ago, this blog published the article Who needs to be a crony when you can be a Royal crony?  This was way before 3R (Race, Religion and Royalty) was a buzzword but we stuck to facts, we were careful not to be seditious in our writing, and we were fair in our comments. Unfortunately, the blogger and the players in the “royal JV” parted ways after the article, and subsequent articles, were published. The price of writing the truth and of trying to be champion of the larger and better interest of society, if you like.

I republish that 5 June 2014 article for some context to today’s headlines:

In a letter to the media yesterday, billionaire Francis Yeoh blamed Malay Mail Online's article Crony Capitalism in Malaysia has to go, son of YTL founder says for the bad press he's been getting. "The title of this article is inaccurate and it does not reflect the content of what I actually said ...", his letter said [Francis Yeoh says not a crony of former PM, StarBiz 5/6/2014].

So, Francis is saying that only the title (heading) of the article is inaccurate. The news content is.

Let's read what Francis said in the Malay Mail Online article, among other things:

“The good thing about [Singapore, Australia and the UK], I don’t have to kowtow to the prime minister before I do deal(s), I don’t have to see them even, even after I’ve won the deal." 

“I turn west because of this transparent, coherent regulatory framework.” 

“I don’t think you’ll have a chance. Even in Petronas contracts, if (you are) a non-bumi you won’t get to do anything." 

“Like me, I had to survive so 85 per cent of my business (is) outside, I had to invent a lot of the stuff, for my own self-interest, to make sure I survive." 

“I don’t depend on the largesse of the government." 

"I think this crony capitalism stuff has to go, it's 20 years old this idea. I think we should replace it with new, fresh, truthful idea."

At the forum, when asked about how his "close links" with former Prime Minister Tun Dr Mahathir Mohamad had contributed to YTL's successes, Yeoh denied being the latter's "crony" and credited the company's achievement to "innovation".

Innovation? A lot of people disagree with Francis it's cakap tak serupa bikin. 

In fact, people in the industry have been complaining of the RM3.5 billion power project that Francis had just won and they are saying that the project went to YTL Power because of its "close links" with the Johor Istana. Find out H E R E who owns SIPP, Francis Yeoh's partner in the successful "direct nego" award! 

I call it Royal Capitai Cronyism of the Highest Order, which carries the title Tan Sri.

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Now, fast forward a decade, we are faced with a similar situation in U-Mobile, the company least expected to win the coveted second 5G network and is threatening to be the bane of the Madani government which has awarded it that network. 

The second network, as we all know, was the result of the Madani government’s steadfast wish to break away from monopoly but two issues re U-Mobile - 1. The King’s 22% shareholding and 2. Singapore’s 48 per cent stake in the Malaysia telco  - have threatened to turn this good intentions into a major crisis.

And it’s about to get worse with today’s headlines on the King and U-Mobile:

Johor royal family set to become U Mobile's biggest shareholder

Published:  Dec 6, 2024 8:00 AM

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Updated: 8:22 AM

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Johor’s royal family is set to become the biggest shareholder in U Mobile.

This is after Singapore’s ST Telemedia - currently the largest shareholder - sells most of its stake to Mawar Setia Sdn Bhd.

After the exercise, which was announced yesterday, ST Telemedia’s share in U Mobile...

In Malay, read Kerabat Raja Johor bakal pemegang saham terbesar U Mobile.

For deeper context, read Singapore Straits Times’ U Mobile’s winning for Malaysia’s 5G spectrum sparks talks or cronyism

Now, I understand that the members of our Royalty are human and need to earn their keep and maintain their lifestyles. We certainly don’t want our kings and princes to be paupers. 

But the thing is, the Constitution clearly bars active participation of our King in business. 

In U Mobile’s case, as I’ve argued in my last posting The King and U,  King Ibrahim’s 22% shareholding may not make him an active shareholder. He does not have executive powers in the company, some people have also argued. 

But with the latest news that the King’s family will become the biggest shareholder in U Mobile, these arguments may not hold water anymore. 

In the good name of our Institusi Raja-Raja, we need to have a conversation on this. 

ENDS