Re: NOL sells building, layoff 400 staff
Not sure if anyone can remember how Evergreen went over to Tanjong Pelepas. MCA MP called Jimmy something from Johor spoke to the chief in Hokkein. Kaki Nang.
No matter how you cut it the bottomline truth is plain for all to see.
The fact is dispite such a legendary reputation for efficient container operations, and one of the largest container ports in the world, major shipping lines saw it fit to move their operations to Pelepas even though they have already spend money to establish their office and operations here. Something made them unhappy and they have been unhappy for some time now. The decision to move did not just happen on the spur of the moment.
PSA failed to identify and address these concerns. SOme of these concerns may be out of the reach to PSA to address. But nevertheless, they are real. Cost of the operating in Singapore was a major reason. But the cost did not come from the labour side. Contracting lorry companies is not significantly higher than the Malaysian side, nor is whatever they pay their staff. However, the sing dollar is very strong and their operations here must be paid in sing dollars while their revenues is in USD which is getting weaker. A double whammy for them. PSA cannot control this part.
But PSA can control their fees, port charges, etc. which they did not. In the end, credit to the Malaysian govt. for recognizing a great business oppportunity to create the new port at Pelapas. It may be decades before the malaysian govt. can recoup their investment in Pelepas, but that is not the real reason they build the port. Unlike the PAP, they are not that money minded yet. The Port was build so that investment can come into that part of Malaysia which had up to that point been mostly driven by real estate buyers from singapore and by agriculture. This creates a whole new economic pillar for them and creates jobs for their citizens and brings money into the country. More importantly, strategically for their own national security, they do not have to rely on a port in singapore for their good shipments.
Just my 2 cents.