Japan’s currency may face continued downward pressure if policymakers move too slowly on interest rate hikes, according to the head of the Asian Development Bank . Rate Gap with US Driving Yen Weakness ADB President Masato Kanda highlighted that the wide interest rate differential between Japan and the US remains the key driver behind yen weakness. Investors continue to favour the US dollar due to higher yields The Bank of Japan risks being seen as “behind the curve” on inflation As a result, the yen struggles to strengthen even when global risk sentiment improves . BOJ’s Slow Response Raises Market Concerns Despite inflation hovering around target levels for years, the BOJ has maintained a cautious policy stance to avoid damaging Japan’s fragile economic recovery. However, markets may react negatively if: The BOJ delays rate hikes further Investors lose confidence in Japan’s poli...
The problem with Malaysia Airlines (MAS) is not a one day story. This is not the first time we heard about the amount of losses made by the airline company.
In 1972, the Malaysia-Singapore Airlines (MSA) became MAS and SIA. In the last 10 years from 2002- 2011 SIA reported a total pre-tax profit of Singapore $13,992 million, averaging S$ 1.4 billion per year. This created a big question mark over the reliability and management skill of those who are appointed to lead MAS.
MAS has just reported a loss of RM 830 million for 3 quarters ending September 2013 which is larger than the loss of Rm 483 million in the same corresponding period last year.
As usual, there are the incorrigibly optimistic cheerleaders for the airline who are unable to see the writing on the wall.
These ‘experts’ are still touting that the company is in recovery mode and will soon be returning to profitability. If you look at the Business Times, you will find that one of the Headline as this: MAS aims high for 2014….but come to think of it, isn’t this a familiar story? A big loss announcement and a lot of promises for recovery and new target being set?
The most recent losses bring the total loss of MAS to at least over $3 billion. Under normal circumstances, in any industry for that matter, it will be the time for the company to close down or gone into bankruptcy but this has not happen to MAS yet…simply because there is the backing from the government. But is this enough to ensure the survival of MAS?
The answer is probably pretty obvious with the latest announcement of their loss. I can only hope the optimist will look carefully before deciding to embark on this rough patch with MAS. It’s not that airlines business cannot be done, but it takes a lot of good and effective management, without much wastage in cost management…something that MAS had a terrible track record.
Another annual report of disappointment....one will start to wonder: JUST HOW LONG WILL THE MALAYSIAN GOVERNMENT SUPPORT A COMPANY THAT IS LOSING SO MUCH MONEY???
In 1972, the Malaysia-Singapore Airlines (MSA) became MAS and SIA. In the last 10 years from 2002- 2011 SIA reported a total pre-tax profit of Singapore $13,992 million, averaging S$ 1.4 billion per year. This created a big question mark over the reliability and management skill of those who are appointed to lead MAS.
MAS has just reported a loss of RM 830 million for 3 quarters ending September 2013 which is larger than the loss of Rm 483 million in the same corresponding period last year.
As usual, there are the incorrigibly optimistic cheerleaders for the airline who are unable to see the writing on the wall.
These ‘experts’ are still touting that the company is in recovery mode and will soon be returning to profitability. If you look at the Business Times, you will find that one of the Headline as this: MAS aims high for 2014….but come to think of it, isn’t this a familiar story? A big loss announcement and a lot of promises for recovery and new target being set?
The most recent losses bring the total loss of MAS to at least over $3 billion. Under normal circumstances, in any industry for that matter, it will be the time for the company to close down or gone into bankruptcy but this has not happen to MAS yet…simply because there is the backing from the government. But is this enough to ensure the survival of MAS?
The answer is probably pretty obvious with the latest announcement of their loss. I can only hope the optimist will look carefully before deciding to embark on this rough patch with MAS. It’s not that airlines business cannot be done, but it takes a lot of good and effective management, without much wastage in cost management…something that MAS had a terrible track record.
Another annual report of disappointment....one will start to wonder: JUST HOW LONG WILL THE MALAYSIAN GOVERNMENT SUPPORT A COMPANY THAT IS LOSING SO MUCH MONEY???
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