Tuesday, February 13, 2007

Lulu Does Trillion RM Math

Lulu has a friend who used to work with one of the bigger FMCGs in Malaysia.

10plus years ago, the plant had moved from KL to somewhere else which will remain nameless. Soon after they moved, the local majlis workers paid them a visit. Kononnya, "spot check" the kebersihan.
Surprise! surprise! They failed-la. The multinational FMCG with all their ISO standards failed the check. My friend told me the silly reasons they gave, can't remember what it was, but the one and only that I remember is that they cannot have the dumpster within their compound. This dumpster was placed in a far corner of the plant. The management played blur on what the majlis workers actually wanted. SO, the majlis guys left empty handed.

The next month, [but of course] the majlis fellas visited them again. It was more like a raid then a visit, looking really intimidating [like those respectable chaps who were surrounding Z's mansion when the protesters were protesting], went straight to the manufacturing floor and demanded the factory shut down their machines. Because it was so sudden and really carried like a raid, the technicians were caught by surprise and switched off the machines in fear. All the work in progress materials had to be dumped, thrown away. It was a standstill in the plant.

And the "negotiations" started.

The head raider "pointed out" all the non-conformence to local council regulations. And of course he had a solution. A friend who is in the cleaning business who can solve ALL the factories problem. Left with little choice, the management agreed.

My friend told me that the cleaning contractor appointed had to get the company to buy the equipment and cleaning liquids. And because the equipment was highly advanced and the cleanliness standards were very high, the plant continued to do their own real cleaning for the manufacturing floor. For RM20K/month, the cleaning contractor got a few foreign workers to sweep and clean the general area.

And the dumpster? It's still in the far off corner of the building.

Last week's biggest spin was the trillion RM news. Lulu was not sure what to make out of it, and reading the press reports, Lulu suspects that the reporters didn't either. Just that the RM1.069trillion probably sounds impressive to the potential voters out there.
How does it impact you and me, Lulu don't know.

RM588.95bil exports,
RM480.49bil imports

Local "support", additional "help", eye patches to "tutup satu mata", Datuk "Ada Jalan", Encik "dokumen tuan sudah hilang", Mr 5% loan approval guaranteed...

we get all this no-value added, but removes-roadblock-that-they-sendiri-put-up additional taxes [this really gives new meaning to SIN tax], let Lulu assume it to take up 2% of the total trade value. It happens both on the imports and exports.

RM1 trillion x 2% no value added = RM 20,000,000,000
That RM20billion folks, if Lulu is doing the math correctly.

They may sleep comfortably on their very expensive mattresses in an airconditioned room in their mansion, but some day, they'll have to answer to God.


freelunch2020 said...

good post lulu.

some day they would have to answer to God, and may GOd have mercy on them and us... :D

kittykat46 said...

Hi Lulu,
We just call it "cost of doing business". Its buried somewhere in the company expenses. After a while, nobody notices it anymore. As long as the Malaysian operations makes a reasonable profit, Head Office doesn't ask too many questions.

These majlis guys get their coffee-money, we still get our nice New Year incentive bonus, everybody goes home smiling.
Happy Chinese New Year.
Everything is OK, Vote BN, Malaysia Boleh !....LOL...

Sorry, folks, I didn't want to get depressed less than a week to CNY, so I'm being deliberately cynical...

Anonymous said...

"Buried costs of doing business....hmmm"
E.g., someone was rumoured as a Mr. 10% and then rumoured to get 16K per unit of a local car sold but we'll never get to know the truth, would we? That's why a tin can on wheels has to cost that much. The river of D'Nile, afterall, cuts deep across this land too.


team BSG said...

remember the maths they did for NEP % some months ago, even got someone sacked ( but who remembers xcept u my dear ?)?

so how can they add or minus. they only take...and take sommore.

Anonymous said...

Now possibly all but forgotten, there was once a top exec in the Proton outfit who openly stated in the Papers that this company should be showing a social responsibilty wrt to pricing. In no time he was out! Just a few years ago, b4 Mahaleel's time.

Why whould he have said that unless there were hidden costs that resulted in throat-cutting pricing and small profits. His extraordinary honesty was his undoing in this sort of "biz system".


warrior2 said...

LULU, I would say that your friends MNC is run by lulu people. They dont know thier right, they dont know the laws and they should be sacked by the shareholders. Was your friend sacked or he quit?

ISO is activity/program specific. Dosent mean if a company has a few ISO, the company is tip top in everything.

You dont know what 1 trillion means to us the general public and the country? shame on you!

your shameful attempt of alleging 2% wrongdoings... go learn some economics and facts of life!

freelunch2020 said...


some courtesy is preferred.

obviously u don't know the reality.

your comment just reveals your shallowness and , yes, STUPIDITY.

Anonymous said...

Give him/her more rope as we know how he/she will/can only do with it here, eh, Freelunch? ;)


zewt said...

hmmm... should have visited this blog much earlier...

anyway, i dont think those fellas care much about having to report to god...