Tuesday, 7 October 2014

Larry Tey, the answer to an old aged Bursa Malaysia?

Singapore (GMT+8), Asia Pacific Investor Briefing
Update  6 April 2015

Larry Tey Por Yee (Larry), a businessman turn venture capitalist, whom global venture named him the sugar daddy to hundreds of darlings, thanks to his reportedly seed funding to few hundreds companies globally. Many of which are start ups, some are even his clients, suppliers and young entrepreneur, whom he met and joint invested with other passionate venture capitalist, a bold risk many Asian entrepreneur would not take, especially to invest in other entrepreneur.

Today, Larry's work is more towards corporate dealing, such as merger & acquisition, restructuring, business advisory and general investments. He is also reportedly devoted him time in social affairs, including consistent contribution to charity, education and human science researches.

One of Larry's investee once told a financial journalist "Those managers who graduated from Larry's training would be a tough entrepreneur and survivor. He is generous and humble to groom new blood with full effort, its some what over stretched yet adventurous. He is like using cookie cutter formula to reproduce entrepreneur. Something Asian market cannot provide".

Larry was called on duty to bring back his investments to the country (Malaysia). In year 2012, he came into Malaysia corporate scene as a white knight to bail a Malaysia businessman out of hostile situation. Ever since, he had invested in few more public listed companies, added more life to the capital market.

Malaysia stock market, now called Bursa Malaysia, is virtually dead, or walking towards it's old age, which is few steps away from the graveyard. With the business tycoons in the 80's and 90's retired from corporate scene, so as the care takers and facilitators in Bursa and capital market, there is virtually not many fresh blood in the market to encourage healthy market growth. The new generation of businessman needs to be facilitated and nurtured towards building wealth and jobs for the country. However, where are the next generation trend setters and game changers? What went wrong?

Started since 90's, talents from Malaysia were either study-and-stayed back overseas, or migrated. Waves of young entrepreneurs were reluctant to come back to the country, and many found new growth in business world overseas, especially more investor friendly capital markets, such as Australia, Singapore and Hong Kong. Ask any banker or public listed company owner, the obvious power abuse and over stretched current generation of policy watch dog is one of the main cause towards the glut of Bursa Malaysia melt down, if not the main reason, it'll be the only cause.

Disregard what are the excuses and how this generation of rookies policy holders pretend to be smart and abuse their power, at the extend of interfering business decision-centric towards compliance decision-centric business culture, Bursa Malaysia is among the few bottom markets which has less and less listed companies, and finding the culprit is straight forward. To make the situation worst - those who trying to play the role of all mighty directly allowing the top 5% more "resourceful" to suck the 95% weak bottom dry. If the top few are allowed to better packaged their business dealings, while the bottom are being bullied to the extreme unable to grow their business spending less resource towards business while more resources towards compliance - the basic market function is dead end. The watch dogs are lying to themselves - denying that either the top or the bottom are virtually doing the same thing - whatever markets are supposed to self-regulate and given time to perform. The weaker bottom becomes natural easy targets for the sake of thrill of power abuse in the name of justice.

The socialist invisible hand would sooner or later plays its role, if the extremist capitalism by taking from the 95% to serve the 5% elite is to carry on. Extreme happens throughout human history - the falls of empires, mostly evolves from same pattern - authority power over stretched, creates gluts in social order, and unrest shall happen.

How the market will evolve, time will tell. One fact is for sure - if the market environment is not favorable, there is no room for business, eventually all businesses will flee the market. People shall have no chance to survive - re-suffer shall happen. The overall performance of the market will tell the story if the care takers are indeed care takers or abuser, or being used as a tool for abuse by interest party. Regardless how they self perceive, the result of market condition reflects.

Can this generation of new entrepreneur like Larry be able to survive the dying market condition? Market forces shall play its role - given time, fundamental performance shall be the only universal answer. Perhaps the market needs more of such new entrepreneurs coming into the poll, but it may not be in Malaysia if environment persist.

Wall Street, 6 April 2015.

References of Dato Larry Tey Por Yee investments in Malaysia: