Published April 24, 2009

YTL building RM2.5b IT network

Nationwide mobile Internet network aims to land 14 million subscribers

By PAULINE NG
IN KUALA LUMPUR

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MALAYSIAN conglomerate YTL group plans to invest RM2.5 billion (S$1.04 billion) for the nationwide roll out of its mobile Internet network, which is due to be completed in 14 months.

About RM1 billion would be spent in the first year, YTL e-Solutions (YTLE) executive chairman and managing director Francis Yeoh said yesterday at the signing ceremony between its wholly-owned subsidiary Y-Max Infra with Samsung Electronics Co. Malaysian stock exchange listed YTLE is the technology unit of the group.

More than 2,000 sites have been geographically mapped for the base stations, and in six to eight months subscribers would get a taste of the technology.

Under the agreement Samsung would provide YTLE a total WiMAX network package which includes base stations, an end-to-end IP Multimedia Service (IMS) solution, and a range of Mobile Internet Devices. The Korean electronics giant would also supply YTLE the world's first WiMAX-enabled handsets.

YTLE is aiming to land 14 million subscribers, or half of Malaysia's 27 million population - an objective that is not impossible, he said, but a do-able 'blue ocean' initiative which would create new jobs and generate an 'explosion' in knowledge workers.

Indeed, Mr Yeoh who helms the YTL group and its vast business interests ranging from power, real estate, hotels, to water utilities, believes Internet technology is a huge growth engine which has potential yet to be fully unleashed.

US President Barack Obama used technology to great effect to win the presidential election, he observed, adding that while former prime minister Mahathir Mohamad's vision for the Multimedia Super Corridor was fantastic, it remains largely unexploited 12 years later.

However, giving easy Internet access to Malaysians everywhere in the country could transform the way information is accessed and leveraged.

It could also change the way businesses are run, he said, pointing to Chinese companies that have leveraged the platform to establish far bigger things such as Alibaba.com. 'This is so exciting for me, Jurassic though I am.'

But competition will be fierce. There are four WiMAX operators - including YTLE - that hold 2.3 GHz spectra licences. Moreover, the government had also awarded 14 other players, 3.5 and 2.5 GHZ spectra licences, although some have not launched their services.

YTLE's partners are expected to make a difference. Besides its partnership with Samsung, it had also teamed up with Sprint and Clearwater.

Published April 24, 2009

Cap directors' board seats

By OH BOON PING

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THE issue of directors holding many board seats has come into focus again. A survey by the National University of Singapore's Corporate Governance & Financial Reporting Centre has found that while most directors - 84 per cent - of listed companies here hold a single board seat - a number are holding at least six directorships, including several with over 10 board seats.

Then, at DBS Bank's recent annual general meeting, questions were asked about DBS independent director Christopher Cheng holding 152 directorships. To be fair to Mr Cheng, the bulk of his directorships are not at listed firms but relates to his family firm Wing Tai's extensive property interests in Hong Kong and China.

Still, it adds to the ongoing debate on whether there should be a cap on the number of directorships that a board member can hold. One online reader made this tongue- in-check observation about Mr Cheng: 'If he spends 15 minutes on an update per company for eight hours straight, he will complete 152 updates in 4.75 days; in a five-day week, he has 0.25 days for the 152 companies.'

But putting such humour aside, it's still fair to ask the question: is it physically possible for one person to wear so many hats, without compromising the quality of his work?

While it may be true that a very capable director should be able to take on more tasks and perform them equally well compared to, say, a less capable person, he still has to work within the constraints of a finite amount of time. So wearing too many corporate hats means board members may have less time than ideal for meetings and other company matters. The outcome? Board members could end up over-relying on what management says, and plans and proposals may not get the scrutiny they deserve, and board oversight is compromised in the end.

Plus, the issue of multiple directorships also reflects management attitude towards corporate governance. If a company engages a director who holds many directorships, it may indicate that the management could just be paying lip service to board effectiveness, since it should be aware that such a director may find it difficult to contribute meaningfully to the company.

