MAS is like a “Heavyweight” category and AirAsia is like a “Flyweight” category and mixing them up can become meaningless because is just like mixing with a durian and ciku since both have different tastes and customers also have their preference!Maybe its better to get the Right Top Talent or Team of Professionals to lead,to solve all these poor performances and prepare for a great takeoff(improve profitability and share price increase) and having the world’s best people in the world’s best airline!This mix up of Mas&AirAsia is not the best solution if its just for the extra capital,thats what Ramli think!

More news report on whats happening at Mas and AirAsia:

Tuesday August 9, 2011

Rivals MAS and AirAsia to become allies

By ANITA GABRIEL and JEEVA ARULANPALAM
starbiz@thestar.com.my

PETALING JAYA: National carrier Malaysia Airlines and low-cost carrierAirAsia Bhd‘s major shareholders Khazanah Nasional Bhd and Tune Air Sdn Bhd will today announce a landmark share swap deal worth just over RM2bil which will turn the long-time bitter rivals into collaborating partners.

According to sources, under the share swap deal, Khazanah will acquire a 10% stake in AirAsia from Tune Air, a private vehicle controlled by Tan Sri Tony Fernandes and Datuk Kamarudin Meranun.

As at July 6, 2011, Tune Air owned a 26% stake in AirAsia. Sources also said Khazanah was in talks to acquire a 10% stake in long haul low cost carrier AirAsia X but this would be announced at a later date.

As part of the agreement, a source said MAS would issue new shares to Tune Air which would end up with a 20% stake in the national carrier. Khazanah, which has a controlling stake of 69% in MAS, will continue to remain the single largest shareholder in the national airline after the exercise.

The source added that MAS, which was in dire need for fresh capital, would also make a rights issue very soon.

The valuation of the swap will be based on the recent share price of both companies as the exercise involves non-controlling stakes. Trading in both counters are suspended until today for two days pending a material announcement. MAS and AirAsia were last traded at RM1.60 and RM3.95 respectively.

“There is really little that’s innovative about all of this. The reality is that if you look at the big players in the industry, they have a low cost arm and a premium arm. If anything, MAS is just playing catch up only now,” said an observer.

A special executive committee comprising three to five members including MAS newly-appointed chairman Tan Sri Md Nor Yusof anddirector Mohammed Rashdan Yusof as well as Tony and/or Kamarudin will be set up to run the daily operations of the carrier in the interim while the search for a new chief executive officer will commence soon.

The source said MAS CEO Tengku Datuk Azmil Zahruddin would step down from his post to make way for these changes while Rashdan, who is Khazanah’s executive director of investments, would likely play a more active role in the airline until a CEO is identified.

“The exco will be a subset of the board, which will take over the running and management of the airline in the interim. The main decision maker at the airline will be Md Nor,” said the source.

CIMB Investment Bank Bhd has been appointed advisor for the share swap deal representing both parties.

“If you stand back and look at this deal, you can see the value it will bring to a full-service carrier (FSC) like MAS. The trend among FSCs is that they are gradually deriving a bulk of their revenue less from the airline operations and more from ancillary services such as maintenance, repair, operations (MRO) services and so forth. These services are huge profit centres. Currently, AirAsia outsources these services. With this partnership, MAS can be the outsourcing agent,” said an analyst.

“This way, MAS which has a staff strength of 20,000 can use its people more productively. There won’t be a need to lay off staff as both airlines will be run separately,” said the source.

The deal’s defendants say this deal marks a “great opportunity to create Malaysia as an airline hub”. “The whole idea is not for Tony to run MAS. It is to realign both airlines’ interests to allow them to grow with a more clear business model MAS in premium segment and AirAsia in budget segment as opposed to being in each other’s way,” said an analyst.

A source said this deal “has been cooking for so long but in the absence of a structure that could work and concerns over a clash of cultures, it had failed to take off.”

