It's getting more bizarre by the day. We spend money like water. Meanwhile projects get cut because the government is trying to economize. But GLC bosses holding our money aren't practicing prudence.
They are urging the government to spend and spend. Consider the matter of F1 racing for example.
What's attractive about formula one? It's a massive television event, with a global audience of 600 million people for each race. The Formula One Group is the legal holder of the commercial rights. Who owns Formula One Group? Bernie Ecclestone? He owns the market. Owning a racing team is incidental.
Its high profile and popularity make it an obvious merchandising environment, which leads to very high investments from sponsors, translating into extremely high budgets for the constructors. However, mostly since 2000, due to the always increasing expenditures, several teams, including works teams from car makers and those teams with minimal support from the automotive industry, have gone bankrupt or been bought out by companies wanting to establish a team within the sport.
This means, Formula One Racing is a potential landmine. Companies, teams and constructors can get blown to pieces. Or the sponsors teaming up with constructors and teams will have to spend a lot of money to stay afloat. So I hope those companies backing our F1 teams, thinking they are seeking greatness are reading these. PETRONAS are you reading this? Proton- habib are you reading this? Tony- you can go fly.
In the first place, can Malaysia afford to have 3 F1 teams? Are we that rich or glaringly imprudent to be spending large amounts of money? For what purpose? For advertising or putting whatever product and services on a high profile visual?
In 2011, Lotus Racing Team or 1 Malaysia F1 Team or whatever will race as Team Lotus. Who is who? Proton says it owns the lotus name. Tony Fernandez says he owns the lotus brand. Before the actual races, these two business entities are fighting over who gets the right to use the Lotus name.
The Lotus Racing Team originally took a license from Group Lotus (owner of Lotus Cars) that allowed them to use the Lotus name for the 2010 season. Group Lotus, is owned by its parent company, Proton. Group Lotus then terminates the license for future seasons as a result of what it called flagrant and persistent breaches of the license by the team (headed by Fernandez).
What had Tony done?
Will Tony gets what Tony wants? How did Tony Fernandez acquire the confidence to use the name Lotus? Tony Fernandez announced that his Tune Group had acquired Team Lotus Ventures Ltd. This was a company, according to Tony, led by one David Hunt since that has full ownership of the rights of the Team Lotus brand and heritage. Because of this, Tony said he has rights to use the name Lotus and announces to the world that they would be known as Team Lotus or Lotus Racing from 2011 onwards.
Group Lotus( owned by Proton), owner of Lotus Cars launched legal action against Lotus Racing, claiming that Tony Fernandez did not have the rights to use the Lotus name because David Hunt was never in a position to sell them. Proton the parent company of Group Lotus issued a statement saying that Group Lotus owned all rights to the Lotus name in the automotive sector, including Formula One, and that Fernandez has no rights to use the brand in the 2011 season.
Group Lotus then went on to announce that it had bought a stake in Renault F1 and had agreed to become title sponsor, with the French car maker playing the role of engine supplier. The team would be known as Lotus Renault GP.
So what shall we see in 2011? We shall be seeing double- as 2 teams both carrying the name Lotus powered by Renault engines will be lining up to race. To further the confusion, Group Lotus announced that the 2011 Lotus Renault GP cars would carry a black and gold livery reminiscent of the John Player & Sons liveries previously used by Colin Chapman's Team Lotus in the 1980s, paralleling plans by Tony Fernandes to race in 2011 with a JPS-inspired livery.
You have 2 teams (both controlled by Malaysians) using the same name, powered by the same engine who will be also using the same liveries. What's happening? So before the confusion becomes out of control, in December 2010, Tony Fernandes stated that it his team would continue with their present green and yellow color scheme in 201
We see quarrel before the race has even started. Proton which hasn't done enough to market its lotus cars is thinking it can shortcut its way to eminence by sponsoring an F1 racing team. Is that stupid or what?
As a layman and as a person who gets deaf from hearing the roar of F1 engines, I am thinking, rather than spend money on sponsoring a racing team , Proton is better off spending that same amount of money into RND for lotus cars. Why go in to save Dany Bahar and Renault?
