Showing posts with label privatization under Mahathir. Show all posts
Showing posts with label privatization under Mahathir. Show all posts

Tuesday, April 17, 2012

The Interminable & Indeterminable Talkin’ Telekom Blues

Just got back online after another 4-day breakdown in phone & internet services. This is a tribute of sorts to Telekom Malaysia...



My childhood memories of Telekom go back to a time when it was still called Pejabat Telecoms and served the public as a government department. Those were days when you would find a big room full of telephone operators tasked with connecting one customer to another. When you picked up the phone, you would hear a sweet female voice saying: “Telecoms. Can I help you?” You would tell her the number or give her a name and address – and she would say, “Just a minute!” before connecting you. At night, you'd hear a male voice.

Later telephones came with a built-in dialer so you could make local calls directly without going through the operator – but for overseas calls you had to dial 108 and the operator would call you back when the connection was made. I didn’t have any personal dealings with Telecoms as a kid – although I met a telephone operator at a party and enjoyed a bit of harmless adolescent flirting whenever she happened to pick up my call.

My negative perception of Telekom Malaysia began in the mid-1970s when I first applied for a telephone account under my own name. I was told I would have to wait for lines to become available in my area. I wasn’t living in Puchong or Nibong Tebal at the time – I was smack in KL’s diplomatic enclave - 7 Pesiaran Ampang Hilir, just across the road from the Swiss ambassador’s residence.  I couldn’t believe there was a shortage of telephone lines in this prestigious area.

So I wrote a long but courteous and helpful letter to the Minister of Postal Services and Telecommunications. Dead silence from yet another rude and unresponsive public servant. In his shoes, I would have invited the writer of that letter to a personal meeting – and offered him a contract to help upgrade telephone services and improve the public image of Telekom Malaysia.

At the time I had just taken over as sole proprietor of a partnership company I had started in 1974 with two other friends. A phone was crucial to working from home. Without this basic lifeline I was forced to depend on public phones and messages left at a friend’s office. After more than a year struggling to keep the company going, I was offered a full-time job in a big advertising agency and decided to accept. Fortunately I had only one employee and he was very understanding when I explained that I was folding up the company.

The phone line was finally installed, nearly two years later, when I no longer urgently needed it.

Recently I attempted to work out an approximation of how much I have paid since 1976 for the use of the basic telephone – a communication tool that has been around since 1876, though telecommunications only became a viable industry many decades later. It’s hard to get a precise figure because the fluctuations over the years have been dramatic (ranging from an average of, say, M$36 a month in the 1970s to as much M$800 in the 1980s when I acquired a taste for long-distance girlfriends). A conservative estimate would be something like RM60,000 – but it wouldn’t surprise me if the actual amount topped RM100,000.

In May 2002 I optimistically applied for a land line when I relocated from Kuala Kubu Bharu town to Pertak Village about 8 miles up the Fraser’s Hill road. I was told no lines were available – the area was too remote. I wrote several letters to editors of various newspapers lamenting the poor attitude of Telekom Malaysia. None ever saw the light of day.

When Mahathir privatized the phone company in 1987, Syarikat Telekom Malaysia Berhad inherited the existing infrastructure along with all existing customers, which must have numbered in the millions. The company, even though now a profit-making enterprise, had a moral obligation to provide telecommunication services to all Malaysians, regardless of their location.

If Telekom Malaysia had been farsighted, it would have invested at the outset in wireless telephony using communications satellites. Instead, the company opted for optic fiber cables, which they installed piecemeal – so that the high-end urban customers were able to enjoy broadband services while low-end rural users had to settle for the existing copper cable network. The result was a haphazard, piecemeal telecommunications system fraught with maintenance problems, connectivity issues, and extremely patchy service.

Three years after I applied for a phone line I noticed that telephone posts were being erected along the Fraser’s Hill road from KKB. Eventually the posts reached the entrance of Pertak Village – and then stopped. Ever hopeful, I enquired at the KKB Kedai Telekom about the prospects of finally getting some service. I was informed that there was no plan to pull a line into the village just to serve one customer.

