Protecting the goose that lays golden eggs

At a cumulative RM19.5 billion and amid a future of high-investment requirement, the gas subsidy amount incurred by Petronas may well weigh the oil company down

ABOUT 45 per cent of the government's revenue is derived from Petronas. Which makes it imperative that we read between the lines every time Petronas presents its annual financial results.

Strains are beginning to show as although Petronas reported an 18.4 per cent increase in revenue to RM264.2 billion for its year to March 2009, its net profit dropped 14 per cent to RM52.5 billion.

Nothing seems to be wrong with Petronas' operations as it generated more revenue last year than the year before. But the problem is in what lies between revenue and its bottom line numbers.

Although the long-term scenario remains bullish as energy use is expected to continue increasing, largely due to improved living standards and growing world population, that does not mean companies like Petronas can sit pretty and continue to expect astronomical profits.

Striking economically-viable oil reserves is becoming an increasingly challenging, apart from expensive, proposition. Oil reserves are generally located farther offshore and deeper underground. Higher amount of investments would be needed to drill for the mineral, and since Petronas is now an international player, it will have to compete with other oil companies.

However, Petronas' profit made available for reinvestment in its just-ended financial year was lower at 21.1 per cent compared with 34.8 per cent previously, while other oil majors reinvested more at 57.1 per cent against 51.7 per cent before. Profit of national oil companies available for reinvestments was as high as 72.9 per cent last year.

Can Petronas continue to be competitive by such relatively low reinvestment of its profits compared to those of its rivals'? Talking to Petronas chief Tan Sri Hassan Marican on Thursday, his body language indicated of his want to say something like, "that's all we have", although he did not elaborate on the subject

In total, Petronas pays a total of RM74 billion to state and federal governments in its 2009 financial year against RM61.6 billion previously. This should not be an issue since Petronas is a government-owned oil corporation. Perhaps, the item one should look into would be the RM19.5 billion gas subsidy it incurred during the year.

The largest recipients of gas subsidy in Petronas' last financial year were still the independent power producers (IPPs). IPPs got a total of RM7.3 billion in gas subsidy from Petronas, even higher than the amount received by national power company Tenaga Nasional Bhd (RM5.4 billion) and the entire non-power sector (RM6.8 billion). One may call it "a national service", but at a cumulative RM19.5 billion and amid a future of high-investment requirement, the subsidy amount incurred by Petronas may well weigh the oil company down.

Although Malaysia has been using energy subsidies, among others, to attract foreign direct investments into the country, at some point, a balance must be struck between providing such incentives and protecting our own revenue stream. As a 45 per cent contributor to the government's revenue, Petronas is, without a doubt, the goose that lays the golden eggs. Don't kill it.

Downturn making 58% Malaysian professionals work harder, longer hours

KUALA LUMPUR: The economic downturn is making most Malaysian professionals work up to 10 hours more a week, a survey by international recruitment consultancy Robert Walters found recently.

Twenty-five percent of respondents from Malaysia claim they were putting in between eight and 10 hours overtime a week because of the downturn. They were among the 58% who said they are clocking at least an hour more a week, although a good number of people (42%) say their working hours remain the same – downturn or no downturn.

The findings were from an online web poll where professional candidates from 17 countries including Japan, Singapore and China, were asked whether they were working harder as a result of the downturn, Robert Walters said in a statement dated June 15. It did not specify how many of the total 2,600 respondents were from Malaysia.

“You might expect people to work harder in a recession but what is interesting is the amount of extra hours professionals are working. The fear of redundancy obviously has an effect; many people feel that by putting in more hours, they will be less likely to lose their jobs should further cost cutting prove necessary. In addition, where job cuts have already taken place, those left are inevitably required to take on more work,” Ross Mckenzie, country manager of Robert Walters Malaysia said.

Professionals in Hong Kong seemed to be hardest hit by the downturn and were found to be working the longest hours. One third of respondents (33%) said they were working on average between 8 and 10 hours per week, the survey found.

Some 23% of respondents in Singapore and Japan claimed to be working between eight to 10 hours extra a week, slightly better than Malaysia, but less cushier compared to the 20% in China and Thailand.

In Thailand, however, only 8% of the respondents say they are working the same number of hours following the downturn.

Globally, 55% of some 2,600 respondents said they were working more hours per week: 24% of respondents said they were putting in at least three hours extra per week and one fifth (21%) of all respondents said they were staying in the office between eight and 10 hours more per week.