Of course, the defenders of multiple directorships will point out that Singapore is a small country, and therefore corporations have to make do with a limited pool of talent for directors. But this ignores the influx of foreign talent to our shores each year, and more should be done to prod companies to look beyond the traditional sources to consider other sources for directors, including the pool of foreign talent, to enhance the quality of board leadership and corporate performance.

Indeed, setting a limit on the number of directorships is a debate worth reviving. This is already being done elsewhere. The Kuala Lumpur Stock Exchange, as part of its listing rules, limits the number of directorships that any individual can hold to no more than 10 in listed companies and no more than 15 in other companies.

In the US, the National Association of Corporate Directors (NACD) recommends that directors with full-time positions should not serve on more than three or four other boards.

Some have rightly pointed out that arbitrarily drawing a line on the maximum number of directorships is tough as a director's ability to perform effectively also depends on factors such as the size and complexity of the company's operations which could impact on the time required in travel or other activity needed to gain a proper understanding of the business.

But having a cap is still better than not having one. As corporate governance advocate Mak Yuen Teen pointed out, 'the problem is that a drunk will often think he can drink more'. He has suggested imposing a limit of four directorships for those with full-time jobs, and six for those without - a proposal which the Singapore Exchange should consider very seriously.

If the exchange is serious about promoting self-governance and board effectiveness here, then limiting the number of directorships is one critical step it may have to take sooner or later. 

Published April 24, 2009

BBGI dropping 'Babcock & Brown' from its name

By EMILYN YAP

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AFTER a trying year in 2008, Babcock & Brown Global Investments Limited (BBGI) is set for a fresh start going by the agenda for its annual general meeting (AGM) today.

For one, BBGI is seeking shareholders' approval to change its name to simply 'Global Investments Limited'. This is part of its plans to delink itself from Australian-listed Babcock & Brown (B&B), which has been crippled by debts since the financial crisis hit and is now under voluntary administration.

Technically, the BBGI group and B&B already have separate ownership, boards of directors and legal structures. BBGI has also said that it does not expect any impact from B&B's troubles.

Nevertheless, dropping 'Babcock & Brown' from its name would clearly reflect the planned separation and shareholders will get to vote on this.

But it will take more than a name change for BBGI to delink from B&B. The company is undertaking a strategic review to identify potential investors and maybe also a new manager to break away.

The AGM will be an avenue for shareholders to obtain updates, such as the number of investors who have shown interest and the expected duration of the review.

The BBGI management may also provide dividend guidance at the AGM and shareholders will be hoping for good news. The company had earlier stopped dividend payments for the second half of 2008 in a bid to trim debts - it had a corporate debt facility of A$32.6 million (S$34.6 million), according to an announcement on April 8.

There were encouraging signs in that announcement when BBGI disclosed the sale of its music copyright assets.

It said that sale proceeds would contribute to debt repayment and it might be able to settle remaining corporate debt this month.

'The company is expecting to be able to provide dividend guidance in respect of the half year ending June 30, 2009, prior to or at the company's AGM,' it added.

BBGI shares have found favour with the market since the news broke.

They closed at 18.5 cents yesterday - three cents up from the previous day and more than double their value since April 7.

Published April 24, 2009

AGM WATCH

CapitaLand expects weaker 2009: CEO

But all business segments should be profitable this year, says Liew Mun Leong

By UMA SHANKARI

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CAPITALAND'S financial performance is expected to be weaker this year than last year, chief executive Liew Mun Leong told the company's annual general meeting yesterday.

This year will be worse than 2008, when CapitaLand reported a profit of $1.26b - about half that in 2007. - Liew Mun Leong

But the property group still expects all its business divisions - including residential, retail and serviced residences - to stay in the black.

'I think that what we have done in the past few years will hold (us) up in 2009 as well,' Mr Liew said.

