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KUALA LUMPUR: Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan akan menyiarkan di akhbar 10 ciri perniagaan skim piramid yang tidak mengikut peraturan, bagi mengelakkan masyarakat terus tertipu.

Menterinya, Datuk Seri Ismail Sabri Yaakob, berkata masih ramai rakyat di negara ini yang terpedaya dengan skim tersebut, walaupun kerajaan telah menasihatkan mereka supaya sentiasa berhati-hati ketika membuat pelaburan KUALA LUMPUR: Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan akan menyiarkan di akhbar 10 ciri perniagaan skim piramid yang tidak mengikut peraturan, bagi mengelakkan masyarakat terus tertipu.

“Saya berharap orang ramai dan pelbagai pihak perlu melindungi diri sendiri dan tidak tertipu dengan skim ini, yang dari awalnya berniat menipu peserta,” katanya kepada pemberita selepas merasmikan bangunan baru Suruhanjaya Syarikat Malaysia di Kuala Lumpur Sentral di sini hari ini.

Beliau mengulas laporan akhbar mengenai kejayaan polis membongkar kegiatan satu sindiket penipuan skim cepat kaya selepas menahan 59 orang dan merampas 18 kereta mewah dalam satu serbuan di Petaling Jaya.

Ismail Sabri berkata, kerajaan memandang serius terhadap skim itu dan melakukan pemantauan berterusan, selain mengambil tindakan tegas terhadap pengusaha skim itu.

Katanya, selain berdepan tindakan digantung atau dibatalkan lesen serta didenda, mereka juga akan dihadapkan ke mahkamah jika ramai yang tertipu dengan skim itu.
Beliau berkata, penguatkuasaan Akta Jualan Langsung (Pindaan 2010) akan menggalakkan pertumbuhan serta perkembangan aktiviti jualan langsung beretika, selain melarang segala kegiatan berbentuk Skim Piramid dan Skim Cepat Kaya bagi melindungi hak dan kepentingan pengguna. – BERNAMA

KUALA LUMPUR: Bank Negara is seeking to arrest five individuals who are suspected of operating get-rich-quick schemes.

The five individuals are Dahlan David bin Abdullah, Ramunatul Aida binti Rahmat, Abd Halim bin Rafii, Abdul Halim bin Che Ismail and Harun bin Mat Saat. They are all believed to have commited crimes involved in illegal deposit taking and money laundering.

“They are operators of illegal schemes. They held positions of director in their respective companies. We believe they are all still in the country,” said a source who is investigating the case.

Illegal deposit taking falls under the Banking and Financial Institutions Act 1989 while money laundering falls under the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.

Dahlan David and Ramunatul were respectively chief executive officer and director of Jazmeen (M) Sdn Bhd.

In a 2007 note to investors, Dahlan said “… Jazmeen is a platform and avenue for people to invest, save and earn a profitable monthly return, as we are growing by the numbers. My goal is to turn Jazmeen into an international business conglomerate”

Abdul Halim bin Che Ismail was a director in Silver Coin Resources Sdn Bhd while Abd Halim bin Rafii was in Syarikat Eastana Farm Industries Sdn Bhd. Lastly, Harun was in Pan Phoenix Dina Sdn Bhd.

Bank Negara is offering rewards to members of the public for information that leads to the successful arrest of these individuals. In March, a task force, helmed by Domestic Trade, Co-operative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob, was formed with Companies Commission of Malaysia (CCM) chief executive officer Datuk Azmi Ariffin.

Azmi also presides on the working committee that consists of other regulators such as Bank Negara, police, the Securities Commission of Malaysia and the Cooperative Commission of Malaysia.

Last month, the task force obtained a conviction against Grand Merger Resources Enterprise for illegal cash transaction under the Kootu Fund (Prohibition) Act. The other cases, relating to illegal interest schemes against Island Red Cafe and Golden Nest Sdn Bhd under Section 84 of the Companies Act, are pending trial in court.

In May, Bank Negara started investigating The Gold Label Sdn Bhd for suspected illegal deposit-taking and money laundering activities.