Managing “Less Is More” in today’s environment can help at least sustained your existence in the Corporate Map and if you get it right and live long enough can help make you a World Class Company.Inshallah!

Today we find our Governments and Big Companies (even SMEs) announcing their Business Plans for 2011 and also their 5 year Plan,25 year plan and so on.

Usually the Financial section will attract most people since thats where the indication of profits,losses and also where the money will come from for Capex and all other expenditures of the year or many years to come based on the Master Plan announced.

Maybe most of the times the revenue or income section will indicate the many ways of generating money either through the company’s sales turnover and profits plus borrowings from Banks and other Financial Institutions like World Bank,Asian Development Funds,Grants from Govt Agencies and Overseas and many CFOs will also be assigned to be “creative” in the use of financial instruments made available in the market for getting the money the company need so much for their survival,growth and reserves.

For most listed companies in the Bursa for example the role of the Top Management is also to see how they can generate new capital through issuance of new shares of all categories made available and allowable by SC and inviting new shareholders with “big money” to come in as new investors  and hopefully gained from the company’s profits and improvement of stock prices.At most times nowadays many Big Players have “swollen up” the Not So Big Players as a result of their bad cash status or in great debts and these were done either by “Buyovers”,”Mergers” and indirect stock buying from major shareholders as a kind of hostile takeovers and maybe many other ways as smart savvy business people have successfully managed all this time!

So,what is key here is the POWER OF MONEY OR CASH that can either make you richer,poorer or just managing your day to day business status.Some say in USA that Cash Is King maybe also true in Malaysia and Rest of the World!

So when Entrepreneurs like Ramli can learn hard and fast to Manage Less Resources and Get More Results then that is a great action or management prowess.We have not much capital in our pockets or banks but with smart brains and hard work with lots of sweat maybe we can turnaround our business with many satisfied customers locally and globally and that will translate to better sales,income and net profit.However since Business is also like an Art and Science factor,we must do our homework well and fast otherwise with competition all around we may just get the breadcrums and not the icing of the business that we want to be in!Like the famous Business Professor and Management Guru Prof.Rosebeth Moss Kanter once stated the importance of the 4Fs for Entrepreneurs that are:

• FAST-to act in all ways and all days
• FRIENDLY-in many ways to make people like you esp Your Customers and Bankers
• FLEXIBLE-ability to manage change well
• FOCUS-know what is best to make money and have great patience
• maybe there are more Fs…

So,we must now as new people in business or people that have met so much of crisis and losses in our earlier business involvement and investments we must take note of this important element of “LESS IS MORE” that will be having less money less resources less connections BUT getting more results more profits and more true and happy customers! CAN YOU DO IT?You HAVE To,thats why you are in Business or Being a Leader that Leads for the Best Results!

Extras:

Some More Quotes from Professor Rosebeth Moss Kanter for YOU:

Rosabeth Moss Kanter quotes

American business Speaker and Consultant

“Leaders must wake people out of inertia. They must get people excited about something they’ve never seen before, something that does not yet exist.”

“A vision is not just a picture of what could be; it is an appeal to our better selves, a call to become something more.”
“People often resist change for reasons that make good sense to them, even if those reasons don’t correspond to organizational goals.   So it is crucial to recognize, reward,and celebrate accomplishments.”

“Leaders must pick causes they won’t abandon easily, remain committed despite setbacks, and communicate their big ideas  over and over again in every encounter.”
“Mindless habitual behavior is the enemy of innovation.”

“A great idea is not enough.”
“To stay ahead, you must have your next idea waiting in the wings.”

