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I am a Practitioner of 'The 7e Way of Leaders' where a Leader will Envision, Enable (ASK for TOP D), Empower, Execute, Energize, and Evolve grounded on ETHICS!

Monday, November 23, 2015

Daily Lessons from Life 22-23 November 2015 - 2nd Public Bus Package Operators & Big Money Deal in Msia

1. "Second UK transport operator wins bid to run bus services in Singapore - CNA 23 Nov 2015

Go-Ahead Group is currently the largest bus operator in London. It put in the lowest bid of S$497.7 million for the five-year contract to run the Loyang bus package."

Well. I have not looked at the numbers but hope that Go-Ahead Group had done their number crunching and that they will be PROFITABLE after paying for the S$497.7m to run a small part of S'pore bus services for a 5-year period.

That work out to be around S$100m/year and about S$9m/month of revenue multiply by 12 months. And the revenue has to be MUCH higher so that it can make REAL MONEY after paying for maintenance, drivers' packages, etc.

Interesting to observe that the 1st one awarded to Tower Transits was the highest bid while this is was awarded to the lowest bid. More qualitative assessment that just dollars and cents. GOOD as long as LTA can justify it as someone will challenge it. Especially those who are only interested in making money from such a deal and care less about sustainability or the famous, only the rich can afford to say: 'Leave some money on the table otherwise no one will come to the feast!'.

2. "China, Malaysia boost business ties on Li visit to KL - Reuters 23 Nov 2015

KUALA LUMPUR: China will buy more Malaysian government bonds and give the country a 50 billion yuan ($7.83 billion) quota to invest in Chinese stocks and bonds as it looks to strengthen ties with Southeast Asia, Premier Li Keqiang said on Monday (Nov 23).

Li was in Kuala Lumpur for the Association for Southeast Asian Nations (ASEAN) summit over the weekend.

On Monday he met Malaysian Prime Minister Najib Razak, who received Li in a state welcoming ceremony in the country's administrative capital, Putrajaya.

They held bilateral talks before signing eight Memorandum of Understandings (MOUs) related to education, cultural exchange, as well as defence and financial cooperation.

During a news conference, Li said the agreements would help boost trade and investment cooperation.

China said on Sunday it is offering $10 billion in infrastructure loans to Southeast Asian countries along with aid to the region's underdeveloped states, as it seeks to expand its influence in the developing world.

"The Chinese government will contribute 20 million Australian dollars to assist in the search for the missing MH370, this is how we show our respect to lives," he said."

All the right moves by China. Give when the recipients are at their weakest and vulnerable! Incredible how fortune may change if one just managed to survive a difficult period. PM Najib had a torrid time just a few months back with its own intellectual communities and ordinary citizens as one scandal after another scandal, those that defied common sense and logic, kept popping up with clock like regularity and precision, that almost led to his ouster from office.

To now, getting big deals from China. A special preference or two thrown in too! Such is politics!

Now what China in Asean? From a physical proximity perspective, Myanmar is probably more important strategically as it border South Western Chinese territories. For Malaysia and to certain extent Singapore, it is NOT as critical - land wise.

The Philippines is definitely NOT going to be too friendly with China in the short term. So would Vietnam who had even actually fought an unfortunate war with China in recent time. The Chinese will be able to work its money magic with Indonesia as it promises to help develop the railway system to connect the vast country.

Well, interesting time to see how far the USA will go in this high stake game!

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