But he acknowledged that this year will be worse than 2008, when CapitaLand reported a net profit of $1.26 billion - about half that in 2007.

Mr Liew said that all business segments should be profitable this year, with shopping malls and serviced residences, held under The Ascott Group, expected to put up a good showing.

On CapitaLand's China business, he said: 'For us, China will be good. I think China will be our saviour.'

Last year, 45 per cent of the group's $2.2 billion earnings before interest and tax (Ebit) came from China. Singapore, the next largest market, contributed 40 per cent.

Earnings in Singapore this year will underpinned by profit recognition from sales at two residential projects - the 327-unit Seafront on Meyer and the 175-unit Orchard Residences.

One shareholder asked yesterday whether CapitaLand intends to maintain its current level of dividends. Last year, it paid a total of seven cents a share.

Chairman Richard Hu said that the dividend for 2009 will depend on the company's performance, adding that its policy is to maintain sustainable dividend payouts.

Shareholders questioned the board on two other matters - the accrued bonus of $20.52 million awarded to Mr Liew in 2007, and whether the company intends to return cash to shareholders.

CapitaLand had $4.2 billion cash at end-2008 and said in an update yesterday that it improved its cash liquidity to $5.5 billion following a recent rights issue. One shareholder asked: 'Can you return a few cents back to the shareholders?'

On Mr Liew's remuneration, CapitaLand reiterated that it used the economic value-added (EVA) indicator to calculate his bonus.

His award for 2007 was a reward for the group's record profit of $2.76 billion that year, more than double the $1.01 billion it made in 2006.

As for the massive war chest, CapitaLand will use it to 'take full advantage of all the tremendous opportunities we will see in the next year or two', said chief financial officer Olivier Lim.

Published April 24, 2009

Keppel Q1 net profit increases 9% to $285.3m O&M division remains as largest profit contributor at 64 per cent By VINCENT WEE Email this article Print article Feedback KEPPEL Corp posted a 9 per cent rise in first-quarter profit to $285.3 million, from $261.7 million a year ago, despite the the global economic downturn. Revenue was also healthy, rising 35 per cent to $2.98 billion from $2.21 billion for the previous corresponding quarter. Earnings per share rose 8.5 per cent to 17.9 cents from 16.5 cents. Meanwhile, annualised return of 22.4 per cent was at the same level as FY2008. The group also benefited from a write-back of $14 million for taxation as a result of the reduction in Singapore tax rate. The offshore and marine division (O&M) remained the largest profit contributor at 64 per cent, followed by investments with 14 per cent, property division with 12 per cent and infrastructure division with 10 per cent. Revenue from the key O&M division of $2.12 billion was 51 per cent higher despite the lower level of new orders secured in the first quarter as the division benefited from progressive recognition of revenue as it executed on its order book accumulated at the end of 2008. O&M reported a 41 per cent higher pre-tax profit of $239 million due to the higher revenue and improved operating margins. Revenue from the infrastructure division increased by 26 per cent to $634 million with the maiden engineering, procurement and construction (EPC) revenue recognition from the Doha North Sewage Treatment and Water Re-use plant (Doha North) project in Qatar contributing. Pre-tax profit from this division jumped one-and-a-half times to $42 million on contributions from the Doha North project and better performance by the Keppel Merlimau cogen power plant. In line with prevailing conditions however, the property division saw pre-tax profit fall 30 per cent to $74 million due to lower revenue of $222 million, which was 26 per down from previously. Share of profit of associated company Singapore Petroleum Company also declined because of lower refining margins, crude prices and the provision for impairment of the Jeruk discovery. The completion of several residential projects in Singapore and overseas in the last financial year and no significant sales in the current year hit revenue. Rental income from investment properties increased due to higher effective rental rates and occupancy, and fund management income was also higher. Looking ahead, O&M secured a modest $315 million of new orders in the first quarter of 2009 while the net order book stands at $9.5 billion with deliveries into 2012. On the property market, however, Keppel remained sanguine. 'Sentiments for property market remain subdued. Sales of Singapore private residential properties in the first quarter of this year have picked up but prices have fallen. The group has deferred the construction of Marina Bay Suites and Madison Residences, and delayed the launch of the second phase of Reflections at Keppel Bay until market conditions are more favourable,' Keppel said. The group, however, added that sales of residential township projects in China in Q109 were at a slower pace but encouraging while the property market in Vietnam and India remain weak. 'The group is monitoring the markets closely and will launch its residential projects when confidence improves,' Keppel added.