What's so special about the name Lotus? Lotus the car manufacturer? Lotus the flower? Lotus the glint in Tony Fernandez's eyes? Which Lotus?
What's in for Proton to be the Lotus-Renault team? The man in charge of the project, one Dany Bahar has said, its longer term plans is to full owner of the team. What does that mean? It means Proton, our car manufacturer whose money making capabilities are questionable under the stewardship of its current CEO is already spending millions and millions to be the title sponsor. Now, to fit into the longer term plans of this Danny Bahar, Proton will be sending many more millions to become a full owner. You can't just buy into Renault and not spend more later being owner, when your partners want to become something else.
Take a look at Lotus Cars itself. It is in the midst of a major renewal, and signaled their intent by wheeling out five concepts at the Paris Motor Show. They'll need a lot of money to realize that future range of cars. After that, will they have enough for Formula 1?
Dany Bahar must have been assured by Proton that he shall have the money he wants. He says he would not commit without backing from shareholders, banks and investors. Whose money is Proton going to spend? For Proton, its foray to become a title sponsor and becoming a full pledged owner, is a recipe for financial disaster.
We now have 3 home boys to race the F1 under their banners:- PETRONAS Mercedes GP, Lotus-Renault and Team Lotus . At least PETRONAS seems to be doing the right thing to sponsor MercGP , as there's a legend there racing for them.
But lotus? Two people are fighting for the rights over using the name. One of them owns a budget airline but probably like many of us, don't know how to change our car tyres. What's in for Tony in racing the F1? What is the strategic importance?
The cars can't be faster than Boeings or air buses? He is already well known especially after winning the bet to employ Branson as a stewardess on his plane? Branson will cross dress. That's advertising for Toy already.
The only plausible reason is that Fernandez is using the "Lotus" name to attract sponsors. He believes he'll have a lot less sponsors, just like Virgin & HRT
Where will the Malaysian government stand on this issue? The Malaysian government says it is supporting Proton-owned Lotus to return to the F1 grid. Is this a good decision? They will argue that it's in the best interest of promoting the sport in the country, to heighten the interest among kids, to make Proton cars better, to maintain the PETRONAS name in F1 etc…
Seriously, the main reason why I think some people are pushing hard to sponsor F1 racing teams is they get their hands on the kitty.
What's in the mind of Proton chief? Could he be seeing sponsoring Lotus Renault as a means to improve the marketability of the Proton brand? If this is their plan, the general idea is its going to take a lot more than a F1 team in their repertoire to improve Proton. Although Proton has owned majority of Lotus stocks for the good part of 13 years, we can't say much of their technology has been transferred to our shores.
Instead of pouring the millions into an F1 team, why not invest in improving Proton? They've been cash-strapped for the past couple years as their sales have taken a downturn due to stiff competition from the like of Perodua, Toyota, Kia, and others. Their quality isn't worth much mention either. Better spend money (our money) here than F 1.
Dato,
ReplyDeleteSee any parallel in sending a 'M'sian' space tourist to space, using others' technologies know-hows?
There r all the same!
To create a role model for the troglodytes to syok-sendiri, that's the AIM.
Never mind about where & how the fund comes about. Better still, in the name of Alif BaTa, anything goes.
Absolutely anything!
Dear Sakmongkol
ReplyDelete“What's in the mind of Proton chief? Could he be seeing sponsoring Lotus Renault as a means to improve the marketability of the Proton brand? If this is their plan, the general idea is it’s going to take a lot more than a F1 team in their repertoire to improve Proton”.
Proton has no business to be in F1 racing. Cars giants Toyota, Honda, and BMW have all given up. So what is a little loss-making car company producing low-tech cars sold almost only at home doing in the expensive F1 circuit? You can’t understand this? Well, you then also cannot understand Proton buying Lotus, for many millions and then pumping millions more every year to keep it going. Is that a sensible way to acquire automotive technology? Why not just buy technology from who ever will sell it – don’t buy the cow if you can just buy milk.
