By Sharen Kaur
sharen@nstp.com.my
Published in NST on August 10, 2012
KUALA LUMPUR: Railwaymen Union of Malaya (RUM) is still not convinced that any private party, including MMC Corp Bhd, can turn around Keretapi Tanah Melayu Bhd (KTMB), its president Abdul Razak Md Hassan said.
Business Times had reported that MMC plans to pump in as much as RM1 billion to take control of KTMB's operations, including freight and passenger services.
Abdul Razak said, RUM, comprising 3,600 members, is concerned that the takeover would be another failure by private parties to turn the ailing firm into a profitable entity.
He cited Marak Unggul Sdn Bhd's management takeover (an interim arrangement prior to full privatisation of KTMB, which was eventually abandoned), of the railway operator in 1997, as proof that private companies were incapable of managing the company efficiently.
Renong Bhd owned 50 per cent of Marak Unggul, while DRB-HICOM Bhd had 25 per cent, Bolton Bhd 20 per cent and Jasa Meta Sdn Bhd five per cent.
KTMB was corporatised on August 1 1992 under the Railways Act 1991, and placed under the management of Marak Unggul on August 1 1997.
Marak Unggul's plan to privatise KTMB was rejected by the government in 2001.
Industry observers cited Renong's debts as the reason. Also, Marak Unggul did not inject the RM100 million it said it would into KTMB when it took over.
KTMB has been bleeding red ink since it was corporatised in 1992 due to high operating costs.
It did make a net profit of between RM9 million and RM15 million from 1993 to 1995, before falling into the red again in the following years, until now.
As at 2008, the operator had recorded RM1.45 billion in accumulative net losses.
MMC plans to submit its privatisation proposal for KTMB to the government after Hari Raya. The proposal includes pragmatic financial and business model for KTMB to help it move forward.
RUM believes KTMB can turn around without the help of private parties.
KTMB's new president Datuk Elias Kadir has crafted a three-year turnaround plan, which includes details like cost-cutting, improving efficiency, train delivery time and diversifying its revenue stream.
sharen@nstp.com.my
Published in NST on August 10, 2012
KUALA LUMPUR: Railwaymen Union of Malaya (RUM) is still not convinced that any private party, including MMC Corp Bhd, can turn around Keretapi Tanah Melayu Bhd (KTMB), its president Abdul Razak Md Hassan said.
Business Times had reported that MMC plans to pump in as much as RM1 billion to take control of KTMB's operations, including freight and passenger services.
Abdul Razak said, RUM, comprising 3,600 members, is concerned that the takeover would be another failure by private parties to turn the ailing firm into a profitable entity.
He cited Marak Unggul Sdn Bhd's management takeover (an interim arrangement prior to full privatisation of KTMB, which was eventually abandoned), of the railway operator in 1997, as proof that private companies were incapable of managing the company efficiently.
Renong Bhd owned 50 per cent of Marak Unggul, while DRB-HICOM Bhd had 25 per cent, Bolton Bhd 20 per cent and Jasa Meta Sdn Bhd five per cent.
KTMB was corporatised on August 1 1992 under the Railways Act 1991, and placed under the management of Marak Unggul on August 1 1997.
Marak Unggul's plan to privatise KTMB was rejected by the government in 2001.
Industry observers cited Renong's debts as the reason. Also, Marak Unggul did not inject the RM100 million it said it would into KTMB when it took over.
KTMB has been bleeding red ink since it was corporatised in 1992 due to high operating costs.
It did make a net profit of between RM9 million and RM15 million from 1993 to 1995, before falling into the red again in the following years, until now.
As at 2008, the operator had recorded RM1.45 billion in accumulative net losses.
MMC plans to submit its privatisation proposal for KTMB to the government after Hari Raya. The proposal includes pragmatic financial and business model for KTMB to help it move forward.
RUM believes KTMB can turn around without the help of private parties.
KTMB's new president Datuk Elias Kadir has crafted a three-year turnaround plan, which includes details like cost-cutting, improving efficiency, train delivery time and diversifying its revenue stream.
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