This was no longer about creation money. We were already creation copiousness of income -- Johan's turnover was in a hundreds of millions a year as well as a commercial operation interests were widespread out in all a continents of this world. This was about which of theTaikoscan turn theTaipan. It was a game of prestige. you suspect during which time you felt imperishable as well as mislaid concentration of a objectives of doing business.
NO HOLDS BARRED
Raja Petra Kamarudin
They say a drowning man surfaces usually 3 times. On a third time he goes down he stays down for good. He will never aspect again. He will die.
It is right divided 1991. you was already 17 years in commercial operation as well as had survived dual mercantile recessions as well as had fought off dual bankruptcies. Therefore you could afford usually a single some-more fall prior to you go down for great as well as never climb again.
The initial predicament you faced was in 1975, merely a couple of months after you proposed my commercial operation behind in 1974. And which story is as follows.
My commercial operation partner, Zulkifly Mohd Nor, an ex-Pernas officer, had cleaned out a bank comment as well as had absconded with a company's money. This could usually be finished with a partnership of a branch physical education instructor of Bank Rakyat Kuala Terengganu.
you confronted a bank manager, Ghazi, as well as he confirmed he had released all a payments for a sales of a Yanmar engines which you had finished to a fishermen. The agreement was: Bank Rakyat would finance a buyers as well as would compensate us for a cost of a engines. The income was ostensible to ha! ve been paid without delay to a company. However, instead of profitable a income in to a company's bank account, it had all been diverted to Zulkifly's personal bank account.
you spoke to Michael Toh Hong Hooi, a physical education instructor of Chong Lee Leong Seng, a Yanmar supplier, as well as told him which a income was all gone. Zulkifly had 'kebas' a income as well as there was zero left. you usually had a couple of hundred Ringgit in my pocket, as well as which was all.
Chong Lee Leong Seng can select to sue us as well as get us spoken bankrupt or they can concede us to 'live' as well as you will ensure which all a income will in a future be paid behind in full. you would additionally need them to go upon giving us credit so which you can go upon to trade.
Michael Toh concluded to emanate dual trade accounts for us. 'Account A' would be a aged unpaid debt while 'Account B' would be a brand brand new credit line which Chong Lee Leong Seng would extend to us. 'Account B' would have a RM30,000 extent with a 90-day credit period. Once you strech 90 days, or you strech a RM30,000 limit, you would have to compensate up prior to some-more supplies can be made. But each time you paid for 'Account B' you would additionally have to compensate for part of 'Account A'.
In time, it was hoped, 'Account A' would be fully settled.
One some-more condition which Michael Toh imposed upon us was which you would have to take a Chinese partner as well as give him 30% of a company. This Chinese businessman would suggest Chong Lee Leong Seng a 'comfort' of continuing to do commercial operation with us.
you was introduced to this Chinese businessman, a man declared Chia Kim Peong from Sabak Bernam. Chia gave me RM10,000 as operative capital as well as he guaranteed a RM30,000 credit line from Chong Lee Leong Seng. you would have to 'roll' with this RM10,000 as well as a RM30,000 credit line from Chong Lee Leong Seng.
When Ch! ia cashe d out his 30% seductiveness in my association in 1985, he finished about RM300,000 upon a RM10,000 he gave me in 1975, not a bad return for just ten years.
With this brand brand new 'lease of life' in 1975, it took me 3 years of hard work to climb again. you practically lived in my automobile with my daughter, my usually kid then, Raja Suraya, sleeping in a behind chair of a automobile as you gathering from Kelantan to Johor to Kedah to marketplace my Yanmar engines. In 1975, you did usually RM300,000 in sales. By 1976 as well as 1977, you overwhelmed RM1 million a year. In 1978, a sales overwhelmed RM6 million. And in 1979 as well as 1980 you did about RM10 million a year in sales.
It took me 3 years to have a initial million. That was in 1978. They say a initial million is a many formidable to make. Once you have finished your initial million afterwards a second million is easier. That is quite true. It took me usually dual years to have a second million as well as by 1980 you had RM3 million in money reserves as well as had finished roughly RM30 million in sales over those 5 years or so.
