Malaysia

The Exchange: The Asianisation of the world

17 September 2019

A splintering West and increasingly interconnected East is creating a newly powerful mega-region, according to Parag Khanna, author of “The Future is Asian.” He swung by the Breakingviews office in Hong Kong to break down the economic and geopolitical rationales behind his idea.

Southeast Asia joins global telecom M&A hang-up

6 September 2019

Telenor and Axiata ended talks to create a $40 bln regional champion. A complicated structure and Malaysia’s nationalist tendencies eclipsed the allure of big cost savings. The difficulty of merging phone operators around the world presents a growing problem for investors.

Goldman’s top brass become hostages in 1MDB fight

9 August 2019

Malaysia has filed criminal charges against current and former star bankers, including international boss Richard Gnodde. It’s a cunning way to ramp up pressure on the Wall Street firm for a mega settlement. Goldman could end up paying three times to end the sovereign scandal.

Singapore Airlines reroutes back to Malaysia

28 June 2019

The $8 bln carrier is deepening ties with its struggling Kuala Lumpur rival, from code-sharing to maintenance. It may be a precursor to merging again nearly 50 years after the two split. Reuniting would benefit both, but politics and regulation will be hard to navigate.

Uber and Lyft create Asian valuation conundrum

30 May 2019

U.S. ride-hailing exuberance faded into lacklustre market debuts. At the same time, Singapore’s $14 bln Grab, for example, recently raised capital privately at 7 times expected revenue, compared to Uber’s 5 times. Fast-growing payment units can only justify some of the gap.

Viewsroom: Oil M&A fight may end with no winner

9 May 2019

Occidental boss Vicki Hollub corralled BofA CEO Brian Moynihan and investor Warren Buffett to her side to seal a $38 bln offer for Anadarko. Her tactics scared off rival bidder Chevron but may alienate her own shareholders. Plus: Malaysia’s reform efforts since the 1MDB scandal.

Malaysia’s ruling coalition could use a fresh push

7 May 2019

A year after his shock win, Prime Minister Mahathir Mohamad's popularity is flagging. Change has been slow. His party has only tinkered with wasteful subsidies. Scrapping a goods and service tax also left a fiscal hole. It’ll take more to fix tainted institutions and fuel growth.

Norwasian telecom deal dials right numbers

6 May 2019

Telenor and Malaysia’s Axiata are aiming to form a regional champion with some 300 mln customers by merging their South and Southeast Asian businesses. Bigger looks better with savings worth some $5 bln expected. Kuala Lumpur might raise an eyebrow at less competition, though.

Belt and Road repairs fix only some potholes

25 April 2019

Beijing's gathering this week to promote its $1 trln-plus foreign policy push comes after a year of unprecedented troubles, from Pakistan to Malaysia. Under pressure, China has shown some welcome flexibility. But U.S. hostility is ramping up too; that’s far harder to pave over.

Kuala Lumpur can give up Malaysia Airlines

21 March 2019

The flag carrier has been losing cash for years. Now Premier Mahathir Mohamad is asking if it should fly at all. State-meddling has hampered a turnaround and there’s too much local capacity. Folding the airline would show that his government is ready to rein in the state.

Goldman Sachs will spend 2019 in velvet handcuffs

18 December 2018

New boss David Solomon starts the year with a mission to grow, lots of ambition and a crosstown rival that has steadily upped its game. A big deal – say, buying an asset manager – could help Solomon vault ahead of Morgan Stanley. That’s if the 1MDB scandal doesn’t bind his hands.

Wall Street could use remedial lectures on culture

17 December 2018

The New York Fed’s push to improve industry behavior deserves top watchdog billing. Goldman’s 1MDB mess is only one reminder the message hasn’t totally sunk in. Slower economic growth in 2019 could expose more lapses. It’s a good time for boss John Williams to badger his charges.

Goldman Sachs could wind up paying twice for 1MDB

28 November 2018

Abu Dhabi’s sovereign fund is now suing the investment bank for its role in the Malaysian scandal. Damages being sought could exceed Goldman's average net profit of $5.4 bln. U.S. authorities may want a piece, too. The longer this drags out, the worse the financial fallout looks.

Malaysia claim of Goldman cheating is a bit rich

21 November 2018

Prime Minister Mahathir Mohamad’s administration says the country was deceived and wants back $600 mln the investment bank made arranging bonds for disgraced 1MDB. Goldman’s compliance was weak, but the last regime knew what it was buying. There’s plenty of blame to go around.

The Exchange: 1MDB, Goldman, Jho Low and Leo

19 November 2018

The new book “Billion Dollar Whale” chronicles the Malaysian mega-scandal involving Goldman Sachs and Leonardo DiCaprio. Co-author Tom Wright joined Breakingviews in Hong Kong to discuss how alleged mastermind Jho Low pulled it off and what the saga’s next chapter may bring.

Goldman has half a defense in 1MDB mess

14 November 2018

Two former executives accused in the Malaysian corruption scheme openly lied to the bank, U.S. authorities say. Rival firms have found leniency in similar cases. But an indictment also cites a culture that favored deals over compliance. That could warrant a deferred prosecution.

Goldman gets no closure from banker’s 1MDB plea

1 November 2018

Former star banker Tim Leissner pleaded guilty in the Malaysian money-laundering scheme. The firm can cite his lies and deception. But fat fees from bond offerings should’ve raised red flags. U.S. authorities have punished Wall Street for past examples of poor oversight.

Budget tests mettle of Malaysia’s mavericks

1 November 2018

Mahathir Mohamad's government is set to present the $300 bln economy's most significant blueprint in decades. It needs to burnish reform credentials and soothe rating agencies. Outlining a credible tax plan will be a start; a plan to reduce the state's role is the bigger prize.

Review: Malaysian heist hides deeper moral

21 September 2018

“Billion Dollar Whale” tells how a chubby twentysomething stole a fortune and partied his way around the planet, ultimately bringing down his country’s prime minister. Behind the exploits, however, lies a darker story of how global capitalism facilitates fraud and fuels excess.

Malaysia’s China reset imagines Byte and Road

20 August 2018

After months of fighting talk, Prime Minister Mahathir Mohamad is striking a softer tone. His PRC visit began in Alibaba's hometown of Hangzhou and included a new-energy deal with carmaker Geely. That suggests an effort to extract tech aid in exchange for infrastructure projects.