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The Politics of Bread, Sugar and other UMNO Businesses in Malaysia: Crony Companies
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“When people define a situation as real, it is real in its consequences.” (W.I. Thomas, Polish sociologist)
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Bread is not just bread, and rice is not just rice. All over the world, these basic necessities, like everything else, become messily intertwined with the very fabric of society.
BREAD
The market leader for bread is Gardenia, owned largely by Bernas, Padiberas Nasional Berhad (BERNAS), a company listed on the Main Market of Bursa Malaysia.
Syed Mokhtar al-Bukhary controls Bernas.
He is the richest Bumiputra corporate figure in Malaysia. With involvement in diversified business areas which include transportation and logistics, plantations, property development, defense and armory as well as engineering and power generation, he has a net worth estimated to be US$1.7 billion according to Forbes,making him the 8th richest Malaysian.
(Wikipedia)
RICE
Bernas has a substantial chunk of the domestic paddy and rice industry.
BERNAS and its group of companies are involved in the procurement and processing of paddy; as well as the importation, warehousing, distribution and marketing of rice in Malaysia. BERNAS currently controls about 24% of the paddy market and 45% of the local rice demand.
It seeks to expand, and in doing so, it is PERCEIVED to either force out or buy out Chinese companies.
Over the next few parts, I will reveal how bread and rice ARE PERCEIVED as being increasingly under the control of crony companies, that is, businesses friendly to, or proxies of, UMNO.
Truth should matter but, in reality, due to race-tinted perception, truth dies an easy death.
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Malaysian Insider
Side Views
The Gardenia vs Massimo bread war – Sakmongkol
July 13, 2013
While our PM talks about 1Malaysia, it has not gained traction on the ground.
Only in the media, one sees universal but unfortunately clueless acceptance of the concept.
On the ground, the story is quite different. We are faced with a cynical public that sees everything that affects our daily life in terms of race.
It has now extended into economics and business.
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The silent bread war.
Most of the public is not even aware that there is a bread war going on.
On one side is Gardenia said to represent Umno bread and Massimo, the brand produced by Uncle Bob Kuok’s business group.
I was not aware about the war between the Gardenia brand and the Massimo brand until quite recently.
I recently heard about the matter when it was mentioned in Parliament.
It got the attention of Anwar Ibrahim who was reported to have mentioned that Gardenia bread has increased its price.
This prompted an in-passing reply from a Barisan Nasional backbencher stating that he received an official statement from Gardenia bread, that it has not increased its price.
Gardenia bread is selling at RM3.20 a loaf compared with Massimo selling at RM2.50.
The RM2.50 was supposed to be a promotional price. It has stayed at that level for 2 years. Nobody asked how can it do that?
The answer is they can because they sourced their flour from their own mill.
Federal Flour Mill (FFM) owned by Robert Kuok.
In addition, not many people know that all flour millers get millions of ringgit in subsidy from the BN government.
FFM gets some RM80 million in subsidies as a flour miller.
One, they source from their own mill.
Two, they can pass the RM80 million subsidy from the government to consumers.
Consumers can enjoy Massimo bread at RM2.50, courtesy also of the Umno-led government.
Gardenia does not have its own flour mill.
It does not enjoy government subsidy.
It sells its premium wheat germ bread at RM3.20 a loaf.
Why has the battle gone overboard so as to drag the innocent bread consumed by whomever who wants to, into a business involving the various communities in our country?
Gardenia is said to represent the Malay bread while Massimo represents the Chinese bread.
Gardenia is 30% owned by Syed Mokhtar Al-Bukhary while Massimo brand is owned by Robert Kuok.
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When Bernas was taken over by Syed Mokhtar, the 30 percent ownership vested in him automatically.
That is the extent of his ownership.
He got ownership through Bernas.
So my question is why make the innocent bread suffer because of our politics?
This will be explored in the ensuing article. – sakmongkol.blogspot.com, July 13, 2013.
* This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insider.
Others’ bread is too salt – the Gardenia vs Massimo bread war – Sakmongkol
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BREAD: MASSIMO OR GARDENIA? THE MATTER OF CRONY COMPANIES, FIRMS SET UP BY UMNO OR BELONGING TO CRONIES OF UMNO.
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Sunday 20 May 2012
I first tried Massimo bread in mid-December 2011 (last year). It has been just over 5 months and I have not switched back to Gardenia. It is still rm2.50 a loaf for the bread with wheat germ. It is true that it is not as substantial as Gardenia bread with wheat germ but I find the latter too substantial.
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You can vote which bread you prefer, Gardenia, High 5 or Massimo. Just click on the link and scroll down. The votes are in favour for Massimo so far.
Mumsgather
Where can I buy Massimo Bread? No worries, it will hit your regular bread vendors very soon. I got mine at my usual newspaper vendor who sells bread as well.
mumsgather.com/2011/08/01/massimo-bread-or-gardenia-bread – Cached
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Makers of bread: Perception is almost everything
I eat nasi lemak as it’s delicious but I avoid the ones that are too lemak. Nothing to do with who makes it, Malay or Chinese. I love the mee rebus and rojak that the Mamak sells at a Chinese coffeeshop. I haven’t found any Chinese man who makes a better product.
