LA INFLUENCIA DEL PASADO

The corporate rise of Halim Saad, UM NO's most prom inent proxy capitalist, highlights some key features associated with this important group within the Malay business elite. As both owner-directors and executive-professional directors of some of M alaysia's largest companies, UMNO's proxy capitalists exercise a considerable degree of power and independence in corporate circles where they are amongst the country's most influential 'movers and shakers' in business. Yet, at the same time, UMNO's proxy capitalists are still capitalists by virtue of their loyalty the party leadership and their positions as managers of the party's assets. However that fundamental lim itation is temporary because most 'proxies' have utilised the considerable corporate experience, connections (and capital) amassed while managing UMNO's investments to become corporate tycoons in their own right.

From Proxy to Corporate Captain: Wan Azmi Wan Hamzah

How former proxies move beyond the networks party patronage to establish themselves as independent corporate entities can be seen in the case of of our next study, W an Azmi W an Hamzah. Wan Azmi's corporate background was typical of most former UMNO proxies - many of whom had also been associated with Daim at Peremba and managed various arms of the Fleet Group in the 1980's - and who, by the 1990's, had emerged to head their own Bumiputra business groups. In this survey of Wan Azmi's corporate rise we shall also pay attention to the complementary character of the relationship that appears to be developing between the new Malay and Chinese business groups as well as their common and close relationship with the state.

executive chairman Datuk Halim Saad and had questioned a lawyer, Zaid Ibrahim ’in connection with the probe into insider trading'. The following day Megat Junid claimed that he had not disclosed any names in relation to the probe and had been misreported by the press. See NST, 13:7:1991 ('Insider trading : Three questioned by police'); AWSJ, 19-20:7:1991 (Raphael Pura, 'BBMB Loss Spurs Illegal-Trading Charge’) and NST, 13:7:1991.

The Board of directors o f another UMNO-related company, Sungei Besi Mines Malaysia Bhd, were reprimanded for being 'totally irresponsible' after a controversial share offer in which the company revised the price o f its shares from $12 to $4 in order to finance a 30 per cent stake in a sugar refining company, Tradewinds Malaysia. Bank Bumiputra Malaysia Bhd's stockbroking unit BBMB Securities Sdn Bhd, lost $72 million in deals associated with Sungei Besi shares and in November 1991 the unit's chief executive, Ghazali Noor, was found guilty and fined for illegal trading. For a detailed account o f the convoluted price-rigging scheme that involved trading in Sungei Besi shares see Cheong, 1990:31-36 ('The Sungei Besi Mines Malaysia Bhd : Another UEM Link') FEER, 18:7:1991 (Doug Tsuruoka, 'Unfair shares') and AWSJ, 7:11:1991 (Stephen Duthie, 'BBMB's Ex- Chief Fined for Illegal Trades').

The son o f a Supreme Court judge, Wan Azmi was bom in Kelantan in 1950 and qualified as a chartered accountant in the United Kingdom. After working briefly for the Guthrie Corporation in the mid 1970's he joined the UMNO-owned New Straits Times Press in 1977 where he rose to become financial controller o f the organisation. Two years later he joined government-owned Peremba Bhd, then headed by Daim with whom he forged a 'deep and personal friendship' (The Star, 7:6:1990). In 1983 he became managing director of United Estates Projects, a publicly-listed company that was later renamed Sime-UEP Bhd, a director of the Malaysian French Bank Bhd in which D aim 's family companies then had a majority stake, and was a director of the UMNO-controlled Fleet Group and some of its subsidiaries (MB, 16:3:1991). Later, as Minister of Finance, Daim appointed Wan Azmi as Chief Executive Officer of the government-owned Malayan Banking Bhd, Malaysia's third largest commercial bank in 1985. Wan Azmi was only 36 at the time, extraordinarily young for such a senior position. His stay at the bank was shortlived, and a difficult one, as it coincided with the recession of the mid-1980's. As head o f the bank, Wan Azmi had to call in the growing debts of many of his Bumiputra business friends. It also becam e public know ledge during this period that Bank Bum iputra and Malayan Banking had extended huge loans to Maminco Sdn Bhd, the com pany set up by the governm ent in its ill-fated attem pt to com er the world tin market.71 After less than two years he left Malayan Banking to strike out in business on his own.

W an Azmi's entree to business was facilitated by Daim who offered him an 8 per cent stake in an ailing timber company called General Lumber owned by Raleigh Bhd72. (Raleigh had been Daim's former company before he relinquished control to his business associates after he became M inister for Finance in July 1984.) Wan Azmi obtained seed capital for the purchase of his stake in General Lumber from the sale of shares he had in UEP Bhd to Sime Darby and through borrowings from the banks. The banking sector was quite willing to lend capital to a rising Bumiputra businessman, particularly one who was already well known in financial circles as a former C hief Executive O fficer of M alayan Banking (Interview, 13:1:1992 and MB, March 16-31:1991). W an Azmi subsequently raised his interest in General Lumber to 14.5 per cent and became chairman of the company.