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Showing posts from December, 2005

Singapore's Best Motivator - Malaysia's GLCs

The horrendous mis-steps by a few GLCs exemplify what is sorely lacking in our top management. We must be doing something wrong, either the incentives are not lucrative enough, or the punishment meted out is nothing to shout about, or our top people are not really that good professionally - or all of the above. This is a fair statement, I believe. Rather than cringe at the message, please do something constructive with the experience, if the ones that matter are reading this.

SIA makes good profits in their current FY, compare that to MAS. Telekom is ambling along, about 10 years behind SingTel in overseas ventures. Singapore produces ZERO number of cars, their COEs makes more money than Proton. Singapore has almost all but closed out their steel operations, one can import them, cheaper than the price set by the government in Malaysia to support the local steelmakers.

If we were to generalise, Malaysians are great dreamers, strategists... but poor executors. The MSC, brilliant, the exec…
How To Make A Bad Thing Worse - PROTON

Tourists always head to Petaling Street when they come to Malaysia. No need to go to Petaling Street, KLSE also can. Well, getting something lelong for ONE Euro probably takes the chapati, and after only buying it for a year! We all know that it was an investment which turned sour, and Proton's management has already written down the book value, and that one Euro was just a token as it will stop the rot (share of losses and liabilities) on Proton's books. Just take the pill and lie down, wait till you get better.

Now, why would the spokesman want to come out a few days later and blurt out in a headliner "PROTON TO RECORD NO LOSS ON DISPOSAL". As if now, we will go aaahhhh, actually sell something for one Euro also can have zero losses, so smart lah Proton!! What are we,....... idiots??

THE ONLY WAY YOU DO NOT HAVE A GAIN OR LOSS WHEN YOU SELL A COMPANY FOR 1 EURO IS WHEN YOU BOUGHT THE COMPANY FOR 1 EURO!!!

The actual announcement …

T+7.... Fears, Myths & Benefits

Some people were aghast at the Bursa for allowing broking firms to offer T+7 facility to their clients. Are we luring back the risks of the early/mid 90s? Here's my take:

T+7 is no big deal. In actual fact, Maybank Securities offered an even better T+10 back in, wait for it, August 2003. Mayban Securities introduced T+10 facility, a short-term financing facility, which provides longer contra period. Collateral requirement, margin calls and force-selling terms remained the same but the extra days for the transaction would be free from contra charges. Besides Mayban Securities, TA Securities Bhd and Botly Securities Sdn Bhd had also introduced a T+6 settlement facility.

Extending contra period will not add substantial risk to the market. Whether it is T+7 or T+10, the risk is mitigated as all brokers will have their clients come up with some form of collateral/deposit. Unlike the days back in early/mid 90s when you can actually buy RM100,000 worth of stocks from each of your 3 remise…

KUL-SIN - Why Are We (Still) Subsidising The Two Airlines???

Malaysia announced yesterday that it will not allow more Kuala Lumpur-Singapore shuttle flights ahead of the Asean "open skies" policy which will come into effect in 2008. As reported in The New Straits Times (6/12/05). Malaysia is not in favour because the benefits accruing to MAS from liberalising the route will be limited, according to the authorities.

"SIA and possibly SilkAir will be able to fly to Kuala Lumpur and several other destinations in Malaysia when all present restrictions on passenger flights between Asean capital cities are lifted by 2008.

"But for MAS, Singapore will remain just one destination. The benefits derived from liberalisation will not be the same.

"Under the circumstances, Malaysia has no choice but to stick to the present schedule of the KL-Singapore shuttle flight," said a transport ministry official here.

MAS operates 14 flights a day, and SIA, which operates 12 flights, will sustain the virtual joint monopoly to account for 182…