Musical chair #1
In mid 80's the govt of Malaysia went all out to privatise public enterprises and govt activities. This include divesting major public utilities then operating as govt department and also farm out transportation related enterprises that include the construction of its infrastructure. Many failed because of abuses by the new shareholders and its management team and eventually they were rescued by the govt because of public interest. However the political leaders blamed the collapse of these enterprises to speculative activities of George Soros which weakened the Malaysian currency and consequently burdened these enterprises with large foreign denominated debt.
Musical chair #2
The new political leader has adopted a new approach to reinvigorate these enterprises. The govt related companies (GLC) must change its leadership with younger and academically brilliant candidates. Implicit in the announcement was that internal staff do not possess the right managerial skill and dynamism to lead these enterprises. Now that the new corporate chief has been appointed, and they are definitely very young, and they all come from another GLCs except for one. It is a musical chair.
I think as long as these enterprises remain govt owned they will continue to suffer the old malady that besetted these enterprises since its establishment. If only they were not acquired by cronies of the political leaders there is a much better chance for these GLCs to operate profitably. Question is how do you get the political will to change thing for the better?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment