Pos Malaysia hopes to land fuel subsidy scheme contract

Post Malaysia Bhd group chief executive officer Datuk Iskandar Mizal Mahmood said Pos Malaysia has a competitive advantage in terms of its vast network throughout the country to register participants for the programme. – The Edge Financial Daily pic, September 5, 2014.

Pos Malaysia Bhd – which has been rumoured to partner Datasonic Group Bhd to manage the government’s fuel subsidy rationalisation programme via Fuelsubs House Sdn Bhd – is “hopeful” that it will bag the contract once the request for proposal (RFP) is issued by the government.

Its group chief executive officer, Datuk Iskandar Mizal Mahmood, said Pos Malaysia will work hard to put in a good proposal to the government once the RFP is issued.

“At this point in time, it is too premature for me to comment as the RFP has not been issued and we do not know when the government wants to implement it. I wouldn’t say that we are confident to receive the contract, but we are certainly hopeful,” Iskandar told reporters after Pos Malaysia’s 22nd annual general meeting yesterday.

He said Pos Malaysia has a competitive advantage in terms of its vast network throughout the country to register participants for the programme.

Pos Malaysia, he said, has learnt that the government – through the Economic Planning Unit – is looking to issue the RFP at a date to be announced later.

However, he said that Pos Malaysia’s role in the fuel subsidy rationalisation project would be limited to processing registration and rebate.

The Edge Financial Daily, quoting sources, reported on August 19 that the government had held back the award of contract for the management of the proposed fuel subsidy rationalisation programme. The delay, it added, was because some in the government were concerned that awarding the contract via direct negotiation would raise the question of objectivity.

The fuel subsidy scheme entails the implementation of a selective fuel subsidy programme that targets the lower-income groups.

Meanwhile, Iskandar said Pos Malaysia has always looked for mergers and acquisitions opportunities to expand the group. But until such an opportunity arises, the group will continue to collaborate with domestic and overseas partners.

On the group’s performance in the first quarter ended June 30, 2014  in which nett profit fell 38% to RM27.11 million from RM43.68 million a year ago, Iskandar said it should pick up in the fourth quarter.

“The results in the first quarter last year was higher due to [the] one-off contribution from the general election. On the other hand, the first-quarter result is always the lowest results. You will see it pick up in the fourth quarter,” he said.

On capital expenditure, Iskandar said the group has allocated “higher than RM150 million” to enhance operations, which will include acquiring a new fleet of vehicles to replace its aging ones. It will also look into creating mobile applications. – The Edge Financial Daily