Friday, April 22, 2011

Why Such Strong Reactions To The Email Account Thingee

This is exactly why the government and the advisors ARE NOT ABLE to read the people's desires and wishes properly. Why such a puny project like email accounts for all, can stir up such a vociferous reaction from many quarters, including this tiga-suku? I can come up with cost, transparency, need, "forced down our throats", relevance, expediency, railroaded over, effectiveness, red tape, coercion ... off the top of my head.

My comments below will highlight that despite the huge run up in Tricubes yesterday, if they are allowed to charge 50 sen per email, the stock is still undervalued at RM1.00. But I strongly deter any my readers to even participate in the madness and unfairness of it all. The stock will be clouded with tons of storm clouds.

My site is now linked to the ETP Lite site, let's see whether they take off my link after this article, or do they really welcome sensible debate on important issues.

Let's look at the points and comments in the media, my comments in color:

KUALA LUMPUR, April 21 — The Performance Management and Delivery Unit (Pemandu) has said government agencies will pay Tricubes Bhd to use the company’s 1 Malaysia e-mail database, which it called both a government and private initiative.

“Agencies would have to pay a certain fee to use that, as in any other e-mail database,” business services NKEA communications content and infrastructure director Dr Fadhlullah Suhaimi Abdul Malek said in an interview on radio station BFM today. (OK, no public funds is being used, so somebody has to lend Tricubes, a GN3 company RM50m ... wonderful, I wonder how many GN3 or PN17 companies can even borrow RM10,000 with their financial status as such??!! Anyone??!!)

He said Tricubes’ database of verified e-mail addresses would ensure that correspondence from government agencies got to their intended recipients, adding that this would “quickly move citizens into the digital age”. (Verified email accounts is a superflous name, you telling me that gmail is not secure... pleaaaassseee la).

“What’s important is actually the database,” he said. “That... information gets verified because it is then linked to the National Registration (Department).”

Tricubes was involved in the nationwide deployment of the country’s MyKad identity card system and supplies biometric scanners to 170 organisations.

Fadhlullah Suhaimi said he expected agencies to pay Tricubes about 50 sen per e-mail, cheaper than the RM1.00 printing, stationery, postage and dispatch cost of sending a regular letter.

He said that, as the per unit cost of regular mail might double to RM2.00 if a misaddressed letter was sent back on the taxpayer’s dime, the government stood to save between 50 sen to RM1.00 per e-mail. (Oooh, here's how Tricubes make money, 50 fucking sen per email??!!! Why do you need to compare to postal services cost structure? If it actually cost RM10.00 per letter, does that mean Tricubes can charge RM5.00 per email as that would still save money??? There is no justification for 50 sen per email. I know many company doing SMS, MMS blasts that charges between 10-50 sen only, why 50 sen, you gonna be sending us messages with moving pictures and video clips on how much I owe the tax department? No, its simple messages, cost should be much much lower.

Here is the big wondering, why no talk about how much money Tricubes will make, and what constitutes supernormal profits. Assuming that there are 7m taxpayers, and you forcibly assign our name and IC as the username so that you get 7m email accounts automatically (e.g. Siva_A/

Hence the tax office can send you notices, accounts summary or even summons, and they will make it that once sent by email, its considered delivered, so you got no choice but to check your brand new email account, even though you already have 5 email accounts ... company email, yahoo, gmail, facebook, and now another one.

So, now we forcibly have the mass database, you can imagine just how much money if the tax office, and/or NRD, even the Road Transport, or even more departments ... send you something ... I bloody well hope they never send us festive greetings as well, unless revenue at Tricubes is deemed to be falling short, I guess.

Back to supernormal profits, none is elaborated. Assume you managed to force open 7m accounts and you charge 50 sen an email, conservatively two departments send one mail a month = 2 x 50 sen x 12 x 7m = RM84m a year conservatively. Fuck me silly, thats the easiest way to rob the public.

If its costing just RM50m to implement the system, there should be a proper rate of return, something akin to build, operate and transfer ... then sellback option to the government. Not fair to have the government (our money) paying RM100m a year at the barest minimum year after year.

There should be a term sheet that details: amount invested by Tricubes RM50m; Set them KPIs, they must deliver an unlimited email account like gmail, link up with NRD and get the 7m or 10m accounts set up, before they even get any fees; Once fees start flowing in, Tricubes will only get to keep RM100m of revenue; beyond that all fees are waived forever. Tricubes will get paid a reasonable fee to maintain the system on a yearly basis, say RM5m a year.

Say la something like that, then no one will even second guess the government's intentions or the reciepient's credibility in getting the project. If anyone tells me 100% return is not enough, please justify la, I am sure we can put this up for a tender and see what bids we get.