As for Tony Fernandez, the business case is at best very weak. Could simply be a case of hubris? Air Asia is doing well, so why not tell the world in the most brazen way possible?
Only Petronas has a good case to do F1 racing. They need world exposure to be a world oil and gas company (flying the flag), searching for oil all over the globe. They need the world’s bankers to see their profile, and in getting this recognition they can borrow – yes, Petronas has huge debts – more cheaply. For the tens of billions that they borrow, a small reduction in interest rate of 200 basis points could more than pay for the F1 sponsorship.
Dear Sakmongkol
ReplyDeleteCorrection: Petronas saves 20 not 200 basis points. This saving could pay for the F1 sponsorship costs. Exposure is therefore free.
Dato'
ReplyDeletesharing the glam of associating oneself with the big name lotus...i remember joining you for a teh tarik session at the restoran Lotus.
You paid the bills too...tq dato'
Real nice whack, Dato. Keep it coming.
ReplyDeleteWhat we have are Unconsciously Incompetent Leaders, UIL running the country and business to the ground using harta rakyat.
In a developed nation and high performing economy, all these unconsciously incompetent leaders would not get away if they blundered but in Malaysia they can get away with murders, robberies etc etc.
Our main problem is the SYSTEM which has been dismantled by Ayahanda TDM.
So people , we need to rebuild that SYSTEM, which is just what RPK is doing.
Failing which, we can dream on being developed.
RPK de Man.
"Only Petronas has a good case to do F1 racing. They need world exposure to be a world oil and gas company (flying the flag), searching for oil all over the globe. They need the world’s bankers to see their profile, and in getting this recognition they can borrow – yes, Petronas has huge debts – more cheaply. For the tens of billions that they borrow, a small reduction in interest rate of 200 basis points could more than pay for the F1 sponsorship."
ReplyDeleteWell said OneMalaysian.
Fatso and Proton have no business in F1.
GOBLOG
if one don't agree with Fernandez's F1 dreams..sell AA shares..ez.But you can't do same with Proton n Petronas..somehow govt will be there giving them or getting less cash for any misadventures.
ReplyDeleteSo,;et Fernandez enjoy his moment of fame and dreams...
anon at 21:00
ReplyDeleteepf and tabung haji are shareholders too of AA. its our money too via epf and the pious thru tabung haji.
Ha, ha ha very good one anon 21:22.
ReplyDeleteBe careful of TF, it used to be KJ, now it is Nazir.
TF is one cunning conman who can sell paratha to India, Ice to Eskimos, Virgin to Branson, Disneyland to Walt Disney and Airport tax to MAHB.
Remember this Thambi had also said “I know Malaysians very well,” said Fernandes, a native of Malaysia. “If you put a fare low enough, they’ll risk their lives,” he said, as the crowd laughed. Source:http://www.columbusdispatch.com/live/…ml?sid=101
Run Thambi Run
Dear Sak,
ReplyDeleteif you go through all your posts you will find very few that are complimentary of our government including the GLCs.
doesn't this tell you that we need dramatic change?
and do you really think that can come from BN?
jay
Patut Tony beli aje rangkaian restoran Lotus tu.Tolong bangsa sendiri dan rakyat Malaysia.Pastu nama kan team Lotus Restaurant F1 team.
ReplyDeleteWak
Ypu are dead right bro. Not many people can afford to see F1 racing.
ReplyDeleteJust a lifestyle for the rich.
Yes the money should be spend on propping up Proton.
I fear that if they merge Proton and Perodua, there will be employees who will be given VSS.
Can you please write the effect of the proposed merger on the two Malaysian pride and the repercussions on the workers and our country.
I'm a huge F1 fan. If there were a chance that I could reborn as a sportman, I want to be in the cockpit.
ReplyDeleteBut.. I'm not a fan to see Malaysian companies investing into this sport because I know how crazy this sport is -- it' simply arguable a profitable sport or perhaps it is but unmeasurable (e.g. it advertises the country thus improves tourism).
