Thanks.. actually bank help me a lot, always use bank paper to get bank money to make money... just sacrifice a little bit on bank charges... I'm referring to SBLC & LC...

This post has been edited by Oldskolboyz: Oct 13 2011, 09:32 PM

Very impressive....

Mind to tell which type of oil&gas business you're involved in?

Manufacturing & sale mechanical seal, pump & valve...

bank paper referring to bank paperwork?

What is SBLC and LC?

And, when did you start this business?

Thanks and good job!

*cough*kronies*cough*

Best quote. The malls around the Bukit Bintang area also project crony. If you buy from them means you support the crony.

sorry, i do not shop in bukit bintang since im not from west malaysia.

Btw, if we live in malaysia, we are enriching the cronies directly or indirectly. petrol, sugar, electricity, water, cooking oil, cars and etc...... they have cover everything

Yeah,.. I have been thinking along the same line too, if we live and work and survive in Malaysia, this is what we will be doing. and when GST starts to get implemented, then the effect will be doubled.

Hence, if we live outside, we will paying consumption taxes for a better cause (again of course, depends on the country).

---

Added on October 14, 2011, 10:26 amYou have 36m in FD ? Is it normal FD, or structured deposits, or Private Banking instruments ?

Just wondering on this part.

This post has been edited by Hansel: Oct 14 2011, 10:26 AM

This is the most idiot one, just simply point finger to others.... my business nothing to do with kronies or politician, I supply to Hong Kong, Singapore, China & Middle East.. Not even once I got chance supply to Petronas cause they got Vendor Development Program (VDP) holder. Even though I have VDP contract for Pump & Valve but still in R&D (since Sept' 08, spend USD2.5m). My self not even think 2nd stage for API & Lloyd boards testing at this moment... Mechanical seal size 3" price USD62,500 each... USD62,500 x <1200 unit p.a (max) = USD75m @ RM3.00 = RM225m (profit 40%)

I can call U an Idiot cause can't think Business Vs SBLC & LC.. just for Ur info SBLC/LC always used for overseas trading. Especially SBLC, Issuer banker must be from overseas bank. Local trading, people always ask for credit term...... 30 / 45 / 60 days

Another bad experience I got, lost 2 unit Apartment & a unit Terrace house in 2007 to "Along".. Who has deal with "Along" before, they know how scared they are...

---

Added on October 14, 2011, 11:28 amNormal FD... just for Ur info... RM36m just a little, got a lot people place FD >RM60m.. even younger than me got RM100m in FD...

---

Added on October 14, 2011, 12:19 pmBank paper mean your buyer bank paper like Standby Letter of Credit (SBLC), Letter of Credit (LC), Documentary Credit & etc.. Let say U have contract supply Coal (just example) to China with payment trough LC (per shipment) but U have limited capital, RM500k... The best U can do ask Ur buyer issue SBLC for the whole year shipping as collateral, let say USD80m (coal cost USD55m).. After that place your SBLC at your banker for Over Draft Facility but don't ask to much cause interest will charges (std rate BLR + 1.5%).. How much to request?

1) Calculate the whole year Mgmt Cost.. Let say RM1.5m
2) Coal cost for starting till U get 1st Claim, which U can rooling it back. Depends on Ur LC term & condition (std >15 days after delivery).. Let say USD10m @ Rm3.00.

Than U just need OD around = RM31.5m, interest will be charge RM2.5515m (8.1% = 6.6% + 1.5%)... If took OD at whole Coal cost, USD55m @ Rm3.00 = RM165m.. interest will be charge RM13.365m... U can see the diff was huge RM2.5515m vs RM13.365m = >RM10m....

This is what I mean using "Bank Paper to get Bank Money to make more Money".... Never use your Capital to make money cause it was limited...

This post has been edited by Oldskolboyz: Oct 14 2011, 12:24 PM

mind pm me as well? hahah

I would advise if one has Millions of RM in FD, it would be better that the FD depositor picks up more about financial knowledge, and continues to make more money with money. No, there is nothing wrong about putting RM100m in FD, and no, there is no necessity to inform on age against amount of money in FD.

