Malaysia, Best Location For Arab Investors, Tourists - Developer

KUALA LUMPUR: Arab property developer, Hesham El Din Fathi Mohamed has visited Malaysia more than 50 times, during which he has made comparisons with other nations across the globe.

Nothing compares to Malaysia especially when it comes to attracting investors and tourists from the Middle East, he says.

Hesham, an Egyptian said he worked in the Middle East for 15 years, and having studied the world situation, which currently is dogged by the financial meltdown, he has come to the conclusion that Malaysia is the best and right spot for investment.

"Our vision of the Gulf was that this area would definitely go down very fast. The past few days have confirmed that. By going out first, we would have a bigger chance than anybody else," said Hesham, who is a managing director of Golden Corporate Heritage Sdn Bhd, which is the developer of the proposed Arab City in Jalan Ampang.

Incepted six months ago, Golden Corporate Heritage Sdn Bhd is a joint venture between Dubai, Saudi Arabian and Malaysian partners. The company has branch offices in Dubai and Saudi Arabia with diverse interests in real estate, trading and oil and gas.

Malaysia has a special appeal to the Arab world. What has attracted Arabs to Malaysia all these years is its safe, steady and friendly environment. It has been lauded as a modern, moderate and progressive Muslim nation.

"Having studied the world market, we find Malaysia is the only good spot we can invest in. The Malaysian culture can accept any foreigner easily, has good infrastructure, is blessed with natural resources and further strengthened by stability.

"We have never heard of violence in Malaysia. In all aspects, we find Malaysia the right place to start our investment," he said.

"When we thought of coming to Malaysia, we didn't have a specific project in mind. I came to Malaysia as a tourist more than 50 times before I made the decision. After looking at the society, I decided that this is the right place to invest," said Hesham in an interview with Bernama recently at his office at Menara Ambank in Jalan Yap Kwan Seng here.

While in Kuala Lumpur, he visited the Arab Street in the Bukit Bintang. area. Malaysia has the distinction of having many such enclaves in the various cities and major towns, such as the Chinatown in Kuala Lumpur, Little India in Klang and the Portuguese Colony in Melaka. These are all tourist attractions.

"Hanging out around the Bukit Bintang area made me discover that Arabs are focusing here. But unfortunately, the place is not suitable for Arabs who come here with their families. Arabs choose Malaysia because they want to bring along their families. It is a family destination," said Hesham.

A survey conducted by the company on Arab tourists along Jalan Bukit Bintang revealed that they had problems with food and could not find a place in Kuala Lumpur which was safe for them to spend with their families.

He said that not many Arabs were willing to return for a second visit as they saw very little improvement in the tourism sector catering to their community.

Arabs, said Hesham, tend to enjoy their own cuisine and it was difficult to find a truly authentic Middle Eastern restaurant in the city.

While more than 1.2 million Arabs come to Malaysia each year to shop and spend time with their families, these are not the same group of visitors from the Middle East, he said.

Because of all these factors, including the absence of a similar enclave like Chinatown and Little India, he decided to propose the development of an Arab City in Malaysia, and when completed, it will be the first in the world.

He said after several meetings, Tourism Minister Datuk Seri Azalina Othman took only two weeks to give the company conditional approval for the project to be located in Jalan Ampang, which is in the golden triangle. It is also next to Saloma Bistro and Theatre Restaurant and the Malaysia Tourism Information Centre (Matic).

However, the company is still awaiting approval for its request for a 33-year lease on the piece of land from the Federal Land and Mines department, he said.

He said the project, sited a few hundred metres from the iconic Petronas Twin Towers, will be a retail, business and lifestyle hub with a display of rich Arab food, culture and tradition in the heart of the city.

He said the development cost of the project is estimated at RM35.4 million while operating cost is over RM150 million.

The proposed Arab City enclave, which will be equipped with state of the art security systems, will have a two-storey complex with 337 parking bays. Among the facilities are an exhibition and convention centre which will host events throughout the year, ten restaurants, two coffee houses, bakeries and a supermarket.

