I'm not sure who to feel more sorry for: Parkway Holdings or Malaysian Prime Minister Abdullah Badawi. Both are in a bit of a spot over the planned purchase of Pantai Holdings. Parkway bought a 31% stake in the Malaysian hospital operator almost a year ago. But in a twist all too familiar to Singaporeans and Malaysians, the matter has become caught up in the political quagmire. The Malaysians might be retaining their prized hospitals, but they are showing the world that Malaysia boleh. That is, Malaysia can do whatever it wants. Even if it is to their own disadvantage. Instead of retaining control of their hospitals, they are actually giving more of it away.

Consider the facts: Parkway bought a 31% stake in Pantai Holdings from CEO Lim Tong Yong and on the open market in September last year for RM 311.58 mln. Lim had bought his shares from Mokhzani Mahathir, son of the former prime minister. The deal boosted Parkway's hospitals in Malaysia from two to nine, and the company was applauded for its expansion beyond Singapore. Plus, we all felt warm and fuzzy about the fact that Singapore/Malaysia relations were improving and we could all be friends again.

The fact that the Malaysians went back on their word for political rather than economic or, alas, common sense reasons is clearly illustrated by this report from Bernama. It says:

Govt Studying Action To Be Taken On Sale Of Pantai Stake
KEPALA BATAS, Aug 13 (Bernama) -- Prime Minister Datuk Seri Abdullah Ahmad Badawi said the government was studying the necessary action to be taken pertaining to the disposal of a 31 per cent stake in Pantai Holdings Bhd to Singapore-based Parkway Holdings Ltd.

He said the matter was being looked into by the Treasury after realising that it had become a problem as it was related to the concession for the supply of hospital requirements.

"The share sale has become a problem, as it involves several matters related to the concession given to Pantai Holdings, that is a contract to supply hospital requirements," he told reporters after launching the Yayasan Budi Penyayang Foundation Day and opening of the Bank Muamalat Malaysia Bhd's Kepala Batas branch at the Budi Penyayang Complex here Sunday.

So, what about the share sale has become a problem?

For that, we turn to the next illuminating paragraph:

He said the government had always hoped that the equity would remain with Malaysians but unfortunately it had gone into the hands of foreigners.

Ah, the true motivation has been revealed. The Malaysians are jealous. Again.

As a result, Parkway is instead selling its stake to a joint venture of which it will own 49% and Temasek-equivalent Khazana Nasional 51%. Parkway will then aim for a hospital management contract. In essence, it will get the economic benefit of running the hospitals without the capital requirements to buy them. A pretty good deal, actually. One wonders whether this will actually make the Malaysians happy.

I feel for PM Badawi. He can see where the country needs to go. But too many self-absorbed critics stand in his way.

In a remarkable irony, the same Bernama report goes on to quote the prime minister about another hot topic at the opening of the Bank Muamalat Malaysia Bhd's Kepala Batas branch at the Budi Penyayang Complex:

On the rising cases of snatch thefts, Abdullah said the government had no plans to impose heavier sentences on the offenders.

Now, there is a real case of theft the critics ought to be pursuing.