By Sharen Kaur
sharen@nstp.com.my
Published in NST on January 12, 2012
KERETAPI Tanah Melayu Bhd (KTMB) has been asked to assist MMC Corp Bhd to conduct due diligence on the national railway company starting this month, said its president Dr Aminuddin Adnan.
Speculation is rife that the government is planning to put the plan on ice following protest by the Railwaymen’s Union of Malaya (RUM).
RUM is worried that MMC’s takeover of KTMB would see many of its 5,500 workers retrenched, if it came to pass.
Aminuddin said MMC is expected to come up with a proposal on its plan for KTMB based on the due diligence, which is likely to take six months to complete.
“We look forward to the deal if it makes sense for KTMB. It will all depend on MMC’s proposal and how they are going to increase the value and turn around the company,” he said.
Aminuddin estimates that it may take up to 18 months or more before the operations of KTMB can be handed over to MMC, given the complexity involved.
He said the government will take a few months to evaluate the proposal and talk to the stakeholders and the people involved in the matter, and study the impact on the train services.
RUM president Abdul Razak Md Hassan still maintains that it won’t be right on KTMB to hand over its operations to a private party.
“KTMB is for the rakyat and should remain as it is today, or returned to the government if necessary. If given to a private party, we can expect the fare of the commuter trains to increase.
“Currently, it is within the affordable range, compared with travel on the ERL, PUTRA, STAR and Monorail,” he said via a telephone interview.
According to Abdul Razak, it costs 70 sen to 80 sen for each kilometre travelled on the commuter train and more than RM1.00 on the ERL, PUTRA, STAR and Monorail.
sharen@nstp.com.my
Published in NST on January 12, 2012
KERETAPI Tanah Melayu Bhd (KTMB) has been asked to assist MMC Corp Bhd to conduct due diligence on the national railway company starting this month, said its president Dr Aminuddin Adnan.
The due diligence is important for MMC to decide if it wants to privatise KTMB.
Business Times reported in December 2011 that MMC plans to pump in some RM1 billion into KTMB and take over its operations.
Aminuddin told Business Times that the process by MMC to take over KTMB’s operation is on going.
“MMC sent us a letter stating that they want to start the due diligence this month and we have been asked to assist them. Other than that, we have not received any instructions from the government to put the matter on hold,” he said.
Business Times reported in December 2011 that MMC plans to pump in some RM1 billion into KTMB and take over its operations.
Aminuddin told Business Times that the process by MMC to take over KTMB’s operation is on going.
“MMC sent us a letter stating that they want to start the due diligence this month and we have been asked to assist them. Other than that, we have not received any instructions from the government to put the matter on hold,” he said.
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Speculation is rife that the government is planning to put the plan on ice following protest by the Railwaymen’s Union of Malaya (RUM).
RUM is worried that MMC’s takeover of KTMB would see many of its 5,500 workers retrenched, if it came to pass.
Aminuddin said MMC is expected to come up with a proposal on its plan for KTMB based on the due diligence, which is likely to take six months to complete.
“We look forward to the deal if it makes sense for KTMB. It will all depend on MMC’s proposal and how they are going to increase the value and turn around the company,” he said.
Aminuddin estimates that it may take up to 18 months or more before the operations of KTMB can be handed over to MMC, given the complexity involved.
He said the government will take a few months to evaluate the proposal and talk to the stakeholders and the people involved in the matter, and study the impact on the train services.
RUM president Abdul Razak Md Hassan still maintains that it won’t be right on KTMB to hand over its operations to a private party.
“KTMB is for the rakyat and should remain as it is today, or returned to the government if necessary. If given to a private party, we can expect the fare of the commuter trains to increase.
“Currently, it is within the affordable range, compared with travel on the ERL, PUTRA, STAR and Monorail,” he said via a telephone interview.
According to Abdul Razak, it costs 70 sen to 80 sen for each kilometre travelled on the commuter train and more than RM1.00 on the ERL, PUTRA, STAR and Monorail.
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