The central bank raided the company’s premises in Northpoint Offices, Tower A Mid Valley City, Kuala Lumpur yesterday, following complaints received from the public.

Relevant assets and documents were seized for purpose of investigation. A global economic crime survey in 2009 found that nearly half of the financial crimes were committed by middle managers as a result of the economic downturn which had affected many organisations.

Source: The Star Online

We are back to red ocean yesterday.  I entering office today and lot of paper work to do. Nevertheless, I get some time to meet up with  few customers.

In blue ocean, after closing Giant booth, Zul, Razmi and I managed to eat durian there. RM21 for 3. Quite cheap. It’s raining that time and we just don’t care.  Just found suitable place to sit and enjoy!

Here some pictures taken. Enjoy!

Simple, routine vehicle maintenance and smart driving habits can help you save hundreds of ringgit in fuel costs a year.

SO fuel prices have gone up. Granted, it’s not that much and there is no reason to hit the panic button, but you’re definitely going to feel the pinch, even if it’s a small one.

To recap, last week the Government announced the increase in the price of RON95 petrol by five sen per litre to RM1.85, while RON97 will no longer be subsidised.

The price of diesel rose by five sen to RM1.75 per litre.

What this means is that if you are used to topping up your tank with a certain amount of money before, you’d realise now that the fuel gauge won’t be as high as where it used to be and driving to the pump is going to become a wee bit more frequent.

However, there are steps that you as a driver can take to help mitigate this. Simple, routine vehicle maintenance and smart driving habits can help you save hundreds of ringgit in fuel costs a year.

Don’t drive aggressively

According to a study by Natural Resources Canada, frequent “jackrabbit” starts (that is, fast acceleration of a motor vehicle from a stationary position) and hard braking can increase fuel consumption by almost 40% and only reduces travel time by a mere 4%.

“The ideal way is to accelerate slowly and smoothly and then get into high gear as quickly as possible,” says Simon Lam of Used Autos Sdn Bhd, a Kuala Lumpur-based used-car dealer.

According to Lam, in normal city driving, about 50% of the energy needed to power a car, is used during vehicle acceleration. “If you notice you’re slamming on the brakes hard and often, then it’s a sign that you’re wasting fuel unnecessarily,” says Lam.

According to eartheasy.com, increasing your highway cruising speed from 90 kmh to 120 kmh can increase fuel consumption by as much as 20%. One can improve gas mileage by 10% to 15% by driving at around 90 kmh.

Alternatively, you can opt for cruise control if your car has it, says Lam. “This is especially good for long trips. Not only will it reduce your urge to speed, you’ll also feel less tired after the journey.”

Keep tyres properly inflated

Under-inflated tyres create added rolling resistance and can increase fuel consumption by as much as 6%, says Klang Valley-based tyre agent Vincent Pang.

“Check your tyre pressure regularly and make sure to inflate them as recommended by the manufacturer. It’s not difficult to do and doesn’t cost you anything. Looking after your tyres not only helps you to reduce fuel consumption, it promotes better vehicle handling and tyre life,” he adds.

But, apart from taking care of your tyres, keeping your entire car in good working condition also ensures that it is running at optimum levels and peak efficiency.

Use air-cond sparingly

Okay, we all know how unkind the Malaysian heat can be, but a two-minute trip to the mamak stall or post office without air-conditioning won’t kill you.

According to eartheasy.com, using a vehicle’s air-conditioner on a hot day can increase fuel consumption by as much as 10% in city driving.

At low speeds, opening the window helps to save fuel consumption by reducing air-condition usage.

However, at high speeds, driving with the air-cond on is more fuel-efficient than the wind resistance caused by having the windows and sunroof open, it says.

Travel light

The more weight you carry, the more fuel you use, says Kuala Lumpur-based mechanical engineer Peter Lau. “Your car is a means for transportation, not a mobile storage facility. Keep heavy items like tools, sports equipment or other items at home when you don’t need them,” he advises.