I pointed out that the telephone posts had reached right to the entrance of the village - and my house was only a few hundred yards away. “Oh, that’s for the exclusive use of the Sultan,” I was told. I was incredulous. TM had just spent close to a million ringgit setting up an optic fiber line to the Sultan’s weekend lodge and they weren’t bothered to satisfy one paying customer by extending the line a short distance further…

Sultan Sharafuddin Idris Shah
This prompted a letter to the Sultan of Selangor, c.c.’ed to a couple of dailies and the CEO of TM, pointing out the absurdity of the situation: TM had bent over backwards to provide a broadband connection to someone who only required it on very rare occasions and probably never had to pay his phone bills - yet they were unable or unwilling to extend the service to a regular paying customer. The silence was deafening.

For three years I had been going to a local internet café on a daily basis, spending RM4-10 each time, and on top of that I had to fork out an additional RM60 a month on prepaid mobile top-ups. One afternoon at the internet café, somebody approached me, requesting that I park my van a little further down the road (it was right in front of the MIC branch office).

G. Palanivel
“What’s going on, why are so many people coming to the MIC office?” I asked. I was told the deputy minister of rural development, Dato’ G. Palanivel, was arriving soon to meet his constituents. When I finished my session, I noticed there were still a lot of people milling around the MIC office. On impulse I went up the stairs and asked to talk to Palanivel.

I explained my telephone woes to the deputy minister, who responded by asking me to exchange mobile numbers with Mr Rama, his personal assistant, who was tasked with following up on our brief discussion. To my utter surprise I got a call from Rama the very next day, informing me that his boss would be in the vicinity the following Monday and asking if I would be at home because the Dato’ was thinking of dropping by. “Most certainly I will be waiting for him,” I said.

I had anticipated that Palanivel would arrive with a small entourage – but I burst out laughing when I saw that he was accompanied by a large convoy of vehicles, including a Bernama TV crew and a clutch of reporters from the vernacular press. Also in spritely attendance were officials from the Rawang branch of Telekom Malaysia, a couple of JKR engineers, and two senior JHEOA officers.

“Ah, Dato’ Palanivel, how sweet of you to come all the way here,” I smiled. “Sorry, we have a very tiny veranda and can’t accommodate everybody.” So, while Palanivel and the media corps crowded round the table on my veranda for an impromptu press conference, the rest of his entourage milled about the village. With cameras flashing and rolling, Palanivel declared that it was unacceptable that there wasn’t even a public telephone in Pertak Village for use in case of emergencies. He announced that within two weeks he wanted a couple of solar-powered payphones installed – one near the sundry shop and the other in front of the headman’s house. After that, he continued, we will see to it that a proper line is pulled in.

True to his word, the solar-powered payphones were installed within a couple of weeks. It took several more months for the copper line to be set up. When a TM technical crew arrived shortly afterwards to install my land line, they sheepishly told me the copper line was two poles short of my house, and that it would take another few weeks before they could extend it.

And so it passed that after a 3-year wait, I finally got the land line I had applied for in May 2002. However, I had to wait another 18 months before my Streamyx account was activated at the end of July 2006.

For his prompt action in facilitating my phone line, I will always have a kind word for G. Palanivel. He struck me as a savvy, down-to-earth politician, who immediately saw my complaint as an opportunity to gain a bit of PR mileage for himself. The Star carried the story the next day and I believe the press conference with this pro-active deputy minister of rural development was televised nationwide too.

So this is how things work in Bolehland. You have to rope in at least a deputy minister just to obtain something as routine as a phone line. Why didn’t it occur to TM to do what they are supposed to do? Because they didn’t see me as a VIP. A totally unhealthy attitude, I must say, since most VIPs don’t even pay their own phone bills.

However, this is not the end of the story. It appears there will never be an end to my telephone woes so long as TM exists as a privatized monopoly and doesn’t give a damn for any customer who doesn’t qualify as a “VIP.”

When TM set up the Sultan’s optic fiber line, they decided to install the terminal right within the compound of his weekend lodge. The outcome was that every time there is a breakdown, the technicians must first obtain the keys from the Sultan’s security guards before they can access the terminal. And since the Sultan is so rarely present at his RM6 million lakeside retreat, the guards aren’t always where they are supposed to be. Sometimes it takes up to 3 or 4 days before the TM repair team can gain access to do their work.

