Sunday, November 17, 2013

Shamsul's RM100 billion in 3 years


Building Bumis. They say the Majlis Tindakan Ekonomi Melayu (MTEM), which is demanding the resignation of Petronas CEO Shamsul Azhar Abbas because the national oil company is allegedly NOT doing enough for the Malays, has the blessings of Dr Mahathir Mohamad.
Shamsul, A straight oil man
What rubbish. 
Dr M is the Advisor to Petronas. While the CEO reports to the Board and to the Prime Minister, Tan Sri Shamsul is said to meet Dr Mahathir regularly to keep him in the loop on his plans and progress.  
Now why would Dr M give his blessings to some outside party like MTEM to attack the organisation and its CEO that are advised by him? Any attack on Petronas' policies will eventually be used against Dr Mahathir himself. 
The PAS Research Centre, led by its Executive Director Dr Dzulkefly Ahmad, who lost the May general election to an Umno rookie, is doing exactly that. Read Mahathir perlu nasihat Petronas (Harakah, 14 Nov) and Apa masalah Petronas dengan orang Melayu, wahai Tun Mahathir?
Predictably, the good, old cronyism specter is given a new lease of life. Instead of viewing Petra, Dialog, Scomi and SapuraKencana as part of Petronas's (and the Government's) success in creating our own oil and gas giants, these Malaysian companies are seen, at best, as mempunyai hubungan intim dengan penguasa politik ... and, at worst, as being part of an amalan kronisme yang menjadi petualang besar, sekaligus mencekik usahawan tulen Bumiputera khasnya dan entiti tempatan yang lain amnya.

The Advisor, 86th floor Petronas Tower 1
Petronas' track record in helping Malay companies make it in the oil and gas sector speaks for itself. 
In 2012 RM54.8 billion worth of oil and gas projects were given by Petronas to majority-Bumiputera companies. In 2011, RM29.3 billion. In 2010, Petronas awarded  RM25.9 billion worth of projects to these Bumiputeras. 
That's some RM110 billion in just the 3 years since Shamsul was made Petronas CEO (in February 2010). Tun was made Advisor of the national oil corporation in November 2003 and I think no one alive has done more for the Bumis than Dr M has. What has MTEM and Dr Dzul's think-tank done for the Malays?

36 comments:

Anonymous said...

tuan rocky bru , bolih ke sampaikan rayuan supaya PETRONAS supaya bagi balik biasiswa yang di kurangkan ke 300 setahon balik semula ke 1000 seperti dibuat dulu dulu. ini matlamat jangka panjang modal insan bumuputra . hari ni cukup sebab 30 tahon dulu biasiswa banyak tapi kalu sekarang ni dikurangkan apa akan jadi 10-15 tahon ke hadapan. minta maalom.

maae said...

Well.. well... melayu are again in the well. What else are we going to do to get well? above 'average well' ?

Well, from one to another, still the same melayu / bumiputera dilemma again and again framed in the 'well-hell' stibialism.

Allmost 'sewel' when think of it. How to do well in GE 14 when these ungrateful well to do malays, still blind as a bat.

" WELL, PM Najib, please do well to really Bang for the Buck ! "

Anonymous said...

The demands on Petronas and their management are unrealistic.

It's an international O&G company with pretty high-end responsibilities. Just because some freeloading NGOs come around, cap in hand, not everyone can get served.

Do these people (or those behind them) actually have the capability to engage in business at the level required by Petronas?

If you can't get it off Shell or Exxon, why does the fact that Petronas is Malaysian obligate them to breastfeed you?

People, there's no such thing as a free lunch. No, not even with oily sustenance.

charleskiwi said...