Published April 24, 2009

LATEST US DATA

Sales of existing homes drop in March

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(NEW YORK) Sales of US previously-owned homes fell in March after jumping a month earlier by the most in more than five years, indicating the market will remain depressed for much of the year.

Purchases decreased 3 per cent to an annual rate of 4.57 million, lower than forecast, from 4.71 million in February, the National Association of Realtors said yesterday in Washington. The median price slumped 12 per cent from a year ago and distressed properties accounted for about 50 per cent of all sales.

Record-low mortgage rates and a foreclosure-driven plunge in prices are making houses more affordable, helping the market stabilise following the biggest slump since the Great Depression. Even so, mounting job losses dim prospects for an immediate recovery.

'This fits with an idea of stabilisation of housing demand,' said Jonathan Basile, an economist at Credit Suisse Holdings Inc in new York. 'We've seen housing affordability go up across the country. The bad news has been diminishing.'

Shares of the largest homebuilders were down following the report, while stocks overall were little changed.

Another report showed the number of Americans filing first-time claims for unemployment insurance rose by 27,000 people last week to 640,000 people as forecast, while total benefit rolls reached a record, indicating the labour market continues to deteriorate.

Economists forecast resales would fall to a 4.65 million annual rate, according to the median of 69 projections in a Bloomberg News survey. Estimates ranged from rates of 4.37 million to 4.9 million.

Last month's sales pace was still higher than the decade-low 4.49 million reached in January.

Purchases were down 7.1 per cent compared with a year earlier.

The number of houses on the market dropped 1.6 per cent to 3.74 million. At the current sales pace, it would take 9.8 months to sell those homes, up from 9.7 months in February. The agents' group has said that a five to six months' supply is consistent with a stable market. -- Bloomberg

Published April 24, 2009

Najib expected to open the door wider

Website says foreign ownership ceiling on banks may be relaxed next week

By S JAYASANKARAN
IN KUALA LUMPUR

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THE Malaysian government's move to liberalise the services sector on Wednesday was greeted with cautious optimism by analysts yesterday with some expressing the view that the moves could be a prelude to wider liberalisations going forward.

One influential website reported, for example, that the 30 per cent cap on foreign shareholdings in commercial banks may be lifted when new Prime Minister Najib Razak unveils measures to boost the finance industry next week.

Citing unidentified sources, The Malaysian Insider (www.themalaysianinsider.com) said yesterday that the government was considering lifting foreign ownership ceiling.

Under the current ruling, foreigners cannot own more than 30 per cent of Malaysian banks. The shareholding restriction for investment banks and Islamic banks is 49 per cent.

Of the measures already announced on Wednesday, Chris Oh, the research head of JPMorgan in Kuala Lumpur said: 'It's a good and symbolic start, but so far they're not really wide ranging.'

'But it could signal bigger moves ahead and that's a huge positive,' he added.

Mr Najib has announced that the 30 per cent bumiputra equity requirement for 27 sub-sectors in the services industry would be lifted with immediate effect. The sub-sectors are in health, social services, transport, tourism and the computer industry. Mr Najib added that more deregulation involving the financial services sector would be announced next week.

The moves illustrate Mr Najib's desire to rejuvenate the Malaysian economy, which has been beset with declining investment from both local and foreign companies. It also further removes parts of the restrictive New Economic Policy, which has been blamed for distorting the economy and repelling foreign investment.

