Malaysia

Sea can pass on Southeast Asian deal frenzy

12 January 2021

The region’s hot tech companies, Tokopedia, Grab and Gojek, are mulling consolidation. Any of them could be swallowed by Singapore’s $106 bln gaming-to-shopping giant Sea which has a war chest of cash and rich stock. But boss Forrest Li has good reason to sit back.

Grab CEO will step into 2021’s tech limelight

21 December 2020

Anthony Tan has steered his $15 bln super-app through the pandemic. With growth in digital payments booming across Southeast Asia, Grab is now charging into wealth management and digital banking. A mooted merger with rival Gojek will only cement Tan’s rising star status.

Rubber-glove selloff gets out of hand

16 December 2020

The pandemic quadrupled the value of Malaysia’s Top Glove, the world’s biggest maker of protective handwear, to $13 bln. But investors eying vaccine developments are now deeply discounting its shares. As the herd hastily dumps Covid trades, there will be value left behind.

Subpar Asian trade deal shines in splintered world

16 November 2020

Fifteen nations accounting for 30% of global GDP will slash tariffs and ease the movement of goods in the region. India’s absence is among the disappointments of the long-awaited pact. Even modest progress counts for a lot considering the sad state of U.S. and UK trade affairs.

Goldman’s clawback is small but pointy

22 October 2020

CEO David Solomon and others will forfeit $174 mln of bonus payments to resolve the 1MDB bribery scandal. But there’s a question mark over former COO Gary Cohn, who cashed in when he went into politics in 2017. That career change shouldn't shield anyone from past sins.

Goldman fines are literally cost of doing business

22 October 2020

The Wall Street firm is drawing a line under the 1MDB scandal. A U.S. settlement worth under $3 bln looks trifling, but years of bad behavior cost it far more. The bank spent more on legal woes since 2012 than on rent or technology. Like those expenses, penalties are inevitable.

Goldman Sachs’ 1MDB scar is already fading

24 July 2020

It’s paying $2.5 bln to Malaysia over its role in the scandal, four times its fees. Next comes closure with U.S. regulators. The cost in cash and reputation no doubt stings, a bit. But it's too small to amount to more than one extra line on Wall Street’s mile-long rap sheet.

Sovereign funds are having their rainy-day moment

23 June 2020

Temasek is stepping in to support Singapore Airlines and a marine group. It makes sense to shore up strategic assets at home when global valuations are high and cash is on hand. Peers from Abu Dhabi’s Mubadala to Malaysia’s Khazanah are likely to follow.

Tesco’s Asia retreat seals humdrum UK future

9 March 2020

The retailer sold its Thai and Malaysian units for $10.6 bln. The price of 12.5 times EBITDA suggests CEO Dave Lewis prioritised a fast sale. Investors will pocket a 5 bln pound special dividend. With a clear focus on its dominant British business, Tesco will be safer but duller.

Malaysian upheaval turns back clock for Goldman

2 March 2020

A surprise new prime minister is supported by the party whose ex-leader is on trial over 1MDB. That undercuts a fight against corruption. It also resets talks with the Wall Street bank over its role in the fund scandal, even if this government may reconsider an $8 bln tab.

Super-app M&A would be sign of more rational times

25 February 2020

A mooted merger of Gojek and Grab could create a $23 bln Southeast Asian food-delivery-to-ride-hailing giant. Strategic investors are still keen to write cheques, but easy money from SoftBank and others is drying up fast. Consolidation is the best path to continued rapid growth.

Goldman Sachs tests Malaysia reach in Tesco deal

15 January 2020

The bank is advising on the $9 bln sale of the grocer’s Southeast Asia businesses. Goldman could indirectly earn fees from the sale of assets in Malaysia where it is in hot water over its role in the 1MDB scandal. A smooth checkout will signal it’s mostly back in action.

Goldman set for show of guilt without tears

19 December 2019

The Wall Street firm may pay $2 bln for its role in the 1MDB bribery scandal and offer a rare admission of wrongdoing. Neither fine nor mea culpa would carry much sting. As often happens in the cat-and-mouse game of enforcement, the end result looks half-baked.

Tesco leaves Asia with a full cart

9 December 2019

Britain's biggest grocer may sell its business in Thailand and Malaysia. Thai peer Central Retail should list at a rich valuation, making it a good time to exit before regional economies cool further. The likes of prior owner CP Group could put $9 bln in Tesco’s pocket.

Goldman faces drip-drip 1MDB pain like Jho Low

31 October 2019

The alleged mastermind of the Malaysian fund fraud will pay the U.S. $700 mln. The deal’s loose ends hint at future pain for others, including the Wall Street bank. CEO David Solomon wants to draw a clean line under the scandal. Instead Goldman could end up paying multiple times.

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.