Thursday, October 15, 2009


1. "What I am more worried about is that the carrier does not seem to be reacting fast enough to passengers' needs. They are not doing enough."

2. "One of MAS' main problems is that it adopts a herd mentality when it comes to fuel hedges. There is no real vision and MAS is obviously afraid to take risks,"

3. . "Please try to comprehend that in 2007, MAS Cash and bank reserve was RM 5.25 billions and in 2008 dropped to RM 4.62 billions and end of June 2009 further dropped to RM2.94 billions (a rapid rate of cash depletion of almost RM2.31 billions in a mere 18 months). Don't be ignorant, defensive and take things for granted" masliberators

Sunday, 14 June 2009
MAS fuel-hedging strategy gets mixed reviews
By Presenna Nambiar 2009/06/15

ANALYSTS are mixed about whether Malaysia Airlines (MAS) (3786) is doing the right thing in its fuel contracts, but they agree that the outlook for the national carrier looks sombre."I do not find the mark-to-market losses it posted all that worrying because, it is something that most companies will have to go through come 2010, and MAS did take some measures to mitigate its affects," Maybank Investment Bank senior analyst Khair Mirza told Business Times.
"What I am more worried about is that the carrier does not seem to be reacting fast enough to passengers' needs. They are not doing enough."
"With the second quarter being traditionally its weakest quarter, and the H1N1 flu gathering more intensity, it is hard to imagine the carrier making a profit (in the second quarter of 2009)," he added.Khair estimated that during the January-March period, MAS had lost 30 per cent of its passengers to its competitors.
On Friday, MAS reported a net loss of RM695 million in its first quarter ended March 31 2009, versus a year-ago net profit, largely due to its fuel hedging contracts.Notwithstanding the RM640 million mark-to-market fuel hedging losses, the carrier posted RM138 million in operating loss.It also said it had spent some RM400 million to restructure its hedging contracts into 2011.Standard & Poor's Asian Equity Research analyst Shukor Yusof said MAS' mark-to-market losses is an indication of what to expect from the carrier in the coming months.
For MAS to be a trend setter, he believes that it should take a more proactive approach in its fuel hedging strategies."One of MAS' main problems is that it adopts a herd mentality when it comes to fuel hedges. There is no real vision and MAS is obviously afraid to take risks," Shukor said.The airline could still make a profit in the second quarter, though, albeit not an operational one, again due to the airline's new accounting standard.This is because just as how the airline saw a paper loss of RM640 million in the first quarter, it could see a paper gain of RM1.1 billion on fuel hedging if oil prices average US$66 a barrel in the second quarter.
Meanwhile, in a reply to a local blog posting on Rocky's Bru on Saturday, MAS executive director and chief financial officer Tengku Azmil Zahruddin said any business in which its major cost item doubles to US$180 per barrel in six months, only to fall to US$40 per barrel in the next six months, must take steps to protect itself against such volatility.He added that because airlines typically sell seats six months into the future and sometimes even up to 340 days in advance, the need to hedge against the unpredictability of fuel price is critical."As with other airlines which hedge, MAS only enters into long fuel hedges, where we are buying fuel, and do not speculate by selling short in the fuel market, as may be the case with certain low-cost carriers," Tengku Azmil said.

More details: here, here and

Sunday, July 12, 2009

Five KPIs for the PM

1. Fix the GLCs, Malaysian engine of economic growth esp. MAS, an employer of 20 000 people.
2. Improve the quality of education since education institutional outputs determine the production input.
3. Implement IPCMC and Ombudsman Office to eradicate leakages and minimize wastages.
4. Identify 10 vital issues to fix the trivial many.
5. Set SMART target for the above 4 indicators.

The 100 Days Myth.

“Roosevelt's legendary "First 100 Days" concentrated on the first part of his strategy: immediate relief. In 3 months March to June 1933, FDR sent Congress a record number of bills, all of which passed easily. …..”
“What we have heard after these 100 days, are the announcements made by PM Najib. None of these were sent to Parliament to be debated.”

The 100 days is one of the most nefarious myths culled from American politics. Coincidentally, Tengku Razaleigh Hamzah in a speech at a private function mentioned the term, a New Deal. The American president most associated with the term new deal was FDR.
In one sense, PM Najib is making a series of deals with the rakyat. He has offered them a slew of changes with the aim of saving UMNO and the country. We have a possible analogy between our PM Najib and FDR.
Franklin D. Roosevelt took office at a time of national emergency when the instruments of government under Herbert Hoover and his laissez-faire Republican predecessors were wholly inadequate to the challenge. FDR went into action with a slew of reforms and invented new institutions to save the American economy.
PM Najib came into power after a brokered transition which allowed PM Najib to move into office and Pak Lah to ride into the sunset a happy and prosperous man. He (Pak Lah) was able to say patronisingly- the man I chose has done well. History will judge this to be a misstatement. The UMNO warlords, scared out of their wits, chose Najib over Pak Lah. What Pak Lah is saying so that he won't miss out on the euphoria- indeed Najib is a better PM than he can ever be.