Rayuan Membebaskan Adik Saya - Lau Kok Siong

Kepada Menteri Dalam Negeri Yang Dihormati,

Saya, abang kepada Lau Kok Siong, ingin mengadu dan membuat rayuan di mana seorang insan yang tidak berdosa telah ditahan dan dipenjarakan tanpa perbicaraan.

By Lau Wee Liang

Saya memohon pihak kementerian dapat membebaskan adik saya secepat mungkin.

Disebabkan kes ini, kesihatan emak saya semakin terjejas.

Saya amat kesal dengan sistem perundangan Malaysia yang kini sudah disalahgunakan oleh pihak yang tertentu.

Sistem perundangan yang saya maksudkan adalah ISA.

Adik saya, Lau Kok Siong, banyak kali diganggu oleh dua tiga kerat polis Kluang pada awal 2008 di mana polis yang berkenaan hendak adik saya mangaku sesuatu kegiatan yang tidak dilakukan olehnya.

Kegiatan yang saya maksudkan adalah menjual extasy.

Polis berkenaan juga banyak kali serbu masuk rumah keluarga saya malah juga banyak kali menahan kereta yang dipandu oleh adik saya untuk membuat pemeriksaan teliti.

Dalam banyak kali pemeriksaan, tiada sebarang bukti (drug) telah ditemui.

Akhirnya, adik saya masih ditangkap dan dilokap di balai polis Kluang selama 60 hari dan setelah itu terus dipenjarakan di Batu Gajah Ipoh hampir setahun sehingga sekarang.

Bila keluarga saya menanya kepada pihak berkuasa atas sebab apa adik saya ditahan.

Jawapan yang diberi adalah polis dapat maklumat dari pihak ketiga bahawa adik saya mejalani kegiatan menjual extasy.

Kalau hanya sekadar dengar tanpa sebarang bukti, adakah seseorang boleh ditahan dengan ISA begitu saja???

Kalau begitu, di mana sistem kehakiman negara kita?

Kalau polis hendak menangkap seorang rakyat biasa tapi tiada sebarang bukti dan tidak perlu juga dibawa ke mahkamah untuk pembicaraan, adakah ini munasabah?

Keadilan di mana? Hak membela diri di mana? Adakah negara kita masih bertamaddun?

Kalau begitu, pihak polis boleh menggunakan ISA untuk menangkap sewenang-wenangnya jika penyiasatan polis sudah menemui jalan buntut?

Adik saya bukan pembunuh, bukan pengganas, bukan pengacau yang boleh mengugat ketenteraman negara, mengapa dia ditahan dengan ISA??

Adik saya ditangkap dengan ISA hanya kerana pihak polis sudah menemui jalan buntut??

Dengan tulus ikhlasnya, saya memohon jasa baik pihak Kementerian Dalam Negeri mempertimbangkan rayuan saya, masuk campur dan meneliti semula asal-usul kes adik saya.

Janganlah jadi adik saya atau mana-mana insan di Malaysia sebagai mangsa yang tidak bersalah dan berdosa untuk pihak yang tertentu.

Sekian, terima kasih.


p/s : Kepada sesiapa yang menerima email ini, tolonglah menghubungi saya untuk memberi bantuan dan nasihat dari segi undang-undang kerana pernah pergi cari peguam dan dato-dato tempatan tapi perlu membayar 25 ribu ringgit sebagai "service charge". Juga pernah pergi cari bantuan polis yang berpangkat, sama juga keluarga saya diminta bayar berpuluh ringgit untuk melepaskan adik saya. Walaupun berpuluh ringgit itu, belum pasti adik saya boleh dilepaskan.
Seolahnya, polis yang dibayar gaji bukan berkhimat menjaga keamanan dan keselamatan rakyat malah mengambil kesempatan menangkap sesiapa saja untuk mendapatkan wang kopi.

Mungkin bukan semua polis begitu tapi kebanyakannya.

Mafia’ muscles in on Twitter

SAN FRANCISCO: Twitter Inc’s founders still haven’t decided how to cash in on their popular Internet messaging service — to the delight of a rapidly growing audience. But the deliberate approach may not prevent a gold rush among opportunistic outsiders.

Lolplaying, the maker of a new role-playing game on Twitter called 140 Mafia, is trying to explore Twitter’s moneymaking potential with Super Rewards, a “virtual currency” service that has been reaping revenue from various forms of online recreation.

