Gavin Fong

I am not sure how true this is, but if it’s true, then it’s not good for the country. Bank Negara statistics show that legal money lending amounts to RM2.2 trillion, while the money in circulation is RM150 billion, which is just 6%. This an economy that is almost 95% dependent on debt. SMEs, which employ 75% of the workforce, account for only 5% of this lending. This is a bad economy for the long term.

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Around 4 years ago during MCO, I read about cases of suicide due to the stress of not having a job. This stress is usually caused by a large debt burden, and because of the lack of work (no money), one feels that there is no one to help and no solution. I have also faced such a situation within my family. There was a time when suddenly, our monthly income dropped by 60%. Indeed, I also experienced mental stress. Thankfully, I took the following steps to overcome it. First: Express yourself to others. At that time, I felt that no one would help and that nobody could understand. However, Allah opened my heart to meet someone who, although not a relative and historically had more debt issues, provided moral support rather than solutions. Alhamdulillah, I felt calm. Second: Pay off debts even if it means taking a loss. At that time, I had 2 house loans, 1 car loan, and 1 personal loan. I wasn’t working in a bank yet, but I had to think about what to do. I sold one of my houses below market value to sell it quickly. With some extra, I paid off the car loan. Money in hand? 0. I combined the remaining house loan with the personal loan — indeed a loss, but the goal was to reduce monthly debt payments. Why not sell the car? I thought that if necessary, it could be used for night market trading. The car was an Avanza. Third: The problem wasn’t solved as I still had debts, right? Indeed, the house was still there, but I couldn’t live there due to its location being far. What did I do? I asked my in-laws for help to stay at their house so I could commute to work by bus/LRT. My family moved in. Embarrassed? Definitely, but I prioritized my family's safety over my pride. My eldest child was still in kindergarten at that time. Imagine, when drawing the family house, he drew my in-laws' house with an arrow to one room and said it was our house? 😭 Fourth: Even though I didn’t live in my own house, the debt remained. So, we rented it out to cover the costs. Unfortunately, the renter didn't pay towards the end (for 7 months). I decided to sell it again below market value. After deducting the debt, I made a profit of RM1000. Alhamdulillah. In conclusion: 1. Property can be sought again. Don’t forget the sustenance from Allah. 2. Embarrassed? If you haven’t sinned, don’t be ashamed. Put your ego aside. Fulfill your responsibilities first. 3. Simply put, I cleared all my debts and started life anew. If you notice, the first thing in this story is to remember Allah. After that, make efforts and have piety. Then, set aside ego. And the final step is to trust in Allah. InsyaAllah, every problem has a solution. Find people who can help. After that, AKPK can assist with debt management. The government also has counseling lines. I don’t remember, but there are some. Friends are also there. Usually, during tough times, help comes from unexpected friends.

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Prostasco on the rise with better prospects Protasco Bhd has seen its share price gaining some 59% in the past year to close at 27 sen. The stock is likely to rise further based on bullish technical readings, supported by higher profit trajectory as business activities gain momentum. It is inching closer to its 52-week high of 34 sen seen recently, a huge jump from its low of 16 sen. Protasco could climb to challenge its resistance hurdles of 36.5 sen and 41 sen. There were much excitement when the company announced early in May that it has received an offer Star Teenagers International Group Ltd (STI) to buy its unit Ikram Education Sdn Bhd. The counter surged as much as 10% to 27 sen, its highest since Dec 28, 2023. Hong Kong-based STI has paid an unspecified earnest deposit for the acquisition, Protasco said in an exchange filing. STI will have three months to conduct due diligence on Ikram Education, which owns the Infrastructure University Kuala Lumpur (IUKL). Investors need to be cautious as thisl is not a done yet. “A detailed announcement regarding the proposed disposal will be made upon execution of the share sale agreement between the parties. If Protasco manages to sell its eduction are, it will help narrow its losses. The education segment has been loss-making since the Covid-19 pandemic in 2020, with a loss before tax of RM3.4 million in FY2020, RM6.6 million in FY2021, and RM15.3 million in FY2022, as student population fell. For FY2023, the education segment saw its loss before tax narrow to RM9.03 million due to lower lecturer fees and lower operating expenses. Revenue climbed 3% to RM25 million from RM24.24 million, due to higher international student fees and franchise fees. The engineering company managed return to the black in the financial year ended Dec 31, 2023. It reported net earnings of RM6.7 million in FY23 versus a net loss of RM29.4 million in the previous year. Revenue surged 28% to RM1.13 billion from RM883.94 million. However, the group registered a higher quarterly net loss of RM6.2 million in 1QFY24 compared with RM1.7 million a year ago. Protasco said it expects to show a profit trajectory for FY24 as business activities gain momentum going forward. Based on its book value per share of 60 sen as of end-Mar 2024, the stock is currently trading at a price to book value multiple of 0.52x. Its core businesses are in the areas of road maintenance, property development, engineering & consultancy services, construction, trading & manufacturing of road and construction material, clean energy and hotel & hospitality. The heightened interest in the stock could signal good news or some development on the disposal exercise. But it could very well be a drag on the counter should nothing materilise after 3 months of the announcement.

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Small and Medium Enterprises SMEs make up roughly 97% of the Malaysian economy, accounting for 48% of employment and contributing 38% of total Gross Domestic Product (GDP). SMEs in Malaysia face several challenges. These include limited access to infrastructure and support mechanisms, small capital investment, a shortage of talent, and the impact of global market uncertainty. SME’s are also subject matter expert (SME) who provide the knowledge and expertise in a specific subject, business area, or technical area for a project/program. Apart from chasing KPIs Key Performance Indicators, are SMEs doing enough to Keep People Interested, Keep People Informed and Keep People Inspired? Join us tomorrow as we try to help you navigate through some of the challenges. Details below.

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