How to become very rich in Malaysia

If you have ever wondered how to get rich in Malaysia – fabulously rich and very quickly at that – here’s a model that you might want to look at very closely. Not easy to do but if you do have a couple of projects in the bag, it will set you up for several lifetimes.

First you need connections – strong ones, the higher the better and if it goes right up to the top all the better. You need this because you need to convince the powers that be that your projects are good.

But you might ask if your projects are so good, why do you need connections? Why don’t you just go out and execute? Good questions, those. Here’s the answer - you need the state to give you something to do the deal that will help the nation.

Still can’t figure it out? See, it’s like this. You want to help the country, right? The country needs say a port. But you can’t build a port just like that. You need land to build a port. You tell the state or federal government you need land – cheap land, preferably free to build the port.

Or to take another example, you want to help the country by building a power plant. But look, you need land too and not only that you need the power to be sold. So you want an agreement – an iron-clad one to sell the power to Tenaga Nasional and to pass through all costs.

You see, that’s your reward as an entrepreneur – you get someone else to build the power plant, they guarantee the performance of the plant and someone else guarantees to buy your power and pay for all your costs. Nice deal? You bet. Billionaires have been made that way.

Or you may want to start an air hub. If you are persuasive enough, you can even convince the government to compulsorily acquire the land and sell it to you cheap. Once you have cheap land, lucrative contracts and concession agreements, the sky’s the limit.

Let’s take it a step further. If you want to realise the value of all of these things that you have and still keep control of them, it’s nice to have a listed company into which you can inject them. Inject one asset for shares and you gain control of the company.

And then inject others over the years for cash, taking the money out of the company. Who says you can’t have your cake and eat it too?

Do it right and get a flow of assets to inject in (you can do anything with discounted cash flow valuations – just change the discount rate, and presto, the value changes!), and you get a tidy flow of profits and cash into your personal accounts over the years. I mean a really tidy flow.

Just how much can you make this way, you ask? Why don’t you take a guess first? Did you say RM500mil? Guess again. RM1bil? How about five times that and you may be getting into the right order of magnitude.

One Tan Sri Syed Mokhtar Albukhary actually made some RM4.5bil that way - actually more because he still controls the listed company. We are not saying he is the only one, which makes your chances of joining the ranks better – if you are connected to high places that is.

Source:
http://biz.thestar.com.my/news/story.asp?file=/2008/12/13/business/2795532&sec=business
http://biz.thestar.com.my/news/story.asp?file=/2008/12/13/business/2786964&sec=business

Swiftlet Farming

ALL businesses are built on blood, sweat and tears, at least in the figurative sense. But one industry thrives on another bodily fluid – saliva. Bird saliva, that is. And not just any bird. It has to be the swiftlet, whose nests of hardened spit have been a delicacy treasured by the Chinese for centuries.

Depending on the quality, marketplace and timing, a kilogramme of unprocessed edible bird nest can fetch a few thousand ringgit.

The processing, a tedious and labour-intensive affair, typically doubles the value of the nests. Quoting a senior Sabah government official, a news report early last month says bird nest is sold at RM4,000 to RM18,000 per kg.

The global market is said to be worth billions of ringgit. Thanks to its head start of 20 years or so in swiftlet farming on a commercial scale, Indonesia supplies 70% to 80% of the bird nests consumed worldwide, mainly in Hong Kong, Taiwan, China, Macau, Singapore and North America.

Dr Christopher Lim, a nephrologist who has succeeded as a part-time swiftlet farmer and has authored a how-to book on the subject, says there are about 22,000 swiftlet farms (also known as swiftlet hotels, swiftlet houses or birdhouses) in Malaysia. He estimates that there are 200 new ones every month.

The list of towns that have become known for this activity is lengthening. There are such places in just about every state. What these towns usually have in common are proximity to agricultural and forest land, and relatively low levels of industrial activity.

The first element is important because farms, plantations and jungles support the swiftlets’ diet of flying insects. The lack of factories in the vicinity matters because air pollution is anathema to the birds.

You can find many swiftlet farms in Perak (in Sitiawan, Ipoh, Teluk Intan and Taiping, for example), Pahang (Kuantan, Rompin, Pekan), Kelantan (Kota Baru, Tumpat), Terengganu (Kuala Terengganu, Kuala Besut) and Kedah (Sungai Petani).

The key attraction here is the lure of lucrative returns from a passive investment. The idea is simple – put up a well-designed and well-equipped swiftlet farm at the right spot, and the rest will fall in place. The birds will come and soon, you can keep harvesting their nests for many years.

“It’s a gold mine,” says Mohammad Azimullah, manager of Swiftlets Venture International (SVI), a consultancy outfit.

“You put in RM500,000 and if your location is good, you can net RM1mil a year within four years. Where else in the world can you find such a business?”

Kelvin Heng of Pearlnest, which does trading and consulting work, is convinced that swiftlet farming is currently the best investment opportunity in Malaysia.

He explains: “You invest only once. You don’t have to come out with money every month to pay maintenance and workers’ salaries. If the farm is successful, you can collect thousands of ringgit every month.”

References:

http://biz.thestar.com.my/news/story.asp?file=/2008/12/13/business/2770244&sec=business

More Information:

http://swiftletfarmer.blogspot.com/

http://worldofswiftletfarming.blogspot.com/

http://smipenang.com/2007SwiftletFarmingReport.html