Piratization of KTMB

by Dr R@28

• It was reported that government plans to privatize KTMB. The company today is a GLC which is a corporatize entity. It is a company with huge land bank outside KL. Most of its land bank in KL has been traded away at unreasonably low price back in in the mid and late 1990’s. Today their largest land bank at Brickfields and Sentul is in private hands and has been developed. The new owners were smart enough on how to amplify the land value. It appears as if the government cannot do it or as it has no skills and brains to do so.

• Why is it the government has to sell of and develop all its land bank? A few months ago I was told that MOH is finalizing the sale of IKU land in Bangsar with SP Setia. That is the last piece of low-density land there is in that area. Once it falls into private hands, it will be transformed to a high-density development. Is development is about quality of life of having more modern buildings? Today the government is talking about KTMB? What about tomorrow?

• What exactly is wrong with KTMB? The way I see it, the politicians with lack of professional skills are running the show. The senior management of the company lacks helicopter view and the board consists of political appointee with limited independence. The government doesn’t need to sell KTMB. What it need is a professional board with a strong CEO who can appreciate the big picture. With huge assets, raising money is least of the concern. It needs a strong business model. The rail line alone has value. Many operators can use. The demand for rail services is on the rise. Intra-city and intercity rail link is becoming more important in improving quality of life and movement of people. We need to change this government.