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Monday, December 29, 2008

IJN's proposed takeover

There have been a lot of comments about the proposed takeover of IJN (National Heart Institute) by Sime Darby Bhd. Most of these comments were against the proposed takeover. In fact I had friends calling me asking me the rationale behind the proposal and if it is good or bad for the Rakyat.

First and foremost guys, I am not involved in any manner on the whole exercise. But I can only speculate and theorise.

IJN has made a name for itself. I read in the papers recently of the many achievements IJN has had throughout the years along with the selfless dedication of its staff to the members of the public. Apart from that, IJN has also done numerous charity operations and so on that had helped many members of the public, especially those who cannot afford the treatments.

IJN is also held in high esteem on the international scene. The Institute had done many researches and medical developments in the field of its expertise. These researches have brought many breakthroughs and new developments in the field of heart surgery and treatment.

The doctors, surgeons, nurses and all other medical / non-medical staff have also attained a high level of professionalism and efficiency. The IJN team is the epitome of medical service in Malaysia at the present moment.

All in all, Institut Jantung Negara is a success story and is recognized throughout the medical world.

Thus, for all the reasons stated above, I can understand why many oppose the proposed takeover.

So, what is it that Sime Darby Berhad can bring to the table for the proposed takeover? Why should the Government and we the Rakyat agree to such a takeover? If Sime cannot detail out their plans on how to value add without affecting the above plus points, then the proposed takeover should be aborted immediately. But having said that, I want to maintain an open mind and look from all angles. Thus, even if the proposed takeover is to proceed, I would like to see the following be addressed:-

i. The purchase price must be of proper valuation of IJN plus a high premium attached to it.
ii. Sime must give written monetary guarantee the amount (in RM value)of charitable treatments that they will allocate for patients who cannot afford treatment along with the conditions to apply for it. In so doing, IJN must also be transparent and always inform the public on its activities to help the rakyat.
iii. Sime must also ensure that enough funds are allocated for research and development in the medical field, specifically in heart surgeries and treatment. (This is one of the value adding that I see IJN and the nation can benefit from the takeover).
iv. Sime must ensure that all equipment be maintained at its highest standard.
v. Sime must also ensure that the level of expertise be maintained if not enhanced. (Another possible value adding).
vi. Sime must ensure that the team that is currently operating in IJN be maintained. Their salary, bonuses and so on must be maintained if not made better. This will ensure that the team remains intact even after any change in ownership.
vii. The Government must still hold what we call the Golden Share that would ensure all principle decisions must get Government approval. In this sense, the government can veto any moves to sell IJN to any third party of local / foreign interests. The first rights of refusal to purchase any of Sime’s shares must also be for the Government.
viii. The Government must also have a call option to buy back all of Sime’s interest in IJN at 70% below the takeover price should Sime fail on any of its written and agreed conditions. This is what I call a penalty clause to Sime.
ix. Sime must always maintain as a close Government Linked Company (GLC) through its shareholders and board of Directors.

Sime must also look at the proposed takeover not just from the profit making perspective, but as part of the company’s Corporate Social Responsibility (CSR) to the nation.

The proposed takeover, if it materialises, would directly do two things for the Government and Rakyat:-

i. Provide the Government extra funds from the proceeds of the takeover that it could allocate to other Rakyat projects. I believe the proposed price tag of the takeover must be substantial (hundreds of millions).
ii. Relief the Government of further allocation to operate IJN and allow it to reallocate the funds to other deserving rakyat centric initiatives.

Sime can be an integrated healthcare provider, with equity stakes in several other hospitals including IJN but all these conditions and more must be accepted and met. Or else, Sime and the Government, forget it.

Thursday, December 25, 2008

Christmas!!!!!

I would like to wish all my friends a very Merry and Joyful Christmas. May this Christmas be meaningful to us, especially in spending quality time with our beloved families and dearest friends.

For those taking advantage and holidaying outstation or overseas, may our travels bring us joy, broaden our horizons and fill us with new experience. Do take care travelling and if you are driving, rest when tired or sleepy.

Take care, have fun. And for those who know me – don’t forget my Christmas gift! Hahaha…..

Wednesday, December 24, 2008

Food problem!

My colleague who is the Chairman for Education Bureau, Pemuda MCA had raised an issue during our recent Pemuda BN discussion. He informed the meeting that the management of College 12, Universiti Malaya had recently terminated a stall that sold Hainanese Chicken Rice and Economy Rice that mainly catered to the Chinese students. The students it seems, were unhappy of this termination as they had enjoyed good affordable Chinese food all this while and did not want that to be taken away. The stall operator meanwhile felt that he was terminated unfairly.