The bazaar area will have more than 150 shops of international and local fashion brands, a multi-purpose hall, prayer rooms, beauty salons and a theme park for families with children.

The project is expected to provide job opportunities for about 1,000 Malaysians while 200 Arabs are expected to run the business.

Citing figures from Mastercard, he said Arabs from the Gulf states spent US$1.5 billion on shopping abroad during the last summer break.

"Rather than elsewhere, we want them to spend their money here.But we need to make them feel comfortable during their stay," he said.

Following the Sept 11, 2001 attack on the United States, many Arabs have avoided that country and Europe. The situation in Lebanon, which used to be a popular tourist destination for the Middle Eastern tourists, is also not stable arising from the Israeli attacks on Gaza.

"There are no other options for the Arabs. For instance, Saudi Arabians by law cannot go to Thailand," he said.

Many Arabs make Malaysia their first choice destination each year for the long summer holiday.

Hotels in Malaysia during the Arab summer break, register a 100 percent occupancy with air frequency increased from 35 flights per week to 45 between here and the Middle East, with Arabs families usually having a month-long holidays.

"We are testing the waters here. To invest, we need an assurance and the Arab tourists who come here, want to feel that they are comfortable," Hesham said.

He also said Malaysia should tap opportunities from the credit crunch in the Gulf with more Arab investors expected to flow into the country given the attractions here.

"But greater efforts and incentives should be provided for, to create a more conducive environment for the Arabs," he added.

Analysts said early predictions that the Arab states of the Gulf would be largely protected from the international financial crisis have proved misplaced. As the turmoil spread, the Gulf has been hit by its own liquidity squeeze -- largely because foreign funds that had wrongly bet on a revaluation of local currencies pulled out suddenly once the financial crisis hit.

For him, the global crisis should not be an obstacle to doing business.

"You can't shrink and stay at home, waiting for the crisis to go away. Each country has its own crisis. What's happening in US does not have to affect India for instance, unless they are connected. I have been hearing a lot of the crisis and no one can explain why.

"We are here, we have the money. There is a project and there is a market. How is the crisis going to affect us?

"We see things as being wonderful.We see the economy as beautiful. We want to do something, at the least. Let us be more optimistic. I came to Kuala Lumpur not to leave.

"I have my home, my family here but no Malaysian passport or nationality. But maybe I have a Malaysian heart.

"I am living here with friends, family. There is a future for my kids. What is strange is, I am working for the country to be better. I am here to stay forever," Hesham said.

-- BERNAMA

Arab City Delayed By Bureaucratic Red Tape

KUALA LUMPUR: Bureaucratic red tape may force the developer of Arab City, which is designed to be a symbolic gateway connecting Malaysia to the Middle East, to move from its site in Jalan Ampang in Kuala Lumpur to Melaka, which promises a 24-hour approval for the project.

Hesham El Din Fathi Mohamed, Managing Director of Golden Corporate Heritage Sdn Bhd, said Melaka Chief Minister Datuk Seri Mohd Ali Rustam had assured him that the state would facilitate all procedures for the company to invest in the state.

"He (Ali) told me, anytime you face a problem, you can walk in my office and my house is also open for 24 hours to fix the problem," the 45-year Egyptian told Bernama in an interview at his head office in Menara Ambank in Jalan Yap Kwang Seng recently.

Incepted six months ago as a joint venture between Dubai, Saudi Arabian and Malaysian partners, the company has branch offices in Dubai and Saudi Arabia with diverse interests in real estate, trading and oil and gas business.

Drawn by Ali's investor-friendly approach, Hesham said the company planned to invest more aggressively in Melaka, with initial investments of RM350 million.

"So, any place which gives us a good environment to invest and do projects, we will go for that. It will not cost the government a single penny to have the project here. We are paying and all projects will be financed by our company. So, I wonder why you ( KL authorities) are not helping us enough," he said.