Read more @

Friday, July 3, 2009

Somebody has just awoken!

Dr Mahathir wants to know what the government did with the Petronas money.
KUALA LUMPUR, July 3 — Petronas adviser Tun Dr Mahathir Mohamad today asked what did the government spend with the RM253.6 billion payment from the national oil company over the past six years when his successor Tun Abdullah Ahmad Badawi was prime minister.
The former prime minister, a trenchant critic of Abdullah, wrote in his weblog that Petronas has been paying dividends, taxes, royalty and export duties to the government since 1976, after it was set up as the national custodian for fossil fuels.
"Where has the money gone to?" Dr Mahathir asked.
He said Petronas began by paying RM300 million in 1976, rising to RM2 billion in 1981, when he assumed office. The total from 1981 to 2003 was RM168.8 billion for the 22 years that marked Dr Mahathir's tenure as the country's fourth prime minister.
"From then onwards it increased from RM19 billion in 2004 to RM67.8 billion in 2009. The total for six years is RM253.6 billion," he said. It is not known if the figures were adjusted for foreign exchange fluctuations as oil is usually quoted in US dollars.
"I am sure the government had spent the money wisely. It would be interesting to know what the RM253.6 billion was spent on," said Dr Mahathir, who retired as prime minister in favour of Abdullah, who stepped down in early April.
His remarks today came after a June 25 announcement by Petronas that it had paid RM30 billion in dividends to the federal government for the financial year ended March 31, 2009.
The amount was despite a 14 per cent decline in net profit to RM52.5 billion due to lower crude oil prices and higher operating costs and included a special dividend of RM6 billion which was declared in the last calendar year. Petronas paid out RM24 billion in the previous financial year.
Apart from the dividends, Petronas — the country's only Fortune 500 company — also paid RM29.4 billion taxes, RM6.2 billion royalties and RM2.2 billion export duties for the last financial year, totalling RM67.8 billion to the federal government against RM56.8 billion in the previous year.


Friday, June 26, 2009


Tahukah anda bahawa kebocoran dan pembaziran saperti yang telah, sedang dan akan berlaku dalam MAS dan Negara (berjumlah billion-billion RM) telah menjejaskan peruntukan biasiswa untuk anak anak dan bakal pelapis kita ?

Tahukah anda bahawa RM 1 billion boleh menaja sekurang kurangnya 10000 pelajar untuk kursus selama 5 tahun ?

Tahukah anda bahawa Negara ini telah kebocoran berjumlah RM 340 billion dalam masa 17 tahun yang lepas atau RM 20 billion setahun?
Rujukan: Laporan dari Morgan Stanley.

Tahukah anda bahawa RM 20 billion membolehkan negara ini
membina 20 bangunan Petronas Tower atau
membeli 40 kapal terbang B747-400 dalam setahun?

Tahukah anda bahawa mantan PM, Pak Lah telah berkata pada 1 hb Disember 2005 bahawa 2 anak syarikat kerajaan yang melambangkan Malaysia ialah PETRONAS dan MAS ?

Tahukah anda bahawa sebanyak mana kita menyalahkan ahli politik , kita juga bertanggungjawab keatas apa yang kita buat
dan juga apa yang kita tak buat ?

Tahukah anda bagaimana untuk membantu negara ini?


If you do good, people will accuse you of selfish ulterior motives.

Sunday, June 21, 2009

KPIs for MAS since 2001.




We would like to thank MAS CFO Tengku Azmil for
painstakingly responded, here
to an earlier article, here.
However, we think it is not appropriate to post our reply for public consumption now but would make a request to meet him personally to discuss on outstanding issues and also the
“Flight Plan” (above) that was handed to MAS Chairman as early as in November, 2005.

I do hope Tengku will act and react fast before this, here, happens to MAS.

Thank you.


Saturday, June 20, 2009


Thank you very much for visiting.
Hmm, tak tau apa nak tulis .... blog's block kot.

Anyway, I would like to share the things that I have learned, practiced and further elaborated by a well known scholar and educator Kent M. Keith in ‘The Paradoxical Commandments ’ also known as 10 commandments of Leadership , Final Analysis and Anyway .

• People are illogical , unreasonable and self centred. Love them anyway.
If you do good, people will accuse you of selfish ulterior motives. Do good anyway.
• If you are successful, you will win false friends and true enemies. Suceed anyway.
• The good you do today will be forgotten tomorrow. Do good anyway.
• Honesty and frankness make you vulnerable. Be honest and frank anyway.
• The biggest men and women with the biggest ideas can be shot down by the smallest men and women with the smallest mind. Think big anyway.
• People favour underdogs but follow only top dogs. Fight for a few underdogs anyway.
• What you spend years building may be destroyed overnight. Build anyway.
• People really need help but may attack you if you do help them. Help people anyway.
• Give the world the best you have and you will get kicked in the teeth. Give the world the best you have anyway.

For starters on MAS, please read here and for entrée, here.
By the way, Bru, the title should be 6 major things that MAS should have hedged instead while the 6 things MAS must do will come soon enough.

Happy Reading !!!