In Malaysia's chosen commercial operation circles, a large boys don't understand a required knowledge of 'competition'.
Competition in Malaysian commercial operation lexicon equates to NO foe for a large boys. The stuff oneself frenzy as well as riot fight is actually usually among a not as big boys.
It's a not as big boys who fight it out for a not as big portion of a business.
Petronas, it appears, has over from a stream use of handing out jobs to usually protected players in sure segments such as oil as well as gas equipment makers as well as offshore await vessel operators.
Licensed players have been those who have been registered with Petronas as well as have fulfilled sure despotic mandate as demanded by a oil company.
According to a report, state-owned Petronas will right away endowment contracts to unlicensed appetite services companies to encourage greater foe in a oil as well as gas industry.
Trust me, this is a new practice.
So what is a purpose of a relaxed rules?
According to a inform intoned with a common particularly commercial operation as well as veteran disposition "the measures will attract some-more foreign investment to rise Malaysia as a informal appetite hub".
Pre-empting any expected protests from pressure groups as well as alternative economic pressure groups, Petronas went upon to quickly supplement which such moves would "expose local appetite services companies such as Malaysia Marine as well as Heavy Engineering Holdings Bhd, Kencana Petroleum as well as Ramunia Holdings Bhd to competition".
No wisdom
Conventional knowledge records which "competition is good" ! for trad e. But then we have been talking about Petronas.
There is no such thing as required knowledge as far as Petronas is endangered when it comes to competition.
In so tender tones, Petronas further combined in a inform which a "change would not apply" to a Bumiputera vendor programme, where co! mpanies tranquil by ethnic Malays have been since welfare underneath a policy aimed at redistributing inhabitant wealth.
See, there is no such thing as required wisdom.
The large boys such as Kencana as well as Sapura have been not exposed to competition. They have been since super favoured treatment.
Who did Petronas name to partner with Petrofac to rise a not simply defined extrinsic oil fields? They chose Kencana as well as Sapura.
Everyone in a attention knows which Kencana as well as Sapura have been large at group levels only. They have been not belligerent l! evel peo ple.
'Banker's dilemma'
Kencana as well as Sapura's operations have been mostly rubbed by their subsidiaries operative with sub-contractors.
Almost all of these subsidiaries have been running inefficiently as well as incurring delays as well as so forth.
That's translated into a single some-more costs to Petronas in terms of time, delayed costs as well as even a single some-more approach costs.
How does Petronas handle those contractors handling by subsidiaries belonging to Kencana as well as Sapura?
They practise what in banking round is known as banker's dilemma. If a single owes a banks tiny amount, they will come to we with coronet knuckles.
If a single owes! them su per large amounts, a defaults of which can cause banks to keel over, they will provide we as a guest propinquity officers (GROs) do a well-heeled customers.
They will provide we with unusual hospitality. Sit upon your laps, let we fondle strategic places as well as so forth.
'Good income chasing bad money'
So in order to f! orestall Kencana as well as Sapura from keeling over as well as boring with them Petronas to a bottom of a sea, a inhabitant oil firm awards Kencana as well as Sapura with some-more contracts.
It's good income chasing after bad money.
Lend some-more so which a borrower can secure some-more business. So which these people have some-more income as well as remain solvent as well as can help finish a Petronas projects.
Petronas has even resorted to paying sub-contractors directly, bypassing Kencana as well as Sapura.
Our much heralded captains of a oil as well as gas industry, Mokhzani Mahathir as well as Shahril Shamsudin, have been large total at group levels.
And what will they benefit when Sapura as well as Kencana team up as well as then rise a extrinsic oil fields?
Read this: Mokhzani stands to benefit RM400 million whilst Shahril stands to benefit RM440 million.
The bard is a former ! Umno sta te assemblyman as well as a FMT columnist. This is an mention from his blog sakmongkolak47.
Malaysians Must Know a TRUTH
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