The Melaka government, he said agreed to provide the company with a piece of land on the riverside, in the heart of the city, to develop the Arab City.

"For Arab tourists, it will be a short distance from the airport and better than travelling to Penang and Langkawi which will be crowded during the peak season. We find Melaka a good place given its rich historical background. The state government really wants to help us."

Hesham said the company was still waiting for approval from the relevant land authorities for its proposed request for a 33-year lease of the land located near the Saloma Bistro and the Malaysia Tourism Centre (Matic) in Jalan Ampang.

It had earlier expected to complete the project by June this year in time for the Arab summer break.

He said after several meetings, Tourism Minister Datuk Seri Azalina Othman took only two weeks to give the company conditional approval for the project to be located in Jalan Ampang, which is at the Golden Triangle.

"If the land department has problems with that piece of land, it must inform this company to find an alternative. But you cannot leave the situation hanging while people are spending overheads.

"So, we hope that things will get a little faster. We won't run away from the bureaucracy. We will fight it. We consider Malaysia as our country. As Muslim businessmen, we want to invest in a Muslim country."

The project, sited a few hundred metres from the iconic Petronas Twin Towers, will be a retail, business and lifestyle hub with a display of rich Arab food, culture and tradition in the heart of the city.

He said development cost of the project is estimated at RM35.4 million while operating cost is over RM150 million. The proposed Arab City enclave, which is to be equipped with state of the art security systems, will have a two-storey complex with 337 parking bays.

Among the facilities are an exhibition and convention centre which will host events throughout the year, ten restaurants, two coffee houses, bakeries and a supermarket.

The bazaar area will have more than 150 shops of international and local fashion brands, a multipurpose hall, prayer rooms, beauty salons and a theme park for families with children.

"The Arab city in Jalan Ampang will not just boost tourism but will also be a dynamic hub for attracting investments."

The project is expected to provide job opportunities for about 1,000 Malaysians while 200 Arabs are expected to run the business.

Hesham said the company expected revenue of RM8.8 million annually from the Arab City in Jalan Ampang.

With no approvals in sight from the authorities here, Hesham said the company had no choice but to start the Melaka project ahead of its earlier plan to have the Arab City in Kuala Lumpur.

"Within seven days from now, I will give my proposal for an Arab City in Melaka to the state government. Hopefully, I can start my project in Melaka next month.

"As for KL, I don't know who I am talking to and who is talking to who. These are all land matters. We are ready. Our people are ready to start on the construction. Our media campaign is also ready.

"Everything is ready. We had hoped to catch the Arab tourists during the Arab summer season in May or June. What's going on now is, if all approvals are not received by end of this month, and there is no way to catch them (Arabs) in this season, I would have to take all my attractions (Arab City) to Melaka."

Hesham said more than 1.2 million Arabs come to Malaysia each year to shop and spend time with their families because of a strong Islamic presence in the country.

The company has been in a limbo for six months, with overheads and other expenditure rising. He said todate, RM6 million, including RM3 million for overhead costs, have been spent with no results.

"We are willing to spend more, willing to be part of the society and to help bring business from the Middle East to Malaysia. But just open the door for us." --BERNAMA

The Gaza Massacre in Perspective

By Chandra Muzaffar

HONEST, accurate media presentation of context is vital for an in-depth understanding of conflict. In the case of the ongoing Israeli massacre of Palestinians in Gaza, the context has been distorted by much of the media. The impression given is that Israel had no choice but to retaliate against a constant barrage of rocket attacks launched by Hamas after the latter decided to end the Hamas-Israel truce on Dec 19.

While rocket attacks targeting civilians in the southern part of Israel are wrong from the point of view of international law, the media has failed to tell the public the whole truth about why Hamas ended the truce and how Israel is largely responsible for the underlying conflict between Israel and the Palestinians and other Arabs. There are at least five dimensions to the larger context shaping the conflict that have not been highlighted in the media.

