Last week, the ministry of trade and industry (MITI) named DreamEdge as the anchor company for the new national car project, and that announcement was followed by a post on social media by MCA president Datuk Seri Dr Wee Ka Siong, in which he criticised the government for allegedly going against the promise that the project would not utilise government money.
As reported by The Star, Wee had in his post attached a screenshot of a Companies Commission of Malaysia (SSM) document that showed that 53% of DreamEdge’s shares are owned by VentureTech. Another document showed that VentureTech is fully owned by the Malaysian Industry-Government Group for High Technology (MIGHT), which is in turn 100% owned by the government, leading Wee to question whether the project would involve public funds.
In a statement made in response to Wee’s post, DreamEdge CEO Khairil Adri Adnan revealed that the true shareholding of VentureTech in DreamEdge stands only at 10%.
An industry source familiar with the matter told paultan.org that DreamEdge’s current share structure has nothing to do with the new national car project. “DreamEdge entered into an agreement with VentureTech to raise capital for one of its engineering projects. This, in simple terms, is the offering of DreamEdge shares as collateral to raise funds needed to implement DreamEdge’s technology-based business strategies,” the source said.
This exchange, known as Redeemable Convertible Preference Shares (RCPS), was executed in 2017, and would be reflected in total in the SSM documents as seen in the documents circulating on social media and news portals.
“The SSM certificate shows the ordinary and RCPS as a combined total, and therefore the figures you see on the SSM document may mislead you to think VentureTech has a larger equity than it actually has,” the source explained.
“RCPS is a way to raise capital to fund projects, particularly seen in projects where there is need to secure their business interests of both parties,” he added.
The source also explained that the projects carried out by DreamEdge have given them a lot of experience in automotive design, and the public should wait for more announcements on the new national car project. “If the project is privately funded, they will reveal information when it is appropriate. This is a common business strategy practiced by automotive players around the world,” he said.
DreamEdge, a Cyberjaya-based innovation and digital engineering services company, said that the as-yet-unnamed new national car model will be a plus-sized B-segment sedan (initially mentioned as C-segment, and later corrected) equipped with a regular ICE or hybrid powertrain. It will be built via contract manufacturing, but the identity of the assembler is not yet known, nor are details on funding for the project.
The company said an engineering capability model mock-up will be revealed at the end of August, and the first prototype will be shown to the public in March 2020, with the final product scheduled for market introduction in March 2021. Daihatsu Motor Company will provide technology support for the programme, but the automaker will not have any equity in the project.
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PT….can do an article on Modenas?
Is it true they scrap their super moped project?
I really want to know their future plan rather than this national car thing.
Malaysia – Dream Edge (copy cat name from china)
China – build your dreams (BYD)
YouTube search = BYD
I read somewhere that says they sold the engine design to Kawasaki but don’t know how true that is.
Whether its 10% or 53% or 100%, not using public money means 0% involvement! ZERO! This is uturning on what they said and now they are just giving lame excuses to find a technically on what they defined as public money! Just as earlier they said Khazanah money is not public money they are trying to fool us, if this nonsense is not called out and harshly condemned next likely they will declare that Government money is not public money! Ridiculous, lying thru their teeths bunch of conmen in power!
Clearly you failed to comprehend this article,
The article is pure spin. What is so difficult to comprehend about? Maybe you don’t comprehend anything.
Calm down! Do you really understand what is being said by the article?
BN cybertroopers all gagal English. So, he doesn’t understand anything. No need to layan him
You seemed to like replying yourself. Why?
You seemed to like copy paste yourself. Why?
Copy paste: “Please take it with pinch of salt, for all the things said by Politicians and leaders in Mesia.
Heck, they even contradicted themselves….and could make a “I-donno-face””
Eh, come on la! Its easy to see the article is all about trying to justify that taxpayer money is being used despite PH said none will be used. Read this https://paultan.org/2018/08/14/third-national-car-will-use-private-sector-money-lge/
Sorry but if the Finance Minister cannot differentiate between private and public sectors, he shouldn’t be the Finance Minister and for that matter all the higher ups are not fit to be in office, the same goes for those other related ministers who are keeping mum.
And do you? Please enlighten me how is using a government linked company not “using public money”?
agree 100%….. gomen still treating rakyat marhaen as stupid…. one (old) man’s castle in the sky this one… so long as one particular man still in gomen, it is practically recycled people running the show, so it will be same old same old, car company included…
agree 100%….. gomen still treating rakyat marhaen as stupid…. gomen charge rakyat marhaen for corruptions & embezzlement without bank stmt proof & bag birkin resit….
Dont care corruption or embezzlement or bag birkin, but rakyat still get money. Now they do this sh*t national crony project, what do we get in return? NOTHING!!!!
Don’t care corruption? Deswai your gomen got changed. National crony project was started with P1 but still got many sapot P1. What gives?
Macha look who started P1 la. Rakyat still change back to his rule. What does it tell you? We have accepted that corruption is okey.
You are absolutely right.
Whether it’s ordinary or convertible you need to inform the public honestly who owns DreamEdge. The CEO indirectly said SSM is misleading, but the fact is the CEO is the one that’s misleading the public. Google Ordinary Shares, Common Shares and Convertible Preference Shares (preferred share), and you’ll see how secured VentureTech is over DreamEdge. In short, it is possible that all assets has to be paid to VentureTech in the event of liquidation, before it is paid to other common shareholders, ie the government.
Spin, jangan tak spin.
ini semua salah Suruhanjaya Syarikat Msia (SSM).
Siapa bos besar SSM? Madey le tu.
Siapa bos besar DreamEdge? Madey le tu!
Jeng jeng jeng!
Here we go round the mulberry bush ….
They think the rakyat is stupid enough to accept all these lame-ass justification/excuses….. until the cow is milked dry.
The corrupted man is down sick with conjunctivitis… compassion pls, give him some space can.
Which news that Tun was down with conjunctivitis? Pls share.
Hey, if buying condos for cows can happened and they were getting away with it, we Boleh-Landers ARE stupid.
” industry source familiar with the matter ”
Interesting how this kind of reporting is now called journalism. Next a blue bird tweeted to my ear that our economy will collapse next year. You must trust me cause this blue bird is familiar with the matter of predictions.
Benda boleh pusing
53% or 10%… there is clear tendency for those involved to LIE to the public.
Prepared to be LIED to again and again and again by this project venture… by company’s management… by Transport Minister… by Entrepreneurship Minister… by TunM… and by this whole PH govt…!!
PH knows they aren’t going to win next election so they are just maximising their makan all the way until the day they gets voted out. Shame that Malaysians ubah for something worse.
Just a car, no big deal.
Geely starts from the electric appliance. Tesla starts from nothing.
Just a car.. well building cars are not easy. The companies you mentioned don’t have all the bullcrap like this.
Here, they haven’t even started yet and all this drama is happening. It’s going to be another Proton with slow innovation.
learn the facts before talk rubbish.
100% agreed and you are right, you Malaysian don’t know how to build a car…and lazy to learn only talk-talk and condemn, don’t know how to use the brain accept mouth; that why it is very-very slow innovation in this country.
So its basically a daihatsu. But why prohibit others from becoming national car manufacturers?if kia and peugeot want to make cars here, and sell same tax rate as proton and dreamedge, they should be allowed.
So, Malaysian taxpayers to get ready with their wallet….
Spotted the CEO follow PM in Langkawi during election and government visit.
Please take it with pinch of salt, for all the things said by Politians and leaders in Mesia.
Heck, they even contradicted themselves….and could make a “I-donno-face”