Lau adds that vehicle add-ons, such as roof racks or even spoilers, can add to wind-drag and reduce fuel efficiency.

“Remove items such as roof and bike racks when not in use. If you have to use them, load them in such a way that any sort of drag or resistance can be minimised while driving.”

Source: The Star Online

EVER so often, we come across appeals for donations to pay medical bills. In a typical case, the illness requires immediate treatment and the patient has to go to a private hospital. The trouble is, not everybody can afford healthcare charges based on commercial rates.

Months ago, it was reported that a 10-year-old boy needed over RM100,000 for a bone marrow transplant. Two bone cancer patients sought donations to undergo surgery. A three-month-old baby diagnosed with multiple ventricular septal defects was in dire need of funds.

Another man had nose cancer and needed financial help, and two days ago, a nine-year-old boy asked for more funds for his bone marrow transplant although his parents had already spent RM300,000.

These are heart-wrenching stories – the young and old fighting for their lives and depending on charity for a lifeline. They are the most vulnerable group and even insurance companies are reluctant to give them coverage.

The government hospitals do not turn away patients no matter how poor they are but having to wait for an appointment to see a specialist or to have surgery can be costly.

When the public sector cannot fully satisfy the demand for healthcare services, it is left to the businessmen to fill the gap.

“The Malaysian healthcare has emerged from a government-led and funded public service system to a dual-tiered parallel system with a sizeable share and thriving private sector,” says Malaysian Medical Association (MMA) president-elect Dr David K.L. Quek.

Overstretched

The waiting time is not the only issue with public healthcare. There is also the need to keep up with technological advancements. Is the Government spending enough to give citizens the latest and the best in treatment options?

About 7% of the national budget is allocated for healthcare. Budget 2010 proposed a reduction from RM13.7bil last year to RM13.1bil. In comparison, the US healthcare spending reached US$2.3 trillion, representing 16.2% of the American economy.

In Malaysia, says Quek, about US$400 per patient is spent on healthcare every year but some of our neighbours are spending in excess of US$1,000. Treatment for chronic diseases alone is said to make up 75% of most countries’ healthcare spending.

But it is unfair to say our public system is bad. The doctors and nurses are stretched and they are doing their best. In fact, some of the brightest talents are in the public sector and it is small wonder that the private sector is constantly luring them.

But the workload in the public sector is daunting. The sector has about 50% of the country’s doctors who attend to 80% of the population while the remaining 50% of the doctors in private practice treat 20% of the population. That explains the long queues at public hospitals. But how many of us can afford treatment at private hospitals?

There is, therefore, a disparity and reform is the way forward. “We welcome a change to the current healthcare system as there is a gap and hopefully, the new system will bridge it. Healthcare should be available to all,’’ says Tropicana Medical Centre consultant cardiologist Dr Haizal Haron Kamar.

Healthcare for all

There is a gap in the current system. Hopefully the new system will bridge it… DR HAIZAL HARON KAMAR

The principle is that there should be universal access to healthcare, whether young or old, rich or poor. The Government has been talking about a revamp for nearly two decades.

Recently, Health Minister Datuk Seri Liow Tiong Lai announced the intention to implement the National Health Financing Scheme (NHFS). That is supposed to provide healthcare for all.

The details are still sketchy but the idea is for all Malaysians to have access to primary healthcare at any public or private clinic. Liow was reported to have said that NHFS would also look at secondary healthcare coverage and the illnesses and treatments it might be able to cover.

Globally, the challenges in healthcare are the rising costs, quality issues and the waning consumer trust. The NHFS will need to address these as well.

There are many options but somewhere along the line, wage earners will have to pay via scheduled monthly contributions or other mechanisms. The self-employed, those who have an independent income as well as employers would also have to contribute and all these will be based on wage scales.

It is said that the rich will pay more. The concept is the rich funds the poor, the able helps the disabled, and the young helps the old.

The implementation

Although the details are still being hammered out, those in the private sector are anxious about their part in the NHFS. “We need a blueprint and we need to know the role of private hospitals and clinics,’’ says Haizal.