One, even after the so-called Israeli "withdrawal" from Gaza in August 2005, the Israeli army has conducted numerous raids and air strikes in Gaza in the name of fighting "terrorism" which have killed hundreds of civilians including women and children. These assaults intensified after Hamas captured the Palestinian Legislative Council in a free and fair election in January 2006. When Hamas ousted its rival Fatah from Gaza in June 2007, Israel went all out to destroy Hamas through military and non-military means.

Two, in spite of Israeli attacks, Hamas, a few violations notwithstanding, observed its June 2008 truce with Israel. Not a single Israeli was killed by Hamas rocket fire during the six-month period of the truce.

The Hamas leadership even proposed a 10-year truce to Israel in April 2008. There was no response from Israel. It was because of continuous Israeli military strikes, the closure of border crossings and a suffocating blockade of Gaza, imposed by Israel, that Hamas was forced to end the truce on Dec 19.

Three, in juxtaposing Hamas rockets with the Israeli arsenal, the media seldom mentions the tremendous asymmetry in military power between the two sides. What are Hamas's homemade rockets compared with the wide range of sophisticated lethal weaponry at the command of the world's fourth most powerful army? The death toll from the present assault tells the whole story: 375 Palestinians to five Israelis as of Dec 30 after four days of air bombardment.

Four, to grasp the significance of this asymmetry one has to place it in the context of the Israeli blockade of Gaza that began soon after Hamas won the 2006 election. By punishing the people of Gaza for voting for Hamas through the imposition of a blockade that has increased poverty and destitution and denies life-saving drugs to the critically ill, Israel has made the victims of its cruel and callous siege even angrier and more desperate. The media has made no attempt to link Hamas's rocket attacks to the siege.

Five, neither has the media explained to the people that at the root of this longstanding conflict that goes back to the beginning of the 20th century is the occupation and annexation of Palestine and the oppression of the Palestinians.

Within a year of the unjust partition of the land in 1948, 78 per cent of Palestine was in the hands of the Zionists. Gaza is part of the 22 per cent that was annexed in 1967. Since 1948, Israel, argues Israeli historian Illan Pappe, has embarked upon a policy of "ethnic cleansing" that seeks to eliminate the indigenous Palestinians from their land. None of these facts and opinions is given any ventilation in the mainstream international media.

It is not difficult to understand why this is so. Zionist influence over the US-Europe controlled international media is enormous. In the US, control over the media is part of what the American sociologist James Petras describes as the "Zionist power configuration" (ZPC) which extends to the principal arteries of the economy, political institutions and the intellectual and cultural life of the nation.

This is perhaps a propitious moment to challenge the ZPC. The US economy is facing its severest crisis ever which must impact adversely upon Zionist power both directly and indirectly. With its inevitable economic decline, US global hegemony which has been a critical factor in sustaining and perpetuating Israel's military dominance of the Middle East is also coming to an end. New patterns of global power are in the offing.

At a time like this, it is important that Americans themselves realise that blind, uncritical US support and protection for Israel is damaging to US interests.

It is significant that no less a statesman than George Washington had warned the American nation in his farewell address that "passionate attachment of one nation for another produces a variety of evils... facilitating the illusion of an imaginary common interest... betrays the former into a participation in the quarrels and wars of the latter... It leads also to concessions to the favourite nation of privileges denied to others..."

In the last few years, some Americans from the establishment have begun to see this. Jimmy Carter would be a case in point. Academics such as John Mearsheimer and Stephen Walt have also criticised the incestuous relationship between Zionist lobbies and the US government. More individuals and groups should be encouraged to oppose the subordination of the US to Israeli interests in the Middle East.

The Palestinians and other Arabs who have to contend with Zionist power should also develop more effective strategies to pursue their struggle for justice. At this juncture many of them oscillate between violence and rhetoric. What is needed is strategic thinking and planning which will produce new forms of challenge and resistance to Zionist dominance. For instance, those who try to break Israel's Gaza blockade by transporting food and medicines through ships are not only providing much needed assistance but are also raising public consciousness about the inhumanity of the Israeli regime. Two women have been at the forefront of such initiatives: the Nobel laureate Mairead Maguire and former US congresswoman Cynthia McKinney.

