Jala Style of MAS Turnaround

Despite his huge personality and his track record in management, Jala has proven he is incapable to turnaround Malaysia Airline System without the traditional medicine of increasing revenue by taxing the consumers. Are Malaysians incapable to turnaround companies other than transfering the risk and cost to consumers?

Today The Star reported:
Lim: Water wastage may lead to higher tariff

Is Lim Keng Yaik attempting a pre-emptive strike which is leading the public to brace themselves for possible water tariff hike again?

Dr Lim Keng Yaik said raising the tariff was not the Government’s first choice “but if the consumers waste water, we have no choice”. “[However] at the rate water is being wasted, we may have to import water from Pahang,” he said. Dr Lim added that if there was excessive pressure from consumer groups, the Government would have no choice but to subsidise the consumption of water. “There is far too much wastage of water. The wastage due to broken pipes is about 38% and this is termed as non-revenue water. In some states it is about 50% and this is a loss of revenue,” he added. The Government is expected to spend some RM500mil on replacing water pipes for Selangor. Under the Ninth Malaysia Plan, the Government has allocated RM1.4bil for pipes replacement in the other states.

NEW electricity rates had already been introduced by TNB recently. Lim Keng Yaik said the proposed new rates are unavoidable because of the spiralling cost of crude oil used to generate power. "We cannot sustain the high cost of generating electricity anymore," Dr. Lim said. "[By increasing electricity tariff] we are encouraging people to save energy. So, don't use so much electricity. You use more, you pay more," he said. "Why do you need 20 bulbs in your house when there are only two rooms? Why do you install air-conditioned sets in your storeroom ... to keep your cigars and wine fresh? These people should pay," he added. Dr. Lim said the new rates, if approved, would still be the lowest in the region.

So, we see... increase tariff and taxes is to encourage Malaysians to save energy and increase water tariff is to deter Malaysians from wasting water. Increase airfare must then be to discourage Malaysians from traveling. So, West Malaysians wanting to travel to Sabah and Sarawak or Singapore should swim to save energy and cost.

As for MAS, the turnaround is not about turnaround. It's about transfering their losses to customers. That's bullshit management we had.