Liow could not be reached for comments but from previous news reports, it appears that the NHFS will be split into four phases and will take 10 years to implement.

The first stage is to look at the governance and standards of care issues; the second is to grant more autonomy to primary healthcare providers in areas like human resources and management; the third is to integrate all public and private clinics in a common network so that people can access either one; and the fourth is to introduce a national health insurance under the NHFS.

According to the Minister, the National Health Financing Authority, a statutory body under the Ministry, will manage the funds. New legislation may have to be passed and existing ones amended to pave the way for this scheme. Regardless of how much one contributes, everyone will enjoy the same standard of care.

Whatever the shape of the new scheme, it should not burden consumers. The patients’ waiting time should be reduced and the rakyat should get access to healthcare.

Separating the pharmacies from the system may be a good move, but there should be a proper control of medicines so that there is no profiteering.

Also being considered are training and the need to embrace developments in technology. Identifying general practitioners who will be the patients’ first touchpoints is critical as well. Linking the private and public sectors is another big hurdle.

To Liow, the scheme will control escalating costs better; let consumers choose between going public or private; offer better quality care; and be more effective, efficient, viable and sustainable.

The Ministry is still looking at the best mechanism for collection; rates and conditions of contribution; how to pay to the clinic or hospital; the illnesses to be covered; the ratio of co-payment; and the financial implications to the Government.

What doctors, insurers say

Quek, whose association represents some doctors but not all, hopes for dialogues and discussions with the Ministry so that the doctors can give feedback. Their concern is understandable, as there is a thriving private healthcare industry that needs to know where it will fit in the whole scheme of things.

He says: “We understand that the country needs some form of universal coverage for Malaysian residents but feedback from all is necessary. The consultants can give their views but the views of the various stakeholders – the private hospitals and clinics and the citizens – are critical in determining the robustness of the plan.

“We want a system that the public will benefit from at reasonable costs. And the public buy-in is needed because the cost of healthcare is expensive.’’

Haizal, who has worked as a doctor in Britain for six years and is therefore familiar with the National Health Scheme (NHS), says in Britain, the private hospitals are not part of the NHS.

Equally anxious are the insurers. Today, people with insurance policies can walk into any private hospital to get treatment. Will that be the case when the NHFS comes into play?

To them, the scheme is a “good start for better and more accessible healthcare services in the country’’ and if properly managed, it can be like similar schemes in Britain and Australia. But there are potential pitfalls, of course.

Life Insurance Association of Malaysia (LIAM) president Md Adnan Md Zain says abuse and fraud are the main challenges facing insurers in offering such coverage, adding that being prudent and offering selective types of coverage will help manage the loss ratio effectively.

According to the association, there is a tendency for doctors to charge higher when billing patients covered by health insurance.

What the consumers want

What the consumers want is not to have to worry about crippling healthcare bills. Yes, there is a price to healthcare but it should be manageable. One thing that everyone fears is illness or disease in old age. It is difficult to get insurance for the very old as coverage usually stops at 70. Many people have to dip into their Employees Provident Fund (EPF) accounts, which is supposed to be for their retirement years.

Observers says the usage of EPF funds for medical treatment is “unacceptable” as the EPF savings should not be depleted. It is meant for old age, not illnesses.

With the NHFS comes the potential of taxes going up so as to enable the Government to fund it. If healthcare is to improve, the money has to come from somewhere.

Federation of Malaysian Consumers Association (Fomca) secretary-general Muhammad Sha’ani Abdullah says the scheme is essential as the current insurance-based model does not provide affordable coverage for those in need of healthcare protection.

The Government needs to get more funding if it wants to implement NHFS but it should not overburden the consumers. And for those who want something better than a standard room, for example, they have to pay for the extras. This is to ensure that no one abuses the healthcare system.

It will be tough to streamline the healthcare system but being a late starter, we can learn from those who have done it. We know the British model is not perfect and that the Australians are looking to improve its current system. In the United States, the new healthcare bill has just been passed after much debate.

