Agree. Directors and CEO should be rewarded according to performance. Base salary should be fair at market value benchmarked against companies with similar performance.
@at one point the shahril guy was the highest paid CEO in the world at the O&G sector, surpassing even Shell and Aramco. While Sapura was in RM 16 billion in debt and not getting tenders, he was casually bringing home RM 200,000 every single day 😂😂
@@mrkacang7277 even now during restructuring, the director fees stand at 3mil, a lot of listed company don't even pay that kind of money for director fees
Investing in Fashion Valet may be a justifiable investment back then. If we dig deeper into Kazanah and PNB portfolio, we might find hanky panky investment. GDV value of 1 billion ringgit in a mixed development in Lorong Maroof in Bangsar abandoned since 2019 because of design gone wrong. Turns out appointment of consultant related to some PNB executives. It’s these kind of stuff that make people furious. Not losing of money.
I don't think it's the takin of "profits" that bothers so many. It's the use of cable, government's sovereign fund negligently investing in a company that is not so transparent. It's the peoples' money. Due diligence was obviously not done.
Very good break down and run through. Honest non-bias opinion. I have had a chance in my view now on this whole saga. Maybe one thing to do in the future, since its already kinda technical in your videos, would be good to rundown and break down the numbers in graphics form, so that its clearer in view. Thanks for this run through!
Can't agree more and for this case, I never blame Khazanah and PNB. I just hate that woman, just because of she's famous, she need to flex her luxury life by draining company's money. Simple to say, she just stupid drown by her own ego. Even Duck is not a good product. People just fomo about it.
This is a well-balanced opinion. Not based on emotions and ignorance that some TH-camrs may take advantage of to gain attention or views. Well done. Looking forward to more of such videos.
Yes the optics is whats making people angry. If they didn’t flaunt the lifestyle it may have been better. Nonetheless the business model is largely personality driven, which involves founder flaunting their lifestyle. On one hand, what they do with their money or salary should be their own problem. On another, it raises the question of how are founders are very well rewarded even when their company is not performing. I suppose if it’s fully funded by personal money or angels it’s still ok la. But when got more parties it gets more complicated.
@@MrMoneyTV Personality driven doesn't have to be flaunting lifestyle no? One's brand can be aspirational by other means instead of showing off one's ridiculously expensive bag collection?
Khazanah/PNB invested in FV because it was the platform that support local designers..until they created Duck..and it become competitor to other designers on this platform.
Interesting take on the Fashion Valet case! I agree, it’s important to consider the bigger picture when it comes to investments by agencies like Khazanah. Startups memang high risk, and bukan semua boleh jadi Grab or Shopee. Tapi maybe the question here is more about governance-like how decisions are made and transparency. Also, the point about tying directors' benefits to profitability-totally relatable! Kalau company tak untung, directors pun kena rasa sikit, kan? Curious to see how this case develops. Keep up this content, bro-really insightful! 🔥
Very good points raised but a correction here: VCs do NOT give big salaries to the founders that they back. Rather, VCs will align the interests of founders to themselves, by giving them stock options and also allowing them to cash out in later funding rounds AFTER the company has proven itself. Btw, FV started in 2010 and we are now in 2024. Can it still be fairly classified as a "startup"?
The question is about fiduciary duty and any conspiracy of abusing the fund or not. Government's fund is considered a type of public funds too. Public has the interest to find out the truth when something not logic is occured. You should not say that the fund involevd is just a tiny fraction of government's assets only because no one knows whether there were any abusing of power and breach of fiduciary duty or not; therefore, it would be good to let other relevant government agencies to investigate the matters and get someone to annser, account and responsible for the losses. It is the public's expectation that the goverment who is acting as a trustee for the country's money will practice to take good care and make good decisions when utilising it. If the goverment recklessly to manage the public fund, then many Rakyat will feel discourage to work hard and pay tax to the goverment then.
You have to look at this in terms of it being the people's money. it is not a typical VC situation. Also, these two wanted this business, it was them who pushed it. They were not put there as employees to drive a company, so why should they be paid a large amount in salaries and benefits? Salaries and benefits should commensurate with the profit and losses of a company and what stage it's at. Running a business is hard, yes, but that's the risk you take especially when you take the Rakyat's money. If you can't do that don't take the Rakyat's money. If you have high net worth contacts, take their money instead, they won't miss it. But the Rakyat will miss it because everyone else can't afford your luxury lifestyle. Of course Khazanah needs to invest in companies, but these two were very green and young when they started it with no tangible track record. That is clearly unacceptable. If you're going to do that, then you need a strong oversight. Was there? Yes everyone needs to makan, 2 million in benefits will certainly get you a whole lot of lobsters and fine dining meals.
If you watched the myeg contest, they turn less than 20k to almost 800k. And when FV started, there was only 2 other e comm platform, one of it was Lelong. And their customers during that time came from spore, brunei, australia, etc. Vivy is a lawyer while the husband an engineer, both studied overseas where e comm was already a booming business. That is where they get their ideas. They did their research before they pitch FV. That is how they won the contest & get the RM1 mil to start their biz.