I am sorry to say that what you said about what egregious Mahathir has done for the Malays is wrong. You should have said whatever he has done were for his now multi millionaire , if not billionaire, son in the name of the Malay.
If this egregious Mahathir has done so much what are there still so many poor Malays ? It is preciously on this why he is constantly being criticized that he is not a Malay, at best only an Umno made Malay. He said this himself that everything is possible, why is then in his 22 years, particularly as the P.M. when he was the Lord of all he surveyed. He could not even get the 30% allocated to the Malays, yet during that period he was able to make his son a billionaire. Yet he did not make the poor Malays the 30% that is allocated ? And you call that done a lot for the Malays than anyone else ? Need I remind you of what percentages he has achieved during the 22 years ?
Or shall I say between the egregious, his son, his proxies and cronies they got a lot more than the 30%.
As advisor to Petronas why hasn't he given his 'expert' advice to the CEO to do more for the Malays ? This is especially so when the egregious's advice is being sought constantly ?
And who is there to impede that from happening ? Are you suggesting that more, a lot more tongkats and wheelchairs should have being out to the Malays by Petronas ?
May be what is enough to you are blank cheques are to be given to the Malays from birth ? Instead of educating the Malays how to be independent, how to work hard or how to work and run. Being pugnacious like you will not help the Malays, the non Malays in this country have never expressed any opposition for the Malays to be help. As a matter of fact the sooner the poor Malays' standard of living are alleviated the better it will be for Malaysia.
Let me remind you the aim of the NEP is not to make the egregious Mahathir's son or his cronies to become millionaires but it appears that is so, according to egregious Mahathir. It will take forever to achieve that !

Anonymous said...

Not too long ago, in 1980's, Prime Minister Mahathir brought the hammer down by telling the board at Dayabumi building that Petronas need to spread its wing and overseas. There's no way Petronas could increase its revenue if it just concentrated on home turf. Members of the board were puzzled and bewildered. They wondered what on Dr. M mind considering Petronas at that time was just a new kid on the block compared to Shell, Esso, Exxon and BP. They were cautious with what they thought as an attempt to gamble with the Malaysian priciest asset.
Fast forward to present day, Petronas now is listed on Fortune Global 500 and one of the world most recognizable brand. It is now a global Malaysian company with operations and presence in more than 30 countries.
Should Mahathir didn't make that that crucial decision, or if he wasn't not a PM at that time, where would Malaysia be now? Where would you and me be now? One thing for sure, there's no way you could enjoy your cheap fuel. There would be no modern infrastructure that you're currently using, especially those at the heart of the cities. There would be no burgeoning Malay middle class and much of the country would have been under developed. All of us, in one way or another are indebted to him. Hugely. That include those who have been calling him names. But you know what bro Rocky, parasites will always be parasites. They have no sense of belonging no matter where they go. Once the resources dry up, they move somewhere else.

Jabalnur said...

While Sapura, Dialog, Scomi and Sapura Kencana are undeniably sucess, these are only from a segment of the economy.

Another of the more important sector for improvement of the BUMI lot is the SME. While these sector had shown encouraging growth, it needs to be further developed. Admittedly if one were to browse at the retail products from Tesco, for instance one can notice that there are some products produced by bumi SMEs

What Bumi SMEs are grumbling is the very minute number of products displayed at Petronas filling stations, while products produced by SMEs owned by other producers are readily supported by Petronas.

Anonymous said...

how much were given to tun dr.m son mokhzani ?

MegaBidaman said...

agree wif u bro , i'd written similar article last week here's the link http://bidaman.blogspot.com/2013/11/petronas-lebih-suka-bagi-iklan-di.html , been involved in O&G for quite sometime and i feel the accusation is just not rite

sujini said...


Datuk,

First of..there are truths and there are myths to this allegation.
If you want to regard Petra, Dailog, Scomi and SapuraKenaca as part of Petronas's success in creating our own oil and gas giants you are right.
On the other hand if some parties think these companies have " political or blood related links" they are also right.

In addition to the above, truth is that there are not many Bumi based companies that have excellent track records in doing oil and gas business on their own.
They have to have a liaison with major reputable international O&G Companies.They are always on piggyback ride to these major foreign companies.

The second painful truth is, these Bumi based companies must help themselves before Petronas can help them.
They must be genuine businessmen doing O&G business. They must learn hands on. In doing any business there is no easy way out. Its all hard work.

The third major truth is these Bumi based companies (omitting the big four you mentioned) faced funding problem. No doubt the government is giving special funds to help Bumis but if loans run into millions, borrowers have to pay high "commision".

The forth truth is even Petronas and its subsidiaries default in payment.
On many occasions even after job is completed on time, if the main contractor (this can be Bumi and its piggyback partner) default in payment the project owner( Petronas or its subsidiaries) is unable to assist due to contractual terms.

Lastly what Bumis want is a level playing field. Give them that first major break. If they are genuine businessmen they make if not they'll break.
Petronas has to be fair and committed. That's why they are there in the first place....to help the Bumis to outgrow their dependencies.

Anonymous said...

