PR for foreigners is boon for Malaysia

Interesting article in The Star by Jagdev Singh Sidhu:

The message of his comment was how scores of people in his predicament who have been in Malaysia for much longer have not been able to secure a lasting foundation of a permanent residence (PR) or citizenship in Malaysia.

My own experience is very similar, despite being in Malaysia for about 15 years, my wife and daughter being Malaysian, me having an university degree, having made investments and being prepared to increase that. I had still not received any answer on my PR application of ten years before (after the initial rejection, which apparently is normal although I don't find it normal).

I applied for a PR in Singapore under their investors program, was immediately approved and received a nice letter from the Minister himself. Proudly I returned home with the letter in my hand, the phone went over and our Malaysian friend told us she had good news for us, my Malaysian PR was finally approved. Too late ...... we had bought already property in Singapore and moved over two years ago.

In the Malaysian context, the one question that seems so obvious: "How is it actually possible that a government agency takes more than 10 years to process a pretty straight forward application?". Surely it should not take more than say six months. Who is monitoring that process, who is responsible?

We have heard the above story many, many times, from friends and relatives. It is very unfortunate for them, and for Malaysia. The number of expats has declined, if I remember correctly it is about half of what it used to be ten years ago. Especially in my field of technology, angel investments and incubators foreigners are so important, not only to invest money but also to mentor small start-up companies.

Singapore realized this gap, and has attracted dozens of foreigners the last two years who have opened about 20 technology incubators under different schemes that offer attractive incentives to them.

For Malaysia, the solution is so simple, just look at what the southern neighbor is doing, and learn from it.


IT was a moment during a question and answer session at Invest Malaysia that became a talking point among the participants. A foreigner stood up and told the Prime Minister that he has been in Malaysia for five years and is happy in the country.

The message of his comment was how scores of people in his predicament who have been in Malaysia for much longer have not been able to secure a lasting foundation of a permanent residence (PR) or citizenship in Malaysia.

His story, like many others, echo of their want to remain in Malaysia and contribute to the country in their own way.

Many of them are professionals. A lot of talent are employed in managerial levels but they, in their own way, have been paying taxes, bought homes and started a family in the country. A number would have started their own business creating jobs for other Malaysians.

Their wish, which is to be granted PR or a long-term residence pass as a minimum, however, have gone unfulfilled for years and is a constant source of uncertainty for them.

Foreign talent should be viewed as a fillip to the nation's economy, much like the extent we go to draw in money into the economy.

Agencies such as MIDA are set up to bring in foreign direct investment into Malaysia, brokerages and investment banks go on roadshows to draw in capital into the stock market.

Rules on allowing foreigners to buy property in the country has been relaxed and it's only natural that the next extension should be the way we go about bringing in foreign talent into the economy on the longer term.

The need to rope in talent into Malaysia has been spelt out in the talent roadmap 2020 issued by TalentCorp and in that publication. The growing economy with aspirations of being a developed nation by 2020 will need talent, both from Malaysia and abroad, to makes that ambition a reality.

Improving the education system is the longer term strategy in getting homegrown quality talent who will emerge from our schools but there is also a need to be flexible now in granting a longer stay in Malaysia for foreign talent, which will also go some way of shoring up the declining number of expatriates that has become a cause of concern.

The report notes that immigration regulation is cumbersome and inflexible in allowing global talent to practise professionally in Malaysia.

Headway, however, is being made. A number of people in prominent positions have been given PR and a those with special talent have been granted residence passes which allow them to work in Malaysia for 10 years.

It's easier for the big fish to get PR but the criteria for allowing other foreigners to plant their roots in Malaysia should be spelled out a lot more clearly.

If a person is a high wage earner and taxpayer - in short a contributor to the economy - then there should be a more transparent and almost automatic mechanism to assess their application favourably for residence pass or permanent residence.

By doing that, then people will not have to lodge a public appeal to the Prime Minister to have their wishes of a PR granted.

Late MCA leader accused of stealing A$20m from Aussie firm

Shocking news from the MalaysianInsider regarding Australian listed company Zheng He Global Capital Limited:


"Datuk Tan Tiong Hong, a former MCA secretary-general and Deputy Finance Minister who died last year, is alleged to have taken more than A$20 million (RM62 million) from a public-listed company in Australia to repay a personal debt, the Sydney Morning Herald reported today.

The Australian newspaper report also suggested that Putrajaya’s ties with Canberra may be tested again if Australia’s securities regulator, the Australian Securities and Investments Commission (ASIC), goes after the family of Tan to recover the money.

Tan, the founder and former executive chairman of Australian-based finance company Zheng He Global Capital, is alleged to have abused his position to organise “secret” loans totalling 136.79 million yuan (RM68 million) to 10 companies linked to fellow Zheng He director, Rong Cheng Wei, the newspaper reported.

Zheng He owns Fujian Zhong Hong, the sole wholly-owned foreign corporation that is allowed to run a credit guarantee business in China’s Fujian province until 2048.

Its operations cover Malaysia, Singapore, Hong Kong and Australia, where it was listed on the Australian Securities Exchange (ASX) in 2010. It has now been suspended.

Andrew Smith, who took over as Zheng He’s acting chairman when Tan died exactly one year ago today, has sent letters of demand to the former MCA strongman’s estate here, which still holds the controlling share in the company.

The daily said that Smith “believes the loans were designed to use the public company’s cash to repay US$18.8 million (RM56.4 million) borrowed by Tan from Wei in April 2010 to facilitate Zheng He’s public float”.

SMH said that Tan’s widow, Catherine, had used her family’s 55.3 per cent majority stake in Zheng He to press the appointment of four new directors to its existing three-member board and Smith had been forced to agree to the demand yesterday even as he provided the ASIC with details of the events within the company.

“It will be interesting to see whether they decide to continue legal action against the Tans. [An] Insider suspects investors in Zheng He can kiss that money, and probably their investments, goodbye,” the Australian daily said."

The article in the Sydney Morning Herald of April 7th, 2012.

Here is the official website of the company with the ASX announcements. The share is still suspended.

Zuckerberg cameo

Accidental appearance of Marc Zuckerberg and Priscilla Chan in this Chinese documentary, about 30 seconds in the clip. Shanghai has a population of about 23 million, so what are the odds of this to happen?

Silverbird, Masterskill, SEGi

Absolutely shocking announcement of the forensic accounting report by PKF Advisory regarding Silverbird, 12 key areas of financial irregularities:

- incorrect accounting entries
- masquerading of transfers
- fake sales
- invoices not available
- transactions can not be verified
- unrecorded receipts and payments
- documents being destroyed
- computer file deletion
- physical damage to the hard drive


Masterskill posted a quarterly loss of RM 2.9 million, very disappointing.


And finally some good news, Affin Investment Bank, independent adviser for the General Offer for SEGi shares, finds the offer not fair, not reasonable and advises to reject the offer. Yes, finally, the independent advisers are getting better in Malaysia. Although it was long overdue, it is good to see this positive change.