Satay? A Chinese man in Ipoh Garden sells them at 50 sen each; each stick is the biggest you can get it. The Malay man sells them at 60 sen each and his satay is too sweet for me. I order satay on the basis of price and taste.
As for roti canai, the Mamak makes better roti canai than…well, who else makes it? No one else that I know of.
What’s my point? It’s simply that, like almost all Chinese who are Malaysians, I love good food and will frequent stalls and shops that offer good food regardless of whether the seller/owner is Malay, Indian, Chinese, Mamak or Australian. Yes, there is an Australian who makes extremely delicious pies. He’s married to a Chinese woman. We enjoy his pies once a fortnight.
When it comes to bread, I used to buy Gardenia white, not High 5. Gardenia was slightly better tasting. Eventually, I gave up on bread. White isn’t healthy for me. However, recently, a new bread arrived, Massimo. At RM2.50, the loaf with wheat germ is good for my health, the cheapest and suits my taste-buds. My wife likes it, too. Thus, it is Massimo for us. High 5 lowered its price to RM2.80 today (January 2) but I still like the taste of High 5 the least of the three. If High 5 lowers its price to RM2.20, it won’t matter to me. Massimo tastes better.
I eat Massimo for two reasons: it has the lowest price and best taste. It has nothing to do with ownership or whether the firm is a crony company. If Massimo raises its price to RM3.50, I would have to consider Gardenia bread again. The price, as well as taste, is important.
Unfortunately, many people eat Massimo because it is the cheapest, most delicious and, in their belief, made by a Chinese-owned firm, not by a crony company. They boycott Gardenia because, in their perception, it is made by a crony company. That’s what they have decided. They perceive things that way, and they act accordingly.
Which takes us to a very powerful statement, a sociological dictum: when people define a situation as real, it is real in its consequences. (W.I. Thomas, Polish sociologist)
No matter how the owners of Gardenia may attempt to project themselves as not a crony company, the definition of the situation of many bread-buyers/eaters is that it is a crony company. That perception is almost impossible to change.
My advice to Gardenia is not to waste money on adverts but to spend the money in a more worthwhile way: produce a better bread at a lower cost. Then, charge less, far less, than Massimo.
If Gardenia sells a more delicious loaf and at a lower price, they may just be able to get back some of the lost sales.
I, for one, would then buy Gardenia.
Blogger
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You can read this also in The Malaysian Insider
Makers of bread: Perception is almost everything — Simon Thong
JAN 3 — I eat nasi lemak as it’s delicious but I avoid the ones that are too lemak. Nothing to do with who makes it, Malay or Chinese. I love the mee rebus and …
www.themalaysianinsider.com/sideviews/article/makers-of… – Cached
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GARDENIA’S NEW PACKAGING!
勁爆驚報
Pembungkusan baru Gardenia Bonanza baru-baru ini dikeluarkan dengan tujuan kekeliruan. Hari ini saya pergi kedai runcit untuk membeli roti. Malangnya tertipu, sampai rumah baru melihat packing tu..baru nampak tulis “Gardenia.com.my” kat bhg bawah, bungkusan roti asal tu dah tukar, mereka nak kelirukan pengguna.
Jom sebarkan luas seruluh Malaysia. !
Memboikot semua produk UMNOprono!
Gardenia new packaging Bonanza recently released with the purpose of confusion. Today I went to the grocery store to buy bread. Unfortunately fooled, getting a new house look new look packing tu .. write “Gardenia.com.my” kat below part, the original bread packaging change that’s done, they want to confuse consumers.
Let’s spread wide seruluh Malaysia. !
Boycott all products UMNOprono!
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Voice of America
News / Asia
Malaysian Ethnic Dispute Centers on Bread
Gardenia and Massimo bread are seen on the shelf of a Malaysian store in Kuala Lumpur.
TEXT SIZE
Yong Yen Nie
Last updated on: January 17, 2012 7:00 PM
A dispute over bread has become a minor source of friction between Chinese and Malays in Malaysia.
The peculiar controversy began following an online campaign of emails asking the Chinese community to boycott the consumption of Gardenia bread, Malaysia’s most popular brand..
Gardenia, whose major shareholder includes Syed Mokhtar al-Bukhary, a prominent Malay tycoon, faced allegations that it received directions from its major shareholder to stop buying flour from Federal Flour Mills, owned by a Malaysian-Chinese tycoon, Robert Kuok.
As such, Malaysian Chinese are urged to stop eating Gardenia bread but turn to Kuok’s new bread brand, Massimo, instead. The Massimo bread is manufactured by Federal Flour Mills.
Kuok, who is on the Forbes list for being the richest man in Malaysia, made his fortune from commodities such as sugar, flour and palm oil as well as major investments abroad, believed to be out of discontent with the government’s ethnic-centric policies as well as the rise of other opportunities.