I experience a service breakdown approximately once every two or three months. What ought to be a 30-minute routine repair job usually takes at least a week to get done. And if sections of the optic fiber cable happen to be missing (due to vandalism or theft) I end up having to wait two weeks or more for the service to be restored.

I don’t blame the TM personnel on the ground for their endemic lack of motivation. Most of them have the attitude of civil servants because they joined TM before it became privatized and many are close to retirement. The younger ones usually don’t stay very long with TM because the top-heavy management is too steeped in the feudal ethos to notice their individual abilities and reward them appropriately.

Another stumbling block issues from the near-sighted manner in which TM resolved the problem of overstaffing during the privatization process. To streamline the workforce, TM must have offered an early retirement option to the veterans, while the younger staff were encouraged to start their own businesses as suppliers and given exclusive contracts with TM to install and maintain the system. With no real competition, these small-scale suppliers tend to acquire a rent-seeker mentality and become complacent.

Illustration by Stephen Nix
And the red tape doesn’t help either. The obsession with centralized control creates a 9-headed hydra that may appear fearsome but is in fact a clumsy, inefficient monster that easily loses its sense of direction. Whenever a breakdown occurs, the local technical team often has to call in contractors from Rawang who, in turn, have to order replacement parts from Shah Alam - so repair jobs that ought to be accomplished in a couple of hours can take up to two weeks.

A sorry state of affairs, unavoidable when you have an absolute monopoly and analog minds operating in a digital universe.

It would be tremendous challenge indeed to be assigned the Herculean task of sorting out Telekom Malaysia. Much easier, I believe, to open the market up to innovation. Let other players in. TM could be reinstated as a public sector agency responsible for ensuring maximum access to telecommunications at minimum cost; this way it can stop focusing on profits and be content to generate enough revenue to maintain itself. As a government department TM could play a coordinating role to ensure compatibility and to ensure that vital infrastructures are efficiently maintained.

There can be a happy ending yet to the sad saga of Telekom Malaysia.


Tuesday, July 27, 2010

NO THANKS TO TELEKOM MALAYSIA


This notice is being posted from a cybercafe because Telekom Malaysia continues to be Tak Malu about being the most retarded telco in the known universe.

On 19 July I lost my broadband connection but I was traveling south the next day anyway, so it was no big problem. At least the phone line was active and I was able to file a report with TM Customer Care.

I returned on 23 July to find that not only was there no internet service... the phone line was down too! And, apparently, this occurred AFTER a TM technical crew from Rawang was despatched to "fix" the problem.

Boleh pakai tak?

Today is the 9th day since I filed the report.

Malaysia masih BOLEH ke?

Meanwhile, a whole load of other crap has been happening. I just heard a few days ago that Jibby the Hutt wants to privatize the useless and corrupt Jabatan Hal Ehwal Orang Asli and turn it into a corporate entity through which Umno cronies can gain access to the Orang Asli land bank in Peninsular Malaysia. Fabulous inspiration, don't you think? I'm thinking seriously of applying for the position of deputy CEO of the JHEOA. Do you think I stand a chance of getting the job? Fortunately, I believe Umno will go into meltdown mode before something as absurd as that can happen.

Hang in there, folks.... fasten your seatbelts and enjoy the helterskelter ride ahead!!!


Saturday, May 16, 2009

I survived a direct hit but not my phone line...

Shortly after 8pm on May 14th a thunderstorm erupted in full fury. Minutes later the phone rang and I picked it up. It was an old friend who needed a bit of solace. Five minutes into our conversation there was an explosion in my ear and the receiver flew out of my hand.

Lightning strike! Damn... the land line was down... and every time something like this happens I experience the evils of hegemony and monopoly - political as well as economic - impinging on my personal reality. If there's anything I've learned from this electrifying incident - NEVER, NEVER USE THE PHONE DURING A VIOLENT THUNDERSTORM!

Okay... so I'm offline for as long as it takes Telekom Malaysia to fix the problem. One would think, with telephony having been around for 130 years routine breakdowns can be sorted out within a few hours. Not in Bolehland where Telekom Malaysia has had an absolute monopoly on land lines from the very start - and with Mahathir privatizing all essential services by handing them on a golden platter to Umno cronies - the national telephone company is about as customer-friendly and service-oriented as the BN administration.

