GONE KAPUT : BANKS DO NOT WANT TO FINANCE MALAYSIAN OIL AND GAS INDUSTRY
Banks more cautious lending to O and G sector in recent years The Edge said.
CEO Vaidyanthan Nateshan’s De Raj Group AG got approved listing in Frankfurt forced to go to Europe as bankers refused to provide support.
bankers telling us they won’t touch oil and gas with barge pole.
So, I’m taking company to Europe.
not equity market that is tough, it’s debt market.
We need financing for executing projects.
M’sian debt market dead … asset cover 2.5 to 3 times
in Europe, it is 0.8 times
O and G companies more difficulties securing financing
because there is no indication where industry going
My comments : This was before Petronas announced that they are shutting down 10 out of 20 jacket rigs and 60% of their tender assisted rigs (tenders are barges or oil rig type floating platforms).
For a quick tutorial on oil rigs, please see these two videos :
The sun is setting on oil and gas. The morons in the gomen do not know what to do. They are going to eat grass soon.
If you think the GST is needed to pay the salaries of 1.6 million civil servants, then please calculate the hundreds of millions of GST collections that WILL DISAPPEAR when you shut down half the oil rigs in the South China Sea.
There will be a Domino Effect. Listed oil and gas companies will go bust.
There are FOUR supply bases (ports) in this country that service the oil and gas industry in the South China Sea – Kemaman Supply Base (which I helped finance in the 1990s), the Ramunia supply base and there are one each in Sarawak and Sabah.
They will all be suffering. Imagine the amount of GST collection that will be lost. No business, no sales, no GST.
I think those cute shopping malls in Kemaman and Kerteh must also be suffering poor sales. No GST or much less GST.
So how is the gomen going to pay the salaries of 1.6 million Civil Servants?
There is an easy way – a super duper easy method. Tak payah sekolah tinggi-tinggi pun boleh faham.
Create new sunrise industries. New industries that can create new wealth.
How does the gomen do it?
You dont do anything.
Just get out of the way.
Just get lost.
The people know what to do.
The private sector knows what new industries to create.
The gomen must just get the hell out of the way.
The country has become poor now (correction – the Malays have become poorer now) because of all the artificial and useless restraints put on the economy.
When you place so many chokeholds on the economy, you actually strangle the people’s creativity. The result is you become poor. This is what is happening now.
We did not see the negative effects of this “choking the economy” for some time because we were able to use oil money to grow the economy – or a substantial part of the economy.
The oil money went to grow the bumiputra economy. There were spinoffs into the larger economy. Bumiputras got the contracts and they subcontracted it out to the non bumiputras.
When oil was at US100 per barrel the gomen just became blind to all reality.
Before that, oil was at US40 per barrel. But we had a good leader who did not steal the money. Still oil money was used to support the bumiputra economy. And it trickled out to the larger economy.
The oil money was able to paper over or cover up all the chokeholds and strangle holds that existed in the economy.
Malaysians pay THREE, FOUR or FIVE TIMES world market prices for our cars.
You need APs to import christmas turkeys.
You need APs to import cabbages ??
To catch fish in Sarawak they need a fishing license from Putrajaya!!
These are all chokeholds on the economy.
But we had oil money.
So we did not mind paying such high prices.
Oil money helped to paper over all these chokeholds.
Now the oil money is gone. Or disappearing very quickly.
The country is slowing down.
The GST collections will also slow down.
How are the 1.6 million Civil Servants going to be paid?
The Malays are becoming poorer.
What do we do?
The solution is simple.
Undo the useless chokeholds.
They were never of any use at all.
Gomen get out of the way.
The people know what to do to move the economy.
Remove all the useless chokeholds and strangulation points.
Imported basmathi rice is cheaper in Singapore than in Malaysia.
Singapore does not even grow rice.
This is because Bernas does not want to lose its monopoly position.
Solar panels for rooftop electricity farming are more expensive in Malaysia than in California. Because there are restrictions and licenses required to import solar panels.
Elon Musk is a 21st century tech genius.
His products (like his cost saving energy packs) are unheard of in Malaysia.
Because there are restrictions and licenses required.
TNB does not want to lose its “monopoly” over power production.
So Malaysians pay higher and higher prices.
It was possible when there was plenty oil money.
We wasted so much of our oil money.
Now the oil money is gone.
So we cannot pay for all this wasteful behaviour.
And remember, the oil money was burned to fund the bumiputra economy.
Now the gomen cannot even collect GST. Just wait and see.
Free up the economy.
Let the people do what they can do.
Then we just follow our own Elon Musks and our own Jack Mas.
The easy money days are over.