Renowned car manufacturers, BMW, Toyota, and Honda (that make more $ and sell more cars than Proton) pulled out from the game two years ago. Other car manufacturers who have been in it but no longer are Ford/Jaguar, Peugeot, etc. Because it needs you to burn a lot of cash to be successful or somehow-successful (maybe you can verify with Tony if Lotus could gain a single point if he had put a bit more $).
Bernie is a smart man, he's the great man behind commercializing F1 - and this time, I can say that he's the man allowing the dispute of two Lotus teams - and he sure has an agenda behind it. Together with Briatore (these men can really stay long in F1 man), there're always dramas, years and years. :)
However, one thing I must point out is that, what burns the most cash in F1 is manufacturing engine (that's what happened to Honda and Toyota) - and that's the second reason pointing to the exit door. The first reason to the exit is frustration caused by performance.
Both Lotus teams are very likely to fall (or remain, for Tony) into the first one. They don't build engines, they buy - (so you may think they can save some money?), but we don't know how much they are paying for the engines though. ;)
dato, i love motosports, but dishing out local money and giving it to the mat salleh's is all retarded. And they talk about spillover benefits when all tech and rnd is being cultivated overseas. 1 f1 gearbox for instance can cost from 600k to 50 million being that the real cost is up for debate. What im trying to say is this, if we dont invest locally and cultivate talent and tech at home we will always be relying on foreign know how forever. Lastly did you know that lamboghini was once owned by malaysians....plans are good but they are there only to benefit the powers that be....1 malaysia? Malaysia will always be last in motosporst sad to see, because we have alot of local talent. Nuff said
ReplyDeleteDato Sakm,
ReplyDeleteKami org kampung hulu. Duit simpan kat bank jinjat (pajak gadai la tu), EPF tak carum sebab keja sendiri saja. Jadi kami tak terlibat F1. Tapi tak pasal2 takrif letrik nak naik, gula dah naik pun. Beras dah lama dah. Rakyat..He3..kome nanti PRU13
the poor is sponsoring the team through their high prices proton cars which dont refelct quality and through high import taxes we paid by buying imported cars...are being spend by the ruckus ceo of GLC.
ReplyDeleteAfter all that you written in your blog about this incompetent government leaders, I believe, being an UMNO faithful, you will vote for BN this coming General Elections.
ReplyDeleteYou may be even be running around the country, like KuLi, campaigning for UMNO/BN.
http://is.gd/iSaHz
ReplyDeletehttp://is.gd/iSatk
http://is.gd/iSayO
Dato,
ReplyDeletePetronas and Proton, the 2P's having the same advisor, ayahanda Mahathir. Sepang is ayahanda's pet .
If F1 terminate Sepang , then the 2P's will not participating.
Jagoh kampong
Dear Sakmongkol
ReplyDeleteThere are some larger issues at stake here, much more than whether Proton or Fernandez should get the Lotus name in F1 racing. The questions are: should Malaysia, a very small country and at this stage of its development, should be involved in F1 racing through indirect state-sponsorship - what are the benefits versus the costs? It seems we are in this purely as a flag waving exercise with little regard for costs.
F1 racing has evolved in recent years from pure motor racing – which should primarily only interest those who are in the business of cars – to essentially a series of expensive advertising events, involving sponsors that have nothing to do with cars. Airlines, banks, cigarettes companies vie to place their logos and names on car chassis, helmets and suits. These advertisers don’t care two hoots about cars, only that the exposure they get justifies the cost. And why not, that is just a business way to advertise.
What does Proton hope to get out of this? If it were a world car company that sells millions yearly, and needs to enhance its brand name, it could perhaps argue its case. But it is not. And the giants who sell millions of cars – BMW, Honda, Toyota – have pulled out because they couldn’t justify the cost. Proton walks where angels fear to tread. This is a case of people who spend money that don’t belong to them seeking a false glory. If they got into trouble, they know the certainty of being bailed out by government (using Petronas as before).
