Some economic common non-sense
Wednesday, 24 November 2010
UEM land, which is part of UEM plans to buy over Sunrise bhd for 1.4 billion. People can give all sort of rationale for the purchase, but a more important question is why buy over Sunrise? The excuses given that UEM land has no expertise in some development areas is nonsensical I think. You can build highways, high-rise buildings; suddenly you say you don't have experience in building high end condos like those built by Tong's Sunrise.
How banal can this reasoning be? Suddenly, UEM land is brain dead to the extent that they cannot outsource people who can do the same thing as Sunrise has been doing all this while. It doesn't even have sense of pride by admitting it doesn't have the marketing skills? What have we spent government money on these many years? The bozos at UEM land should be sacked.
Second, why does UEM land need to buy over Sunrise? Can't it find any other Bumi property developer with substantial land holding if its land they are after?
I find this reasoning by a GLC that it does not have the expertise (which they can buy) very facile. My own feeling is that with this purchase some people will earn humongous commissions.
And talking about commissions- has MAS secured enough traffic volume to justify its gargantuan expansion? I think in 2 years, MAS will be coming around to see the government, with bowl in hand to ask for bail.
Have you seen the traffic on MAS's first class seats in recent years? They are dwindling and no marketing strategies seemed to be planned seriously. By the end of this year, MAS takes delivery of three units of Boeing 737-800. Over the next 4 years, it will take delivery of a further 32 units of 737-800s. In addition it will buy 15 airbus A330-300s from next year to 2015. It will also buy 6 units of A380-800 super jumbos. It has the option to buy 30 more airplanes.
So MAS has a spending model. It doesn't show us its revenue earning model. But never mind, I see huge commissions over this purchasing exercise.
I see chairman of Puncak Niaga and Syabas, Rozali Ismail doing another con job and pulling wool over our eyes. He has formed BAPAK an NGO designed to counter the onslaught by ANAK also an NGO formed by Felda settlers which is attacking the government.
The launching of BAPAK followed revelations that Syabas is seeking a bail out from the government. I have written about this. The formation of BAPAK is nothing more than an artful strategy by Razali Ismail to ingratiate himself to the government. Rumors have it that Rozali Ismail will get some water treatment deals in Sarawak.
When a business entity intends to issue bonds I am sure it has prepared a rigorous business model and submits it to the authorities. The brain boxes with the authorities will scrutinize the business plan and sagely nod their approval. Well, it now appears what the business entity submits was a con job to borrow money from unsuspecting and trusting public.
Let those who cheat the public eat cake.
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18 comments:
Susah nak cakap la Dato', mereka ni tak malau nak menipu rakyat dan kerajaan pula tak segan silu membantu kerjaya con job mereka.
So there is definitely some vested interest and whose interest?
Alahai... Najib! Rozali Ismail anak Felda Gedangsa rupa nya kaki con juga!
Yes, dato... another round of buy out and bail out is here now ..this time in the name of M&A but in reality to prepare war chest for the GE13 in 2012.
Go do a property company and find out yourself.. There are very good reason why most property developers are Chinese.
An expose' such as this should have come out in one of the mainstream newspapers instead of in a blog.
Business editors and reporters are 'well fed' by corporate giants to black out any negative impressions of their company in their reports.
They want 'feel good' reports.
Believe me, it's all about money, free pink forms and lunch to boot.
Malaysian journalists protect these corporate players as they protect their BN political masters, even if it is murder.
Dato',
It is laughable when we hear of MAS going on a plane buying spree when they don't even have enough pilots to fly their current fleet of planes. There seems to be an exodus of pilots from MAS and many are leaving to better paying airlines. As many as 70 pilots maybe leaving soon if there is no improvement on their salary. Even Air Asia pays better. To add insult to injury, their own subsidiary of Firefly pays more to their pilots flying the 737 800. Most new recruits by Firefly are retired aging 747 pilots from MAS with a lifespan of probably a few more years.
Heard from the grapevines that MAS's roadshow to recruit pilots overseas failed dismally. They only managed to recruit a few (2)from Indonesia and none from the Philippines. I guess most of them knows that MAS has no future and will survive only if there is a government bailout. What if the present government will not be the next government?
Your expose is spot on. The purchase is probably to expand their war chest for the next GE and thwart the opposition's dream of taking over Putrajaya. I guess only fools will dare to take over this country which is going to the dogs.
To Quiet Despair ,
Hope you love to read this piece about Syabas (your friends' friends)
This kind of corruptions of "Lu tolong saya, saya tolong lu" is endemic in this bolehland and all can safely sleep in peace.
Try to spend a bit more only by the other sides maybe only by 100K.... wow wow instead detention for investigation. No hesitation.
We are talking about billions not thousands here.
Really lost hope already lah.
These things never seem to end.
My conclusion is these guys dont know how to run a country. The only thing matters seems to be how to spend and spend and .... go on leave for the rest of their lives.
Cheers friends of Quiet Despair.
Dato,
Yr thought about the nonsensicality of the UEM buyout of Sunrise shows yr in-built denial – about the capability of those who run the GLCs operations.
Comparing the ROIs of UEM & Sunrise, one can easily show who’s the better run outfits, even with unfavourable handicaps imposed by the govt.
Yah-loh, UEM builds highways, high-rise buildings. Yet nothing has been gained through those experiences. Digging deeper one easily find the solution lies with the quality of the management.
So ever wonder why Sime’s oil palm yield is NO match with IOI’s, even though the former used to claimed to have the world's biggest oil palm cultivations compared with the latter?
Spreading this scenario over all the govt/GLCs landscape, one can see all the corpses of financial mis-management.
Years of mediocre promotion, running on racial mode &/or cronyism, have produced a lot of sub-standard & 2nd best managerial personnel, masquerading as top CEO/MD at the expense of the better brains.
