TRANSIT took note of the following article, which states that the Railwaymen’s Union has objected to the setting up of a separate subsidiary for the ETS service which will be offered by KTM beginning in March 2010.
17 December 2009
PETALING JAYA: The Railwaymen’s Union of Malaysia has objected to plans to set up a subsidiary company for KTM Bhd’s (KTMB) Electric Train Set (ETS).
Union president Abdul Razak Md Hassan said this was an “unwise move” that would not only affect KTMB’s core business but also liquidate its revenue, as it would be channelled to the subsidiary.
“We strongly object to the KTMB management’s decision to create an ETS subsidiary. It is also not practical as there are only five ETS sets.
“There is no need for a subsidiary. The KTMB management can set up a new department or a new strategy business unit by just appointing a managing director to oversee the ETS unit.
“This will not only save administration costs but also increase KTMB’s revenue,” he said in a statement yesterday.
Abdul Razak also listed 14 reasons and claims why the move should be shot down, including the fact that the government allocation was to KTMB and not to any subsidiary.
The union, Abdul Razak said, was appealing to Prime Minister Datuk Seri Najib Tun Razak to step in and help resolve the issue, adding that an objection letter was sent to the KTMB president, Najib and Members of Parliament.
We understand the nature of the complaint from the Railwaymen’s Union and would like to read the 14 reasons why the setting up of the ETS Sdn. Bhd. subsidiary is an unwise move before we comment.
For the moment, we understand that the decision by KTMB’s president Dr. Aminuddin is in line with the government’s goal of corporatization and eventual privatization of KTMB.
As Dr. Aminuddin mentioned, he is willing to see KTMB’s monopoly liberalized and rail services opened to competition if it means better services for the commuters.
At the same time, TRANSIT expresses our concerns about the pace of liberalization. There is evidence from Europe and the UK (which we have mentioned to Dr. Aminuddin) which shows the advantages and disadvantages of deregulation of the monopoly and introducing competition into the marketplace.
We invite Union president Abdul Razak Md Hassan to contact TRANSIT and share a copy of their memo regarding the ETS Subsidiary so we can discuss the issue with greater knowledge.
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