“The poor taxpayer, without realising, is actually allowing wastage of RM2.00 per post that goes out,” Fadhlullah Suhaimi said. (Yea, Faddy, the poor taxpayer will never know what hit them if the per email cost is 50 sen and runs forever, even Samy Vellu will say "Wah, like that also can aaahhhh, how come my tolls cannot one!!!).

He cautioned, however, that these expected savings were based on Tricubes’ own estimates. He said the actual cost per unit would vary depending on the volume and complexity of the transaction, as well as the number of people who eventually sign up.

Reflecting the earlier confusion on Pemandu’s website, Fadhlullah Suhaimi first said the 1 Malaysia e-mail project was “government initiated and private sector led” before referring to it later as a “private sector initiative”.

Pemandu was forced earlier today to defend changes on its webpage for the 1 Malaysia email project, claiming the switch of the project’s description from a government to a private sector initiative was to correct “a genuine error”.

Fadhlullah Suhaimi nonetheless stressed that no public funds would be used at any point to develop the e-mail service despite the fact that it may fail.

He said the project would be entirely market-driven, with Tricubes bearing the risk entirely if the 1 Malaysia e-mail project does not get off the ground.

“They must make it unique, make it compelling and they must make sure they can run a service that has value for end users,” he said.

“If they fail to deliver they lose their investment... There is no loss to the government or the taxpayer.”

Fadhlullah Suhaimi revealed that Tricubes was chosen as it was the only listed company out of the five that pitched for the project. He explained that listed companies were preferable as the public would be free to scrutinise their finances.

He said Bursa Malaysia had assured Pemandu that the ACE-listed company’s Guidance Note 3 (GN3) status was an “accounting issue”, adding that the entry point project (EPP) evaluation team had determined that Tricubes’ business model was “sustainable”.

Loss-making Tricubes is at risk of being delisted after its weak financial standing triggered Bursa Malaysia Securities’ GN3 in October last year.

Fadhlullah Suhaimi also admitted he was “surprised” by the intense public reaction to the 1 Malaysia e-mail project but said it was good there was such strong interest in an EPP.

“If Tricubes can put it out by July (as planned)... they will have good brand equity,” he joked.

Prime Minister Datuk Seri Najib Razak has said that the project will have a gross national income (GNI) impact of RM39 million up to 2015 and will allow direct and secure communications between Malaysian citizens and the government.

But critics say the government should focus on infrastructure project such as providing clean water or broadband across the country rather than working on a free email service which is already available through Hotmail, Yahoo! and Google Inc.

Tricubes has said it is collaborating with Hotmail service owner Microsoft Corp for the project but no provided no details.

Malaysians already enjoy online services such as MyEG and utilise banking portals to pay for a variety of utilities and services without the usage of email accounts.


Tinto Rose said...

Tax payers' money will be used to pay for the 50 sen mail. That means I pay taxes and the IRD and other government departments pay Tricubes 50 sen to communicate with me. Cute! This really sucks! In reality, tax payers' are bailing out Tricubes financially. This truly sucks!

Tinto Rose said...

Tax payers' money will be used to pay for the 50 sen mail, so that govt depts like IRD can communicate with tax payers via email. Cute! In reality, tax payers will be the white knights bailing out a company in financial dire-strait! This truly sucks! said...

Good analysis! Keep doing this said...

Good analysis! Keep doing this

Paid Deal said...

EPF already have their own website and server, IRD can set up one with less than 2 mil and employ afew jobless computer graduate to man it for less than 50k a year. So what the point of using Tricubes unless there are ways to enrich the decision maker.

Justin Choo said...

This bunch of monkies should be sent direct to Timbukto come next GE.

They are treating us like ignorant idiots.

surewin1woh said...

whether the project will proceed or not, the wave created by the proposal has enriched "somebody" oledi judging from the share price run-up....

KASSIM said...

(OK, no public funds is being used, so somebody has to lend Tricubes, a GN3 company RM50m ... wonderful, I wonder how many GN3 or PN17 companies can even borrow RM10,000 with their financial status as such??!! Anyone??!!)...Comment, If I am a bank, I would want like to lend to a company that has fairly certain future cashflows

(Verified email accounts is a superflous name, you telling me that gmail is not secure... pleaaaassseee la). Comment, I'm surprised you say so. How would I know who you are. If you registered yourself as Najib Razak, its no problem doing that in gmail

Oooh, here's how Tricubes make money, 50 fucking sen per email??!!! Why do you need to compare to postal services cost structure? plus the rest....Comment, Its not just about mailing Bro/sis. Its the cost of processing mails, security printing, sorting, mailing, handling return mails, lost mails etc. ask companies that process dividends, they should know better. I used to handled them before I know. If they save money for the EPFs and the likes, I'm all for it. Not sure whether you do

some of your other comments about making superprofits, my comment, if they help these bodies to save why not, why enrich the printing Cos. anyway thats the mode of the past. You want to live in the future not the past. I dont see it as Robbing, when they help EPFs and the like save money

(Yea, Faddy, the poor taxpayer will never know what hit them if the per email cost is 50 sen and runs forever, even Samy Vellu will say "Wah, like that also can aaahhhh, how come my tolls cannot one!!!). Comment, the poor tax payer is being hit with the high cost of processing manual mails hitting an RM or so (I know how much it cost, cause I have process such mails before)

panaceaasia said...