Who lost? The chicken is coming home & the average Malay M’sians r the BIG sufferers. Any wonder? No blame the 'pendatang'!
MAS? Blamed Idris Jala? Or should it be WAU? Or better still Tajuddin? What about the core policy that induces all these financial showcases? No…. Nooooo, that’s a sacred cow that shouldn’t be touch.
Admit it, at the current mode of education & race-based management promotions, more worms will crawl out from the cans, as they r now busting out due to years of no-eye-see.
Indeed – ‘It doesn't even have sense of pride by admitting it doesn't have the marketing skills?’ But then what’s pride when self-preservation is on top of the list.
Dato'
You're right. What a lame excuse for the proposed purchase of Sunrise Bhd by UEM Land.
'Tak ada ke orang pintar dalam pemasaran ?"
Dato,
Your story about the lack of expertise in UEM Land can be generally applied to other GLCs as well.
Some companies used to be owned and managed by (Malaysian) Chinese and later became GLCs after being controlled by Khazanah and PNB.
Those companies used to be very lean and producing handsome returns when they were managed by their chinese towkays.
But, after new breed of CEOs joined in, the companies become very top heavy. New top positions are created and begin to mushroom. But, somehow delivery and efficiency of works have worsened.
The market place are so full of pretenders and nobody can identify nor avoid from hiring them.
-E.G.
"When a business entity intends to issue bonds I am sure it has prepared a rigorous business model and submits it to the authorities."
Unfortunately the UMNO/BN model is predicated on mandatory evr-increasing tariff increases regardless of necessity or justification or performance backed by a compliant and croney oriented Fed Govt led now by Najib.
That's why the Toll Highway Cos, the Water Cos and IPP's have all these sweetheart deals and clauses where they can keep on increasing the burden to the M'sian public and consumers, rake in the profits and pass on the bailout cost of billions to us, the suckers!
This is what is at heart over the Selangor Govt under Khalid Ibrahim battling it with the Fed Govt and Rozali to prevent more looting and plundering!
The recent MAS bailout alone cost the taxpayer $ 8 billion. Has anyone been held accountable as they are proposing to do at Sime DarbY?
And is it not curious that as soon as there is a new CEO, the old practice of leasing aircraft from PMB has been replaced with MAS directly buying aircrafts? Who got the contract and was an agent appointed and commissions paid for these billions of RM of capex?
Watch another major debacle unfold at MAS (again)!!
dpp
we are all of 1 Race, the Human Race
"Let those who cheat the public eat cake."
Cake for cheats? You are too kind, Dato'.
-MAKORANG-
This lack of knowledge is very systemic...now MRCB,the very successful Sentral Developer have suddenly realised that they do not have the expertise to develop the huge Sg Buloh giveaway thus needs IJM Land within their fold.Presumably,IJM Bhd will be a strategic partner providing the construction expertise.
NEM is well and truly developing.
Its announced that Pemandu paid only RM 16 million for their inputs to the ETP...a pittance compared to the trillions of projects proposed.
But..wait a second..didn't DSIJ mention earlier that the EPPs were private sector driven i.e projects identified and developed by private sector eg RM 43 bil MRT.
So whats the 16 mil for?Compiling and packaging into a feel good look nice format only?Thus,the intellectual,innovative inputs thats the value add in consultancy are pretty limited..
WOW..thats a lot of bucks for 2 months powerpoint work...
I can do it n cheaper too,
After searching for the best Bumi talents and paying them generous multi million dollar salaries..they have now decided that the guys don't make the cut.
But,why look to merge/buyout other companies and retain the same mgmt at the holding level?Sack UEM MD,UEM Land MD and MRCB MD and let IJM & Sunrise run the group.
Alternatively,abort the merger and get competent people to run UEM n MRCB.We can't pay monkeys with diamonds.
As for MAS..the failure mode started with asset lite WAU principle..which is now reversed to the more traditional core asset ownership concept.MAS needs to build up the asset base renewal at a faster pace due to the neglect of the last 7 years. In the meantime DSIJ oil hedge disaster makes bottom lines meaningless. Its already a bloodbath..hopefully renewal of fleet i.e asset sales gains will help mask the haemorrhage.
Sadly,misdeeds of the past will be placed squarely on biryani eating Ipad toting shoulders of current nice guy supremo.
The real culprits gets promoted n rewarded tho..
Its a sad story.
Woi Quiet Despair, Where are you?
Tak syioklah ko tak ada.
Tak ada orang yang nak dibantai kaw-kaw.
Syabasss, kawan kawan. Dia orang, perampok memang tak tau malu, adalah menjadi tugas rakyat marhaen untuk menegakkan kebaikan dan menghindari kemungkaran.
Nak senang cerita, bayangkan kita dalam satu bas atau kapalterbang, tetapi pemandu mabuk... adakah kita patut berdiam diri? Amal Makruf, Nahi Mungkar.
FISSAABILLILLAH
is this the type of gov i want ? tq, certainly not. as long as these bozos have fibre optic links to the gov, nobody can do nothing.
i am a malay also but i cant get even a f***k***g taxi permit.
dato',
happy juga sy kerana org2 macam dato' ni mendedahkan banyak isu2 pd rakyat. terutamanya yg diluar bandar yg lebih banyak bodohnya dari yg pandai..
moga dato' diberikan kekuatan oleh ALLAH S.W.T. untuk meneruskan usaha yg baik ini.
sy juga berharap agar org2 yg sedang dan telah menghancurkan negara kita ni demi wang ringgit malulah pd diri sendiri.
peminta2 sedekah adalah 1 juta kali lebih lebih mulia apabila dibandingkan dengan manusia2 rakus
perompak wang rakyat ini.
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