@4:15 think we dont need to have a reason .. Singapore case on FTX is a little different from Khazanah investing in this company.. to invest in a company with absolutely no product nor value but by the sole distinct factor that its bumi owned, that in itself is more than enough .. this wouldn't fly in other more well regulated countries. In Malaysia, where corruption is just another small crime.. There's really no need to shy away from the truth.
Thank you for compiling all the info & presenting it in such a way that we could easily understand. A lot of people think it is too early for macc to come in at the initial stage, and all because FV is not making any profit.
Every party should take responsibility including Khazanah, PNB and FV management. How can the board and investors keep allowing FV to keep bleeding? Where is the governance? If the investors knew that FV has been losing money did the investors allow them to continue like that just because it's a Bumi company?
its not the fact they lose money, its how they lose the money, did they do due diligence? why so many red flags and no one notice earlier ? now that even MACC is involved and even they said there are sus transaction. we should scrutinize all investment by PNB and Khazanah to see if they make sense
I think you should comment on the familial relationship of those people involved in. I truly believe every company has a policy governing this matter. Usually it can be bypass by the committee and the board. However, you mentioned that upon acquisition FV's started going down hill. Meant something is wrong? But I haven't seen Duck audited FS
Well I’m not commenting because I don’t know them personally, nor do I know have clear facts about their family ties. All I know is both are from privilege background. But does this discredit their work of starting FV and Duck in the first place? Imho their background n accessibility is a different topic that will need more facts before I can comment
I'm comparing apple to apple k? All these are Malaysian fashion Icons that make it big on their own merits without crutches. Buying into a loss-making business is a red flag, unless they spotted a hidden asset in their balance sheet where it is a gem where no one realized.
@@KingXerxesTan so what is your point when you said all of those chinese Malaysian successful designer to compared to?? Bernard Chandran, Jovian Mandagie, Nurita Harith, Alia Bastamam, Rizman Ruzaini and Dato Rizalman does they got privilege of start-up investment from Khazanah?? No..hello?? Why didn't you mention their name?? all of them are local designer too..
You mentioned financials a few times in yr video - revenues and profits of FV and Duck - and thats fine. However, from the ooerational (not the investment) perspective, how were the cashflows (I think obviously very poor and highly negative) for the years to afford to pay the lucratively high salaries if the founders? There were no mention of the business being funded from bsnk borrowings or other funding rounds. Is it unreasonable then to suspect therefore that they were financially bleeding the venture..?? Personally, i never believe in justifying high figure negatives under the cover of (or just becos they make up) small miniscule percentages..
Well truth is that’s how many startup works. It’s funding that keeps the lights on not the biz operations. As for why founders paid so well, it’s “willing buyer, willing seller” some are Cz they are seasoned and comes with experience. Anyway this is a rather complicated and no one right answer kind of topic. There are “best practices” like what Warren buffet does is management team’s compensation are highly tied to performance.
Personally love contents like such, raw take and straight from the heart You just need a couple of drinks 🍻/shots“gins” to get this even more interesting and entertaining
Fair and balanced assessment. Perhaps we need to know why PNB & Khazanah decided to stop supporting them and sell out in full. Since the size of the portfolio is small both Khazanah and PNB should be able to hold on. I am sure Khazanah & PNB has a ‘loss tolerance’ for startups. If it’s a management issue, there are many ways to diagnose it.
Thanks for clearing some air. Definitely learned something about business and investment. I had a bit of rage when the news reported, but after watching this video, I tend to look things at a broader view, and I do agree at some point because I’m running my own business too. After watching this, seems like everything was fine until Khazanah invested and include Duck in it?? Got the feeling like the owners don’t feel like continue building the brand anymore and let it rot while same time taking back what belongs to them (money). Perhaps after joining ventures there are changes in policy and decision making hence the owners felt not owning the brand anymore. **just my opinion Anyway thanks Peter. We should be educated more and look things at different perspective
I would love you to cover this kind of topic. I thought that after Sapura incident last time (no intention of rubbing salt to your wound), u might turn off from commenting again. But appreciate your sincerity. Keep telling more honest, raw and educational vids.
I agree with your opinion. Directors should not continue to draw high salary nor dividend when the company is not making money. How can Khazanah not see this. Khazanah is not a newly set up organisation. This is rather a high handed situation and lack of safe guarding the venture. It's not wrong to support start ups, but investors must be accountable too. Certainly, there shd have been annually or bi annual reviews of the investments. Founders should NOT be handsomely paid when the business entity is going south.
Sure, losses happen in investments, but when public money is involved, people expectation gets to another level altogether. The RM43.9M loss by Khazanah and PNB, plus the RM8M criminal breach of trust case, has made this more than just ‘normal business.’ Public pressure is the actual driving factor forcing the government to act, showing how much transparency matters when it comes to managing funds that belong to everyone. I believe the lavish lifestyle portrayal and no holds barred- kind of attitude by the founder was the main issue to begin with, otherwise its just another same old same old kind of business 😅
A balanced viewpoint. Founders can do anything with their company. But not when you got investors. You need to be transparent with your investors especially with how much you are paying yourself. Affordalility is something to consider. And you have no business living the good life as a start up entrepreneur. You are in the wrong job if you do.
