Syed Mokhtar, consummate businessman or consummate crony?

Billionaire Syed Mokhtar Al- Bukhary’s recent purchase a 42.75$ stake in national carm company Proton Holdings Bhd for RM1.29 billion has created ripples not just in business circles, both locally and regionally, but across a wider Malaysian society fed up by decades of corruption by politicians and their cronies.

It has sparked all sorts of accusations including that the controversial tycoon was swiping national assets on behalf of a string of Umno bigwigs, with all sorts of names tossed in the hat, from former Finance minister Daim Zainuddin to ex-premier Mahathir Mohamad and back to Prime Minister Najib Razak.

So who is Syed Mokhtar fronting for? Is he acting for anyone in the first place, does he need to do so? At this stage, it is anyone's guess. He has been friends with all the top Umno leaders and makes it a point to be so. He is even nice to the Pakatan Rakyat opposition!

But who is Syed Mokhtar Albukhary really? How did he get to be where he is today? What's the secret, if any, for his success?

He tried to avoid the politicians, but they wouldn't let him

Syed Mokhtar Albukhary started doing business at the tender age of 18 years old that is by helping his late father in running the rice trading business. From then on he never looked back but moved forward until he is where he is now, officially declared the 7th richest man in Malaysia.

His friends are protective to the point of being defensive about him. They insist he has nothing to hide unlike other Malaysian tycoons, many of whom are richer than him. But going by the rankings, there are officially only six people richer than Syed Mokhtar in Malaysia!

Yes, he started from humble beginnings, and as is the nature of business, there were many ups and downs. He made profits as well as losses. His businesses grew bigger and there were times they also collapsed, and he had to close shop.

Initially he tried to avoid getting involved with politicians but he couldn’t avoid them. His friends say it simply wasn't possible because with his capability, it was the politicians who came running to him and not the other way round.

Obviously, the politicians did not approach him directly. They discreetly put barriers and unnecessary hurdles for his business to grow, and thereby controlled him.

Left with little choice, Syed Mokhtar may have decided to befriend these politicians who needed greasing. As a result, many observers have now come to the conclusion that Syed Mokhtar is a proxy for some of the biggest sharks in Umno.

Impeccable contacts

According to those who know him, Syed Mokhtar treats all politicians the same and without any special preferences. He got along well with former premiers Mahathir Mohamad and Abdullah Badawi.

And he gets on fine with the current leadership of Prime Minister Najib Razak and Deputy Prime Minister Muhyiddin Yassin. MCA's ex-president Ling Liong Sik and Gerakan's Lim Kheng Yaik are also old friends.

And the list goes on. Maybe this is truly what being a crony is all about. To be able to accommodate anyone who approaches him for something, and then, to reap favors in return.

Otherwise, he would not be able to survive under Najib - not if he had previously been a staunch supporter of Mahathir and then Badawi, as widely reported by the press.

The Umno trio are known to fight for deals amongst themselves and woe betide those who come in their way. Clumsy interlopers would soon find themselves out in the cold, but Syed Mokhtar's wealth has flourished and multiplied. Perhaps, a tribute to his ability to duck and weave with the best of them.

Good to Pakatan states too

The billionaire is also very accommodating with the Pakatan Rakyat government in Kedah, his home state where he has built a commercial complex complete with an international university catering for the poor but bright Muslim students from all over the world, the Albukhary Higher Learning Complex in Alor Star.

He also provided hostels and free education for the orphans and the handicapped. There is also a haemodialysis centre for the poor within the complex. Through his own Yayasan Albukhary, he has helped many and built mosques and hospitals, given out scholarships and other forms of help for the needy, unlike Umno minister Jamil Khir Baharom, who allegedly used zakat or tithes to pay his legal fees.

So far, the greatest shadow in Syed Mokhtar's career is the series of Independent Power Producer agreements that he has inked with the BN government. Despite denials from both sides, ask any Malaysian and they will say the PPAs are grossly lopsided and aimed to make the rich richer and the poor poorer.

So there goes Syed Mokhtar's carefully cultivated image of being a sincere philanthropist. Possible, what he spends on charity is arguably a sesame seed compared to what he rakes in.

Too much wealth in the hands of one individual

Many are now asking why does Syed Mokhtar keep on buying companies, making deals, creating new companies and businesses?

Why not? When he finds sees a good opportunity like anybody else, he will go for it. Is this not business? After all, money begets money and does it really matter if he is also buying stakes on behalf of friends, let's say from Umno?

Indeed, the recent string of acquisitions has sparked talk that he has been swiping everything under the Malaysian sun for Umno bigwigs from Daim to Mahathir and back to Najib.

Even if true, unless there is corruption proven, why shouldn't Syed Mokhtar oblige? That's the argument that those who are close to him make anyway. But it still does not appease analysts and citizens, who are concerned that so much wealth is being 'concentrated' in one man.

Malaysia’s economy depends on several factors and the main player is still the government. Syed Mokhtar has a few core businesses in several sectors, which are well placed to to diversify. Why not make use of him, so say the BN government and their agencies?

Sad to say, this is an argument that neither BN nor Syed can hope to win, no matter how eloquent their presentation. The fact is You-scratch-my-back I-scratch-yours style of economic and business distribution is passe. It has been proven to be susceptible to massive and endemic corruption, and as a main victim, Malaysia should veer away from such arguments.

What Malaysians should press for is a level playing field. No more blue-eyed boys or favored tycoons. Do not use spin, all sorts of sob-stories or rags-to-riches tales to cover up the fact that a crony is just that - some one who is close to another and can be reasonably expected to hide, mask and cover up for the sake of 'friendship'.

Guys like Syed Mokhtar and the BN business model must be rejected

A new Malaysia is needed, with new politics essential. Guys like Syed Mokhtar must be scrutinized and the BN must be taken to account for any impropriety. Just like Umno minister Shahrizat Jalil's family must answer for the RM250 million fiasco at the National Feedlot Centre.

Just because Syed Mokhtar has an Islamic background and has done charity does not entitle him to special treatment. Shahrizat too is a Muslim and is generally a charitable and pleasant woman. But business is business and corruption is corruption. And never should the twain meet.

Malaysia Chronicle