What we want is a holistic approach to healthcare. Therefore, engaging with the relevant stakeholders is crucial so as to cover all angles and make it a success.

Staying on course to make sure it become a reality this time around will be a huge challenge. But there is no denying that the citizens need the NHFS. The cost of healthcare will triple in two decades and the man in the street may not be able to afford to fall sick then.

Source: The Star Online

Happy Friday!

I’m still in new blue ocean(not Manjung) fighting for new businesses. This place is quite new for me and my members and we need time to explore. Got two big hypermarket here; Giant and Carrefour. Both people said full of people on weekends. For now, we opening in Giant. We will see the progress from here. We are hoping to get this place as hot spot for blue ocean after Manjung.

Have a progressive day and great weekends!

It’s 16th July 2010 already! Time flies very fast. I just attended July CEO Road Show for Central held at Sunway Convention Centre. As usual, the company given some updates, motivation sessions and throw challenges. I’m very excited with all it. The quite best thing, for the first time, I listened sharing session given by Prof. Madya Izzi that I always listen on HotFM radio. He has his own style. Cool.

And I will have tight schedule starting next week. One week going to outstation for booth promotion and another week got booth too but in Klang Valley.

During working, I allocate my time to listen for tazkirah. Now, takzirah that I attended already talking about Ramadhan besides Isra’ and Mikraj. I listen to it for my reminders. As human being, I always forget.

Keep move forward!

PETALING JAYA: Insurers are cautiously optimistic the second half of 2010 will be better than the first amid the stable economic environment despite volatility in the global markets.

Manulife Holdings Bhd group chief executive officer Michael Chan said the company was cautiously optimistic of a better second half due to improved market sentiment and higher consumer confidence.

“For consumers who follow market trends, the improved environment means that they will start looking again at insurance needs and long-term savings. Insurance will continue to be a key component in financial planning regardless of the economic environment and this means it will continue to generate new sales in the second half of the year,” he told StarBiz.

Apart from continued stability in the economic environment, Chan added that another growth driver would be new product launches that met consumers’ needs and were relevant to the current times.

While basic insurance planning remained largely unchanged, he said the features and benefits of insurance plans must be aligned with the constantly changing consumer demands.

For the industry to grow, he said it needed better trained and professional insurance advisers and continually develop distributors to be knowledgeable, well-informed and focused on providing quality service to customers.

General insurer ACE Synergy Insurance Bhd (ACE Malaysia) CEO and managing director Raj Nanra said that despite the record-breaking economic growth of 10.1% in the first half of the year, the outlook for the industry would not change drastically as consumers were taking the “wait and see” approach and remained cautious in their spending.

Personal lines and retail insurance for individuals would still present a challenge in the next half of the year, Nanra noted.

The Government’s support for the private sector and small and medium enterprises (SMEs) under the 10th Malaysia Plan and the liberalisation of the financial sector would help spur the growth of the industry.

“SMEs make up 99% of Malaysia’s total registered business and the development of this sector will support the growth of the insurance industry, especially in commercial risk insurance.

“Coupled with the demand for insurance needs from major corporations, which view insurance as a key risk management tool, the market will very likely see a rise in interest from the commercial, property, casualty and liability sectors,” Nanra added.

According to Chan, Bank Negara’s move to increase interest rates can impede insurance sales in the second half due to perceived low returns from insurance products compared with bank rates, apart from possible recurrence of global financial instability.

Investment-linked products and plans that guarantee a minimum return higher than bank fixed deposit rates and capital-guaranteed types of plans were expected to spur the growth of insurance products, he said.

Some of the challenges that would hinder the industry’s growth would be the global economic scenario as well as the shortage of skilled staff in areas such as actuarial, agency management and product development.

According to Nanra, the industry continues to experience soft market conditions as competition intensifies in the marketplace.

“Consumers’ ‘wait and see’ approach will be a challenge to the industry and market liberalisation will result in fewer but bigger players in the market and more professionalism,” he noted.

On the trends moving forward, Chan said: “We foresee that there will be a bigger emphasis on the bumiputra market not only in the takaful but also in conventional insurance segment.