The alliance is being announced soon at a social gaming conference here.

Super Rewards gives players of online and mobile games ways to gain the upper hand against their opponents. The price: A fee, or a willingness to accept offers from advertisers.

It’s already proven to be a lucrative model at Facebook and MySpace, as well as on the iPhone. Now Super Rewards co-founder Jason Bailey is confident it will pay off on Twitter as 140 Mafia attracts more players.

He is already impressed with the results since Super Rewards quietly began selling extra points and additional powers to “tweeple” this month when 140 Mafia’s text-based take on organised crime made its Twitter debut.

“I’m already making more money from Twitter than Twitter is itself,” Bailey boasted. And Bailey figures other programmers who have designed games and other applications for the service will be scrambling to capitalise on their innovations.

If that happens, Bailey thinks Twitter will need to impose more controls over the external applications and perhaps even demand a cut of the sales — an approach that Apple Inc has embraced for its iPhone.

No comment

Twitter co-founder Biz Stone didn’t respond to a request for comment. He has previously emphasised the San Francisco-based startup doesn’t need to generate revenue right now, partly because it still has most of the US$55mil (RM198mil) that it raised from venture capitalists.

Super Rewards doesn’t need any venture capital, according to Bailey, who said the 40-employee company is on pace to reach US$100mil (RM360mil) in revenue this year. Super Rewards shares some of its revenue with game makers.

Most people pay Super Rewards about US$10 (RM36) for a competitive advantage, but some game players have forked over thousands of dollars, Bailey said.

“It’s all about ego and status for them,” he said. “Clearly, some people have more money than brains.” — AP

Teaching of maths and science in English a flop

KUALA LUMPUR, June 23 — The teaching of maths and science in English the last six years has not improved the performance of students in those subjects, the education minister admitted today.

“There have been changes but the difference is nominal,” said Tan Sri Muhyiddin Yassin.

He said there had only been a two to three per cent change since the policy was implemented in 2003.

The deputy prime minister was responding to a supplementary question by DAP’s Tan Seng Giaw in Parliament.

The Kepong MP said the policy had been in existence for six years and asked for the reports on its effectiveness to be made public.

The education minister also said that the government, after much delay, will make a decision on the issue by next month. It is expected to continue with the programme, while finding ways to accommodate differing views.

Muhyiddin's reply drew flak from opposition MPs, who accused the government of negligence for its refusal to shut the policy down despite admitting to having problems in implementing it.

Shah Alam MP Khalid Samad from PAS said it was obvious in the minister's response that the government is not fully prepared for the implementation of the policy and students are being victimised as a result.

"It is apparent that they are not fully prepared for this and have not taken into account the implication and the repercussion," he told a press conference in Parliament.

He added that it was absurd that the government realised the programme's failure only after six years it has been implemented.

"Don't make our children guinea pigs," said Khalid, adding that teaching maths and science in English won't upgrade students' English quality, suggesting that it would be better for the government to focus on getting the best teachers to teach the international language instead.

Duo held in Nurin case sue cops and govt

KUALA LUMPUR: A textile shop owner and his brother-in-law, who were suspects in the Nurin Jazlin Jazimin abduction and murder two years ago, are suing the Government and police for wrongful arrest and trespass.

Mohamad Zamri Ibrahim, 35, and former engineer, Mohd Suhaimi Yusoff, 30, claimed that they want to clear their names which were tarnished due to the arrest and detention.

Zamri said he had been traumatised over the incident and wanted to file the suit to uphold the dignity of his family.

He said police should have checked their family and education background before making the arrest which had brought him embarrassment, trauma and pain.

The father of three claimed they were arrested due to a text message that had been sent out by certain quarters to frame them.

“We regret the manner in which police arrested and assaulted us following public pressure to settle the Nurin case. We want people to know that we are not involved at all in this high profile case and clear their misconceptions against us,” he told reporters after the filing Friday.

Eight-year-old Nurin went missing on Aug 20, 2007 after going to a night market alone near her home in Wangsa Maju. Her naked body was found stuffed in a sports bag and left outside a shoplot in Petaling Utama on Sept 17, 2007.

Zamri said his accountant wife, Norhaniyah Yusof, 35, was eight-months pregnant when she was asked by the police to follow them in another car in order to record her statement over the case.

Norhaniyah said her brother, Suhaimi, had not recovered from the incident.

Their lawyer Azmer Md Saad filed the suit at the Sessions Court civil registry at 9:19am on Friday.