Mr. Rocky Bru, We need to look at Shamsul's success beyond dollar and cent. That means we also need to look at the bureaucratic issues that are being faced by the Malay Entrepreneurs dealing with Petronas. So far the weaknesses and all the blunders in Petronas have been covered by the announcement made by the President on Petronas annual profit performance every year. The billion of Ringgit profit Petronas makes every year has silenced the government and the public. Only Petronas staff and those who have business dealings with Petronas know the problems in Petronas but they do not dare to speak out for reasons only known to them.

Anonymous said...

Isu pilihanraya mana plak ni ?

Anonymous said...

Rocky, tolong pesan sama Shamsul ... kalau bagi org putih tukar standard2 Petronas - kami syarikat tempatan boleh ke bersaing? Habih lesen kena terminate. Lepas ni semua teknip, slemberjer, dan kawan2 weewee boleh kebas habih la ...

sujini said...

Datuk,

First of..there are truths and there are myths to this allegation.
If you want to regard Petra, Dailog, Scomi and SapuraKencana as part of Petronas's success in creating our own oil and gas giants you are right.
On the other hand if some parties think these companies have " political or blood related links" they are also right.

In addition to the above, truth is that there are not many Bumi based companies that have excellent track records in doing oil and gas business on their own.
They have to have a liaison with major reputable international O&G Companies.They are always on piggyback ride to these major foreign companies.

The second painful truth is, these Bumi based companies must help themselves before Petronas can help them.
They must be genuine businessmen doing O&G business. They must learn hands on. In doing any business there is no easy way out. Its all hard work.

The third major truth is these Bumi based companies (omitting the big four you mentioned) faced funding problem. No doubt the government is giving special funds to help Bumis but if loans run into millions, borrowers have to pay high "commission".

The forth truth is even Petronas and its subsidiaries default in payment.
On many occasions even after job is completed on time, if the main contractor (this can be Bumi and its piggyback partner) default in payment the project owner( Petronas or its subsidiaries) is unable to assist due to contractual terms.

Lastly what Bumis want is a level playing field. Give them that first major break. If they are genuine businessmen they make if not they'll break.
Petronas has to be fair and committed. That's why they are there in the first place....to help the Bumis to outgrow their dependencies.

Anonymous said...

Is this a grand design of ousting Shamsul to put Omar Ong in the position? Subhanallah. Minta dijauhkan Allah taala. Apa pengalaman budak ni selama hidupnya untuk memimpin satu-satunya organisasi yang menjadi nadi dan nyawa bagi negara ini?

Anonymous said...

Sujini,

All good points from you, but I differ on the last one:

"Petronas has to be fair and committed. That's why they are there in the first place....to help the Bumis to outgrow their dependencies."

In the first place?

Surely that's not the primary aim of our national oil company?

trifling-jester said...

first, petronas is a GLC. while it should be congratulated for being a fortune 500 company, it should not be compared to other companies there like berkshire or apple- those companies were built ground up without handouts from local govts to completely monopolize an industry. still, at least petronas is performing well.

petronas- being the cash cow of the govt, is subject to the opinions of the masses on how it should be run. a lot those have their 2 cents (definitely overpriced) all seem to want direct handouts. how to run a multinational and compete globally like that? just because its doing well, dont paralyze it by asking for handouts.

also, anon 10:35 described the malay dilemma best:
"Lastly what Bumis want is a level playing field. Give them that first major break. If they are genuine businessmen they make if not they'll break."

this is the bumi dilemma - whether to continue to pity themselves or to actually rejuvenate themselves. unfortunately the former is chosen.

bumis want a leg up to get onto a leveled playing field. doesnt make sense seeing they have been giving hundreds of billions in "leg-ups" for the last 4 decades.

from a global performance standpoint - any leg up would be anti meritorious: goes without saying petronas and malaysia suffers.

however able bumis (with a brain, hands and legs) who request food stamps frankly couldnt cares less about petronas or malaysia - theyre more interested in enriching themselves. if touting race as a way to get a leg up, so be it. they will ignite the flames of racism till kingdom comes. hence umno will never change.

unfortunately, when a son see's his daddy struggling on crutches yet with this entitled mentality - the cycle of incompetence, sense of entitlement and nonperformance perpetuates. as we have witnessed- this occurs for generations over and over.

i pity the most the young bumis who are hard working and want to fight for things on an equal playing field - their efforts and accomplishments will always be looked down upon by all - no thanks to generations dependence on handouts and crutches by their own brothers.

how to maju like that?








