Debacle over privatisation of Penang port

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This is a media statement just released by Aliran:

Here’s another example of how privatisation has not benefited the people.

In 2014, Penang Port Sdn Bhd was privatised to Syed Mokhtar Albukhary’s Seaport Terminal (Johore) Sdn Bhd in a restricted tender for RM170m – a figure that was described as “low” – even though the Penang state government had expressed interest in taking over the port.

Barely three years on, Penang Port Sdn Bhd is now being sold to listed MMC Corp Bhd (which is 52 per cent owned by Seaport Terminal) for RM420m. This means Syed Mokhtar’s Seaport Terminal makes an easy profit of RM210m by flipping the port, which reportedly has over RM1.2bn in debt, over to a listed company.

The profits from Penang Port (last year profit after tax was RM67m) have been effectively “privatised”.

But the dredging of Penang port, estimated to cost around RM350m, has not yet been done. The Penang state government is crying foul as it claims Seaport Terminal was supposed to see to the dredging to deepen the port waters from 11m to 15m. The deepening of the Penang channel was deemed necessary so that larger ships could call at the port.

Did Penang lose out to other major ports in the country, including the Port of Tanjung Pelapas, which falls under Syed Mokhtar’s empire, because the dredging has not yet been carried out?

Full statement on Aliran website

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11 Comments on "Debacle over privatisation of Penang port"

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glissantia
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glissantia

Even frequent, free buses and ferries would be far, far cheaper (net) for the public, besides being a great boost for tourism and health. Do you think the authorities and con-sultants don’t know this?

After the claim that the “privatisation” of Proton meant no more rescues, super enterpreuner Syed Mokhtar Albukhary managed to run it into the ground despite its outrageous exemptions. Yet, he has lost nothing. Instead, the gomen and the new partner paid off his suppliers and bank loans. Instead of being ashamed, he commented that his holding co. is still the majority owner.

Jerome
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Jerome

Najib & family are now taking public transportation?
https://m.malaysiakini.com/news/388333

Max
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Max

KAJANG MOVE with BN having a big share must provide free rides who ever travelling from Kajang Station. If the real meaning of KAJANG MOVE than this should be seen. Just do not talk, walk the talk. Any commitment from BN and see the MRT carry out the service.

Horace
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Horace

PAS is going for Permatang Pauh move.

tunglang
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tunglang
Privatisation is an opportunity (for a crony) to buy (cheap) & sell (high) & make super-profit. A crony doesn’t intend to work hard nor reinvent a company into profit-making. So, in the context of Penang Port, do you think they care for Penangites? All those talks about improving transportation to win over Penangites (before GE14) are but bluffs (after the fact of what happened to Penang Port & Ferry service). Penang CAT gomen should be more wary of them coming in simply to take over public utilities & services & subsequently privatise them for a song. This is ‘disruptive’ art… Read more »
rajraman666
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rajraman666

1.2 billion debt by his company but personally his bank account he can retired wiithout paying.His extended generation can retire now.

The profits he made (may) cover some of MO1 expenses and in return MO1 (could) bail him when times comes with tax payer $$$.

rajraman.Opposition run state is Enemy of UMNO.So no $$$ or development will be funded although tax payer is paying.Tax payer $$$ belong to UMNO COFFIN.How they spend it Opposition can’t bring them to court to get justice.

Omar
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Omar

Syed Mokhtar is the typical OKU (Orang Kaya Umno) – he is also an agent to help distribute the wealth from government contracts to others.

Jerome
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Jerome

Why is Najib not at G20 summit in Germany, but holidaying in Perth?