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Think-tank challenges JP Morgan to support claims with facts

December 15, 2012
Harakahdaily, 14 December 2012

Dec 14: An economic research think-tank has disputed the claim by an analyst representing JP Morgan Securities that Barisan Nasional’s holding on to power after the coming general election was good news to investors.

Research for Social Advancement (REFSA) said the rosy appraisal on the government’s Economic Transformation Programme by Mak Hoy Kit, the executive director of equity research at JP Morgan Securities, was completely opposite of REFSA’s findings on the ETP and other related government tools including the Performance Management & Delivery Unit (PEMANDU).

“Our extensive analysis of the ETP, all freely available at http://www.refsa.org and widely carried by the on-line community, found basic numbers that did not add up, projects that looked dubious, decisions which made little economic sense and worst of all, perception manipulation and outright lies by this powerful unit in the prime minister’s department,” said REFSA executive director Teh Chi-Chang in a statement to Harakahdaily.

He pointed out that economic progress was much slower than PEMANDU’s claim, adding that only 7 per cent of its projection of some RM179 billion investment had been realised.

“Most shockingly, we discovered that PEMANDU was not being truthful about its progress. The most audacious lie is PEMANDU claiming 100% credit for the construction of a 200mm wafer fab in Dec 2011 when in actual fact the company that was supposed to build and operate this RM1.9 billion wafer fab was in the process of being declared insolvent,” said REFSA, adding that there had been no action against PEMANDU officers who claimed that the wafer fab plant was complete despite not existing at all.

As such, REFSA said JP Morgan should support its view that the ETP is resulting in “positive structural changes”.
Earlier, Mak (left) came under heavy criticism from netizens after several BN-controlled media published his comments.
Among others, he warned of “some risk” if Pakatan Rakyat comes to power.

“Investors will be worried if the Opposition wins. When there is uncertainty, investors typically act negatively,” he was quoted as saying.
In response, Selangor Menteri Besar Abdul Khalid Ibrahim advised JP Morgan to be politically neutral.

“JP Morgan and others should take care to ensure that their analyses reflect a neutral stance towards politics and respect the democratic right of the rakyat to choose a government without being influenced by unfounded economic fearmongering,” Khalid reportedly said.

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7 Comments leave one →
  1. Black Arrow permalink
    December 15, 2012 1:33 am

    That analyst at JP Morgan is talking rubbish. My businessman uncle said all the non-crony businessmen are waiting for Pakatan Rakyat to form the Federal Govt after the 13th General Election because the businessmen are tired and fed-up of the cronyism and lack of transparency under the BN Fed. Govt.

  2. Greg permalink
    December 15, 2012 1:53 am

    A reputable research house’s name is being compromised by someone who obviously has some with personal interest in posting such comments. It is a well known fact that businessman – bumi and non-bumi alike are happy with the corruption free approach in awarding contracts by both Selangor and Penang governments. Comments like this will fool no one, only himself.

  3. Sabah Arise! permalink
    December 15, 2012 3:39 am

    This is the first time in the world where an analyst literally advised the local suffering inhabitants to continue accept all the rubbish wrong doings of its govt supposedly for the greater good of the nation’s future one very fine day! I’m no great brains, a small town boy, but this advice sounded unbelievably idiotic to me….how can anyone justify it’s better to allow wrongs for any good to happen? If that’s a new great mind hypothesis, then please teach this new found syllabus to our school kids (sic).

  4. Tok Merayau permalink
    December 15, 2012 4:07 am

    Mak Hoy Kit is merely chasing for a free Datukship. Pathetic at the way he grovels.

  5. December 15, 2012 4:41 am

    This little boy mak is just a recent graduate who found himself a job as an analist and is destroying the neutral position of fundmanaging by his uneducated statements based on emotions and not facts.If what he says were to be believed, then america,japan,thailand etc would have been bankrupt years ago.
    As a senior businessman myself ,im awaiting the new PR government because under BN im paying through my nose in bribes and angpows to the powers that be or they will screw up the applications i made.
    At least im sure that the PR government will reduce corruption though one cant eliminate corruption.
    Go play with your marbles little boy mak or better still go explore your dick.

  6. CheahSK permalink
    December 16, 2012 1:54 pm

    Pls don’t blame that little boy Mak. He is trying trying to make his mark in his career. For him it is better to say the wrong thing but to be on the good side of BN than to say the right thing and be on the side of the opposition. Say what you like this young cookie has a future with the government and that was just his intention. Don’t listen to those experts. Their accuracy y is very bad. For your info; Merrillynch is 39%, Lehmen Bro 18%, Citicorp 16%. JP Morgen belongs to the same kettle of fish. You want to invest with them? As you can see tossing a coin gives you a better chance to make money.

  7. December 18, 2012 10:01 am

    Well, this smart ass mak could have been related to csl?

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