Skip to main content

MAS - Hitting The Nail On The Head (Finally)



As reported in the New Straits Times today, Malaysia Airlines has invited employees to report corruption, security risks and other bad practices at the national carrier under a new "whistle-blower" policy. The airline's new managing director Idris Jala has encouraged employees to report any knowledge of graft, negligence, safety and security issues or abuse of power to an independent committee. "This policy is being introduced to provide a safe and acceptable way for you to raise your concerns about malpractice affecting MAS without fear or repercussions," Jala said in a circular to the staff. "It allows you to raise matters in an independent and unbiased manner," said Idris. Idris said employees would not be expected to prove their allegations, and vowed to protect those who passed on information. "Any attempt to retaliate against, victimise or intimidate a whistle-blower making a good-faith report is a serious violation and shall be dealt with by way of disciplinary action," he said.

Idris has been tasked with turning around the airline, which ended 2005 in a troubled state after two consecutive quarters of losses which triggered calls for costs to be slashed. Even though I have often trashed MAS, its because of the "unhealthy corporate practices" that abound and seemingly allowed by previous management. Before everyone start jumping on the bandwagon to trample on MAS based on very bad financials for its last 2 quarters - the bulk of the losses came from not managing their fuel oil exposure well enough. Operationally, MAS still rank well in airline/cabin crew surveys. So, all is not that bad, nobody will focus on the "wrong doings and thievery" in MAS if they hedged their fuel properly.

I think Jala has hit the nail on its head. MAS looks to be a splendid recovery play. The items noted in Jala's speech indicates that he understands the crux of MAS' problems. The rest should just fall into place if the graft, abuse of power, negligence, safety & security issues are being addressed. Just hope that Jala has the management vision and political will to push through the needed changes. If I was Jala, that's what I would do immediately, not that he doesn't know what is "wrong" with certain corporate practices - he does, but by using this method, he avoids pulling the trigger himself and can collectively gather muscle and political will to make the necessary changes. The other big thing which dragged MAS down was fuel oil exposure, and that's probably the main reason he was scouted from Shell. Giving him the benefit of doubt, he is on the right path. Political will is on his side too as everyone is putting in their two sen worth on how to run MAS and on what is wrong with MAS. The powers to be no longer see MAS as a "plaything", it has become political and those concerned will NOT be willing to protect their turf to stop MAS from proper restructuring.

But before everyone starts waving flags for a heroic Jala, the whistle-blower policy is almost exactly like the one imposed by the new GLC-sanctioned-Khazanah-approved "Kristal" memo to all Telekom Malaysia staffers back in October 2004. So, this is not the brainchild of Jala, but at least he is borrowing the right stuff to use.

Comments

Pelabur said…
I hope you are right about MAS. If all GLCs bosses are like Jala then there should be no reason why foreigners as well as local shun Bursa.
Salvatore_Dali said…
TY for yr feedback, Pelabur. If I was Jala, that's what I would do immediately, not that he doesn't know what is "wrong" with certain corporate practices - he does, but by using this method, he avoids pulling the trigger himself and can collectively gather muscle and political will to make the necessary changes. The other big thing which dragged MAS down was fuel oil exposure, and that's probably the main reason he was scouted from Shell. Giving him the benefit of doubt, he is on the right path. Political will is on his side too as everyone is putting in their two sen worth on how to run MAS and what is wrong with MAS. The powers to be no longer see MAS as a "plaything", it has become political and those concerned will NOT be willing to protect their turf to stop MAS from proper restructuring.

Popular posts from this blog

My Master, A National Treasure

REPOST:  Its been more than two years since I posted on my sifu. This is probably the most significant posting I had done thus far that does not involve business or politics. My circle of close friends and business colleagues have benefited significantly from his treatment.


My Master, Dr. Law Chin Han (from my iPhone)

Where shall I start? OK, just based on real life experiences of those who are close to me. The entire Tong family (Bukit Kiara Properties) absolutely swear that he is the master of masters when it comes to acupuncture (and dentistry as well). To me, you can probably find many great dentists, but to find a real Master in acupuncture, thats a whole different ballgame.


I am not big aficionado of Chinese medicine or acupuncture initially. I guess you have to go through the whole shebang to appreciate the real life changing effects from a master.


My business partner and very close friend went to him after 15 years of persistent gout problem, he will get his heavy attacks at least…

PUC - An Assessment

PUC has tried to reinvent itself following the untimely passing of its founder last year. His younger brother, who was highly successful in his own right, was running Pictureworks in a number of countries in Asia.

The Shares Price Rise & Possible Catalysts

Share price has broken its all time high comfortably. The rise has been steady and not at all volatile, accompanied by steady volume, which would indicate longer term investors and some funds already accumulating nd not selling back to the market.


Potential Catalyst #1

The just launched Presto app. Tried it and went to the briefing. Its a game changer for PUC for sure. They have already indicated that the e-wallet will be launched only in 1Q2018. Now what is Presto, why Presto. Its very much like Lazada or eBay or Alibaba. Lazada is a platform for retailers to sell, full stop. eBay is more for the personal one man operations. Alibaba is more for wholesalers and distributors.

Presto links retailers/f&b/services originators with en…

How Long Will The Bull Lasts For Malaysia

Are we in a bull run? Of course we are. Not to labour the point but I highlighted the start of the bull run back in January this year... and got a lot of naysayers but never mind:






























p/s: needless to say, this is Jing Tian ... beautiful face and a certain kind of freshness in her looks and acting career thus far



http://malaysiafinance.blogspot.my/2016/12/bank-negara-may-have-switched-on-bull.html


I would like to extend my prediction that the bull run for Bursa stocks should continue to run well till the end of the year. What we are seeing for the past 3 weeks was a general lull where volume suddenly shrunk but the general trend is still intact. My reasons for saying so:

a) the overall equity markets globally will be supported by a benign recovery complemented by a timid approach to raising rates by most central banks

b) thanks to a drastic bear run for most commodities, and to a lesser extent some oil & gas players, the undertone for "cost of materials" have been weak and has pr…