Malaysians should in fact ask if Proton should continue to be a “national” car project when clearly the costs do not justify the benefits. We do not need a car project to announce to the world that we are going to be a developed economy. Proton has been around since 1986. It is still struggling to make cars and money. Look at the Korean car industry for comparison to see how we have failed. Is it not time to set Proton free to sink or swim as a pure commercial entity? Is it not time to reduce car duties so that Malaysians can have cheaper cars and more choices? (Rising petrol prices should be offset by lower acquisition cost). Expensive cars have been the real cost of supporting Proton for 25 wasted years on top of the losses that it made. The people will vote for cheaper cars and choices over the false pride of having a money-losing “national” car.
Sak,
ReplyDeleteIsn't the F1 hype exactly the malay mindset of "Wang tidak ada, tidak apa tapi Gaya mesti ada". Proton is once again willingly and openly taken for a ride by their Lotus counterparts.
Instead of spending the money on improving the quality of Proton cars and Proton's competitiveness in the car industry, we have a bunch of glory seeking Proton head honchos intending to splurge money on F1 so that they get free invites to the F1 races, parties and race paddocks and be seen rubbing shoulders with the multi millionaires and their beautiful girlfriends/wives/mistresses. Gaya tetap mesti ada!!!
I think you still miss the mark on the criticism.
ReplyDeleteAs you said, F1 teams are potential money loser and the justification for doing it is that even if it lose money, the prestige and advertising is worth it.
In our country with so much demand for real solutions from the elite, they can't find another money losing opportunity that at least attack those problems?
What does it say about the elites in this country? What does it say about so called 'leaders' - both political and industry to be so pathetic?
Proton's CEO has come out saying the Lotus sponsorship cost will be allocated from existing A&P budget and will therefore not be an additional whack to its bottom line.
ReplyDeleteBe that as it may, it's ridiculous that three major corporations in M'sia are frittering away limited resources as though we are Britain or Germany. In particular, I am incensed that Petronas which is 100% Government owned is not, if it really has to, sponsoring a M'sian brand in F1.
In the past four years Proton's bottom line has been propped up by dubious special "R&D' MoF Grant which adds up in total to nearly RM500 million. Then they come out with Inspira which is a tarted up Mitsubishi Lancer in bare disguise. Take out the R&D Grant and Proton's operating profit will be break even at best!!
And then our PM and Ministers talk all this crap about attracting FDI's without putting a foot down on unnecessary outflow of capital. Heads should roll!!
dpp
we are all of 1 Race, the Human Race
U mean Tony Fernandes and NOT Tony fernandeZ. Get your facts right, if you want to be taken seriously as a blogger.
ReplyDeleteROCKY
OneMalaysian,.
ReplyDeleteThis is how Malaysian leaders laundered nation wealth. They got billions from our coffer, invest all in some ridiculous project and the return of 10% from the billions they invested is considered nett profit and goes straight to their pocket.
Sam.
dear dato',
ReplyDeleteall this butt craps happened because of the retards associations' power in glcs.
wasting people money is their motto as long as they enjoy the benefits and stuffs.
Dato
ReplyDeleteThis episode puts Malaysia in a very bad light. We are living in a coccoon whereby we think we are grand where else others think we are bloody fools.
Dato'
ReplyDeleteYou got an excellent, crystal clear bird's eye view from the paddock.
Even globally renowned and successful entreprenuer Sir Richard Branson is scaling down his exposure in F1.
We certainly do not need 3 F1 teams and the money can be better invested in human resource development.
GLORY is the name of the game.
ReplyDeleteYou will be labelled " pengkianat bangsa dan Negara " if you criticize why our government and GLCs wasting much money down the drain.
It all started with Mahathir who told us that Proton would be a national asset. Suddenly it became a personal company of Tan Sri Yahya.
All those young Malay tycoons got listed in the Forbes Magazine. Everything built by government money became private assets of some young malays entreprenuers!
e.g Rozali Ismail, Halim Saad, Tajudin Ramli etc..It was a short cut to eminence as you said.