I won't bore you with the details. Let's just say that 50 hours after I got a friend to lodge a breakdown report, nothing has been done - although I did get a call from a TM technician informing me that lightning had struck the communications card at the nearest switchpoint, and that he would apply for a replacement.

Apply for a replacement: that means informing the outsourced spare parts agent in Rawang who will then issue a request for a new card from their Shah Alam warehouse. Which could take several days, going by past experience.

Great! I'm suitably impressed. Anyway... this is essentially to inform you, dear Magick River blog reader, that I'll be taking an enforced vacation from blogging till my land line is fixed.

Screw Telekom Malaysia. May TM go down with Umno and the S.S. Barisan Nasional... the sooner the better!

Tuesday, July 8, 2008

Are We A Nation of Thieves?


A few hours after I paid my June phone bill online, my land line went dead. It must have been in the wee hours of July 5th, a Saturday. A couple of friends were kind enough to lodge a 100 report on my behalf and I called Hamdan, my Telekom contact in Kuala Kubu Bharu, who said a technical team from Rawang would be sent up to sort out the problem on Sunday. So I had to monitor the Kelana Jaya Stadium Protes Event from a cybercafe in KKB. Sunday came and went. Still no phone service! I called up Hamdan again and he said the Rawang crew had inspected the equipment and everything was working fine. So how come I still had no service? Hamdan went up to take a look and called me with the bad news: "Thieves have stolen a section of the cable near the bridge!" This is the third time this has happened. The first couple of times it took nearly two weeks to get my land line up again - because right after one section of cable was replaced, the same gang struck again and stole another cable section! To make matters worse, the Telekom techies used the wrong type of cable (one that didn't support Streamyx) and so they had to do the job all over again. Each time this sort of breakdown happens, I add another entry to Mahathir's long list of crimes against Malaysians.

Why Mahathir? He's the Bloody Nincompoop who privatized (read, piratized) our essential telephony, electricity, water, and train services by handing them on a silver platter to his Umno cronies who swiftly proceeded to make them even more inefficient - and, in the case of Telekom, the privatization exercise included the creation of a whole slew of private limited Bumi companies owned and operated by former Telekom employees who were given exclusive contracts to supply components, install wiring, and undertake cable replacement. That in itself need not be a problem. However, these crony companies have a very different attitude to service than your typical Chinaman run auto workshop. If your car breaks down in the middle of nowhere, chances are you'll be rescued by a roadside workshop who will tell you in 15 minutes what part needs replacing and then proceed to phone a parts supplier in the nearest town. Within an hour a guy on motorbike will arrive with the required part and within another 30 minutes your car will be on the move again. Now, if only Telekom Malaysia and its associated suppliers had this sort of work ethic!

Instead, the technical team from Rawang that supposedly checked the equipment on Sunday saw that the relay switches were functioning fine and didn't even bother making a test call on the line. Then they would have known it was dead and perhaps would have discovered that a cable section was missing. Instead they turned around and went home, believing their job was done. So on Monday did they get the problem fixed? Of course not! What they did was send a team out to Shah Alam to obtain the replacement cable from their store. That's right, that took an entire day to accomplish. Hopefully, today, they will manage to get the cable replaced and my phone line will be working again. But with Telekom Malaysia on the job, one can never assume anything. Betul TM = Tak Malu. It must be obvious to anyone with half a brain that in Malaysia mono-ethnic companies simply don't work - especially if they're in high-pressure businesses like airlines, commuter train and telco services.

Why is the crime rate so high in Malaysia? Just look at our so-called leaders in the Barisan Nasional. All they have done in the last 25 years is steal from the Rakyat - whether it's Petronas revenues or submarine deals or even Chinese New Year decorations, they grab whatever they can any chance they get. Right after the March 8th election results came in, Umno stste governments began looting their offices of computers, printers, fax machines, even furniture - while furiously shredding whatever evidence might incriminate them. Even their wives quickly stole state money intended for charities. Have the police been around to investigate these Umno wives? Crime has become part of the national culture! Now, no thanks to Najib, murder may become the Malaysian way to cover up corrupt deals and politically embarrassing liaisons. Am I being unfair to prejudge the man? Hey, just read those chubby pink lips!

