Newsbreak: MOF oppose, EPU insist with IJN privatisation to SD

The EPU meeting with IJN proceed as scheduled. Sime Darby was not present.

In the meeting, Director General of EPU, Datuk Dr Sulaiman Mahbob informed the meeting that Government insist IJN to be privatised to Sime Darby. Dr Sulaiman is the former Director of Institut Integriti Malaysia , Malaysia Institute of Economic Research (MIER), and Secretariat of National Economic Action Council (NEAC).

The initial information received from EPU source revealed the rationale was to improve doctors pay package and increase financial capacity for expansion. It is similar to Sime Darby's expressed justification for their proposed takeover of IJN.

The IJN side dispute the rationale of EPU with the doctors' near 'unanimous' press statement on December 19th, 2008 and IJN's financial reserve of RM400 million. They argued that IJN could raise more fund to finance expansion by leveraging on its reserve.

Sources said the representative from Ministry of Finance present strongly opposed to the privatisation and insisted IJN should remain a non-profit organisation. They explicitly expressed the Minister of Finance is opposed to the Sime Darby proposal.

Dr Sulaiman response was the Government insist the privatisation of IJN must go on, despite the public is overwhelmingly against the privatisation.

The same source believed the privatisation will proceed after the Kuala Terengganu by-election.

Why is EPU resonating Sime Darby's rationale? Does that explains Sime Darby's absence? EPU is speaking for them. EPU falls under the Prime Minister's Department. Is PM "taking instruction" from Sime Darby Chairman, Tun Musa Hitam? And, why the hurry?

Read back this blog's yesterday's posting here. Apanama reported Government approve Labu LCCT plan here.