“Too many people let others stand in their way and don’t go back for one more try.”
“Ambivalence about family responsibilities has a long history in the corporate world.”
More Infos for YOU:  less is more English Proverb less is more That which is less complicated is often better understood and more appreciated than what is more  complicated; simplicity is preferable to complexity; brevity in communication is more effective than verbosity. 1855, Robert Browning, “Men and Women”: Well, less is more, Lucrezia: I am judged. 1954, “‘Less Is More’,” Time, 14 Jun.: The essence of Mies’s architectural philosophy is in his famous and sometimes derided phrase, “Less is more.” This means, he says, having “the greatest effect with the least means.” 2007, Gia Kourlas, “Dance Review: An Ordered World Defined With Soothing Spareness,” New York Times, 3 Mar. (retrieved 22 Oct. 2008): The program, which features two premieres—”Songs,” a solo, and “The Pleasure of Stillness,” a quartet—is founded on the notion that less is more.

Contact Ramli at +6019-2537165 (Malaysia) or email at ramlipromoter@yahoo.com

Where have most of the world’s money being kept if not in the banks?The Banks still need more capital injection to help deter more financial turmoils!

Published: Monday September 13, 2010 MYT 7:13:00 AM

Banks worldwide will have to increase capital to prevent economic collapse

BASEL, Switzerland: Banks will have to significantly increase their capital reserves under rules endorsed Sunday by the world’s major central banks, which are trying to prevent another financial collapse without impeding the fragile economic recovery.

The new banking rules are designed to strengthen bank finances and rein in excessive risk-taking, but some banks have protested that they may dampen the recovery by forcing them to reduce the lending that fuels economic growth.

Forcing banks to keep more capital on hand will restrict the amount of loans they can make, but it will make them better able to withstand the blow if many of those loans go sour. The rules also are intended to boost confidence that the banking system won’t repeat past mistakes.

Under current rules, banks must hold back at least 4 percent of their balance sheet to cover their risks. This mandatory reserve — known as tier 1 capital — would rise to 4.5 percent by 2013 under the new rules and reach 6 percent in 2019.

In addition, banks would be required to keep an emergency reserve known as a “conservation buffer” of 2.5 percent. In total, the amount of rock-solid reserves each bank is expected to have by the end of the decade will be 8.5 percent of its balance sheet.

U.S. officials including Federal Reserve chairman Ben Bernanke issued a joint statement calling the new standards a “significant step forward in reducing the incidence and severity of future financial crises.”

European Central Bank president Jean-Claude Trichet, chairman of the committee of central bankers and bank supervisors that worked on the new rules, called the agreement “a fundamental strengthening of global capital standards” that will encourage both growth and stability.

Representatives of the Fed, the ECB and other major central banks agreed to the deal Sunday at a meeting in Basel, Switzerland. It still has to be presented to leaders of the Group of 20 forum of rich and developing countries at a meeting in November and ratified by national governments before it comes into force.

The agreement, known as Basel III, is seen as a cornerstone of the global financial reforms proposed by governments stung by the experience of having to bail out some ailing banks to avoid wider economic collapse.

Fred Cannon, a banking analyst at Keefe, Bruyette & Woods, said the rules probably will reduce bank profit margins and lending from the heights they reached in 2007. But he added that before 2000 or so, many U.S. banks were already operating with enough capital reserves to meet the new minimums.

Cannon said the new standards certainly will not keep the banks from lending more than they did last year, when lending shrank mainly because businesses and consumers decided to save instead of borrow. But he expressed doubts on whether the new rules will avert another crisis.

The trouble last time, he said, was that banks were hiding the full extent of the risks they had taken. And there is no guarantee they won’t find new ways to appear more conservative than they are under the new regime, he said.

“Government regulations tend to fix the last crisis,” he said. “Whether it will prevent the next one is the question.”

Earlier this year, the Brussels-based European Banking Federation warned that the rules could keep the 16 nations that use the euro in or close to recession through 2014.

The federation, which represents more than 5,000 banks, said its analysis of proposed new Basel III banking standards shows that it would limit banks’ credit growth and profits, hurt the economy and prevent the creation of up to 5 million jobs in the eurozone.

U.S. agencies have the authority to institute tougher capital standards under the sweeping financial overhaul legislation that Congress passed and President Barack Obama signed into law in July. The new global rules are expected to be endorsed by Obama and other leaders of the Group of 20 major economies when they meet in November in Seoul, South Korea.

