27Oct Top 30 Malaysian tycoons lost RM75 billion
In the wake of the global financial crisis, many people have made paper losses through their shareholdings. Some, like me, may have ventured into the market a bit too early during the fall and now are stuck with even lower-priced stocks. But we are not alone, for our Malaysian tycoons have also suffered - paper losses, that is. Their wealth have been considerably reduced in terms of their net worth. Let’s take a look at how much their “losses” are, as compiled by this week’s The Edge.
Robert Kuok - RM27.76 billion (PPB Group, Kerry Properties, Shangri-La Asia Ltd, Wilmar, Malaysia Bulk Carrier)
Lee Shin Cheng - RM10.52 billion (IOI Corp)
Quek Leng Chan - RM6.58 billion (Guoco Group, Hong Leong Group)
Lim Goh Tong family - RM5.22 billion (Gentings Group)
Syek Mokhtar Al-Bukhary - RM5.17 billion (MMC Corp, Tradewinds, DRB-Hicom)
Yeoh Tiong Lay - RM2.15 billion (YTL Corp)
Vincent Tan - RM1.88 billion (Berjaya Corp)
William Cheng - RM1.87 billion (Lion Group, Parkson Holdings)
Lee Swee Eng - RM1.73 billion (KNM Group)
Ananda Krishnan - RM1.67 billion (Astro, Tanjong PLC, Measat Global)
Teh Hong Piow - RM1.62 billion (Public Bank)
Yaw Teck Seng - RM1.37 billion (Samling Group)
Lee Oi Hian & Lee Hau Hian - RM0.99 billion (Batu Kawan)
Ong Beng Seng - RM0.93 billion (Hotel Properties, Nasteel)
Jeffrey Cheah - RM0.85 billion (Sunway Holdings, Sunway City)
Azman Hashim - RM0.83 billion (AMMB Holdings, RCE Capital, AMDB)
Tiong Hiew King - RM0.73 billion (Media Chinese, Jaya Tiasa, Subur Tiasa)
Mokhzani Mahathir - RM0.45 billion (Kencana Petroleum)
Eleena Azlan Shah - RM0.41 billion (Gamuda)
Tony Fernandes & Kamarudin Meranun - RM0.31 billion (AirAsia)
Lim Chee Wai - RM0.30 billion (Top Glove)
Kua Sian Kooi - RM0.28 billion (Kurnia Asia)
Abdul Hamed Sepawi - RM0.27 billion (Ta Ann, Naim Cendera)
Khoo Kay Peng - RM0.25 billion (Laura Ashley, MUI)
Tony Tiah - RM0.22 billion (TA Enterprise)
Ong Leong Huat - RM0.18 billion (OSK Holdings)
Liew Kee Sin - RM0.18 billion (SP Setia)
Chong Chook Yew - RM0.14 billion (Selangor Properties)
Lau Cho Kun - RM0.14 billion (Hap Seng, Malaysian Mosaics)
Nazir Razak - RM0.07 billion (Bumi-Commerce)
In total, these 30 tycoons are now worth RM75 billion less. That’s a lot of wealth destruction to deal with should they become more real than just paper losses. I shudder to think what it is like to be in their shoes right now.
October 27th, 2008 at 8:44 pm
It’s just a bit of sensationalistic reporting by the Edge though. These “losses” are based on the highest/last closing prices. For example, if IOI last traded at RM4, it uses RM4 as calculation.
Realistically, however, if Lee Shin Cheng wanted to convert his paper “profits” into real profits by selling all his IOI shares, there is NO WAY he can sell them all in the open market at RM4.
The only way he can get out without bombing the price, totally killing the market (who wants to buy so many at one time..) and confidence if in the off chance that there’s a takeover.
So, really, really inaccurate to say that it’s a “loss” if he misses the “opportunity” to bank out at RM4 or whatever price the reporter used.
And remember, he probably got the shares at RM1 value, and also most of them for “free”. And, since he holds so many, he pays himself whenever he declares a dividend.
I would TOTALLY want to be in their position. They won’t be forced to eat Maggi Mee for a long time to come, and they’re probably still dining on lobster whenever the whim strikes. I wouldn’t care if my shares take a dive - it’s backed by solid assets. You think just because the shares dive, the plantations, the machinery, etc become worthless..? They are still worth billions. I see it as a chance to possibly privatise, in fact.
October 28th, 2008 at 11:05 am
Thanks for sharing your insights, Aw. To some extent, I think you are quite right to say that they aren’t going broke with these losses. But they sure are worth a lot less now that the values of the shares aren’t at their optimum level.