UMNO Youth economic bureau chief Reezal Merican Naina Merican said the government must set up a "Special Purpose Vehicle" (SPV) company to curb structural leaks in the supply of construction materials for government contracts.According to Reezal, the proposed SPV could become the stabilizer for market prices of raw materials and this SPV will become a prime mover of GLCs.
Did he know something esoteric that many of us who spent decades in the construction industry hasn't known? It must be some profound knowledge??? Or, is he eyeing something parasitic?
I had never heard that a company can be the stabilizer of for market prices of raw materials. In the current, certain building and construction materials are controlled items such as steel, cement, fuel and bitumen. Even then, due to the shortages caused by the world steel billets, the contractors had to pay higher than the controlled prices due to "under-table charges"validated by innovative non-illegal form. When the construction market is slow the prices of cement and other products falls in tandem. That's what determines the market price of raw materials - supply and demand - not SPV prime movers. We already have the various associations and institutions, why another SPV? There's a catch... only Reezal and his coterie knows.
9 comments:
Robbery redefined, the bolehway.
Ok, there is rent seeking in AP,rice,medicines, and now building material?
I think they were thinking along the lines of a monopoly trading firm - anyone building for a government contract would have to buy their materials through the firm. More opportunities for cronies to make money.
Wah, we could be talking RM billions if all government and GLC projects are taken into account.
These people think like parasites bcos they are parasites. With the special vehicle they can suck more easy money
Daylight hijack.
no alibaba... no worries... do an ali-spv.. hey, it rhymes!
Economic reasoning tells businessmen to look for ways to cut costs to remain competitive.
UMNO reasoning tells members to be innovative in inflating costs to their own pockets.
only the communists want to control everything for the good of everybody. are there communists in umno? dread to think so....
SF
that's the lamest comment i've heard from last year's UMNO GA: "construction suppliers should be bumi" or something like that....stooopid stooopid stoopid....freelunch 2020 man!
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