The oil company ..

I post this information on Petronas from what I read today in the local paper. Not that it's important, but it's just trivia for my own consumption. The new chairman and chief executive is Shamsul Azhar Abbas. He replaced Hassan Marican recently. Under him are 4 executive vice presidents and some 5 vice presidents and 2 CEOs of companies not related to Petronas activities (shipping and property).

In 2009, Petronas overseas operations contributed some 42 % of the total income attributed to the whole of Petronas. Petronas operates in 30 countries and employs some 43,000 people. [In comparison, a big conglomerate like Sime Darby employs some 104,000 people]. In Iraq, Petronas is merely a service contractor in partnership [I got this info elsewhere] with other foreign oil companies working on 3 oil fields.

Petronas is now trying to concentrate more on what they have than on exploration for new oil fields since exploration is an expensive undertaking and is not worth the time and expenses when the oil price is hovering consistently below USD 80 per barrel. Now, if its USD 150/= per barrel, then its different.

Strange, with all this revelation on Tengku Razaleigh's claim [denied by Petronas] of Petronas' discovery of the biggest ever oilfield in the world, the chairman did not mention it at all. It could be true since that's why the chairman said that he wanted to stay focussed [in other words, concentrate on developing this new oil field] rather then spread Petronas's activities looking for new oil resources elsewhere

To add more later ..........

An easy business , this car business ....

What is Pekema complaining about when the Customs Dept. just imposed that, from June 1st 2010, prices of imported used cars shall be based on the Custom's Dept gazetted price list rather than what is shown on the docket (whatever this means). The chairman of Pekema lamented at the fact that this would mean businessmen involved in the imported auto trade stand to lose anything from RM 10,000 to RM RM 60,000. Further he complained that the AP system will be withdrawn in December 2015 and that the authority is now charging RM 10,000/= instead of the previous AP fee of RM 250/= or so. By imposing all these, he reckoned that Malay businessmen will be driven out of business.

What bloody nonsense !

First of all, APs for used cars are given to Malays only, and not only that, to certain Malays only. The government does not simply give APs to Mohammad, Taib, or Ishak unless you are a Naza, or a Zaibar, or an Iktikad. If you see that Ah Chong Motor or Lim Autotrade displaying imported cars in their showrooms or yards in KL or anywhere else, you can bet that Ah Chong or Lim must have bought the APs from some Malay AP vendor. So, how could Malay businessmen be driven out of business.

Secondly, these auto traders simply pass any cost increase (due to extra tax, AP fee, etc) to the buyer. They are not worried that their imported cars cannot be sold for they know that the Malaysian public would pay any price once they like the cars. Its for this reason that the Malaysian public buy more passengers cars than those in any country in the region. And because of this also, the auto traders do not bother to promote their imported cars because they know that the cars are self selling. Just go to any car trader anywhere in KL. The response from the salesmen is something like "take it or leave it". They know that if you don't buy the pristine looking Mercedez Benz 350S for RM 500,000, there's always another sucker who is willing to buy it.

As for Pekema's claims that the imposition of the gazetted price means a loss, it simply means that car traders stand to make only a little less than before because they cannot under declare the price of the imported car. My friend, who was looking to buy an imported used + 3,000 cc luxury car, once asked a salesman how he could sell the car at the price shown when the import duty was 300 %. He was shocked to hear that the response was that all the auto company did was to under declare the exporter's invoiced price.

So all this talk about loss of business, gulung tikar, and so on among the Malay used car traders is, I repeat, Bloody Nonsense !

By the way, Pekema is The Association of Malay Importers and Traders of Motor Vehicles Malaysia.

Update 08/06/2010: The chairman of Pekema, Zainal Abdul Rahman, continued with his proposal requesting the government not to withdraw, by December 2015, the AP policy regarding Malay auto traders. I agree with him totally regarding his argument that the current AP policy is the only way for Malay traders to stay in the car business for Malay businessmen, being all Moslems, are deprived of doing business like gambling, manufacturing and trading in liquor, and all those "sinful" trades since they are forbidden by religion and further, from the auto trade, successful Malay traders have diversified into other non-auto businesses. Look at NAZA for example.

Well and good.