“With market sentiment improving, there could be a shift to more investment-linked sales as customers may prefer to enjoy the potential upside of market performance for such products.”

JOHANNESBURG (AP) — Spain’s place among world football’s all-time greatest teams was assured Sunday when Andres Iniesta scored with four minutes of extra time remaining to beat the Netherlands 1-0 and clinch his country’s first World Cup.

With the teams facing a penalty shootout after an often ill-tempered game of few clear chances, Iniesta collected a sliding pass into the area from substitute Cesc Fabregas and smashed the ball across goalkeeper Maarten Stekelenburg and in at the far post.

The goal clinched Spain’s fourth straight 1-0 victory in South Africa and made the team only the third to be world and European champion at the same time.

At the final whistle, the Spanish players hurried to swap their blue shirts for their more familiar red colors in time to collect the trophy. They donned shirts decorated with a single gold star to mark their triumph, becoming the eighth nation to receive the honor in the tournament’s 80-year history.

“I can’t quite believe it yet,” said Iniesta, who was voted man of the match. “I had the opportunity to score that goal which was so important to my team. It’s something absolutely incredible. I simply made a small contribution to my team in a match that was very rough.”

The Dutch players trudged forlornly to collect their runners-up medals, the third squad from the Netherlands to finish second in football’s biggest game.

Netherlands coach Bert van Marwijk took off his silver medal as soon as left the podium, with a look of disgust on his face at having failed to better the “Total Football” generation that lost the 1974 and ’78 finals.

It was a less-than-classic performance by Spain and both teams created few clear chances at Soccer City, although the game opened up slightly after a cagey opening hour. The Netherlands broke up Spain’s attempts to get its famous passing game going with physical play that brought nine yellow cards.

Defender John Heitinga got his second yellow and was sent off in the 19th minute of extra time to become only the fifth man to get a World Cup final red card.

With Spain also collecting five yellows, the total beat the 1986 record of six between Argentina and West Germany and made it the dirtiest World Cup final of all time.

“There were all sorts of things happening on the pitch,” Iniesta said.

Extra time was littered with almost as many chances as normal time. Stekelenburg saved a low shot by Fabregas before winger Arjen Robben was blocked and defender Joris Mathijsen headed over at the other end.

With Wesley Sneijder crowded out and Spain striker David Villa continually forced wide in search of possession, Robben looked the most likely player to put the finishing touch to his team’s uncompromisingly physical approach.

The winger broke free in the 62nd minute but his low shot to the far post was brilliantly kept out with the toe of goalkeeper Iker Casillas’ right boot.

He was clear again with seven minutes of normal time remaining, collecting Robin van Persie’s flick from Nigel de Jong’s hopeful punt forward. Robben held off Carles Puyol’s attempts to wrestle him to the ground and tried to take the ball across Casillas, only for the goalkeeper to gather it at the forward’s feet.

Villa and Sneijder had few chances to add to their five tournament goals, the latter unable to find his range with free kicks and most notable for the sliding pass between Spain’s central defenders that set Robben free in the 62nd.

Villa went closest in the 70th when Stekelenburg somehow knocked his close-range finish over the bar, shortly before Sergio Ramos headed over the bar while unmarked.

Villa, Sneijder, Uruguay striker Diego Forlan and Germany forward Thomas Mueller tied at the top of the tournament scoring charts with five goals from seven matches. Mueller took the golden boot for the leading scorer, winning because of the number of assists he provided.

The Netherlands’ physical approach only began after its attempt to defend deep in the opening exchanges allowed Spain 60 percent of possession and gave away chances. Stekelenburg had to dive at full stretch to keep out a header by Ramos, and Villa broke free of the defense only for the Netherlands to be saved by a narrow offside call.

The Dutch responded by pressing hard whichever Spanish player happened to be in possession, heralding a spell of five yellow cards in 14 minutes.