There are certain parties that bought the share price was in the doldrums. It was trading at 4-4.5sen for the longest time at the first quarter of the year. My guess is that these parties sold at about 30sen thereby netting about a few million ringgit.

ThomasKG said...

Well said. Its another confirmation that we have monkeys running our affairs. I hope the public will wake up and turn the tables at the next GE

Gabrielle said...

Gabby said...

Why can't the government use the newspaper, TV media, the radios and its websites to disseminate news / important things to its rakyat?

Why Tricube?

Why not getting Maxis, Digi and TM to do the job at nominal charges since these big guys have all that it takes to deliver the messages?

The answer is just too obvious for any IDIOT to figure out!!!

Bloody UMNOputras squeezing more taxpayers money thru all these so called BENEFICIAL national project,shameless liars & hypocrites!!! Still got the guts to face your God?

We will make sure we vote you out as soon as we can.

rance said...

So time to come, all communications from gov. n vice-versa will be via e-mail.Ah ...

syakir said...

Paid Deal

If you can really provide a Public Key Infrastructure, myKad-authenticated, whitelist-guaranteed email service delivering hundreds thousands to million messages to 20 million people monthly at only $17k annually with a one-off cost of less than $1 million, please tell me how can I contact you.

lets talk business.

jackson said...

"Tricubes has said it is collaborating with Hotmail service owner Microsoft Corp for the project but no provided no details."

Ali baba, ali baba.. sing along my fellow malaysians.. ali baba, ali baba.

Everyday the government is thinking of new way to steal the people's money. ali baba... ali baba.

tanhc said...

How about an analysis of all the taxpayers in this country? By age, by race, by gender, by occupation and what-have-you...
Then we will know who are the ones actually funding and bailing out Tricubes.
Furthermore, have another analysis of the real shareholders and their proxies in Tricubes to get a better picture of the real beneficiaries of this grandiose project...
But as pointed out above, the very mention of the launch of this deal has already enriched a bunch of wolves...
Can we rely on SC to haul up any insider traders if there is any???

ktsk88 said...

Heard from some source that the 2nd largest shreholders in Tcubes is Nazir Razak (CIMB Group CEO), means our PM brother's.

Can someone verify this and made it known public.


totally stupid.. darn it

tanhc said...

It's all over the Chinese papers today that CIMB indirectly holds 15% stake in this GN3 company thro Commerce Technology Ventures.
Looks like Bolehland never fails in its hospitality...providing another topic of conversation for the world...and once more rejoicing in being a laughing-stock all over again...
Are the people fools enough to want to salvage this sinking, sampan?

Mohd said...

Microsoft just loughs out loud while walks in to the bank, 'easy money' they said. In IT, there's nothing secured. What if someday the company decide to go private and sell the database to others? To foreign countries? Come on, even epf n irb can send it directly to my email at no cost. If they realy want to do it still, just ask those govt IT staff who just sit back n relax all day long to do it. Shameful act of conflict of interest!

Shadow said...

Tricubes just mentioned that the push email of less then 50c each is to be borne by govt agency using the service. And where do these agencies get their money?? This is a private initiative??

abe said...

Hello Dali,

I would like to correct some misconception regarding this 1Malaysia email issue.

1) Public emails such as Gmail have secure session. Meaning while you're logged in, your session is encrypted and safe from breach.

However, the emails themselves are not encrypted. Meaning when you send out your email, while it is traveling through servers to its destination, your email is unprotected and is vulnerable to eavesdropper. The implication for government agencies if they switch to sending documents via unencrypted email, they could find a list of all Malaysians' notices/statements/bills on

2) What myEmail (the official name of Tricubes' service) plans to do is send encrypted email that can only be decrypted using the user's myKad as the authentication device. I am not sure the exact method. But it would mean each user will have its own customized encryption that algorithm only myEmail knows. In the industry, they call this Public Key Infrastructure (PKI) email.

3) With 20 million people, myEmail will probably be the largest PKI in the world.

4) The cost of 50 sen/email-attached-document is reasonable. Note that I term it email-attached-document -- because for message->reply correspondence, 50 sen would be excessive, but for secure document transfer it is fair.

Is such a level of security and authentication really necessary? This is an issue governments struggle with in going paperless. Having lived in the US for a couple of years, I receive my statements through snail mail. As a matter of fact, the IRS don't even use email for communication.

I do hope I have clarified some issues people ask.

anyways thank you for the blog. great source for investment and hot abbes. :D