Such initiatives, it is hoped, will accelerate the demise of Zionist power and US hegemony and create the conditions for the liberation of the Palestinians and other oppressed peoples.

Dr Chandra Muzaffar is Professor of Global Studies at Universiti Sains Malaysia and president of the International Movement for a Just World (JUST). In 2002, he was a member of the Internet World Court on Israel's War of Extermination Against Palestine.

Landslides Strike At The Crack Of Dawn

(Bernama Photos)

Tragedies seem to strike in the early hours when you are sound asleep.

Last Saturday’s landslide in Bukit Antarabangsa took place about 4am, killing four people, one unaccounted for, 17 injured and 14 bungalows buried.

On May 15, 1999, more than 10,000 residents in Bukit Antarabangsa were trapped when a 100-metre long landslide occurred at 5.20am and cut off the only access road to the hilly residential area. There were no casualties.

I was one of the affected residents who had to go through so much discomfort for quite some time after the tragedy. Authorities were however quick in opening a new access road through Sungai Sering for the residents. But the road was soiled and muddy but we had no choice but to bear with the difficulties.

Back then, we were lucky that the landslide did not cause any loss of lives.

Several other landslides took place at the crack of dawn. On Nov 20, 2002 a landslide at 4.30am flattened the double-storey bungalow of Affin Bank Bhd chairman Gen (Rtd) Tan Sri Ismail Omar.

His wife, Puan Sri Azizah Abdul Aziz, his son Hijaz, two in-laws, two grandchildren and two Indonesian maids, perished in the 4.35am incident.

The bungalow was located 300m away from the Highland Towers.

On May 31, 2006, four people including two children were killed when they were buried alive in a landslide that flattened three blocks of longhouses at Kampung Pasir during a heavy downpour at 4.45pm.

In the latest landslide in Bukit Antarabangsa, I was one of the fortunate residents who were not directly affected by the tragedy.

My house which I bought in 1993 is sited at Taman Bukit Mulia, which is a valley at Bukit Antarabangsa, with access road from Kampung Pasir, the entrance to UK Perdana, another housing area. This road was built after the May 1999 landslide.

Since last Saturday’s incident, I have been consoling myself and family as well as those who phoned and sent SMSs to me after the landslide that my house is on a valley and far away from the tragedy. Of course, I was worried, who wouldn’t!.

I was in Kelantan when the landslide occurred. For the first time ever, I spent Hari Raya in a kampong environment. So, when my sister, whose late husband is from Kelantan threw the idea of spending our Hari Raya Aidil Adha at her in-laws’ village, I simply agreed.

After all, I had no plans despite taking two weeks leave. We headed for Kelantan on Friday and returned on Tuesday, second day of Hari Raya.

On reaching Wangsa Ukay to grab some Ramly burgers at our favourite stall, I noticed the congestion in the vicinity, with cars parked at every corner.

Some 3,000 to 5,000 residents have been asked to vacate their homes and those involved are
those from Impian Selatan, Jalan 9 and 11, Taman Wangsa Ukay, Jalan 6, Taman Bukit Jaya and Taman Bukit Mewah.

On the valley are Taman Bukit Mulia (phase one and two), Villa Duta and Villaria condominiums, a surau and second phase of Riverdale Park apartments. Some 3,000 to 5,000 people are staying in these areas.

From 10,000 in 1999, the population of Bukit Antarabangsa could have reached 15,000 -20,000 people by now. Bukit Antarabangsa is also dubbed Malaysia’s Beverly Hills, with many local artistes staying in the neighbourhood. Among them is Malay pop diva Datuk Siti Nurhaliza Tarudin with her husband Datuk Seri Khalid Muhammad Jiwa, whose RM6 million bungalow is located not far from where the landslide occurred.