Investing in a company that have no own product. Literally just a e-commerce platform. Didnt anyone question the relation between FV founders and investors committee members? Jeng jeng jeng
I think the right question is how much money Khazanah make every year. If Khazanah are making more money compare to her peer, than it is ok to loose money. If not making money (like putting money in the safe with 0 interest), then they are doing a bad job.
So obvious , it's self enrichment rather pure business purposes...But decision and role governance is lacked from Sovereign funds is normal in malaysia boleh
Its happening everywhere. Even in UK, this guy, who had connections with the government, aquired bank loans to finance big companies which were losing, paid himself very very hefty salaries from 3 famous dying companies, and all 3 companies collapsed. But this guy had already got hefty salaries before the companies collapsed altogather.
do i agree Grab should be get more benefit from khazanah..yes i 100% agree..but does all bumiputera startup failed?? not really..for example Siti Khadijah, DRH Hotels & Resort, CIMA Berhad etc..also chinese company under khazanah like Farm Fresh, CIMB, Sunway etc..so in FV case is a bad investment..but the focus thing is Vivy and husband fault when the they got the investment..there is a shady transaction..that should be investigate..
@pawehbsam5872 grab was a no brainer. It has strong backings from the very start. There must be something really wrong with khazanah to not want to invest in it and keep it in malaysia or was it just blatant racism? Who knows?
@sc9433 huh?? How can you conclude that is racism if farm fresh, sunway is owned by the chinese can be successful under khazanah investment?? Can you elaborate your point cuz if that what you think then is it you that is racist or khazanah??
@@pawehbsam5872 sunway is not a startup. We are talking about iniatives to help "Bumiputera" statups but never for other races. That is what pushes Grab out of malaysia. If there were any, grab will never be forced out of msia.
You are talking about a perfect scenario whereby everyone makes decisions and performs above board but we all know that when the authorities starts making a FORENSIC INVESTIGATION into the accounting of any company we know that certain if not all transactions are fishy. You keep on saying that this will be bad for future investments but we also need to understand the mentality of GLC/GLIC and the way they invest in certain companies. Remember this mantra "FIGURES DON'T LIE, LIARS FIGURES".
Malaysian khazanah should really invest in a company that the founder are willing to take min pay or zero pay during the initial start up and earm money from the share price when they successfully listed the company..in that way the founders could work harder and will not rewards themselves with big pay even the company already in serious restructuring stage...
It's not so much of the percentage of the FV investment out of the entire Khazanah portfolio. It is simply that Khazanah seemed resigned to have lost the bulk of the investment - if they can be so nonchalant about a small investment, how can we trust them on the bigger ones? Did they profit from the other investments simply due to dumb luck without much due diligence and holding the executives accountable when it became increasingly impossible to breakeven? How was the process of evaluating FV before deciding to invest? Was there hanky-panky element - that FV got the investment simply because they had "cable"? How can we trust the capability of those in Khazanah? And this would not have been acted upon by the authorities (MACC included) had it not been brought up in the Parliament. Khazanah, and the FV executives and directors were probably thinking that they are not guilty if they don't get caught?
Many "frauds" are guised as civil issues whereas in reality it is criminal in nature. If there is anything it learn, prosecute hard for criminality so that these "civil" improprieties are stamped out !!!! Percentage of investment is irrelevant.
All boiled down to government investment committees decisions and accountability and trustworthy systems to investment. The above video is telling you that government investment in any industry shall lose in the first two to three years and later making profit in huge margin and this is very common? The reasons behind it is very small amount in this investment 50 millions (start -up and high risk business) and compared to government overall total investment fund available? If this is the commons logical in government investment fund policies, better to be conservative in all investment. In market investment opportunities provide by international investment opportunities by guarantee minimum percentage of returned (better than fixes deposit) and fees and bonus only paid upon targeted percentage return achieve and good bonus to pay upon above targeted percentage, otherwise not fees and bonus.
PNB or KHazanah can invest but not throwing all the 47 million in one shot. It need to in progressive and also result driven to invest more. Invest 500k first la, then if there is a positive result then only invest more and more.....who go and invest 47million and then only sit there and wait for the failure.... Who idiot do that .... HELLO, even small kacang ppl like me know about managing risk, tak kan this two BIG COMPANY dont know about it.,.. Coming on, investment doesnt mean "blind investment", it doesnt mean "no monitoring after the money is release out"....
IMO: RM40 million is too much for ONE high risk investment especially startup. The risk could have been diverse to cushion any loss. Like the old saying, don't throw everything in one basket. Oh well, the decision is questionable really, and of course this should caution the investment board to not be bold, because these are public funds to start of with.
Sounds like you’re whitewashing for the couple. While I support local entrepreneurs in startups, it’s apparent they also lack corp governance when setting up companies. Hey, who knows they could be acting as proxy for “someone higher” from K
Hah. Singaporeans and malaysians are not so different afterall. You're right in that there shouldn't be a senseless witch hunt. At the same time, when public funds are involved, optics become critical. Temasek's investment in ftx was justified as it ticked all the right boxes at the time, while also attracting large hedge funds and sovereign wealth funds all over the world.
