Another word for Retrenchment discovered

Interesting News today:

30 March 2009: CIMB Group is offering its 36,000 staff extended unpaid leave under the "Staff Rejuvenation Programme" from next month. Group chief executive, Datuk Seri Nazir Razak, emphasised that the programme was not to lay off workers but to give them an option to take extended unpaid leave of between one and six months.

On whether the programme would reduce costs, he said: "We don't have a target but there will be cost savings. It's a positive move and a win-win situation. Under the current economic situation, it is fully understood that there is spare capacity."

It is understood that the workers who take up the group's offer will start their leave from 1 April, but this will not affect the bank's operations.

Definitely an April Fools joke on the employees of this bloated organization. Ever since CIMB forcefully acquired the profitable SBB, they have been steadily reducing the under-performing staff from BCB. Now, this round of so-called "Rejuvenation Programme" is probably aimed at making the subsequent redundancy programme look more legit.

Whatever it is, CIMB should not have been allowed to buy SBB and we all know why it was allowed.

It would be interesting to see what other banks will do - will they use the same word?

Technorati Tags: CIMB, Malaysia, Banks

Japanese Banking Crisis

Following the problems in the sub-prime lending market in America and the run on Northern Rock in the UK, uncertainty has now hit Japan.

In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, while today shares in Kamikaze Bank were suspended after they nose-dived.

While Samurai Bank fell on its sword, Ninja Bank is reported to have taken a hit, but they remain in the black.

Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.

Even Miso Bank is in the soup, and an audit of the Tofu Bank is turning up questions about it's REAL assets.

The only ray of light in all this is the arrival of a new bank rising out of the ashes of the others. Its name - Hiroshima Savings - and their slogan - "we've survived worse than this!".

Its merger with the Teppanyaki Bank is still hot and on the table.

Free Cash for Bikes & Small Cars

MalaysiaKini announced that the Malaysian Government will give cash for motorcyclists, small-car owners as subsidy for the fuel hike - according to a source. Other information leaked out of the Cabinet meeting this morning: 

• Direct cash payments to motorcyclists and small-car owners when the price of petrol goes up. The payments are expected to be implemented through postal orders
• No increase for LPG cooking gas and NGV for taxis
• Gas subsidy to power industrial sector to be gradually reduced
  
• Extra tax on independent power producers (IPPs) and palm oil millers
  

The decision of the cabinet, which met this morning, will be announced at 5pm at a press conference in Prime Minister’s Department.

Currently petrol sells for about RM1.92 a litre, among the cheapest in the region.

If petrol is to be sold at full market prices, it could be as high as almost RM4 a litre - about 100 percent above current levels.

Bursa Suspended, Reacts to Geopolitical change

Bursa fell more than 10%

Latest news:KUALA LUMPUR: Bursa Malaysia halted trading at 2.58pm after the Kuala Lumpur Composite Index (KLCI) fell 10%, which is the maximum limit. The KLCI fell 130.01 points to 1,166.32, the biggest one-day percentage loss in recent years. Turnover was 913 million shares valued at RM2.47bil.

Losers hammered gainers 887 to 19.

Also: Key Asian markets fell in the morning session Monday on growing fears of a recession in the United States while in Malaysia, sentiment was further weighed down after the Barisan Nasional failed to retain its two-thirds majority in Parliament.

As we have just barely recovered from the euphoria and lack of sleep of the Election Aftershock, Malaysia - brace yourself for an economic aftershock.

In all likelihood, BN will blame us (for voting for change) for the fall of the Bursa, when in fact it is a regional sentiment as US is in recession and the Oil price is now at record level.

One only need to look at who are the big losers to realise that there are mainly those in property development and concessionaires. There is no surprise there, right since a cleaning up will soon happen and investors are running scared!




Technorati Tags: Stock market, Malaysia, Economy