Tuesday 4 May 2010

Is Asas Serba's proposal really workable?

Good analysis--> Is Asas Serba's proposal really workable? I find your 'concerns' quite reasonable. Though Ibrahim Bidin is an experienced Toll Expert and entrepreneur, [I know him well from our Manila days], taking over the toll business from disparate parties with their own reasons for desiring their own toll business, consolidating various suppliers of equipment, technology may present more problems than solutions. it may also be seen that the Govt is 'trying to twist' the arms of the smaller players, and drive the smaller suppliers out of business? Reducing the toll by 20% is commendable, but more can be given.

However, the reply that was given to the concern that Asas Serba may not maintain the roads well is patronising. I quote... ".. There’s also concern that Asas Serba may not maintain the highways as well as the current operators. Asas Serba director Ibrahim Bidin said market forces would dictate that they would. “If we don’t, the number of highway users would drop and our toll collections will decline. Our bondholders would then come after us.....” To me, it would be a horrible time for Malaysian road users, if in the near future, Asas Serba really neglected to maintain the roads in the same condition as now, what will be the traffic situation on the roads if the road users avoid potholed tolled roads and use the free Federal Roads? Can you imagine the jams that we will be having? The whole country will be gridlocked!!! It would be better for the Govt {in the event it accepts Asas Serba's offer} to write into the takeover agreements some form of punitive punishment for Asas Serba in the event of non compliance of conditions, and not accept such a flippant reply.

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