On another level, it is also good politics as it could win back non-Malay support for the ruling Barisan Nasional coalition which has been steadily losing it. The BN has lost four consecutive by-elections and all with larger majorities largely because of the lack of support from non-Malays.

Indeed, some of the changes appeared sweeping, especially those related to tourism where ownership of theme parks, convention centres and four and five star hotels were suddenly thrown open to all comers. But it isn't clear if the bumiputra requirements would still be unnecessary if the firms concerned were to go for a listing.

At least, one body appeared apprehensive of the moves, especially the one relating to permission being granted to five international law firms to open a local shop for the provision of services relating to Islamic finance. The move was pushed through by the central bank to help Kuala Lumpur become an international Islamic financial hub.

The Bar Council, which can hardly be said to be bumiputra-dominated, expressed concern yesterday that the move could be counter-productive to the local legal services market in the long run.

Its president Ragunath Kesavan said that there was no necessity for such foreign law firms to share or transfer any technology or knowledge to Malaysian practitioners if they were allowed to set up on a 'stand-alone' basis.

Mr Ragunath said that the Bar Council's position was that a managed system of liberalisation, in which foreign law firms are required to enter into joint ventures with Malaysian law firms, represents the best of both worlds as there were sufficient Malaysian lawyers with expertise in the area of Islamic finance at an international level.

Published April 24, 2009

Over-regulation has downside: Shanmugam

But more can be done to create effective corporate governance

By CHEW XIANG

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(SINGAPORE) Lax enforcement, rather than lack of regulation, is at the root of the present financial crisis, and more rules are not the solution, Law Minister K Shanmugam said yesterday.

Handsome win: Mr Shanmugam presenting the Best Managed Board gold award to SMRT Corp chairman Choo Chiau Beng

'I do not suggest there is no need for additional regulations,' Mr Shanmugam, who is also Second Minister for Home Affairs, said in a speech at the Singapore Corporate Awards presentation last night. 'But going too far in that direction is not going to help.'

While there is 'strong public pressure to do something, almost anything', especially in countries at the epicentre of the crisis, 'no rule or law by itself can prevent criminality, nor can it prevent irrational exuberance or speculative excess', he said.

Singapore's regulators have found 'an appropriate balance' between rules and enforcement, but more can be done to create an effective 'corporate governance eco-system', Mr Shanmugam said.

Boards of directors, and professionals such as auditors, lawyers and consultants, 'will have to play an active role', he said. And 'much in particular will be expected of independent directors; they cannot simply make up the numbers'.

Speaking to reporters later, Mr Shanmugam - himself a former independent director - said that the role of independent directors is not to replicate the duties of executive directors. Their role is to apply their expertise and knowledge to a company's projects and proposals.

Some independent directors have resigned in frustration at the lack of cooperation or information from management, leading to calls to grant independent directors greater legal protection or to codify directors' duties in the Companies Act - something now being reviewed by a steering committee.

But Mr Shanmugam said that there is a limit to what independent directors can do. 'If the top management or executive directors are on a course of outright fraud, and hide things, then the ID cannot be at fault,' he said.

The rest of the evening was devoted to recognising outstanding examples of corporate governance - the objective of the annual Singapore Corporate Awards.

SMRT Corp won the gold award for the Best Managed Board in the big cap category (more than $1 billion), while WBL Corp won in the mid-cap category.

StarHub's Terry Clontz was this year's Best Chief Executive Officer in the big-cap category.

Rotary Engineering chairman Chia Kim Piow and Boustead Singapore's Wong Fong Fui shared the prize for Best CEO in the mid-cap category, while FJ Benjamin CEO Nash Benjamin won in the small cap category.

ComfortDelGro's Choo Chek Siew took the prize for Best CFO, with ASL Marine's Lilian Tan and Qian Hu Corp's Lai Chin Yee winning in the mid and small-cap categories.

