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STARTUPS. IN the world of business, when it comes to money there are very few friends around, and this is the very painf
BIZ FUTURE FEB 2018   |   ISSUE 1 |   VOLUME 1

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BANKING ON STARTUPS The first port of call for young biotechs in France Biz Future

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BANKING ON STARTUPS IN the world of business, when it comes to money there are very few friends around, and this is the very painful fact that one faces when on the hunt for the elusive cash. With the current state of global affairs, banks and financial institutions are increasingly moving away from the principle of putting their money where their mouth is. They are not taking any prisoners, thus pre-empting the risk of having to deal with a failed proposition (or so they think) from the very start of their screening process. It is a known fact that commercial banks in Malaysia have imposed new rules, taking on customers only after greater scrutiny and submitting the applicant’s requests to a pass or fail process even before a proper loan application is considered.

submitting the applicant’s requests to a pass or fail process even before a proper loan application is considered. Businesses are aware that Islamic banks, in particular, are shy on risk-taking. And this is bound to change too but not in the risk-easing direction. In Bahrain for example, Bank Islam would go to great lengths in risk-taking Islamic banks around the world are getting a tap on their wrists for risk-taking activities, loopholes in corporate governance, and a lack of streamlining in their loan investment and funding application processes. This is why they are known to be the lesser risk takers around. But from now on, they will have to take even fewer risks. Studies done almost a decade ago showed that Islamic banks

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BANKING ON STARTUPS located above target risk levels tend to show risk-averse behaviour. The same study indicated that banks below target risk levels were inclined towards risk‐seeking attitude. Those results also highlighted that banks which have higher loans-to-total asset ratio tend to take on lower risks. Then there is the additional issue of a premium imposed on all loans disbursed which have been the norm for decades, besides the fact that their supervisory board (SSB) and the religious aspect of the system restrains risk-taking. But it is the simplified business model of a French institution that is of fascination here. It brings me to ask why are the Islamic banking and Islamic finance models not working on these similar lines, and it is intriguing indeed.

I am talking about Bpifrance. BPI stands for Banque Publique d’Investissement, a French investment bank. It is a joint venture of two public entities: Caisse des dépôts et consignations and EPIC BPIGroupe. Basically, Bpifrance assists businesses of all sizes although their primary market microenterprises, small and medium entreprises, and mid-caps. But they also assist large firms that are considered strategic for France’s economy, territorial integrity or employment. Bpifrance finance businesses, provide investments and cash flow needs such as seed capital, innovation aid, bank guarantees etc. An example of its wider reach and innovative formulas is the fact that it is the first port of call for young biotechs in France.

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BANKING ON STARTUPS It describes itself as “the bank of entrepreneurs”, offering €50,000 (RM239,500) loans to young businesses, as well as equity financing internally or in cooperation with venture capitalists. Bpifrance also has a dedicated tourism fund. It participated in the funding of Paris-based adventure and extreme sports booking site Adrenaline Hunter. It is not the fact that it funds, invests and participates in enterprises that make it awesome. As a bank, it is supposed to do just that but it is the fact that it supports startups from day one of their inception which is the uniqueness of this institution. Speaking to Malay Mail in Paris, Bpifrance head of public relations Jean Baptiste Marin-Lamellet said the bank

would even absorb the losses by failed startups, and that it has a 50-50 success rate in its efforts to back young innovative firms. During the presentation, the bank indicated that it had its own criteria that it follows before it funds an entity, but it was clear that these criteria were not put in place to bar the institution from risk-taking. It amazes one to see that France, the country of innovation (it is innovating at such a rapid pace that it is now moving alongside other innovation and startup centres in the world), has understood that it has to take bigger risks in order to succeed in the internet age. While in the same breath, we know how tough it is for anyone to get assistance from Islamic banking or finance institutions in some countries.

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PDZ: INDONESIAN VENTURE ON PDZ Holdings Bhd (PDZ -stock code 6254), an established container liner, has inked a MoU with PT Indonesia Bulk Carier (IBC Group), to provide maritime logistic solutions in Indonesia. This is part of its plans to expand regionally and to provide maritime logistic solutions comprising of container liner, bulk cargoes, tug and barge, self- propelled barge, oil and gas support vessels coupled with other related services such as vessel chartering, pooling management, shipping consultancy and crew management.

PDZ CEO, Executive Director: Tan Chor How

“Negotiations are on-going with IBC, to further support the container liner business between Malaysia and Indonesia, coupled with dry bulk transportation deals, which is expected to contribute positively to PDZ’s profits”, says PDZ CEO cum Executive Director, Tan Chor How. Last week, PDZ announced that it is undertaking a cash call exercise with Mercury Securities as its Principal Advisor, via a rights issue with free warrants, to raise up to RM43m to support its regional business for acquisition of vessels, container tug and barge, dry docking expenditure, containers, security deposits, acquisition/investment into other

BIZ FUTURE complementary businesses/assets, working capital and corporate exercise fees. The Bursa main market listed company said in a media statement today the focus is to expand its footprint regionally, partnering reputable maritime industry leaders.

to grow its fleets to further enhance Indonesia's national Maritime Industry. “Our focus is to expand our footprint regionally, partnering reputable maritime industry leaders, who shares the same vision of the growing trade in ASEAN.” said CEO, Executive Director: Tan Chor How.