Refer Trustees Act 1949 (directors are considered trustees of company assets - refer Section 214 of the Companies Act 2016) & relevant common law before decide whether there's any criminality involved ... MAS = 1.3 trillion USD. Khazanah Nasional = 31 billion USD (yes, 31 B). Are we even comparing apple to apple when talk about MAS ftx investment? Have nothing against op who made a good effort, but really need to point out lack of meat on some of the bones here. Peace.
Why Kazanah and PNB buy a lossing making money company in the first place? There are many making money out in the market that Kazanah and PNB can put their money on.
It does not make business sense. Who is the CEO of Khazahnah ? He should have a bit of integrity to resign by sleeping on the job . How much salary is he drawing from Khazahnah?
Rm47mil but not including unrealised gains of 6 years, such as interest amongst other things. Who authorised the sale price to NXBT which is a sub of Time which happens to be an Umno company. Excuse me, we are not looking to "blame" but we are looking for accountability!!! Watch your words! Do you realise how ridiculous you sound? How often do we hear public money given to politically connected figures who end up running the companies to the ground ? ! Any other failures are under their belts? Voucheres, Fruit Basket? GPLF??!!
Disagree with your opinion, stupid reasoning, a spade is a spade. Maybe khazanah can fund me thousands of millions too. Government fund should be careful of misused, like syphoning of fund, buying over value company for kick back, funding losing company year in and year out for too long, buying overly insolvent company and so on.
![[Straight Talk] Tommy Thomas: Setting the record straight](http://i.ytimg.com/vi/KD3qyGUELmc/mqdefault.jpg)
If a company that is not making business but paying high salary to director. Red flag
Agree. Directors and CEO should be rewarded according to performance. Base salary should be fair at market value benchmarked against companies with similar performance.
Sounds like sapura energy 😂😂😂
@at one point the shahril guy was the highest paid CEO in the world at the O&G sector, surpassing even Shell and Aramco. While Sapura was in RM 16 billion in debt and not getting tenders, he was casually bringing home RM 200,000 every single day 😂😂
@@mrkacang7277 even now during restructuring, the director fees stand at 3mil, a lot of listed company don't even pay that kind of money for director fees
She's a good businesswoman for holding onto a company (FV) that was losing money. Creative accounting is good until you are caught..
Investing in Fashion Valet may be a justifiable investment back then. If we dig deeper into Kazanah and PNB portfolio, we might find hanky panky investment. GDV value of 1 billion ringgit in a mixed development in Lorong Maroof in Bangsar abandoned since 2019 because of design gone wrong. Turns out appointment of consultant related to some PNB executives. It’s these kind of stuff that make people furious. Not losing of money.
One of the best n honest TH-cam show in Malaysia man
i am learning a lot. very informative and not biased/emotional. malaysians need more of these!
I don't think it's the takin of "profits" that bothers so many. It's the use of cable, government's sovereign fund negligently investing in a company that is not so transparent. It's the peoples' money. Due diligence was obviously not done.
Was the decision of Khazana to invest in FV linked to the personal connection to the families of the duo? That would certainly be worrying
Very good break down and run through. Honest non-bias opinion. I have had a chance in my view now on this whole saga. Maybe one thing to do in the future, since its already kinda technical in your videos, would be good to rundown and break down the numbers in graphics form, so that its clearer in view. Thanks for this run through!
Thanks buddy! Appreciate it. Good idea to do so. Maybe next round should do a deep dive in to their numbers? Let us know if that interest you
@@MrMoneyTV yes bro. please do so :)
Yes please do @@MrMoneyTV
I am interested. @@MrMoneyTV
@@MrMoneyTV yes, illustration will be much welcome! Continue the good work!
Can't agree more and for this case, I never blame Khazanah and PNB. I just hate that woman, just because of she's famous, she need to flex her luxury life by draining company's money. Simple to say, she just stupid drown by her own ego. Even Duck is not a good product. People just fomo about it.
This is a well-balanced opinion. Not based on emotions and ignorance that some TH-camrs may take advantage of to gain attention or views. Well done. Looking forward to more of such videos.
People are angry at the founders la not PNB or Khazanah. Seems like they spent the money on handbags and shoes.
Yes the optics is whats making people angry. If they didn’t flaunt the lifestyle it may have been better. Nonetheless the business model is largely personality driven, which involves founder flaunting their lifestyle.
On one hand, what they do with their money or salary should be their own problem. On another, it raises the question of how are founders are very well rewarded even when their company is not performing. I suppose if it’s fully funded by personal money or angels it’s still ok la. But when got more parties it gets more complicated.
why not PNB and Khazanah..FV been losing money 5 years in a row before PNB and Khazanah pump the money in ?
@@MrMoneyTV Personality driven doesn't have to be flaunting lifestyle no? One's brand can be aspirational by other means instead of showing off one's ridiculously expensive bag collection?