(Photo courtesy of Tian Chua)

Wednesday, May 28, 2008

Mahathir: 22 fiascos in 22 years of power

Photo by Waziri

This hard-hitting piece by "Batman" was first published in Malaysia Today on 13 April 2008. In view of Mahathir's recent maneuvers to topple Abdullah Badawi and regain control of the country by proxy, I'm prompted to republish it.*

Many of those who worship Tun Dr Mahathir cannot understand why Malaysians blame TDM for the woes of the country. I have compiled excerpts of articles published in the media in past years to refresh the memories of Malaysians, as to why many Malaysians feel TDM did more bad than good for the country in his 22 years.

These 22 fiascos are presented in the form of questions directed to TDM:

1) On clean government
You came to power in 1981 and introduced the slogan Bersih, Cekap dan Amanah (Clean, Efficient and Trustworthy). What did you do to further that? Did you make the Anti-Corruption Agency more independent and effective? Did you ensure that the police and judiciary did their jobs properly and reduce corruption in their ranks? Did you censure ministers and chief ministers who received incomes beyond legal means? How many big guns were prosecuted for corruption during your tenure? What happened to Bersih, Cekap dan Amanah?

2) Press freedom

Your criticism of the government got plenty of coverage in the local media whereas, during your time, criticisms against you by two former prime ministers were muted in the mainstream newspapers. Editors in Umno-linked newspapers too were removed for not toeing the line. What did you do to advance the cause of responsible press freedom?

3) Proton
You went ahead with the national car project in 1983 despite a number of experts disagreeing with you, especially with respect to the lack of economies of scale. Isn’t it true that Proton’s profits over the past 20 years came from the vastly higher prices that the Malaysian public have had to pay to subsidize Proton, resulting in considerable hardship for Malaysians who need cars because of the poor public transport system? Why was it necessary for Proton to buy a stake in a failed Italian motorcycle manufacturer when it could not even produce cars competitively?

4) Heavy industries

Why did you push into heavy industries such as steel and cement in the 1980s, ignoring studies which suggested developing natural resource-based industries instead? They caused major problems and billions of ringgit in losses.

5) Immigration
Why did you allow hordes of people to immigrate, mainly from Indonesia, in such an unregulated way that there are as many or more illegal immigrants than legal ones now, accounting for some two million or more people? Did you not realize that this would cause serious social problems?

6) Operasi Lalang
Why did you have to resort to this move in October 1987, when you used the Internal Security Act to detain over 100 people, close down four newspapers and cause a wave of fear throughout the country? Was it to consolidate your tenuous hold on power then by using an oppressive law?

7) Judiciary
What motivated you to take action in 1988 to remove the then Lord President and several Supreme Court judges from their positions under allegations of judicial misconduct, a move which was heavily criticized by the Bar Council and other bodies? Was it because you needed more compliant judges whose rulings would not threaten your position of power in a number of cases in court? Was this the first step in dismantling the judiciary’s role as a system of checks and balances against the legislature and the executive? What have you to say to repeated assertions by many, including prominent ex-chief justices, who maintain that this led to the erosion of judicial independence?

8) Education

Why did you allow our national school system, which is the ideal place to develop ties among young Malaysians, to become so divisive? Why is it that our local Universities, once the preferred choice of tertiary education, have deteriorated to a level that even students who have gained admission prefer to enroll in local private colleges and universities?

9) Malaysia Airlines System

Why did your government sell MAS (privately) to Tajuddin Ramli who had no knowledge whatsoever about running an airline? Why did your government then later bail out Tajuddin by paying RM8 per share when the shares were trading at only RM3.60 in the open market, costing close to RM 1 billion of the rakyat’s money.

10) Privatization
Why did you allow privatization to take place in such a manner that the most profitable government operations were sold away like Telekom Malaysia, Pos Malaysia and Tenaga Nasional? Toll concessionaires were guaranteed toll increases and compensations in the event traffic projections were not met. Independent power producers had contracts that guaranteed profits at the expense of Tenaga Nasional. What was the justification of privatizing the government medical stores to Southern Task Sdn Bhd, and the resulting increase of prices of medicines?

11) Putrajaya
What is the justification for spending RM20 billion on a grandiose government city at a time when there was a glut of office space in Kuala Lumpur? Could the money not have been put to better use, such as improving educational resources?