Anonymous said...

PLEASE bru we don't want to read over again how those usual gang of elite tycoon companies (1%) got what contracts, how successful....can we have more news how those struggling bumi SMEs(99%) are being helped ?

safiai saad said...

I am uncertain on this issue.On one hand I think Petronas has a good job of creating sucessful bumi oil and gas company.What about other MNC like Shell,Petron and Caltex are they doing their part.Not to mention other ONG such slemberger snd many more when I visited their ONG exhibition recently. They are some name that is certainly world standard.
They are not helping malaysian who wish to be in this sectors.I can confirm from my Petronas Friend that our national OIl company have done their part of social responsibilty to help the society.
The creation of Petronas University is a premier example.
The Malays must also be willing to venture overseas after getting enough experience in Petronas.Dont kill the goose that lay the golden egg.
Dont envy other people success,Allah will enlarge the rezeki to one He choose and may narrow the one he choose.No need to complain so much,in the next world everyone is accountable.Luckily god give us this precios asset otherwise we just plant rubber and oil palm.
To design or manufacturing smart phone like Apple and Samsung,we are pretty far for that.Lets go to other sectors that is also viable.Rezeki is every where,Trust it

Anonymous said...

PAS senang saja. They distribute tabung around their ceramah and call it the Islamic Struggle.

Mana dia duit for mangsa Lahad Datu? Palestin? Got audited account or not?

devilmaycare said...

MTEM ni memang bodo punye org melayu

MrAngry said...

1) Close to half of Malaysia's government income is from Petronas. This money has been used in many Bumiputra programs.

2) MTEM and Perkasa are only barking dogs. All talk, but no substance - What have they done for the Malays? Except using all these NGOs names and the names of the race to secure projects for them, individually.

3) Looking at the age of all the committee members of MTEM - the best thing they can do is look to take care of their Grand Children or Great Grand Children, and look forward to retirement.

Anonymous said...

MTEM = nor yakop the Indian Jews

A Voice said...

Wrote on October 30, it could be a ploy to have someone there . . . .

http://anotherbrickinwall.blogspot.com/2013/10/bumiputera-concern-or-manouvre-for.html

Anonymous said...

Charleskiwi,

You are a typical DAPig mouthpiece. Your rhetoric comments full of shit about our beloved Tun Dr Mahathir do not change our stand. We the Malays love Tun Dr Mahathir and we the Malays hate, despise, scorn Lim kit sial, iguana Eng, kapal sink and all the chinkies and kelings in DAP and PKR including Malays tak sedar diri like Anwar aljuburi, his daughter Nurul 'icecream' izzah, Zaid 'loyar buruk ' Ibrahim and that pukimak 'ABU' Ibrahim.

Don't be a cameleon like your DAPig leaders. We know you chinkies hate and jealous of the Malays who are the true owners of this Tanah Melayu.

Meleis said...


Come on.., RM100 billion only went to huge bumiputera companies. What about the bumiputera SME's?

I fully understand and IMHO it is commercially sensible if they wish to award complicated jobs to non-bumis company, for the lack of expertise among the bumis (because, even if they award such contract to bumis, the bumis will ali baba the contract to non-bumis, or worse to foreigners)

But, what about the complaints made against Mesra? Where even the small time nasik lemak seller cannot sell their product in the store?

How do you expect the nasik lemak seller to achieve all the unreasonable standard set by them? THAT is soo not commercially viable. Standard la konon, rasa nasik lemak tetek mesra sekarang mcm rasa tetek rosmah. Puii!!

Come on, you people know better.

Anonymous said...

"tiada angin masakan pokok bergoyang, Latuk oii!". the undeniable fact is that majority of the consumers of the Petronas gas stations are Malays.

there must be something wrong somewhere when they see no Malay IKS products are available on the shelf at the PGSs.

even though "angin" couldn't be seen but when "pokok bergoyang" at Petronas, this entity has to explain...why???

sujini said...

Datuk,

To "Anonymous @08:30am"

Yes I agree with you that helping the Bumi-based companies in the O&G industries is not the ONLY primary aim in setting up Petronas.
Petronas was formed to run a Profit Sharing Contract (PSC) with Esso and Shell at the time.

Petronas is a GLC. As a GLC its other responsibility is to help Bumi companies in O&G discipline and at the same time making profits for the company. Petronas must not forget that.