Treasury Secretary Timothy Geithner has been leading the effort among G-20 finance ministers to get international backing for the new capital standards. He has argued that the rules must be implemented in a coordinated manner so countries don’t try to obtain unfair advantages by allowing their banks to operate under less stringent standards.

Regulators on Sunday also agreed to a number of other measures to shore up the stability of financial institutions:

— Countries will be able to demand that banks build up a further reserve during good times amounting to up to 2.5 percent of their common equity. This “countercyclical buffer” is to help avoid excessive lending during periods of economic boom.

— Another measure aimed at preventing banks from overstretching themselves is the introduction of a leverage ratio of 3 percent. Leverage, or borrowing to invest elsewhere, boosts returns but can backfire catastrophically if an investment declines. Some European banks had objected to this, arguing that the measure unfairly penalizes small lenders with relatively safe credit portfolios.

— Regulators also agreed to continue working on additional safeguards for “systemically important banks” — those that could bring down entire economies if they collapse.

Already one bank has cited the new rules as a reason to tap the market for billions of euros in new capital.

Earlier Sunday, Germany’s biggest bank, Deutsche Bank AG, announced plans to raise at least 9.8 billion euro ($12.4 billion) in a capital increase.

The planned issue of 308.6 million new common shares is meant primarily to cover the consolidation of Postbank, “but will also support the existing capital base to accommodate regulatory changes and business growth,” Deutsche Bank said. It did not elaborate. – AP
Latest business news from AP-Wire

How to improve the LOCAL Economy -Ramli’s Views….

The local economy like in many ASEAN countries are run by small businesses,local entrepreneurs and small capital investments…as time goes by these small or micro business set ups become bigger and move to the levels of SMEs’ and Medium size companies….and eventually Large Companies with listing in the local bourse and even overseas markets…
However like in Malaysia,to start a small business set up need to abide to all legal requirements like

registering the company,open bank accounts,establish representatives for matters of legal,tax and co secretarial matters etc…SO all these need some money and thats what hampering small businesses since money they have are all needed to make the business start and grow faster..so the lesser money available as working capital will mean a harder time to make the business move and grow and survive the early hardships of running a business set up…
LIke in Indonesia which Ramli was able to realize the small businesses are so plentiful and well encouraged to start and spread all over the 33 PROVINSI,349 KABUPATEN and 100 KOTA (CITIES)
You will noticed many kinds of products and services are made available for the more than 300 million population and as such with continual innovations and creative work to meet to the high competetive business environment,small businesses offer great new products thorough new inventions,innovations,modifications or just copy from existing ones..as such the consumers have lots of choices and businesses will grow,thrive and support the LOCAL Economy better than if there was lots restrictions in terms of business set ups,registrations,legal conformance and other not-so-important pre conditions as far as small micro businesses are concerned…
Like the Americans Lemonade Stands many decade years ago,these small start ups have allowed the Local US Economic activities to grow and thrive due to the good business conditions that allow small business to start selling their products and services and with good leadership and management,these small businesses become World Class companies like A&W,McDonalds,KFC,WalMart,Coca Cola and many more….
In Malaysia we have these small stall set ups that now become BIG Restaurants like SYED,Hameed,Khalifah,Nelson,Marrybrown and others…
What Ramli wants to suggest further are:
1.Allow small businesses like these Lemonade Stands to start and grow without much hindrance from the local city authorities or town councils….
2.Issue easy to get license or permits for small micro business set ups
3.Encourage drop outs,unemployed graduates or any inspiring and hard working persons to start this small “Lemonade Stands” and assist them where and when necessary
4.Upon their business prosper then make a review and qualify those into the SMEs’ rank and all these prerequisites or conditions to abide to…
5.Small start ups are necessary before they become Large Cos’ to spur the Local Economy more and more…
thats for sure…

For more infos,contact Ramli at hp:019-2537165 or email: ramlipromoter@yahoo.com