Fourteen companies - including Keppel Land, Petra Foods, Qian Hu and CapitaMall Trust - were recognised for their exemplary disclosure in the Best Annual Report award, while SingTel, Tat Hong Holdings and OKP Holdings were among companies honoured for having the best investor relations. Qian Hu stood out at the awards, winning four accolades in total.

Last evening's event, one of the highlights of the Singapore corporate calendar, is organised by The Business Times and supported by the Singapore Exchange and other partners.

Published April 24, 2009

Secondary market buzzes as prices fall

Q1 sees rise in resale and subsale deals as prices get more attractive

By KALPANA RASHIWALA

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(SINGAPORE) The pick-up in private home sales by developers has spilled over to the secondary market. Falling prices are greasing the flow.

Caveats have been lodged for 1,063 private homes in the resale market in the first three months of this year, up 11.7 per cent from the preceding quarter. In the subsale market, 384 caveats were lodged in Q1 2009, reflecting a 44.4 per cent increase from the Q4 2008 figure, according to Savills's analysis of caveats captured by the Urban Redevelopment Authority's Realis system.

Resales and subsales refer to secondary market transactions. Subsales involve projects that have yet to obtain Certificate of Statutory Completion while resales relate to projects that have received CSC. CSC is typically obtained anywhere from three to 12 months after the project receives Temporary Occupation Permit (TOP).

The average prices of resale and subsale transactions at the most popular projects in Q1 2009 were generally lower than in the preceding quarter as well as the same period last year.

City Square Residences, the most popular subsale project in the first three months of this year with 41 units, saw an average price of $804 psf, down 5 per cent from the $845 average subsale price in Q4 2008 and 15 per cent below the $947 psf average subsale price seen in Q1 2008.

Average prices for 11 of the 12 most popular subsale projects in Q1 this year fell between one and 14 per cent from the preceding quarter. The exception was Clementiwoods Condo, where eight subsale deals were done at an average of $664 psf in Q1, some 5 per cent higher than in the previous quarter but down 7 per cent from the same period a year ago.

Compared with Q1 last year, average prices for all 12 top-selling subsale projects in Q1 2009 fell between 4 per cent (Centris) and 36 per cent (The Cosmopolitan).

As for resale transactions, the 11 hottest developments saw quarter-on-quarter price declines ranging from 4 per cent (for The Lakeshore) to 19 per cent (Bayshore Park) in Q1. The Lakeshore was the most popular resale project in the first quarter, with 27 units changing hands, followed by Costa del Sol, with 11 units.

Savills Singapore head of research Priya Sengupta noted that the 11 most popular resale projects in Q1 were all in the mass and mid-tier sectors. 'Amid the economic uncertainties, affordability remains a key consideration for home buyers/investors; 100 of the 113 deals in the 11 most popular resale projects in Q1 were at below $1 million,' she said.

Resale activity for high-end projects was limited. 'This could be attributed to the price disparity between sellers and buyers as the latter expect further downward price adjustment in the near future, as well as the stricter home loan criteria in terms of loan-to-value ratio, especially for investors,' Ms Sengupta said.

Mass and mid-tier projects also saw more subsale transactions than high-end projects. Much of the subsales activity in Q1 surrounded projects that have either received TOP recently or are close to receiving it. For instance, City Square Residences, The Esta, The Sail @ Marina Bay, The Cosmopolitan and Rivergate have received TOP in 2008/2009, while One Amber and The Centris will get TOP soon, Savills said.

Market watchers said that this could be because many specuvestors who bought on deferred payment schemes (DPS) may be inclined to offload their units as the TOP date approaches, when they have to pay up the bulk of the purchase price to developers.

However, CB Richard Ellis executive director Joseph Tan pointed out that regardless of whether buyers opted for DPS, private housing projects are typically a hive of activity around the time they receive TOP, drawing buyers who want to move in themselves or to rent out immediately.

He also attributed the increase in subsale and resale transactions in Q1 to 'prices being at fairly reasonable levels now', with the stock market rally improving sentiment.

