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The week of 18 August – 24 August 2016
Volume 28 Number 01
A
| Market Opinion
Our first advertisement,
a big one in Sunday Star,
was a bold and risky move.
And it paid off. Subscriber
number 9, Saw Huat
Leong from Penang,
sent via registered
post a KL cheque
for a 2-year
subscription.
I was elated
and shared
our joy with
our only staff
then, Ms
Tee, a fresh
graduate from
UM. He used
a KL cheque
so that it can
be cleared faster
and he can get his
weekly
i
Capital faster.
We also got subscriptions
from the late Professor
Ungku Aziz on behalf of
Angkasa, from PNB, from
Public Bank and we even
photostated the subscription
cheque from the Brunei
Investment Agency.
What defines
i
Capital ? What defines
Capital Dynamics ? What
defines the people who
work at Capital
Dynamics ? The first
thing that we all have
to remember is that we
are operating in a highly
regulated industry with
many regulations to comply
with. Obtaining the first of
the many licences held
by Capital Dynamics was
certainly not easy but when
we became Malaysia’s 1st
independent investment
adviser in 1989, people
knew its real significance.
If investors had not
responded by subscribing,
the risky advertisement
would have meant that
our scarce and precious
funds would have been
depleted fast. Little did
I know that our troubles
were only starting !
3 long years after
launching
i
Capital in
English and Mandarin, the
bank account of Capital
Dynamics Sdn Bhd had
only a bit more than
RM28,000. This low cash
asset was to continue
for the 4th year. It was
literally living month to
month and all honest and
ethical ways of surviving
were used. Taking good
care of assets like furniture,
computers, etc. was very
crucial. They have to last
very long. The chairs bought
in 1989 are still in very
good condition and are still
in use, up to now. Being
able to celebrate the 4th
anniversary of
i
Capital was
indeed a miracle but at the
same time, I was fortunate
to have two excellent staff
then. Ms Chew Lay Kean
and Ms Ng Chun Peng
were committed, loyal,
trustworthy and made
sacrifices to help build
Capital Dynamics.
What defines
i
Capital ? What defines
Capital Dynamics ? What
defines the people who
work at Capital Dynamics ?
As I shared earlier, it is all
about focus, commitment
and conviction. The last
characteristic is crucial. In
my case, in less than a year
after launching
i
Capital, Saddam Hussein
got attacked by the United
States. We all had the 1st
Gulf War and the 1st global
bear market caused by
a military conflict. From
mid-1990 to early 1993,
the KLSE was like a ghost
town, with remisiers beating
mosquitoes. In those
2 to 3 tough years
of endless losses,
I stayed bullish
throughout. Based
on our own
objective research
and independent
analysis, I was
totally convinced
that my lonely
bullishness would
be proven right.
By late 1993,
my analysis was
rewarded. Subscribers
flowed in but even
though Capital Dynamics
Sdn Bhd had a vastly
improved balance sheet
then, it was still operating
on a very tight budget. The
2nd office was on top of an
animal medical clinic in Jalan
Tun Razak. This did not
last long as the owner
wanted the space
back in 1997. By May
1997, the newly set
up Capital Dynamics
Asset Management
Sdn Bhd got its
fund management
licence. In deciding where to
locate our new office, I was
faced with a dilemma. Friends
were telling me that as a fund
manager, we need to move
into a prestigious office in
a prestigious location, like
Jalan Raja Chulan or Sultan
Ismail. By early 1997, I was
already totally convinced
that Malaysia was heading
into a recession. At that time,
Malaysia’s GDP growth was a
hot, sizzling 7.3%. Predicting
a recession then was like
a heresy and even
Bank Negara was
forecasting a 7%
GDP growth for
1998. I was so
convinced by
my own analysis
that in the end,
I decided to
move our office
to the cheapest
spot in town –
Wisma Koponas in
Brickfields. If Brickfields
i
Capital’s first advertisement
Bank statement of Capital Dynamics
Sdn Bhd in Dec 1992
The 1989 chairs are still with us
A memorable moment:
i
Capital’s 4th
anniversary
i
C
a
p
i
t
a
l
’
s
v
e
r
y
i
r
s
t
i
s
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e
.
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Capital Dynamics Sdn Bhd