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Malaysian Ethnic Dispute Centers on Bread | Asia | English
Gardenia and Massimo bread are seen on the shelf of a Malaysian store in Kuala Lumpur.
www.voanews.com/english/news/asia/Malaysian-Ethinc… – Cached
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The Star
Sunday January 8, 2012
When bread has race
By RASHVINJEET S.BEDI
rashvin@thestar.com.my
Boycott campaigns of products based on race and politics only shows the shallow-mindedness of some Malaysians.
GARDENIA or Massimo? Roti Benggali or Roti Boy? Mexican bun or French loaf? Walk into any Malaysian home and you are bound to come across a loaf of bread. Whether it’s white or wholemeal, bread is a big part of Malaysian lives.
When bread has race – The Star Online
Boycott campaigns of products based on race and politics only shows the shallow-mindedness of some Malaysians. GARDENIA or Massimo? Roti Benggali or Roti Boy? Mexican …
thestar.com.my/news/story.asp?file=/2012/1/8/nation/… – Cached
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ASIAONE
Malaysia’s Gardenia: We make bread, not enemies
Gardenia says in its full-page advertorial that it buys flour from certain sources based on ‘commercial reasons’.
The New Paper
Monday, Jan 02, 2012
Malaysian breadmaker Gardenia is facing a storm of protests after netizens called for the boycott of its products.
The netizens claim that the company is discriminating against one of its suppliers for “racial reasons”.
They have also alleged that the company is owned by “an Umno crony”. Umno is the largest party in the Barisan Nasional ruling coalition.
To make its side of the story heard, Gardenia Bakeries (KL) has taken out full-page advertisements in English dailies, refuting the claims.
Malaysia’s Gardenia: We make bread, not enemies
One e-mail read: “Let’s support the new Massimo bread by Robert Kuok and boycott Gardenia bread owned by Umno crony, Syed Mokhtar Albukhary’s Tradewind group.”
www.asiaone.com/News/AsiaOne%2BNews/Malaysia/Story/A1…
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Massimo vs Gardenia
I have received no less than 5 emails with the following message:
“Let’s support the new Massimo bread by Robert Kuok and boycott Gardenia bread owned by UMNO crony, Syed Mokhtar’s Tradewind group. Massimo bread has finally arrived in Penang. During promotion the wheat gem bread is sold at only RM2.50 as oppose to RM3.20, go check it out.
http://theitalianbaker.com.my/bread.html“
No, I don’t think we should boycott any product or service based solely on the above crony reason. I would buy Massimo bread if it is conveniently available, fresh, tasty and comparatively cheaper than Gardenia. If for the same type of bread, the price difference is as stated, then there is no need to call for a boycott as the market will adjust itself. Sometimes, when in need, we might not even have a choice, like what we used to watch on television in places of famine. Similarly, I would avoid buying breads from The Loaf, not because I dislike Tun, but because from what I hear, they are much more expensive. Anyway, it would be silly to think Tun needs returns from the venture. This reminds me of Tun Daim’s cocky statement about his gains from the stock market as for weekend spending or something to that effect.
Massimo vs Gardenia – NegaraKita.com
I have received no less than 5 emails with the following message: “Let’s support the new Massimo bread by Robert Kuok and boycott Gardenia bread owned by UMNO crony …
negarakita.com/Post-302523-Massimo+vs+Gardenia – Cached
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Something Extraordinary: Boycott Gardenia and Support Massimo
At first MASSIMO was in the market i taught it was a new bread on the market. Also there is a lot of offer out there selling lower than the cost price …
jimmyteh90.blogspot.com/…gardenia-and-support-massimo.html – Cached
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Asia Views
Gardenia row points to rising ethnic tension as economy bites
Malaysia
KUALA LUMPUR, Jan 3 — With surging prices leading to belt-tightening, Malaysians are now more inclined to point the finger at each other and frame disputes through racial lenses.
Analysts told The Malaysian Insider the recent campaign to boycott Gardenia bread over allegations it is a racist and “crony company” reflects the reality in the country where nearly all facets of life are seen from a racial standpoint.
Gardenia Bakeries was forced to take out advertorials last week to deny it had been directed by Padiberas Nasional Bhd (Bernas) to stop buying flour from Federal Flour Mills Bhd (FFM) for allegedly racist reasons.
Its decision was sparked by a drop in sales of its popular Gardenia bread as many Chinese Malaysians opted for a new brand in an apparent reaction to a campaign on Facebook and email that was also spread through text messages.
Bernas is owned by Tan Sri Syed Mohktar Al-Bukhary, while FFM is controlled by Hong Kong-based Malaysian tycoon Tan Sri Robert Kuok.
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Gardenia row points to rising ethnic tension as economy bites
Gardenia Bakeries was forced to take out advertorials last week to deny it had been … Bernas is owned by Tan Sri Syed Mohktar Al-Bukhary, while FFM is controlled by Hong …
www.asiaviews.org/index.php?option=com_content&view=… – Cached
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