So today, as the Chairman of the Education Bureau Pemuda UMNO Malaysia and in the spirit of comradeship with MCA, I arranged a meeting with the Deputy Vice Chancellor (Student Affairs), Assoc. Prof Datuk Dr Azarae Hj Idris and his senior staff to get to the bottom of this issue. Of course, my colleagues Chong, Harrison and other MCA friends went with me.

I am happy to learn that the stall operator was not terminated as alleged. UM informed us that the contract for all stalls in College 12 had expired in May and there was a due process of re-tender for all the stalls. In the process, some bidders were eliminated due to low pricing and other technical issues. However, I am most happy to note that the UM management had stipulated in the tender conditions that one stall ( am told Gerai 1 as it is known) is specifically allocated for Chinese food. I am also told that the management of UM, 12th College management, the Chinese students’ representatives had a meeting yesterday with the successful bidder for the stall to discuss on the menu and pricing of the food. The successful bidder had during the meeting agreed to the terms, conditions and requests set out by the students and management.

All is well again at the University front! And I hope the food is good.....

Our team also requested that all universities in Malaysia should provide space for all varieties of food to be sold, be they Malay, Chinese, Indian and what nots – Halal of course! At the same time, in line with the Ministry’s vision to internationalise our universities and attract overseas students to Malaysia, Pemuda BN would also like to urge all universities to provide space for stalls to sell international food in the campuses.

I am sure apart from quality and affordable education, one of the main factors that foreign students consider would be how well they can adapt to the new surroundings. Having food to cater to their tastebuds would definitely go a long way to helping them make the decision. At the same time, our local students can also experience something new and different.

Let’s hope this happens. As for me, I always enjoy trying something new. Whenever I go to a new country, the two things that I must do are to taste the local food and check out the local customs / way of living.

Thursday, December 11, 2008

Bukit Antarabangsa landslide

I would like to offer my condolences to the families who have lost their loved ones in the hillside landslide which (again) happened in Bukit Antarabangsa area.

Let us all say a prayer for all the victims and also pray for their loved ones. May the Almighty also give strength and patience to all those victims who have been evacuated and are unsure of their homes and lives due to the landslide.

I am very happy that the residents are thinking of suing the local authorithy for negligence. It seems they had reported to MPAJ of their concerns, especially when some trees were rooted out and so on, yet the MPAJ failed to take relevant and sufficient necessary actions. In their defense, MPAJ said that they had built a gabion wall to arrest the problem.

I think the responsibility should not just be limited to this. We must look at the following also :-

i. MPAJ for approving further development projects on the hillside after the federal government gave instructions with regard to hillside development. this should include the council president, councilors in charge, planners, engineers and so on that so-called went through the applications and approved them.
ii. The developers involved in developments around the area.
iii. The consultants who did the studies and actually found ways to declare the developments safe. These will include the engineers, architects, soil engineers and so on. These people are ‘experts’ in their field and should give fair and proper advice.

I am no expert, but I wonder if you need state approval for such developments? If the answer is yes, then the previous state exco is partly to blame for approving the projects.

I also believe it should not be only MPAJ as an entity that should take responsibility, but the individuals involved. The state government being the authority in charge should take disciplinary actions against these people should they be found to have acted improperly or unprofessionally, including demoting these officers or even sacking them. Then only will others who are in these positions take their jobs seriously and ensure proper guidelines are followed.

I would also like MPAJ to do the following:-

i. Immediately issue stop work orders to all hillside developments, not temporarily or until the so-called studies are completed. It must be a permanent stop. In fact, there should be a total ban on any future developments in Bukit Antarabangsa. This area is a water catchment area, meaning water retention is high making the soil unstable for development.
ii. Conduct a study on the whole area on how to strengthen the soil structure in the area to ensure no other landslides will happen in the future. Even if there are no further developments, we still have to ensure no other landslides happen in the area.
iii. Publish these studies for public consumption.

The Federal Government must instruct all State Governments to restudy all hillside developments and also existing housing areas on all hillsides.

The Federal Government should also sponsor and push a bill through the Parliament to ensure greater precaution and conservatism are practiced in planning and approving developments of such nature in the future. The details of the bill I leave it up to the experts to fill in.

I am sure there are many other items and issues of importance that I have missed here but MPAJ and others including individuals must take responsibility. The Federal and State Governments whether BN or PR must step up and ensure safety of the rakyat.

I also hope the Federal Government, State Governments and Local Authorities are serious. Do not just be reactionary to the events ie start issuing stop work orders, restudy all plans and so on but after three months, when things have quietened down, everything goes back to the way it is.

After all, what if the victims are your loved ones? Let’s pray that won’t be the case.