Van Persie was penalized for hacking down Joan Capdevila and Puyol took out Robben in retaliation before Mark van Bommel, whose physical play has attracted criticism throughout the tournament, got a yellow card for a foul from behind that lifted Iniesta off his feet and left him in a heap.

Ramos got his team’s second yellow card for another rough challenge before De Jong was lucky not to get a red card when he slammed his boot into Xabi Alonso’s chest.

“They made it very difficult for us to play comfortably,” Spain coach Vicente del Bosque said. “It was a very intense match.”

But one incident showed the Dutch fouls were perhaps down to surplus passion rather than a premeditated mean streak.

Casillas threw the ball upfield and out to allow Puyol to receive treatment after a heavy fall. In keeping with sporting convention, the Netherlands attempted to return possession to the Spanish but the punt back to Casillas deflected up off the turf and forced the goalkeeper to tip it behind for a corner.

Not a single Netherlands player went forward for the corner kick and Van Persie just rolled it along the ground for Casillas to pick up.

“Our fouls may be sad for a final,” Van Marwijk said, “(but) I would have loved to win it with not so beautiful football.”

___

Lineups:

Netherlands: Maarten Stekelenburg, Gregory van der Wiel, John Heitinga, Joris Mathijsen, Giovanni van Bronckhorst (Edson Braafheid, 105), Mark van Bommel, Nigel de Jong (Rafael van der Vaart, 99), Dirk Kuyt (Eljero Elia, 71), Wesley Sneijder, Arjen Robben, Robin van Persie.

Spain: Iker Casillas, Sergio Ramos, Carles Puyol, Gerard Pique, Joan Capdevila, Sergio Busquets, Xabi Alonso (Cesc Fabregas, 87), Xavi Hernandez, Andres Iniesta, Pedro Rodriguez (Jesus Navas, 60), David Villa (Fernando Torres, 106).

Thiam to apologise

LONDON: Prudential chief executive Tidjane Thiam is expected to apologise directly to shareholders when the insurer holds its annual general meeting on Monday, days after it was humiliatingly forced to pull its US$35.5bil bid for AIG’s Asian arm.

The botched bid, which racked up £450mil in adviser fees and other costs, has led investors including top 15 shareholder Schroders to call for Thiam to quit, although other Pru owners told Reuters on Friday that it would be premature to force him out.

Pru chairman Harvey McGrath, who has also faced calls to step down, said on Friday the “vast majority” of shareholders supported the company’s top management.

Thiam, who launched the takeover attempt in March after less than six months in the top job, is expected to say sorry to shareholders for incurring the bid costs and not clinching the deal, repeating an apology he first issued on Friday in an interview with Bloomberg Television.
TIDJANE THIAM: “We’ll go back to plan A, which was always about growth in Asia, and push it harder”.

“I am very sorry that we had to spend the money and didn’t get the deal,” he said in the interview.

Thiam, seen as a high flier when he took over as the Pru’s head last October, is still expected to face fierce criticism from investors at the AGM in London, in marked contrast to the rapturous reception he received when attending the same meeting as chief executive designate last year.

Some shareholders are set to vote against the Pru’s remuneration report in protest over generous pay deals handed to some executives, while others are likely to call for a review of the company’s strategy in the wake of the failed bid.

The company is also expected to repeat earlier denials that the takeover attempt implied a lack of faith in its current strategy of pursuing capital-efficient growth with a focus on Asia.

“There was nothing about the AIA acquisition which was not in our strategy,” Thiam said on Friday in an interview with CNBC.

“We’ll go back to plan A, which was always about growth in Asia, and push it harder.”

Pru’s bid for AIG’s AIA unit, which would have ranked as the insurance sector’s biggest ever takeover, was designed to transform the company into Asia’s biggest foreign insurer, giving it a commanding position in one of the world’s fastest growing financial services markets.

But the insurer was forced to ditch the bid last week after its shareholders baulked at the price tag, and AIG rejected a reduced offer.

At the weekend, Pru denied a press report that it planned to resurrect the deal before the end of the year, calling speculation of a revived takeover bid “misguided and inaccurate.” — Reuters