But what I don't agree is when he argued against having the gazetted price list and increase on the AP fee and the fact that apparently only PEKEMA members are given APs. Ordinary Malay citizens like you and me who want to import cars would have to buy the APs from those AP holders at many times the original AP fee. In fact, its the monopoly by Pekema traders that is disagreeable. Further, he said that the Malay auto traders contributed billions to the government coffers. Wrong, It's you and me, the ordinary buyer, that contribute to the government coffers and to Pekema traders' huge profits.

Eh, what's all this ...

There's this company called Asas Serba Sdn Bhd (Asas Serba) that proposes to buy the toll concessionaires - some 25 of them - for RM 50 billion. Serba proposes that it would reduce the toll rate by 20 % and there would be no price hikes to the end of the concession period. It says that by doing so the government saves some RM 114 billion and commuters by some RM 20 billion from now till the end of the period.

It's too good to be true.

Most bloggers' takes on this company's proposal are of the view that the government should not take up the offer since there must be a catch to this. As for me, why not ! Why should not commuters enjoy 20 % discount from the current rate which stays fixed for the next 20 to 30 years. Just imagine, the toll from Subang toll Plaza to Ipoh of RM 25/= that I pay now, I would be paying RM 20/= year in year out up to 2030 or 2040. That's a considerable saving - even more so if I use the present value method to determine what the value of RM 20/= is worth thirty years hence. But then Asas Serva cannot be that stupid to have come out with a proposal that gives it less return for its RM 50 billion investment.

This is what I believe Asas Serba would do:

(1) It must obtain a guarantee from the government (whether from current BN or from opposition) that it has the exclusive rights to operate toll highways or toll roads, anywhere in Malaysia. In other words, it must retain absolute monopoly.

(2) It must have an extension from the current period for say another 30, or 60, or 99 years or even longer.

(3) Asas Serba keeps its promise to retain the discounted current rate up to 2030/2040 so long as the highways are in status quo. Should there be any change in the status quo as for example the highways are widened then Asas Serba shall have the absolute right to revise upwards the toll rate of the highways so widened.

(4) Once the extension is obtained, Asas Serba has the right to revise upwards its toll rates as it pleases from the end of the current concession period.

(5) New highways built by Asas Serba are not subject to the rates of the "old" highways even for the same distance.

...............

And finally, Asas Serba is relying on a surefire way of retaining its absolute monopoly - the inherent weakness of the Malaysian public, which is its tendency to forget. Thirty or forty years from now, the bloggers of today are either dead or senile. The new generation of commuters or bloggers would not know what the agreement that Asas Serba has with the government is all about. They will keep on paying and paying as a matter of habit. The only risk that Asas Serba dreads is if there's a revolution in the country, meaning there will be a new constitution and old agreements automatically become invalid.

Update 16/09/2010: Apparently, Halim Saad is behind Asas Serba and most certainly Daim for he has the money.

All quiet on the Gaza Strip ....

USA and Britain are strangely quiet when the Israelis attacked a mercy ship and killed 9 peacekeepers and injured many others. Like pirates of old, fully-equipped Israeli commandos invaded the Mavi Marmara on the excuse that they have been provoked into retaliation by peacekeepers using sharp objects. We are now left wondering whether the sharp objects that pose a danger to the commandos are kitchen knives, needles or pencils.

The fact that the Israeli commandos illegally boarded the ship which carried foods and medicines for the stricken people of Gaza in international waters simply escaped the Israeli regime. While US said it needed more information before saying and doing anything, Britain's silence is deafening. It is understandable for David Cameron to keep his mouth shut as he is new to the job and is therefore afraid to make comments lest they are wrongly misinterpreted.

But the fact remains that Israel can do anything it likes without fear of retaliation from anyone, much less from the Arab countries. These Zionist Jews do not seem to understand that they are behaving like the SS troopers of Nazi Germany. I suppose having 200 nuclear devices gives oneself a feeling of power and invulnerability.

Pulling up Israeli ambassadors for a reprimand and an explanation simply won't do. The ambassadors simply laugh and thumbnose at the respective countries. An effective way is for the Turks or the Arabs say to just pick any 9 adult Israelis and shoot them in the street on an eye-for-an-eye excuse and wait for the reaction from Israel. It won't be long before the Israelis start whining to US about extermination, another holocaust, injustice against the Jews, prejudice and whatnots and start preparing for war to teach the Turks or the Arabs a lesson. And what do the US and Britain do ? They will encourage the Israelis.