Wthell, the people at PnB and Khazanah are so stupid or what for blindly pumping money into an unproductive company in the first place.
Inspired by Rosmah
Khazanah/PNB invested in FV because it was the platform that support local designers..until they created Duck..and it become competitor to other designers on this platform.
The question why Khazanah board approved the huge salary of the 2 directors if losting money? No good governor.
Interesting take on the Fashion Valet case! I agree, it’s important to consider the bigger picture when it comes to investments by agencies like Khazanah. Startups memang high risk, and bukan semua boleh jadi Grab or Shopee. Tapi maybe the question here is more about governance-like how decisions are made and transparency.
Also, the point about tying directors' benefits to profitability-totally relatable! Kalau company tak untung, directors pun kena rasa sikit, kan? Curious to see how this case develops. Keep up this content, bro-really insightful! 🔥
Very good points raised but a correction here: VCs do NOT give big salaries to the founders that they back. Rather, VCs will align the interests of founders to themselves, by giving them stock options and also allowing them to cash out in later funding rounds AFTER the company has proven itself.
Btw, FV started in 2010 and we are now in 2024. Can it still be fairly classified as a "startup"?
@@weijianchai1331 maybe start down perhaps, lol.
The question is about fiduciary duty and any conspiracy of abusing the fund or not. Government's fund is considered a type of public funds too. Public has the interest to find out the truth when something not logic is occured. You should not say that the fund involevd is just a tiny fraction of government's assets only because no one knows whether there were any abusing of power and breach of fiduciary duty or not; therefore, it would be good to let other relevant government agencies to investigate the matters and get someone to annser, account and responsible for the losses. It is the public's expectation that the goverment who is acting as a trustee for the country's money will practice to take good care and make good decisions when utilising it. If the goverment recklessly to manage the public fund, then many Rakyat will feel discourage to work hard and pay tax to the goverment then.
What matters is if the decision of Khazana to invest was somehow linked to the family connection of the duo
You have to look at this in terms of it being the people's money. it is not a typical VC situation. Also, these two wanted this business, it was them who pushed it. They were not put there as employees to drive a company, so why should they be paid a large amount in salaries and benefits? Salaries and benefits should commensurate with the profit and losses of a company and what stage it's at. Running a business is hard, yes, but that's the risk you take especially when you take the Rakyat's money. If you can't do that don't take the Rakyat's money. If you have high net worth contacts, take their money instead, they won't miss it. But the Rakyat will miss it because everyone else can't afford your luxury lifestyle. Of course Khazanah needs to invest in companies, but these two were very green and young when they started it with no tangible track record. That is clearly unacceptable. If you're going to do that, then you need a strong oversight. Was there? Yes everyone needs to makan, 2 million in benefits will certainly get you a whole lot of lobsters and fine dining meals.
If you watched the myeg contest, they turn less than 20k to almost 800k. And when FV started, there was only 2 other e comm platform, one of it was Lelong. And their customers during that time came from spore, brunei, australia, etc. Vivy is a lawyer while the husband an engineer, both studied overseas where e comm was already a booming business. That is where they get their ideas. They did their research before they pitch FV. That is how they won the contest & get the RM1 mil to start their biz.
FV not Bumi representation. More like T5-Bumi-Father Cable group.
Right. When he refused to take that into him spinning this story, the equation does not add up.
Exactly
haha..ni lawak 😂
@4:15 think we dont need to have a reason .. Singapore case on FTX is a little different from Khazanah investing in this company.. to invest in a company with absolutely no product nor value but by the sole distinct factor that its bumi owned, that in itself is more than enough .. this wouldn't fly in other more well regulated countries. In Malaysia, where corruption is just another small crime.. There's really no need to shy away from the truth.
Thank you for compiling all the info & presenting it in such a way that we could easily understand. A lot of people think it is too early for macc to come in at the initial stage, and all because FV is not making any profit.
Every party should take responsibility including Khazanah, PNB and FV management. How can the board and investors keep allowing FV to keep bleeding? Where is the governance? If the investors knew that FV has been losing money did the investors allow them to continue like that just because it's a Bumi company?
its not the fact they lose money, its how they lose the money, did they do due diligence? why so many red flags and no one notice earlier ? now that even MACC is involved and even they said there are sus transaction. we should scrutinize all investment by PNB and Khazanah to see if they make sense
The almost 50 mill Investment for percentage shares of FV ? I may be wrong the Authorities got only 3 % shareholding.
I think you should comment on the familial relationship of those people involved in. I truly believe every company has a policy governing this matter. Usually it can be bypass by the committee and the board. However, you mentioned that upon acquisition FV's started going down hill. Meant something is wrong? But I haven't seen Duck audited FS
Well I’m not commenting because I don’t know them personally, nor do I know have clear facts about their family ties. All I know is both are from privilege background.
But does this discredit their work of starting FV and Duck in the first place?
Imho their background n accessibility is a different topic that will need more facts before I can comment
@@MrMoneyTVin Malaysia , many things work by "connections", so before letting Khazanah and PNB "off the hook", this angle must be looked into.
