The term Mainstream Media or MSM refers to large mass news media that influence a large number of people, and both reflect and shape prevailing thought.
Just over a week ago, the MSM was at it again, using soundbites from Professors to talk down PH’s chances at the polls , making believe that all was well . One week later, the MSM is reporting on raids conducted on Najib’s house and reports lodged against #KetuaKampung of Putrajaya.
Is this a big developmemt? Does it matter that The Star and Utusan are begining to report on the wrong doings in the 1MDB Scandal?
Well the reporting is stilll so blase that the public is still scratching their heads and wondering when will the ‘big time Editors’ of these Mainstream Newspapers actually get it? Are they still in mourning over the loss of all those relationships and sources cultivated over the years?
Our verdict is that these MSM editors are still very unwilling to actually call things as it is. Perhaps they are still in a state if shock, somehow afraid that suddenly BN will emerge as the Government of the day and catch all of them.
Take for example, the above piece.
Its editing can be described as ‘sad.’
It lists various events that surrounded the RM 5 billion IMTN debt raising exercise and ends with this para:
In this para it lists one very crucial detail that most non-financially savvy readers may not catch:
- 1MDB’s bond was priced way way below par, RM 87.92 for every RM 100 debt outstanding. This was Government guaranteed.
- Kinibiz summarised the key issue really well over here:
“It started off by issuing a 30-year RM5 billion bond with 5.75% coupon rate, payable semi-annually and arranged by AmInvestment Bank Bhd. However, this bond was issued at a 12% discount or 88 sen for every RM1 par value. 1MDBs annual report places this yield figure at 6.71%.
Calculations using a bond calculator found the mispricing undervalued the RM5 billion bond by about 20%. In other words, whoever got that first bite would have pocketed RM1 billion by buying this bond at the undervalued price and subsequently selling it back to the market at more sensible prices.
Previous KINIBIZ checks found the bond was even traded at a premium of RM1.20 for a RM1 par value bond, a substantial 36% increase over the effective issue price of 88 sen per RM1 par value.
Such bond mispricing represents an upfront siphoning of money by undervaluing the bonds and selling them at market price, the penalty being paid by higher interest rates over the tenure of the bond.
So with this crucial piece of information left out, it is obvious that the MSM is not playing its role to inform the public. Of course, not that it does not change their readers actual final perception as the uninformed man on the street has already declared 1MDB guilty of stealing RM 42 billion through the magic of endless repetition by the Opposition,…. oops sorry, make it Government of the day.
So what is our verdict on the press after 1week that saw the dawn of new found press freedom?
In one word.