One of the things that should not happen in any economy is a situation where a government-linked entity enters into the commercial sector to compete with private sector players. This has been happening way too often in this country.
So, I read this piece in the Business Times about 1MDB's foray into new power sector projects with very mixed feelings.
Mind you, I have absolutely no love for YTL Power. I am absolutely against any Independent Power Producer (IPP). The electricity power generation sector should have been kept with Tenaga Nasional Berhad as a successor company to Lembaga Letrik Negara (LLN) as a necessary statutory monopoly of a public good. The IPPs and the inherently lop-sided Power Purchase Agreements (PPA) hasn't done our country any obvious good. Instead, it has increased our cost of living.
So, my first complaint is that entities like 1MDB is crowding out the private sector.
My second complaint is that entities like YTL Power and its ilk of IPP players should not be allowed to remain in play.
Everything in the electrical power generation sector should be handed over to TNB.
As a consumer, I have a healthy respect and appreciation of TNB. It is not a perfect service provider. But, then, which entity is ever perfect?
That said, TNB is a damn sight far more preferable than 1MDB or YTL Power and its IPP ilk.
If you need a context to what I have written go here.
If you need a context to what I have written go here.