Did Zhang Toi, Jimmy Choo, Melinda Looi, Khoon Hui, and Ect have this privilege of start-up investment from Khazanah?
Another interesting company is Siti Khadijah, profitable and solid. Muiz fried chicken too
I'm comparing apple to apple k? All these are Malaysian fashion Icons that make it big on their own merits without crutches. Buying into a loss-making business is a red flag, unless they spotted a hidden asset in their balance sheet where it is a gem where no one realized.
And also Anthony Tan
Mr MoneyMan...ur final stmt refers. Cannnn...use ur own monies.
@@KingXerxesTan so what is your point when you said all of those chinese Malaysian successful designer to compared to?? Bernard Chandran, Jovian Mandagie, Nurita Harith, Alia Bastamam, Rizman Ruzaini and Dato Rizalman does they got privilege of start-up investment from Khazanah?? No..hello?? Why didn't you mention their name?? all of them are local designer too..
Wow..i watch your video until finish..Great videos!
You mentioned financials a few times in yr video - revenues and profits of FV and Duck - and thats fine. However, from the ooerational (not the investment) perspective, how were the cashflows (I think obviously very poor and highly negative) for the years to afford to pay the lucratively high salaries if the founders? There were no mention of the business being funded from bsnk borrowings or other funding rounds. Is it unreasonable then to suspect therefore that they were financially bleeding the venture..??
Personally, i never believe in justifying high figure negatives under the cover of (or just becos they make up) small miniscule percentages..
Well truth is that’s how many startup works. It’s funding that keeps the lights on not the biz operations. As for why founders paid so well, it’s “willing buyer, willing seller” some are Cz they are seasoned and comes with experience.
Anyway this is a rather complicated and no one right answer kind of topic. There are “best practices” like what Warren buffet does is management team’s compensation are highly tied to performance.
Personally love contents like such, raw take and straight from the heart
You just need a couple of drinks 🍻/shots“gins” to get this even more interesting and entertaining
Haha maybe I should then I will be even more honest 🤣🤣🤣
@@MrMoneyTV there’s a saying, 醉话没罪😂
Podcast plz!
Common in bumiputra companies 😅
Bosses are highly paid even with no money 🤑💰🤑 Good examples are GLCs
wait?? huh?? all ceo and bosses in the world were paid highly too..what is you point actually??
@pawehbsam5872 must match with productivity when you want to be paid highly that is my point dear cybertropers 💗
Be a MAN 💪 like ME show your real name not reels ✌️
if you want to have constructive observations no 3R please 🥺
Fair and balanced assessment. Perhaps we need to know why PNB & Khazanah decided to stop supporting them and sell out in full. Since the size of the portfolio is small both Khazanah and PNB should be able to hold on. I am sure Khazanah & PNB has a ‘loss tolerance’ for startups. If it’s a management issue, there are many ways to diagnose it.
This is also a question I have. “Why not hold out” since it’s such a small investment amount.
Thanks for clearing some air. Definitely learned something about business and investment. I had a bit of rage when the news reported, but after watching this video, I tend to look things at a broader view, and I do agree at some point because I’m running my own business too.
After watching this, seems like everything was fine until Khazanah invested and include Duck in it??
Got the feeling like the owners don’t feel like continue building the brand anymore and let it rot while same time taking back what belongs to them (money). Perhaps after joining ventures there are changes in policy and decision making hence the owners felt not owning the brand anymore. **just my opinion
Anyway thanks Peter. We should be educated more and look things at different perspective
I would love you to cover this kind of topic. I thought that after Sapura incident last time (no intention of rubbing salt to your wound), u might turn off from commenting again. But appreciate your sincerity. Keep telling more honest, raw and educational vids.
Haha that one that came with a love letter. 🥲 thanks for the encouragement 👍🏽
Thanks for making this video , and show if u want to tell someone do it un bias it the best way to tell something
I agree with your opinion. Directors should not continue to draw high salary nor dividend when the company is not making money. How can Khazanah not see this. Khazanah is not a newly set up organisation. This is rather a high handed situation and lack of safe guarding the venture. It's not wrong to support start ups, but investors must be accountable too. Certainly, there shd have been annually or bi annual reviews of the investments.
Founders should NOT be handsomely paid when the business entity is going south.
Sure, losses happen in investments, but when public money is involved, people expectation gets to another level altogether. The RM43.9M loss by Khazanah and PNB, plus the RM8M criminal breach of trust case, has made this more than just ‘normal business.’ Public pressure is the actual driving factor forcing the government to act, showing how much transparency matters when it comes to managing funds that belong to everyone. I believe the lavish lifestyle portrayal and no holds barred- kind of attitude by the founder was the main issue to begin with, otherwise its just another same old same old kind of business 😅
how can you take 10mio dividend when your profit is less than that
Along the way, duck untung lebih daripada itu.
The dividend was from dUck. It was a highly profitable company
A balanced viewpoint. Founders can do anything with their company. But not when you got investors. You need to be transparent with your investors especially with how much you are paying yourself. Affordalility is something to consider. And you have no business living the good life as a start up entrepreneur. You are in the wrong job if you do.