Tony Fernandez is riding on the free float of money he collects before anybody flies. Who gave him such license ? Yet , he refuses to pay MHB. Read any stock analyst report on Air Asia; they adore him as the best business model of the century.He is parking all the money in his private businesses-whatever Tune(Hotel, Money..) until one fine day, Air Asia is engulfed in deep debt.
This F 1 crab is all about siphoning shareholders money into bottomless pit. We'll watch soon.
Proton, Petronas and Tony are all going to burn their investment and would soon come calling on the Government for bailout in the name of mengharumkan nama Negara in prasada dunia.Any critics would be called to be ISAed.
Dear Sakmongkol
ReplyDelete“Proton's CEO has come out saying the Lotus sponsorship cost will be allocated from existing A&P budget and will therefore not be an additional whack to its bottom line”. Donplaypuks
If that quotation is correct it shows the quality of management, or lack thereof, at Proton, and one shouldn’t be surprised at all why it can’t make money and grow. What’s wrong with that statement?
First, Proton cannot justify its involvement in F1 racing if it does an honest cost/benefit analysis. It is simply too small and local. So any A&P budget it puts into F1 is wasted. Second, even if it had an A&P budget it does not mean it has to be frittered away uselessly. Third, that A&P budget was intended for SOME purpose, and if they now divert it to F1 racing then the original advertising objective won’t receive support. You cannot burn your candle at both ends.
Now everyone would have heard of the Proton CEO (same chap) talking about a merger with Perodua to build a “stronger” Malaysian national car company. When was it possible to merge away failure by combining with the competitor who has beaten the pants off you? This is akin to Lee Chong Wei asking his nemesis, Lin Dan of China who beats him regularly, to form a doubles partnership so they don’t need to compete against each other!
Not all GLCs have CEOs like that, but many do. This is the main explanation why they fail or don’t succeed as they are expected to. We simply need smarter people to run government-owned assets.
Sorry for this third posting. Your articles sometimes resemble scrumptious buffet dinners. They are so good that some guests go for second and third helpings.
The elite Malaysians are just like the Ancient Romans watching christians and foreigners being thrown down to be torn apart by the Lions. The bastards are tasting the riches of the land to sustain their opulent and decaying lifestyle.
ReplyDeleteAt the end of day, the only solution is see the death of BN just as the same as to put an end to the cruelty of the Roman Empire.
Unfortunately many malays are just primitive to think logically.
Jolly Jully
A joint venture between builders Gamuda and MMC has received preliminary government approval to manage a RM36 billion rail project, sources with direct knowledge of the deal said on Friday....
ReplyDeleteIf the above is true,then its goodbye Msia.Where is the promise of transparency and competitive bidding?Delhi Metro did their MRT for less then RM 120 per km including rolling stock.Even accounting for inflation I wuld think RM 160 /km is a doable.But why should we speculate >> all PM needs to do is called for an international Project Development Partnership open bidding.Let the real giants Bechtel,Hyundai,Mitsui n whoever compete to get the best prices.
S'pore did conventional construction contracting on their MRT with great success.And lots of Msians were involved in the job.Same in Dubai n Delhi.The failure is in the minds of our leaders.The failure is the stupidity of appointing a pastry chef to manage the Churrascaria i.e an accountant managing a construction project is recipe for disaster.
But the most glaring glaring issue is Syed Hamid's statement re Masterplan for Greater KL Public Transportation only ready Sept 2011.
Obviously,Gamuda has more authority then the Transport Commission.
Transparency 1Msia style.
God save us..
Somebody help us please.
ReplyDeleteWe can't afford a RM 43 bil MRT..the project will be a huge huge burden on our future generation,
There are more cost effective and optimal ways to achieve better ridership of public transport.We have a railway spine through Klang Valley that is still not maximised.We can create new LRT lines.We can have trams n buses to link the main routes.Simply..have all options been thoroughly analysed?