IBC is a reputable shipping industry player in the Indonesian market, operating out of its Head Office in Jakarta, Indonesia with over 20 years of management experience in the maritime industry and continues

Tan said Indonesia offers tremendous potential growth for sea transportation as it is located among some of the world’s busiest sea lanes, whose economies grouped under the ASEAN in particular.

PDZ: INDONESIAN VENTURE ON

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Mofaz acquires YCM 

PDZ: INDONESIAN VENTURE ON

Kumpulan MOFAZ Sdn Bhd and YCM Construction Sdn Bhd yesterday agreed to the former’s intention to purchase and acquire shares 70% of YCM’s shares in a deal that would boost the construction business for both entities. “The signing of the agreement went beyond the normal expectation of business deal because both companies are family owned and now are

preparing their next generation from both families which is Malay and Chinese to take the business to the next level. “This mark the culmination of the best talents from both families to achieve business harmony and excellence in the construction and property development industry,” said Mofaz in a media release. The current projects in the pipeline include 2789 unit of housing, which are 800 units of

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Mofaz, YCM construction  GDV at RM2 billion

PDZ: INDONESIAN VENTURE ON PRIMA housing in Dengkil,400 units of MAWIP housing in Sg Penchala,300 units of apartment in Kota Bahru, 189 units of apartment, 16 shoplots, Mercedes and Honda car showroom in Langkawi, 1400 units of condominium, 4 units of luxury boutique apartment and Honda 35 Service center in Sg Penchala. “With a GDV of RM 2 billion, MOFAZ is helping to increase bumiputra participation in Construction and Property Development industry through private initiatives,” said the company. The agreement was signed by Mohamed Fauzy Abdul Hamid, President of Kumpulan MOFAZ Sdn Bhd (MOFAZ) and Yap Chee Meng, MD of YCM Construction Sdn Bhd (YCM).

MOFAZ is a family owned business company established in 1976 is a distinctively Malaysian business conglomerate with over four decades of experience providing quality offerings in the Marine, Aviation, Motorsports, Automotive lndustry, lnternational & Domestic trading, Hospitality & Services sectors as well as Construction, said the media release. YCM is also a family owned company established in 1986 with its nature of business being building construction, renovation interior decoration works and trading of building materials. YCM an ISO 9001:2008 and G7 company with the long establishment in the building altogether wishes to expand further for a potential initial public offering.

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Silicon-rich water may help lower aluminium levels in MS patients Spritzer bottled water, which is silicon-rich mineral water, could facilitate the removal of aluminium from the body via urination. “Drinking silicon-rich mineral water can help remove excess aluminium from multiple sclerosis patients, according to a study backed by a Malaysian company,” says the study. The paper focused on patients with secondary progressive multiple sclerosis (SPMS), a chronic autoimmune condition for which there are limited therapeutic options, due to its unknown origin. Patients have been shown to have unusually high levels of aluminium in their urine, supporting a previously found link between MS and human exposure to aluminium and

Click here to watch this video of Spritzer's POP features SPRITZER POP suggesting a high body burden of aluminium in SPMS sufferers. At the same time, silicon-rich mineral water has been shown to facilitate the removal of aluminium from the body via urination, the paper said. Based on this, researchers at the UK’s Keele University and Austria’s Medical University of Innsbruck sought to test the efficacy of silicon-rich mineral water in SPMS patients. Silicon versus sclerosis They conducted a study on 15 SPMS patients (seven male, eight female) aged 52 to 73. The study included a 12-week

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Females to benefit more drinking silicon-rich water baseline period followed by a 12-week treatment period, during which each participant consumed up to 1.5 litres of silicon-rich mineral water daily. The researchers subsequently observed that regular consumption of silicon-rich mineral water significantly increased 14 of the 15 patients’ urinary excretion of aluminium, when compared with the baseline period. The researchers also observed that the female participants excreted “significantly more aluminium” during the baseline period than the male participants, which they said “suggested a higher body burden of aluminium in females”. They added that since the incidence of MS was higher in

females, it was possible that their higher body burden of aluminium predisposed them to the disease. Limited evidence for the long term. While drinking silicon-rich mineral water for 12 consecutive weeks did cause more aluminium to be removed from the SPMS patients via urination, the researchers said this “provided limited evidence” that this could help them reduce their body burden of aluminium in the long run. Regarding the gender difference, they wrote: “Metabolomic profiling may in the future reveal further gender differences in MS, some of which may also shed some light on how aluminium is handled by the body in MS.”

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