Investing in a company that have no own product. Literally just a e-commerce platform. Didnt anyone question the relation between FV founders and investors committee members? Jeng jeng jeng
I think the right question is how much money Khazanah make every year. If Khazanah are making more money compare to her peer, than it is ok to loose money. If not making money (like putting money in the safe with 0 interest), then they are doing a bad job.
They will get away with it if they have a good and creative accountant and foreseen the fail the company.
So obvious , it's self enrichment rather pure business purposes...But decision and role governance is lacked from Sovereign funds is normal in malaysia boleh
They never calculated umno will fall .
Very interesting. Most objective viewpoint on this matter.🎉
Thank you
Just check whos this couple ‘besfren’ or relatives
Its happening everywhere. Even in UK, this guy, who had connections with the government, aquired bank loans to finance big companies which were losing, paid himself very very hefty salaries from 3 famous dying companies, and all 3 companies collapsed.
But this guy had already got hefty salaries before the companies collapsed altogather.
Invest in Grab by malaysian chinese with strong backing ❌
Invest in shady FV by bumiputera with no clear backing ✅
Obvious choice.
do i agree Grab should be get more benefit from khazanah..yes i 100% agree..but does all bumiputera startup failed?? not really..for example Siti Khadijah, DRH Hotels & Resort, CIMA Berhad etc..also chinese company under khazanah like Farm Fresh, CIMB, Sunway etc..so in FV case is a bad investment..but the focus thing is Vivy and husband fault when the they got the investment..there is a shady transaction..that should be investigate..
@pawehbsam5872 grab was a no brainer. It has strong backings from the very start. There must be something really wrong with khazanah to not want to invest in it and keep it in malaysia or was it just blatant racism? Who knows?
@sc9433 huh?? How can you conclude that is racism if farm fresh, sunway is owned by the chinese can be successful under khazanah investment?? Can you elaborate your point cuz if that what you think then is it you that is racist or khazanah??
@@pawehbsam5872 sunway is not a startup. We are talking about iniatives to help "Bumiputera" statups but never for other races. That is what pushes Grab out of malaysia.
If there were any, grab will never be forced out of msia.
@@pawehbsam5872 your information is wrong. Khazanah did not invest in farmfresh as startup or help in anyway. Khazanah only invested in IPO.
Good Breakdown. Shows that you're a proper finance and entrepreneurial person.
You are talking about a perfect scenario whereby everyone makes decisions and performs above board but we all know that when the authorities starts making a FORENSIC INVESTIGATION into the accounting of any company we know that certain if not all transactions are fishy. You keep on saying that this will be bad for future investments but we also need to understand the mentality of GLC/GLIC and the way they invest in certain companies. Remember this mantra "FIGURES DON'T LIE, LIARS FIGURES".
how? of course thick cable
Malaysian khazanah should really invest in a company that the founder are willing to take min pay or zero pay during the initial start up and earm money from the share price when they successfully listed the company..in that way the founders could work harder and will not rewards themselves with big pay even the company already in serious restructuring stage...
It's not so much of the percentage of the FV investment out of the entire Khazanah portfolio. It is simply that Khazanah seemed resigned to have lost the bulk of the investment - if they can be so nonchalant about a small investment, how can we trust them on the bigger ones? Did they profit from the other investments simply due to dumb luck without much due diligence and holding the executives accountable when it became increasingly impossible to breakeven? How was the process of evaluating FV before deciding to invest? Was there hanky-panky element - that FV got the investment simply because they had "cable"? How can we trust the capability of those in Khazanah?
And this would not have been acted upon by the authorities (MACC included) had it not been brought up in the Parliament. Khazanah, and the FV executives and directors were probably thinking that they are not guilty if they don't get caught?
So she loves fashion, so she sells products ..I love cars… I start car dealership…PNB wanna invest??😂😂😂
Many "frauds" are guised as civil issues whereas in reality it is criminal in nature. If there is anything it learn, prosecute hard for criminality so that these "civil" improprieties are stamped out !!!! Percentage of investment is irrelevant.
Excellent presentation! Unbiased, and Educational.
The issue is not about the investment but rather, the governance processes.
All boiled down to government investment committees decisions and accountability and trustworthy systems to investment.
The above video is telling you that government investment in any industry shall lose in the first two to three years and later making profit in huge margin and this is very common?
The reasons behind it is very small amount in this investment 50 millions (start -up and high risk business) and compared to government overall total investment fund available?
If this is the commons logical in government investment fund policies, better to be conservative in all investment.
In market investment opportunities provide by international investment opportunities by guarantee minimum percentage of returned (better than fixes deposit) and fees and bonus only paid upon targeted percentage return achieve and good bonus to pay upon above targeted percentage, otherwise not fees and bonus.
Vgood and non-bias review on the matter, unlike others being done in a jealous mode or immature
more like defending the flaws with ambiguity
The management of Fashion Valet should have been removed.
The buyer is either an idiot or corrupted to pay so much for such a company.
It is a luxury to do business using Other People’s Money 💰 Hooray 🎉
Very logic oriented
One of the shocking moves from duck that time. during the pandemic season she was still focused on retail sale other than on9 sale.
PNB or KHazanah can invest but not throwing all the 47 million in one shot. It need to in progressive and also result driven to invest more. Invest 500k first la, then if there is a positive result then only invest more and more.....who go and invest 47million and then only sit there and wait for the failure.... Who idiot do that ....
HELLO, even small kacang ppl like me know about managing risk, tak kan this two BIG COMPANY dont know about it.,..
Coming on, investment doesnt mean "blind investment", it doesnt mean "no monitoring after the money is release out"....
We need to be accountable my dear. People's money. Your comment is off track.
IMO: RM40 million is too much for ONE high risk investment especially startup. The risk could have been diverse to cushion any loss. Like the old saying, don't throw everything in one basket. Oh well, the decision is questionable really, and of course this should caution the investment board to not be bold, because these are public funds to start of with.
For a company with 42 million sales and 8 million net profit? At the time the revenue growth and profitability was very very good
If the company doesn't make money. The salary he or she has to match the lowest paid employee to make it fair
🤣 not till like that la. Just shouldn’t be paying top dollars 😅
Sounds like you’re whitewashing for the couple. While I support local entrepreneurs in startups, it’s apparent they also lack corp governance when setting up companies. Hey, who knows they could be acting as proxy for “someone higher” from K
Hah. Singaporeans and malaysians are not so different afterall.
You're right in that there shouldn't be a senseless witch hunt. At the same time, when public funds are involved, optics become critical.
Temasek's investment in ftx was justified as it ticked all the right boxes at the time, while also attracting large hedge funds and sovereign wealth funds all over the world.
Now they want their names to be clean~ lets bless them 🙏
Let’s go golf bro
Director’s Fee🤌🤌🔥🔥
Refer Trustees Act 1949 (directors are considered trustees of company assets - refer Section 214 of the Companies Act 2016) & relevant common law before decide whether there's any criminality involved ... MAS = 1.3 trillion USD. Khazanah Nasional = 31 billion USD (yes, 31 B). Are we even comparing apple to apple when talk about MAS ftx investment? Have nothing against op who made a good effort, but really need to point out lack of meat on some of the bones here. Peace.
Why Kazanah and PNB buy a lossing making money company in the first place? There are many making money out in the market that Kazanah and PNB can put their money on.
Let the court do their job if there is any wrong doing. u mentioned like We work also right, hopeffuly this not another We work like case.
Why are you defending them? Are you looking for them to invest in you Biz.....Bro if so, you dont fit the profile laaah.
Everything you invest has a risk. Can’t blame anyone when you are losing.
I believe the salary should be fair and reflect the earning. But I am not from a startup background, cant say much.
all target the husband & wife, but nothing on PNB / Khazanah corporate decision makers?
😮 this case might create some badname in bumicos investings
I would blame the public either. But after decades of corruption, no wonder la people would have knee jerk reaction like this.
I’m here for the comments.
I wouldnt blame the public either. But after decades of corruption, no wonder la people would have knee jerk reaction like this.
Nasi lemak seller at the roadside has better returns... honest days work!!
doing your own speaking alongside your business partners if it was also part of the/their business is unethical for professionals, dude.
It does not make business sense. Who is the CEO of Khazahnah ? He should have a bit of integrity to resign by sleeping on the job . How much salary is he drawing from Khazahnah?
No need to defend Khazanah
what if she is cuci duit
They do not know how to run a Business, only doing scam
There are 4 comments... where is the other 3??
Very very subjective ,i my self in this situation in a smaller scale
It’s counted as another Bumi success.
Vida, vivy, che ta etc2. 😂
Khazanah should also be guilty for complicity.
Che Ta owed MARA RM1 million.
This type of bumi entrepreneurs that make thecrakyat rugi.
Any proof khazanah use rakyat money?
Rm47mil but not including unrealised gains of 6 years, such as interest amongst other things. Who authorised the sale price to NXBT which is a sub of Time which happens to be an Umno company.
Excuse me, we are not looking to "blame" but we are looking for accountability!!! Watch your words! Do you realise how ridiculous you sound?
How often do we hear public money given to politically connected figures who end up running the companies to the ground ? ! Any other failures are under their belts? Voucheres, Fruit Basket? GPLF??!!
Disagree with your opinion, stupid reasoning, a spade is a spade. Maybe khazanah can fund me thousands of millions too. Government fund should be careful of misused, like syphoning of fund, buying over value company for kick back, funding losing company year in and year out for too long, buying overly insolvent company and so on.
Tesla and Amazon was losing money for a very long time as well. Are you saying temasek shouldn't have invested in them?
@sleepywolf82 Look at the red flags? Unlike tesla and Amazon.
1st 7 minutes are waste of time. Go straight into the point la bro
😅😅😅 VIVA VIVVY, hahaa
The contentious point is transferring 8mil to private company above board: that’s the source of the rot here
Bottom line!
Just start a bumi meme coin...