Mr Tan said that whether the buzz in the secondary market continues will depend on the stockmarket. 'So long as the Straits Times Index remains fairly stable, it will give comfort to investors that the property market is close to bottoming out, given the price correction in the past 12-15 months,' he added.

According to DTZ's figures, which are based on resale prices, the average freehold luxury condo and apartment price of $1,880 psf in Q1 this year marks about a one-third drop from the peak of $2,800 psf in late 2007/early 2008.

The most expensive subsale deal (in terms of psf price) in Q1 this year was a 29th floor unit at Orchard Residences that changed hands for $2,579 psf. In absolute dollar quantum, the most expensive subsale deal was an 11th floor apartment at The Tate Residences at Claymore Road, which sold for $5.93 million ($1,850 psf).

As for resale transactions, the top grossers were a 10th floor apartment at Richmond Park at Bideford Road which sold for $2,199 psf and a 25th floor unit at Four Seasons Park at Cuscaden Walk that fetched $6.5 million ($1,701 psf)

Published April 23, 2009

Mahathir names Najib's 'unsavoury' ministers

By S JAYASANKARAN
IN KUALA LUMPUR

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FORMER prime minister Mahathir Mohamad yesterday came right out and named who he thought were the 'unsavoury' characters that had been included in Prime Minister Najib Razak's government. He also denied that he had disproportionate influence over the current administration.

Dr Mahathir named Nazri Aziz as one of the ministers he thought should not have been appointed to Mr Najib's Cabinet.

He also felt Johari Baharum, his former political secretary, should not have been made a deputy minister.

Mr Nazri is a minister in the Prime Minister's Department in charge of law and parliament while Mr Johari is a deputy agriculture minister.

Dr Mahathir's remarks yesterday came after he had expressed disappointment last week that Mr Najib had appointed 'unsavoury characters' into his government. But the former premier used the occasion to debunk speculation that he had undue influence over the government.

'It is quite obvious that he (Najib) does not depend upon me,' Dr Mahathir told reporters yesterday. 'For example, he appointed ministers and deputy ministers who I think don't deserve to be ministers, who are involved in corruption.'

There has been increasing speculation that Mr Najib, leery of getting on the combative Dr Mahathir's bad side, is unduly deferential of Dr Mahathir to the extent that some foreign newspapers have begun talking of a 'return to Mahathirism'. Dr Mahathir has irritably dismissed the suggestion in his blog.

But his blunt ways remain undiminished. Asked by reporters to clarify why he named the men, Dr Mahathir replied: 'Nazri was nasty to me, so of course I don't like him. And Johari Baharum has this accusation against him for accepting RM5 million (S$2 million) to release people. Of course he was cleared but some people still feel he should not be made deputy minister.'

In 2007, Mr Johari, then deputy home minister, was accused of allegedly accepting money to release a detainee. But he was later cleared by the Anti-Corruption Agency.

But Mr Johari also incurred Dr Mahathir's wrath when he refused to support the former premier's bid to become a delegate from Kubang Pasu in Kedah to the annual assembly of the United Malays National Organisation. Mr Johari was the head of the division which Dr Mahathir headed for well over 22 years.

For his part, Mr Nazri had been one of the most vocal defenders of Abdullah Ahmad Badawi when the latter was attacked by Dr Mahathir.

In a separate development, Dr Mahathir maintained his position that the ruling Barisan Nasional (BN) coalition should contest in a soon-to-be-called by-election despite Mr Najib taking a contrary position.

Mr Najib said it was pointless because it would be a waste of time and energy and that the country should focus on the economy. In any case, the BN is not expected to win the seat.

Dr Mahathir admitted that he was not consulted over the issue but maintained that he had the right to state his opinion when asked by the media as well as on his personal blog.

But he maintained that it did not mean he was opposed to Mr Najib and conceded that, ultimately, it was up to the premier to decide.