“We want the court to assess the damages, costs and relief over the matter, but it will not be more than RM250,000,” said Azmer.

The two plaintiffs had named investigating officer ASP Loh Pei Pei, the Inspector-General of Police and the Government as defendants.

In a statement of claim filed Friday, Zamri said he was pulled out of his car by the police at 11:30pm on Sept 27, 2007, handcuffed and beaten up.

In a statement of claim also filed on Friday, Suhaimi stated that a man who introduced himself as a policeman had pointed a pistol to him when he was working at Zamri’s textile shop in Shah Alam on that day.

Suhaimi claimed that he was slapped and assaulted by the police, causing him severe pain.

The policemen, he said, kept asking him where he had allegedly kept an obscene VCD and where Nurin was being confined. Suhaimi said he was hit by the policemen although he told them he was unaware of Nurin’s whereabouts.

He said he was informed by ASP Loh that he was a suspect in the murder and was interrogated for several hours before being taken to Bukit Aman to be remanded.

He also said he had complained to a magistrate over the assault and was referred to Kuala Lumpur Hospital for treatment. He lodged a police report on Sept 29, 2007.

The world’s highest-paid athletes

Eight months on the shelf after knee surgery put a severe dent in his prize money, and killed his overseas appearance fees. One of his main sponsors walked away a year before their agreement was set to expire.

Yet Tiger Woods remains sports’ highest earner with an annual income two and a half times larger than his closest competitor. The world’s top golfer made $110 million during the past 12 months and is the best-paid sportsman for the eighth straight year.

Woods’ knee injury caused his prize money to drop to $5 million from $25 million, but his overall earnings only fell $5 million thanks to an expansion of Woods’ non-playing financial empire.

PepsiCo launched Gatorade Tiger last year in March with claims that it “helps focus your mind and your body.” Woods receives a cut of sales for the four flavors sold under his name. When General Motors’ problems caused Buick to terminate its $8 million a year deal with Woods one year early, the Woods camp moved quickly to sign a deal with AT&T to put the phone company’s brand on his golf bag in Buick’s place.

Nike is by far Woods’ biggest benefactor with an annual payday of more than $30 million for the golfer. Woods profits from the success of the company’s golf division, and last year sales for Nike Golf hit a record $725 million. Woods’ most lucrative new endeavor is his golf course design business. Last year he announced plans for a third course to be built in Mexico. His other courses in Dubai and North Carolina are currently under construction.

Our list of the highest-paid athletes looks at earnings derived from salaries, bonuses, prize money, endorsements and licensing income between June 2008 and June 2009 and does not deduct for taxes or agents’ fees. Overall, the top 20 earned $789 million, down 1 percent from last year. The cutoff to make the list was $30 million.

Drop-offs from last year include boxer Floyd Mayweather (has not fought since December 2007), NFL players Ben Roethlisberger and Dwight Freeney (both made the 2008 list after inking contracts with big signing bonuses) and Formula One driver Fernando Alonso (just missed the cut).

The highest-ranking of the four newcomers to the list is boxer Manny Pacquiao who earned $40 million over the last year, tied for the sixth most. Pacquiao cemented his claim as the world’s best pound-for-pound fighter with convincing knockouts of Oscar De La Hoya in December and Ricky Hatton in May. The two blockbuster fights garnered more than 2 million pay-per-view buys in the U.S. and earned Pac-Man $30 million combined.

Pacquiao’s massive popularity in his native Philippines is why companies like Nike and San Miguel beer have signed him to endorse their products. Pacquiao intends to use that popularity to run for political office when his ring career is over.

Our 20 highest earners have a very international flavor with Pacquiao one of eight non-Americans on the list. Finnish Formula One driver Kimi Raikkonen earned $45 million over the past year, tied for second on our list with hoop legends Michael Jordan and Kobe Bryant. Right behind that trio is global icon David Beckham who earned $42 million playing for the Los Angeles Galaxy and AC Milan, while shilling for Adidas, Giorgio Armani and Motorola.

Notable omission: the entire NFL, which didn’t place anyone in the top 20 despite being the world’s richest sports league. The league’s salary cap keeps a lid on individual player salaries, and few players outside of Peyton Manning collect big endorsement deals. The top NFL earner during the past 12 months was Oakland Raiders cornerback Nnamdi Asomugha who made $22 million, mainly as a result of the three-year, $45 million contract he signed in February.