Just A Form 5 Boy : How Mahathir Turns Vincent Tan From A Millionaire Into A Billionaire – With Just One Stroke Of Mahathir Pen Overnight Became Billionaires

• 1952 – Born in Batu Pahat, Johor.
• 1973 – Become the youngest agency manager for AIA Insurance.
• 1981 – He was the only Malaysian to be invited to the grand opening of McDonald’s in Singapore
• 1982 – The first outlet of McDonald’s was opened in Jalan Bukit Bintang, Malaysia.
• 1984 – He acquired a major controlling stake in a steel company and transformed it into Berjaya Corporation Berhad.
• 1985 – He secured a 70% of Sports Toto lottery from Mahathir.
• 1991 – He became Malaysia’s youngest Tan Sri below the age of 40.
• 1997 –He used to own Prudential and Digi, but had to sell the stake he had in them.
• 2008 – Bought Friendster and sold its patent to Facebook.
• 2019 – The founder is now the Top 50 richest man in Malaysia with a net worth of approximately RM3.1bil.

The Berjaya Group is currently involved in diverse businesses such as consumer marketing, multi-level direct selling, hotels and resorts, recreational development, property investment and development, financial services, food and beverage, telcos and media, education, motor vehicle distribution, gaming and lottery management, football clubs and the environmental sanitary landfill business.

He is the founder of Berjaya Corporation Berhad, a diversified conglomerate listed on the Malaysian stock exchange. Besides holding stakes through the Berjaya Corporation group of companies, Tan’s other stakes include interest in internet–related businesses, water utilities, media, retail and telecommunications.

In 1984, Tan moved into Berjaya, which purchased 48% of the consumer durables company Regnis the same year. Tan had association with the then finance minister Daim Zainuddin. In 1985, Tan bought 51% of Sports Toto from the Malaysian government. Pre-tax profit of Sports Toto rose from RM 5 million in 1985 to RM 36 by April 1989. He injected his shares in Sports Toto into Berjaya to gain control of Berjaya. In 1988, he swapped his shares in Berjaya for Raleigh Bhd, a lost-making company linked to Daim, which was then renamed Inter-Pacific and turned into Berjaya’s holding company. Under his leadership, Berjaya’s pretax profit rose from RM 700,000 in 1984 to RM 70 million in 1989

Source : Lowyat Forum

Source : LEAF Youtube Channel

I was in Ahmad Sebi Abu Bakar’s office that day when Vincent Tan rudely barged in without knocking. It seems Vincent Tan needs not make an appointment to see the then Prime Minister Tun Dr Mahathir Mohamad or Finance Minister Tun Daim Zainuddin. He can just walk in even if there is someone else in the room, foreign dignitaries included.

Anyway, the reason why Vincent Tan was summoned to meet Tun Daim’s henchman, Ahmad Sebi, who was at that time running TV3, was to discuss Sports Toto. They wanted Vincent Tan to take over Sports Toto. Dr Mahathir’s government called it privatisation. We in the Malay Chamber of Commerce called it piratisation.

What was a further bone of contention was that the privatised government assets, investments, holdings and concessions were given away for a song, sometimes 10% or less of the real market value. With one stroke of the pen, cronies became overnight millionaires and millionaires became billionaires.

As I said, I was there when Vincent Tan was told to make an offer for the very profitable government-owned cash cow, Sports Toto. In 1995, Sports Toto was secretly sold to Vincent Tan without any prior public announcement and with no competing bids.

The first 70% was sold for RM28 million to Vincent Tan’s B & B Enterprise, which was said to be 60% Bumiputera-owned, and of which 10% was subsequently sold to Melewar Corporation — a company owned by another Dr Mahathir crony (and business partner of Tan Sri Loy Hean Heong of MBF), Tunku Tan Sri Abdullah ibni Almarhum Tuanku Abdul Rahman.

The remaining 30% was later sold for RM85 million to Tun Daim’s Raleigh Berhad, which was 26% owned by Bumiputeras such as Tajudin Ramli of MAS ‘fame’. While the second sale involved a share price seven times that of the first, it must be noted that when Sports Toto was listed on the KLSE, it traded at a much higher price on the first day.

As at the close of the stock market yesterday, the listed Sports Toto was worth RM4.2 billion — a big return compared to when Dr Mahathir gave it to Vincent Tan 30 years ago, which was almost free-of-charge at just RM28 million.

Since Berjaya Corporation, B & B’s holding company, had almost 56% of Sports Toto at the end of the 1990-1991 financial year, and was about 42% Bumiputera-owned, Jones and Fadil (1992c) concluded that private Bumiputera interests had relinquished control by selling out, while presumably realising very considerable capital gains to non-Bumiputera interests.

Sports Toto is believed to have been the most lucrative major asset in Vincent Tan’s Berjaya conglomerate. Sports Toto’s profitability has been enhanced by its lower tax rates – compared to other legal gambling operations, as determined on a discretionary basis by the Finance Minister – as well as its modest – if highly publicised – contributions to sports development in Malaysia

Source : Malaysia Today

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