By the way,... amount of money one has is relative, it is not meant to be compared.

wow...very interesting..i'm from accounts/audit background but still dont quite understand how your theories apply..basically, LC is used to guarantee the supplier to receive money in time and at the correct amount... i'm not sure about SLBC but by referring to this link

http://www.eur-export.be/anglais/apptheo/f...risnp/lcsba.htm

i still dont get what u trying to say.mind to jiao jiao yi xia noob accountant mah..guess it would be good thing to understand and learn if trying to open business or for the sake of gaining more knowledge..mind to disclose ur highest education?i bliv up to diploma only?ur portfolio are indeed very impressive...

---

Added on October 14, 2011, 1:17 pmoh ya...u can pm me if its not convenient to disclose so much....arent u worried ur business strategy is shared openly here??Thanks!!

This post has been edited by Sky_Q: Oct 14 2011, 01:17 PM

sorry if i offend you. Just really frustrated dealing with 'some people' from different ministry nowadays..

It's SBLC, not SLBC. It's Standby Letter-of-Credit, meaning a pre-arranged LC for a period of time (depending on the terms and conditions of this SBLC) catering to different consignments reaching the destination port-of-entry.

Basically, if you are doing your own business, you will need to know the above arrangement if you are exporting to a foreign country, the value of the shipment is high enough to justify this 'safety' here, and the profit is good enough to pay the total bank admin and interest charges that will be incurred.

To work around this arrangement, I set-up an overseas subsidiary with a fully-functioning office, and ensure my office there is able to credit check the customer, and ensure the customer pays up. Of course, there will be costs to maintain that office too, but that office also acts as a profit-generating entity (not only a cost-centre), taking care of the customers there and looking for more customers in that country/city.

Secondly, the office will serve some tax-advantaged initiatives, hence, enabling me to park my money (the payment collected) in a foreign bank outside of the country. I do not bring the money back to Malaysia anymore, perhaps to Singapore, which is becoming a tax haven, but definitely NOT to this place.

Why do you say he is educated up to Diploma level only ?

This post has been edited by Hansel: Oct 14 2011, 01:55 PM

You are indeed a gentlemen, Mr Lau. I was surprised by your remark, but more surprised with the outburst.

I didn't hold any degree. Everything I learn from Old-timer (clue- "Sierra Petroleum") who manage/trade paper USD5 trillion around the world 24hrs... LC it just 1 of payment method with short validity (std 60 days), SBLC (pls refer to Swift Code MT760) also 1 of payment method with longer validity 1 yr + 1 day (same as BG- bank guarantee), mostly trader use it as collateral with bank to apply facility cause our bank did not accept BG from overseas & SBLC can call up in cased default payment.

When U place SBLC at bank, bank officer (Treasury Dept) will convert / trade / place in money market, BNM OPR & etc for 365 days... Bank not only make money on interest charge on U but from OPR, money market & etc.. everyday (365 days) U know. Let say SBLC face value USD80m @ 3% (OPR) = USD2.4m, How much bank can make money for 365 days....

With Genuine Paper, everybody in the chain can make money unless they didn't know how to use it like our Local Bank (AmBank, Affin, PBB, Hong Leoag)... For your knowledge... now Malaysia & Singapore fighting getting green light to set-up Central Control for ASEAN region, it look like BSKL but this only for paper trade... I can said much like ESCROW laa...

---

Added on October 14, 2011, 2:32 pmYou are welcome, that why I didn't enter Construction Business & others... Without corruption, we can not compete & die faster. Even thought someone offer me "Lightweight Concrete Technology" to develop here where it can give benefit to poor people (PPR House Project). It was 200% better than sand brick & 50% cheaper in term of development cost, which mean house price can maintain at lower price... But sadly this line involve corruption, so I avoid it...

This post has been edited by Oldskolboyz: Oct 14 2011, 02:59 PM

Very low cash in hand.
The 330k you have invested in your company is the market capitalization value or your initial investment value?
How much and how fast you can retrieve your invesment?

You did not provide information :
- monthly income
- investment in your company is partnership or sole proprietor?
- monthly expenses?

Maybe u r not interested in asking for advice/opinion but rather u just want to share your achievement to motivate the rest of the lyn forumers:)

---

Added on November 1, 2011, 8:00 amDear Mr Oldskolboyz,

First of all, congratulation and well done! You must have worked very hard and smart to be who you are today.
I am certainly impressed by your wonderful achievements and also your taste for cars and properties!

It will be extremely helpful and useful if you could shed a bit of sharing and lights on how you progressed after your graduation to this stage of life!




This post has been edited by johnrck99: Nov 1 2011, 08:00 AM

This is one funny and entertaining thread.

funny meh? coz got cool stories? hehe