Why the huge rush to go into MRT?This project was mooted by Gamuda (FYI its not an original idea..google for ur reading pleasure).It was not seriously pursued...until DSIJ (who does not play God) bo;dly included it as an EPP...then told the world its a programme..and its pregnant..thus stuffing it down the throat.I have concerns with DSIJ forecasting especially after his MAS fuel hedging debacle.In fact I would not commit the expenditure of RM 43 bil unless and until I have a very2 detailed cost/benefit study by various parties.I would also engage the public?the Parliament? etc etc...
This MRT project is fully funded by Govt ( not 8% headline by DSIJ)..its the rakyat's money.It also accounts for 40% of total Govt outlay on EPPs.
PM...RM 43 bil is not small change.Its a lot of debt for our future generation.please do not be pressured and rushed into hasty decisions due to DSIJ marketting efforts.Lets engage real world advisors...the dream world is ok for swiftlets n biooil..but RM 43 bil is OUR money.
Thanks
If car manufacturer giants such as Toyota and Honda, retracted their participations in F1 due to cost cutting program, does Proton has deep pocket to sustain their participation in this"sport" in the next 2-3 years? It is very puzzling how is the decision making process in regards to this participation within Proton.
ReplyDeleteI just remembered that Proton did sponsor Norwich football club which lasted only 3 years. Yet I don't see Proton making major in-road in UK car industry.
Fuads left MAS in 2004 with accumulated losses of RM 1.7 billion.
ReplyDeleteIn walk the Messiah..and in the first year AR under his tenure the accumulated loss is RM 3 billion.Thus loss for the year (predominantly under Fuad's watch) was RM 1.3 billion.Thats the complete kitchen sinking,the bathwater and the baby treatment of cos.
Then the Messiah did his magic.He professed to turn around MAS.Of cos non core assets have to be sold and gains recognised.
But was it really a turnaround?
Fuad last cf losses is RM 1.7 bil..and after DSIJ kitchensinking it grew to RM 3 bil.
As of Sep 2010 the carried forward losses is RM 5.6 billion i.e a loss that can be attributable to DSIJ regime of at least RM 2.6 billion.And if one is to scrutinise (n less gains from sales of assets) the actual loss is RM 4 billion.
Where is the turnaround?
Ok..fair to say that DSIJ made a singularly bad bet on the fuel prices thus losing 3 billion..
But should we NOW allow him to make the RM 43 bil bet?I think I will be cautious with the guy's projections.His crystal ball have proven to be severely clouded cos of the hot air he generates.
Won't even buy a 4 digit from his gut feel.But sadly PM believes.
Malaysia is in the Middle Income Trap...a very desperate situation indeed.We need radical measures..we need a hot air balloon.Enter the man.
ReplyDeleteStory short..he conjures the magical ETP.We need to spend RM 1.2 trillion in order to achieve the USD 15k target in 2020.But not to worry..cos its largely private sector funding.Govt only needs to spend 8% or RM 100 billion.
Its a program not a plan.
Thus he has a bagful of EPPs.Suddenly,these projects immediately adopted as THE PROJECTS THAT MUST START IMMEDIATELY.We can't afford to wait cos its pregnant.Pemandu becomes the marketting agent for big biz.
Now,the truth is out.Out of the RM 100 bil...43 % is to be spent on the MRT of which RM 36 bil is a direct nego to Gamuda.(they can call it PDP but its still the same cat)
Forget due process..forget transparency...forget openbids...its an emergency.Cos DSIJ says it is.If PM decides otherwise..big risks that foreign investors lose confidence,hilang chinese voters etc etc.
Its a tough tough situation,And I applaud the smart strategies n machinations.
Dato Sak,
ReplyDeletethe news in the papers had me confused, this way and that way on the Lotus name/brand. With your latest blog on F-1, I think I can now better understand what's going on, the $$$ behind the claims and counterclaims and the shennanigans of the top brass to hold on to the Lotus name. One can always ask "What's in a name?" In this case, a lot!!!
thanks
PowerOn
By the admission of the previous Minister of Education two years ago 900 rural schools are without running water. Electricity I do not know. In an age where our classrooms should be airconditioned, because studies have confirmed that you study better in a cooler environment, we are spending money to make the rich and famous even more rich and famous.
ReplyDelete