I am in complete agreement with our former Prime Minister Mahathir Mohammad here.Why repair something if it ain't broken.
There is nothing wrong with the IJN. Probably, the only government agency doing an excellent job and is the pride of the nation.It has saved many lives of those who can't afford the high costs of treatment.It's the government's social obligations to the people.
Is the government running out of ideas or running desperately out of funds that it has completely lost touch with reality or is there something more sinister than what the eyes can see?
As former Prime Minister Mahathir Mohammad has said one has to be discernible with what can be privatised and what not.
How would it make sense that Sime Darby a profit-oriented corporation is interested in an organisation that have to fulfill the government's social obligation and responsibility towards the people or are they only interested in making life easy for themselves by collecting the subsidised portion from the government, everything on the platter, a ready-made IJN and constant flow of revenue from the government.
You don't need smart people to make this type of decision.
Government should only privatise those agencies not doing well due to bad management by idiotic and bureaucratic civil servants.Why sell something if there is nothing wrong with it, unless there is gleam and greed in some one's eyes.
The pumping of IJN into Sime may lead to other things, A takeover of Sime by interested party later is not an impossibility.I don't know how much is the government's stake in Sime Darby.If the government owned less than 50% than Sime can be subjected to takeover bid, hostile or otherwise, by any party that already have significant equity in the company or by outside entity that have access to huge financial resources and allowed a takeover with the blessing of the government.
In December 2007 Sime Darby became the biggest corporation on the KLSE with market capitalisation of RM66 billion after a re-listing exercise, surpassing Malayan Bank and IOI.Upon re-listing the share price debuted at RM11.20 and peaked in January 08 at RM13.40.Yesterday its share price closed at RM5.45.
With the bleak economic outlook and a saturated palm oil market the share price is expected to decline further.This golden goose is ripe for takeover bid and don't be surprised if there are already discreet plan to make hay while the sun shines.It would be a steal to takeover Sime at current market price.
The government has already dug about three feet deep of its grave and continuing with its arrogance and ignoring the people wishes would complete the six-foot depth required to bury them by the time the next general election comes around.
The unsolicited proposal should be thrown out of the window.