We were right divided Chong Lee Leong Seng's number a single Yanmar dealer.
It was right divided time to go big time. And 'big time' to us afterwards was, of course, to 'go public'. Public listed companies was a measure of a person's success as well as a status pitch behind in 1980.
Michael Toh introduced me to his uncle, Tan Kay Hock (now a 'Tan Sri') -- yes, a man right divided in a middle of a George Kent (M) Bhd/Ampang LRT debate -- who was about to take over a dormant open listed company, Johan Tin (now called Johan Holdings Berhad). you invested heavily in Johan, especially by bank borrowings (and a main reason for my RM20 million debts which you wrote about earlier in tools 2 as well as 3 of this series).
From a 'bankrupt' in 1975 to a millionaire in 1980 as well as a multi-millionaire in 1985 -- you thought zero was going to st! op me. T he sky was a limit. you was right divided in a ranks of a corporate chiefs similar to Tan Sri Ibrahim (Promet), Vincent Tan (Berjaya), as well as so on. We were all 'racing' to see whose shares could go a highest. Promet's as well as Johan's shares had both exceeded RM10 per share though Promet's shares were RM0.20 ahead of Johan's.
This was no longer about creation money. We were already creation copiousness of income -- Johan's turnover was in a hundreds of millions a year as well as a commercial operation interests were widespread out in all a continents of this world. This was about which of theTaikoscan turn theTaipan. It was a game of prestige. you suspect during which time you felt imperishable as well as mislaid concentration of a objectives of doing business.
And you would soon learn which you would compensate a heavy cost for which arrogance.
In 1985, a recession strike us, followed by a 1987 batch marketplace collapse. What you had finished over a final ten years was mislaid in a small couple of months. Our RM10 shares dived to less than RM0.50. you was saddled with RM20 million in debts though with shares which could not even cover half which amount. you had no preference though to bail out as well as embark upon a 'fire sale' -- as associated in tools 2 as well as 3 of this series.
So there you are. you was now, again, broke, as well as would have to start from a bottom all over again. The mental condition of apropos theTaipanhad right divided turned in to a nightmare. But how do you bounce behind with a economy as well as my personal finances in tatters?
you found out which many companies were still listing their shares though there were no takers. No a single longed for to invest in a batch market. Everyone was still licking his/her wounds from a final mess as well as it appeared similar to full liberation might take a little years yet.
One company, Hexza Corporation Berhad, was f! acing th is same dilemma. They had issued a couple of million shares, which a Ministry of Trade as well as Industry was land upon to though with no investors to collect them up.
you approached a Ministry to enquire in to these shares as well as they told me which they could let me have ten million shares during RM0.65 per share if you longed for them. The Ministry was happy to get absolved of these shares which no a single wanted. you told them you usually longed for a million shares as well as they told to come behind with a bank breeze for RM650,000.
you went home as well as told my wife, Marina, about a offer. She phoned her stockbroker who told her which Hexza was trade during RM0.95 per share. She pronounced it was a great understanding as well as which you should collect up those shares. But let's not be too greedy, Marina said. Let's collect up just a single million shares, in case.
Marina dug in to her cookie jar as well as pulled out RM150,000. So you were still short of RM500,000. you went to Kwong Yik Bank as well as they concluded to give me a loan of RM500,000 -- if you hand over a RM150,000 to a bank as well as ask a Ministry to issue a shares in a name of Kwong Yik Nominees.
We finished a transaction over a subsequent couple of days as well as afterwards lodged a a single million Hexza Corporation Berhad shares with a bank. you afterwards told Marina to do what she longed for with them. By a time Marina unloaded a shares a couple of months later, a shares had climbed to some-more than RM2 per share. After profitable behind a bank a RM500,000 you due them, you managed to travel divided with about RM1.5 million in cash.
It was time to reinvest this income as well as have which RM1.5 million grow to RM15 million.
TO BE CONTINUED
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