By Anil Netto,
Khazanah wants to sell its 32.21 per cent stake in Pos Malaysia – soon after postal tariffs were substantially hiked. What’s the rationale?
Why raise tariffs so much and then sell? Shouldn’t the profit from the higher tariffs remain in government hands instead of transferring the immediate benefit to a private company.
It’s not as if the postal company is losing money. Not by a long shot. Despite all its inefficiencies, Pos Malaysia posted a profit before tax of RRM109 million for the year ended 31 December 2009 – up from a loss before tax of RM0.5 million the previous year.
Its profit from operating activities in 2009 was RM82 million (on the back of turnover of RM902 million), only slightly down from its operating profit of RM86 million the previous year (turnover RM922 million). Its current assets exceeded current liabilities while its ‘cash and cash equivalents’ stood at RM318 million.
Khazanah, which comes under the Finance Ministry, is inviting bids for the stake, the Edge weekly has reported. Apparently the bidders have to be 51 per cent owned and controlled by Malaysians. This could see the entry of foreign players as partners with a local company. The condition is that Pos Malaysia has to strike a balance between making profits and fulfilling its social obligations.
But why sell in the first place, when Pos Malaysia is set to make even higher profits from the tariff increase?
Khazanah wants to sell its 32.21 per cent stake in Pos Malaysia – soon after postal tariffs were substantially hiked. What’s the rationale?
Why raise tariffs so much and then sell? Shouldn’t the profit from the higher tariffs remain in government hands instead of transferring the immediate benefit to a private company.
It’s not as if the postal company is losing money. Not by a long shot. Despite all its inefficiencies, Pos Malaysia posted a profit before tax of RRM109 million for the year ended 31 December 2009 – up from a loss before tax of RM0.5 million the previous year.
Its profit from operating activities in 2009 was RM82 million (on the back of turnover of RM902 million), only slightly down from its operating profit of RM86 million the previous year (turnover RM922 million). Its current assets exceeded current liabilities while its ‘cash and cash equivalents’ stood at RM318 million.
Khazanah, which comes under the Finance Ministry, is inviting bids for the stake, the Edge weekly has reported. Apparently the bidders have to be 51 per cent owned and controlled by Malaysians. This could see the entry of foreign players as partners with a local company. The condition is that Pos Malaysia has to strike a balance between making profits and fulfilling its social obligations.
But why sell in the first place, when Pos Malaysia is set to make even higher profits from the tariff increase?
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