Back to Datuk's post on "Shamsul's RM100 billion in 3 years", please bear with me this time on the "Myth" of the figure RM100billion.

According to Datuk's sources, after adding up the total project costs given to Bumis the exact total is RM110b in three years.

Dear Datuk, I do not know who has fed you these fugures which are merely a "Myth."

The ugly truths are as follows:-

1. In all those 3 years the total contract value did not even come up to more than RM9b.

2. These are the contract works that DID kick-off and the total costs involved during those 3 years:-

i. SSGP ( Sabah Sarawak Gas Pipeline) = RM3.7b ( costs overrun from original contract value of RM2.6b)

ii. SOGT (Sabah Oil & Gas Terminal) = RM 1.7b

iii. L-Gas ( Labuan Gas) = approx.RM1b ( no exact fig.available)

iv. FLNG (Floating Liquidified Natural Gas) = RM1.7 b.

All of the above totalled up to RM8.1b. As Im a fair person lets give a round figure of RM10b.

For your further information all the main contract works above were awarded to foreign companies.

If there is a Bumi involvement, they are just taking commission.
Or
If there is a Bumi-based company involved in the contracts above, job value awarded is only RM10-11m in most of the above contracts.

I am not going to make any deductions or conclusions here. Please verify my figures in case there is any doubt to them.

One thing for sure if GLCs want to cover up their weaknesses please dont LIE to the public. If they need to LIE ...please la..dont LIE to the power of 10.
Its a real comedy to those who know the actual truth.

Anonymous said...

What has NA done for malay in kltan.?
What has Khlid done for malay in Slgor ?
No need to ask what LGE has done for malay in Pnang.

Anonymous said...

Get rid of the brokers in the industry. These are the people that are destroying the bumis and the genuine sme players of the industry.

This is the source of corruption in Petronas.

trifling-jester said...

As per Anon 6:28am, Malays are the true owners of tanah melayu!!

That sort of sense of entitlement takes the likes of him so far away from reality he ends up at the bottom of the barrel in Malaysia.

The kind of unexposed narrow minded low IQ thinking process that drives majority of the malay sentiments in business and politics these days.

I suspect, the kind of thought process that is secretly endorsed by people like rocky bru.

jahiliyyah indeed

JankoT said...

What has happened to MAS, despite it's GLC status?

Still making losses, that's what!

I am just waiting to hear all the excuses from MAS supporters, including it's unions (especially MASEU and NUFAM) and those politicians and bloggers who really should know better.

Can Malaysian managers run MAS successfully? Or should it get a no-nonsense "gweilo" manager to wield the axe?

With MAS shares trading at around 32.5 sen, where's the upside?

Yesterday SIA shares closed at S$10.37. That's like RM25.9+.

Yes,it's apples versus oranges, but aviation industry analysts are pessimistic about SIA's profitability going forward.

What more MAS?

Anonymous said...

100 billion distributed to all malays in the country would have made them far better off.

Anonymous said...

Those who talk sabout 'level playing field' need to travel more. There is no such thing as level playing field on anywhere this earth planet.

They shud try open hardware or grocery stores or construction company and request the chinapeks for level playing field. The chinapeks do not call it cronyism but have another name 'Guanxi'.

Its business every where n relatins do count be it blood, school ties or village kinship. There is no level playing field on this mortal planet.


MRSM Kalae Chepo 66/73

Anonymous said...

RM 110 billion in 3 years to Bumi Business organisations?

Care to give breakdown by how many were for Kadazans, Bajaus, Dayaks etc from East Malaysia?

You will not Datuk Rocky, as for you - bumi means only Malays. Exception - you will not hesitate to include mamaks as Bumis! I wonder why.

The East Malaysians are fed up with this claim 'bumis have been given a lot', as it does not include them.

Its time you think out of your 'Malayness' box, and speak up for the East Malaysian orang asal.

Better still, if you are true Malaysian, can ask PETRONAS how much business did it give to the Malaysian Indians and Chinese?

You do not have the guts to do so, as you are not that Malaysian after all!

PARAMESWARA

Anonymous said...

I don't wanna to comment so much about petronas including glcs.I think they're to few think about usahawan bumiputera especially malay group.There is not way,glcs can help them..

Anonymous said...

in sudan petronas only help Bangala company. Ini disebabkan pegwai yang berkuasa dalam pembahagian project tidak sedar asal usul. Bukan salah Petronas dan bukan salah ibu mengandong.