12) Indah Water Konsortium

What was the basis of granting Indah Water Konsortium a concession to manage the national sewerage system? Can you explain the RM1.4 billion soft loan to IWK which has suffered irrecoverable losses?

13) Konsortium Perkapalan Berhad
Why did you rescue Konsortium Perkapalan Berhad (then owned by Mirzan Mahathir) and which had debts of RM1.7 billion using funds from Petronas? Was it not your administration which forced Malaysian International Shipping Company (MISC) to acquire the assets of Konsortium Perkapalan Nasional?

14) Time Dotcom Bhd
Why did your administration bail out Time Dotcom Bhd which was saddled with a RM5 billion debt? Why did your government use RM904 million from Kumpulan Wang Amanah Pencen to buy up 273.9 million of unwanted Time Dotcom shares incurring an instant loss of RM280 million?

Did you not force the Employees Provident Fund (EPF) to buy 81.6 million unsubscribed public portion of the initial public offering (IPO) of Time Dotcom Bhd at RM3.30 per share when the shares were trading at only between RM1.95 and RM2.10 and in the process incurring an instant loss of RM100 million?

15) LRT
Why did you bail out the light rail transit operators Projek Usahasama Transit Ringan Automatik Sdn Bhd (PUTRA), which belonged to Renong; and Sistem Transit Aliran Ringan Sdn Bhd (STAR) using almost RM600 million from EPF, which still resulted in EPF having to write off RM135 million with a share loss of RM96 million?

16) North-South Expressway
Why did your administration award the North-South Expressway concession to UEM (who then formed Plus) and then provide them with a loan of RM1.6 billion which was half of the tender price of RM3.2 billion. What was the justification for your administration to grant Plus such overgenerous terms, which included annual increment of toll rates and guaranteed traffic volumes?

17) PSC Industries Berhad
Why did your administration in 1998 award a RM24.3 billion contract to PSC Industries Berhad, together with an advance of more than RM2.5 billion to build naval patrol boats? Why were they also given exclusive rights to service the Malaysian navy’s entire fleet? Could you confirm that the first two ships built by PSCI could not even pass pre-delivery trials? How would you answer to the Public Accounts Committee’s revelation that it will cost the government another RM120 million just to salvage the first two vessels nearing completion after seven years?

18) Bakun Dam
Why did you award Ekran Bhd the contract to build the Bakun Hydroelectric Dam in Sarawak? Why did your administration take over the construction of the dam by bailing out Ekran by almost RM200 million for ‘work done’?

19) InventQjaya
What was the basis of inviting Libyan-American Sadeq Mustaffa to Malaysia to set up InventQjaya Sdn Bhd and to also give him a grant of RM440 million? What was the benefit for Malaysia and how has Malaysia benefited? What has happened to InventQjaya now?

20) Forex Losses

Why did your administration dabble in the money market which ultimately cost Bank Negara almost RM9.3 billion in losses?

21) Bank Bumiputra

Why did you allow the mismanagement of Bank Bumiputra, to the extent that it had to be bailed out 3 times, costing the country a total of RM 3 billion? Again, dipping into Petronas’s funds?

22) Perwaja Steel
Why did your administration allow Perwaja Steel to be mismanaged resulting in RM 2.9 billion of the rakyat’s money being squandered?

There you are, 22 fiascos in 22 years. The bad news is that there are actually more than 22! Remember the APs, Maminco, Renong and many more. Those who remember, please add on to this list.

Batman

Flag-waving Mahathir in 1999 (courtesy of John Wishii)

Original cartoons by Antares © 1984

P.S. For me Mahathir's greatest crime was that his megalomanic ambition totally obscured the Horizon of Decency. A lot of young Malaysians growing up during the Mahathir years seem completely clueless about ethics. This is particularly true of a large segment of Melayu Baru (members of Mahathir's Umno Baru, no doubt) - who got disconnected from their original graciousness, patience, and openness of heart - and became arrogant, jingoistic, ruthless and rapacious big-time wannabes. Indeed, Mahathir's influence was so all-pervasive, even minibus conductors and office clerks turned into Little Napoleons during those dark days under the Incurable Dr M!

*I have just been informed that "Batman" may have rehashed his article from an original feature - Question Time: 22 Questions for Mahathir - by P. Gunasegaran, published in The Edge.