Posted by DrLawrenceOng > 2023-03-04 21:27 | Report Abuse

CIMA is in the cement industry. It is a strategic sector for Khazanah to be in.

Khazanah's objective is to "deliver sustainable economic and societal values for the nation". And as a strategic investor, it strives to "balance between growing long-term financial returns and being a responsible organisation so future generations of Malaysians can benefit from what we do today.". Therefore, Khazanah should not dispose CIMA.

The cement market is already dominated by YTL with about 55-60% market share. By having CIMA, Khazanah can ensure that cement supply is not controlled by any one party. CIMA has hundreds to a thousand employees with Malay Bumiputera forming a big proportion of this.

So, through any angle, CIMA is indeed a strategic investment for Khazanah and for the country. If CIMA is sold, Khazanah will lose the control of the cement market, which is already facing price increases affecting the construction sector leading to increase in construction costs and property prices. This will make it even harder for the people to own their own houses.

Rather, Khazanah should improve on the management of CIMA. Review the current management team at CIMA. Do we have the right team to take such a business to greater heights? Does the management team has the right skill sets to fight in such a tough market? From the MD to the rest of the top management team, everyone has to have the mettle to survive in this market.

And to be that, one has to have the right background and experience in the cement, and by extension, the concrete market. Look at the management team of YTL and the other cement players. Who do they have leading their companies? How does CIMA's management team match up to them? That itself will be a great mirror to reflect on.

Selling CIMA is the easy way out.

Posted by Satya Patel > 2023-03-06 10:23 | Report Abuse

Leaders provide direction and vision, motivate and inspire his people to achieve the organisation's goals. Also important is that leaders must create an environment conducive to success by promoting communication and collaboration among team members. Simply because he cannot do everything alone.

So, for CIMA to come to this point, we have to look at the leadership in CIMA. After all, companies are led and managed by people. Without people, companies have no “soul”.

And it has to come from the top. Hence, we have to look at the CEO first and foremost, before we look down the line.
The type of leadership we have in the CEO will influence the success of CIMA. He/she has a direct cause and effect relationship upon CIMA and its success. He/she will determine values, culture, change tolerance and employee motivation within CIMA. Also, of critical importance perhaps for CIMA at this juncture is that the CEO will shape institutional strategies including their execution and effectiveness.

What selection criteria has Khazanah based the selection of the CEO on in the first place? Do we have transparency here? Can we expect some basic information at least since it is a GLC and the people are the ultimate stakeholders?

And how does Khazanah evaluate the CEO’s performance since the appointment until now?

Was performance as expected, exceeded expectation or less than expectation?
And what action has been taken to lead to this decision?

Posted by DickyMe > 2023-03-06 15:07 | Report Abuse

This DrLawrenceOng is a fake id. Certainly a Malay Bumiputra trying to defend the indefensible. This paragraph "The cement market is already dominated by YTL with about 55-60% market share. By having CIMA, Khazanah can ensure that cement supply is not controlled by any one party. CIMA has hundreds to a thousand employees with Malay Bumiputera forming a big proportion of this." is a giveaway of the person.

It is one of jealousy and entitled driven.

The question is why is majority of GLCs are "sick" and need constant bailout?
If it is one or five years it definitley needs introspection.
However, it is has been a pattern of losing and it is all done on purpose.
This is due to a sense that the government will come to their rescue without question because of entitlement.

There is no quality ad business sense in the leadership.
They survive due to protectionism and political patronage.