Wednesday, 17 October 2012

GLCs subsidised and yet they make losses


YOURSAY 'Already subsidised and yet still can't make profit. It's time to sell them to private operators. No more bailout, go for buyout.'

Indah Water, RapidKL deep in the red

your sayAnonymous #49857050: It is the same sad story. Almost all government-owned companies (GOC) and government-linked companies (GLC) are always losing money. Are the directors really that incompetent or just seat warmers?

In every report you read, their only solution is to always increase tariffs. Do they not have imagination on how to run it efficiently?

That's one of the biggest reasons why we need to change the government. The time is right for the rakyat to stand up and tell this government; enough is enough, ship out!

Free And Fair Election: It's time someone did a check on the directors' fee and see if they have taken any pay cuts when Indah Water Konsortium (IWK) Sdn Bhd and RapidKL were making losses. If not, these companies deserve to be where they are today.

Wira: The auditor-general should check and reveal to us how the buses for RapidKL were being purchased.

If capital expenditures were unnecessarily high because of crony elements, of direct supplies from cronies rather than from open tenders, then the depreciation of those buses would also balloon.

One other point is to check how many bus models were supplied to RapidKL. Maintenance cannot be low if one has to keep a lot of spare parts for different bus models.

Don't Tell Lies: It's the same story with every GOC and most GLC. Already subsidised and yet still can't make profit. It's time to sell it to private operators. No more bailout, go for buyout.

One Hand Cover the Sky: Another failure due to lack of business acumen and experience in running a transportation business. They monopolised most of the routes, yet they cannot make profits. So shameful.

Aiyoyo: As long as these GLCs and many of the government agencies are run, not by people of caliber (merit-based), but 'people of color' (raced based), Malaysia will forever remain a mediocre country.

The country has vast resources and many talented people but keeps lagging behind many of its Asian counterparts, whereas Malaysia was a shining star decades ago.
Why? Because racial extremism and cronyism has taken deep root in the system. Nobody talks about excellence and competition anymore. It is all about race, religion, corruption, bootlegging, and whatever other evils there is. God save this country!

Anonymous #63753867: How do the other bus companies like Metrobus do it? If RapidKL Sdn Bhd can't do its work efficiently, just disband and let the capable ones to take over. The gaji buta (those receiving blind salaries) should get lost.

Giudice: If only they had allowed the private companies to continue to run the companies as they had done for years.

Instead, some greedy politician saw another way of making easy money and the end result a complete monopoly of the the industry. It seems to happen to every profitable industry - a GLC takes over and it goes downhill from there.

Kosongcafe: Since the long-established profit-oriented private companies were taken over and run by GLCs, the management and staff do not have the same drive and spirit. Who would bother to ensure proper maintenance of vehicles and control of spare parts?

I can imagine those in charge could abuse their positions for personal gains when those supposed to check them couldn't care less. Losses are expected to be covered by public funds, so any check and balance is too remote to be useful.

Eddie 50: Change the management and put the new guys under short-term contracts. There is no place for non-performers.

Anonymous 11: Most government departments and GLCs are losing money because of the "tidak apa (not bothered)" attitude of the staffs. The bosses also ponteng (skip work). What do you expect the lower rank to do? They follow suit.

How can you make a profit when you purchase one set of screws costing RM24 at RM240 a set. Learn from the Selangor and Penang governments on how to make a profit.

Headhunter: So what's so surprising? Anything under the BN control is not profitable. Not a single enterprise, because the money is siphoned into corrupt politicians' and their cronies' pockets.

Once again, the audit report shows that Pakatan Rakyat is the better alternative government and our future lies with them.

DontPlayGod: How is it that they are making losses? These are monopoly businesses and people rake in money because of monopoly businesses, not lose money.

The transport companies of old (owned by different people) were making money, and that is why they could carry on for decades without any subsidies.
Of course, since these are crony companies, no doubt Umno will subsidise them (with our money, of course).

Truly Malaysian: I believe if RapidKL is given to the best entrepreneur, irrespective of race, for example, some Malaysians with the caliber of Tony Fernandes, Rapid KL would have performed much better.

We need to have good Malaysians with good management skills to make things work and therefore be able to serve the rakyat's interest in the best way possible.

Onyourtoes: Please use our common sense. If this government is incapable of even running a government department efficiently and prudently, how do you expect them to manage a public transportation system.

Because of the crying need for public transport, RapidKL and other Rapids were set up. But I must tell you, the intention was never to provide decent, efficient and cost effective public transportation for the people. The motive was to make money for someone in the government and their cronies.

Ask where they sourced the buses from? Ask how they manage bus routes? How come most of the time the buses are empty? Ask how much is the maintenance cost per bus?

Nincompoops can't run bus companies. Please privatise it, let the individual entrepreneurs run these buses, let them charge the fare at near market price. It would still be better than government running these buses to the ground.

Jimmy Ng: The bottom line for both IWK and RapidKL, (the problem) is mismanagement. As for the purchase of buses that often break down, who is to be blamed?

Was there even a technical committee to begin with, when they were deciding on which buses to buy? Direct negotiations? It stinks if high hell of corruption again. As for IWK, the same stench.

Anonymous #02382443: The government has no business running private enterprises. In IWK's case, the councils should have been allowed to continue doing what it was doing.

In the RapidKL case, healthy competition should have been allowed to continue within the various bus companies.

Rakyat Malaysia: A long, long time ago, then premier Dr Mahathir Mohamad said that privatisation efforts will result in more efficiency and cost-saving for the government.

Well, look at what we have now - efficiency at draining money from the government to carry out bailouts and into Umno cronies' private bank accounts.

Boiling Mud: Everybody knows of the lackluster performance of IWK since the early days of privatisation of water treatment services.

The loss incurred may be due to poor financial management and the gross lack of technical expertise, as indicated in the Auditor-General's Report that 7.5 percent of the treatment facilities did not fulfil the government-stipulated effluent standards.

Raising the tariff without shaking up the management of IWK is not going to solve the problem. It will only burden the rakyat further, who will be continuously fleeced by all those private consortia.

Realist: These huge buses that ply around the narrow streets of Kuala Lumpur amidst double parking cars actually are causes for traffic jams.

A random "survey" on several occasions during rush hour where one would have thought that these buses would be filled with commuters are half full at best.

These buses consume huge amounts of diesel and not economically viable to run in the middle of the city. Mini-buses are more efficient and will cause less traffic jams.

Vijay47: I note that the auditor-general commented that one of the setbacks facing RapidKL is a lack of bus drivers.

Allow me to make a simple suggestion - the F1 season will be coming to an end soon and perhaps RapidKL should employ drivers from the idle teams. This would augment the drivers it already has.

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