Actually, you censure a banks for all this. Back in a 1980s, around 10 years after starting my business, bank managers were coming to see me to entice me to lunch. They would most desire me to 'give them a little business'. Over lunch they would endorse RM2 million or RM3 million without even asking me what you would do with a money.
NO HOLDS BARRED
Raja Petra Kamarudin
People pretence which given you am Malay therefore all my commercial operation must have come from supervision contracts. That is stereotyping as well as as 'fair' as assuming which given you have been Indian you have been a heavy drinker who beats his mother or given you have been a Chinese you have been dishonest given you worship money.
you do not repudiate which you did do a little supervision business. Even Chinese as well as Indians do supervision commercial operation whenever they can. So this is not really a crime. Nevertheless, over 20 years from 1974-1994, my companies did about RM300-350 million in turnover with may be about 20% of which in supervision contracts.
And supervision contracts have been really not which profitable, mind you. Sometimes you get away with a distinction of usually 2.5%. To make 10% or some-more from a supervision (supply) job was a singular thing indeed, generally in those 'early days'.
Government jobs have been good when you need to go to a bank to lift funds. If you won, say, a RM30 million supervision contract, this would concede you to steal RM6 million or even RM10 million.
In those days, even when you did not need a income (since a supplier gave us credit of 60-90 days anyway), you would still go to a bank to borrow. you would make use of a supports as well as afterwards pay behind what you used within a same mon! th. This would impress a bank similar to ruin -- although they have been not as well happy with this given they would earn really little when you pay behind roughly immediately.
The reason you did this was so that, subsequent time, when you really do need funding, you can go behind to a bank as well as get a loan. In a commencement you borrowed RM2 million. By a time you motionless to call it a day, you was rolling with RM20 million, all borrowed funds.
Actually, you censure a banks for all this. Back in a 1980s, around 10 years after starting my business, bank managers were coming to see me to entice me to lunch. They would most desire me to 'give them a little business'. Over lunch they would endorse RM2 million or RM3 million without even asking me what you would do with a money.
You see, branch managers had a share to fill as well as they were trying to make use of me to fill their quota. So they would offer me comforts in a millions even though you did not need a income as well as would not have well known what to do with it anyway.
Once you was even invited for lunch in a executive suite of HSBC in Kuala Lumpur. TheKwailothen asked whether his bank 'could be off assistance' to me. He afterwards offered me RM3 million as well as instructed his Chinese military officer to follow up upon this 'application'.
The Chinese military officer followed me behind to my office as well as sat down with me to work out a details. But you had one problem. We could not clear a facilities. In other words, you could not show which you needed a money. After cracking a heads for an hour, you told a military officer to usually dont think about it. Actually you do not need a money.
you felt good to be able to tell HSBC which you do not need their money. That increased my image as well as even some-more bank managers came a courting when they found out which you told theKwailofrom aKwaliobank which you do not need their m! oney.
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Yes, bank managers get an orgasm when you tell a bank you do not need their money.
It came to a stage which all you needed to do was to phone a MD or GM of a bank as well as over a phone you could lift a million or two with no questions asked. Of course, you was not a usually one enjoying this VIP treatment. All over locale banks were throwing income a way.
Then, in mid-1980, a unsteadiness of this perspective hit us. Many of us were over-geared. No disbelief a loans were 'backed by assets'. But these so-called assets were 'paper assets'. They were stocks as well as shares trading during 10 or twenty times their value -- or worse.
No one cared about PE ratios. In a UK, you may be seeking during PE ratios in a singular digit. In Malaysia (plus Singapore as well as Hong Kong) a PE ratios of a 'darlings' of a stock marketplace were sometimes in a three times digits.
That was crazy. Banks should not have overwhelmed such company shares with a ten-foot pole. But who thought which a burble was starting to burst? We were upon a drum coaster ride as well as it was starting up, up as well as up. Then, in 1985, it went down, down as well as down.
It was afterwards which you understood a definition of 'fair weather bankers'. They entice you to lunch as well as desire you to steal from them when you do not need their money. However, when a marketplace turns, they become your 'wakeup call' early in a morning when they phone you to inform you of a 'margin call'.
If you do not 'top up' by a time a marketplace opens for a day, expect them to 'force-sell' your shares. And a some-more they force-sell a some-more vexed a marketplace gets as well as a some-more vexed a marketplace gets a lower your shares go as well as a lower your shares go a some-more domain you need to tip up -- as well as so upon as well as so forth. It fundamentally becomes a infamous cycle.
Now which you need a income a banks no longer wish to! underst anding with you. The banks do not wish to give you income given you need a money. They usually wish to give you income when you do not need it.
you was usually 35 afterwards as well as about 10 years in business. But you was really fast finding out which another word for 'banker' is 'shark'. When they smell blood they go into a stuff oneself frenzy. And when you have been floundering in a H2O trying to keep your conduct up so which you do not drown, these sharks come up from behind you as well as punch off your balls.
Yes, you were greedy. you admit that. We may even have been inexperienced as well as were taking as well most risks. But when you have been still quite immature as well as brand new to business, you tend to be similar to this. That is what being immature is all about.
But a banks were also greedy. These banks which have been around for a prolonged time as well as have seen most recessions come as well as go should have used prudent banking. They should have well known which bubbles in a future burst. And they should not have been a ones to inflate a burble as well as then, as shortly as it shows sign of deflation, they prick a burble by pulling a carpet from underneath a feet.
Many suffered. Almost everyone, in any case of race, collapsed. Many saw their companies change hands. Some were even unfortunate sufficient to finish up in jail. As you said, during 35 you could means to pick up a pieces as well as start all over again. Those who no longer had a luxury of time chose a easy approach out by finale their life.
We would have imagined which by 1985-1987 a banks would have learned their lesson. Apparently they did not -- as 1997 as well as now, 2012, have proven. Banks will still be banks as well as risk-takers will still be risk-takers.
you am usually blissful you am not longer in which diversion where you live day-to-day with a fright which when you arise up a following morning you have been starting to f! ind out which a bottom has depressed out of a market.
As they say: let a borrower beware.
TO BE CONTINUED
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