Since the landslide, traffic at the Wangsa Ukay area which also sites Giant, Burger King, Petronas petrol station, Restoran Wangsa Ukay (mamak restaurant) and several shophouses, is congested, with police, Federal Reserve Unit and army vehicles plying the area round-the-clock.

About 200 metres away is a food court, with a 24-hour mamak restaurant, Restoran Al-Kaafah fast becoming a popular haunt for folks.

Meanwhile, the Armed Forces (ATM) and the Public Works Department (PWD) have completed the construction of a 250-metre permanent bridge over a drain, to link Jalan Bukit Antarabangsa and Jalan Bukit Mewah.

The bridge, which will stretch across a large drain running along Jalan Bukit Antarabangsa, will connect residents to Jalan Bukit Mewah 2 and provide crucial access to Taman Bukit Mewah, Taman Bukit Utama residents after the main access road was cut off by last Saturday’s landslide.

Bukit Antarabangsa has recently turned into an army zone, with the sounds of helicopters above our rooftops. It will be a matter of time when things return to normal.

Let’s hope that follow-up action is taken to prevent another landslide from recurring.

My heart goes out to the families of victims who perished in the landslide. And to all who escaped the tragedy, let us pray to God for our safety.

Hey, The Moon Was Smiling At Us!

(Bernama photo by Anuar Isman)

Yes, the moon was indeed smiling at my loved one and me. We had a slight misunderstanding last night, and I said I was sorry for hurting his feelings. But he couldn’t accept my apology.

At home, I sent him my apology through e-mail. Usually, my dear friend would take awhile to get over it and on most occasions, it was due to the slip of my tongue. In his reply, he said that he initially was not planning to check his email, but somehow did. He said that he had some work to do.

Thanks to Mr Moon, there was a warmer tone in his reply. You were smiling at us, but in your mysterious way, I thought you were instrumental in melting his heart. Life is full of surprises!

I only learnt about the smiling moon this morning through my secretary, Siti Balqish who tried to capture the magic moment with her camera last night. The picture didn’t turn out well as Mr Moon could only be captured through the professional lens.

Because of what happened, I spent the night reading newspapers in bed and skipped watching tv. Otherwise, I would have watched the visuals of Mr Moon over local television.

Mr Moon, you simply have that special effect on lovers. It’s not surprising that many popular songs refer to the Moon. One evergreen number is Fly Me to the Moon, written by Bart Howard in 1954. Popularised by Frank Sinatra in 1954, here are the first few lines of the song:

Fly me to the Moon,
And let me play among the stars
Let me see what spring is like
On Jupiter and Mars.

Sinatra recorded a whole album of Moon tunes in 1966, as the Apollo missions were gearing up for the first landing.

While the early songs about the Moon referred to its romantic qualities, by the 1960s going to the Moon became a reality and pop songs started to refer to it as a place rather than a mellow night-time friend.

Typical was Jonathan King's 1965 Everyone’s Gone to the Moon which refers to a world that has lost its way.

Some of the popular Moon tunes are Moon River (Andy Williams/Danny Williams), Carolina Moon (Connie Francis), Moonshadow (Cat Stevens), Moonlight Becomes You (Bing Crosby), Bad Moon Rising (Creedence Clearwater Revival) and Engkau Laksana Bulan (P. Ramlee).

Tony Fernandes - The Man Who Dares To Dream

Tony Fernandes (extreme right) at a
press conference in Toulouse recently.
(Bernama pix by Mustaza Yusoff)

From Salbiah Said TOULOUSE (France) Nov 11 (Bernama) -- There he stood with his trademark red baseball cap sharing with his audience from Airbus, his "dream of the impossible" that has driven him to the front seat of the regions largest budget airline that is redefining travel in the Asia Pacific. From zero experience in running an airline, Datuk Seri Tony Fernandes, group chief executive officer of AirAsia Bhd, can thank his lucky stars for making a dramatic change of direction to realise his vision of making travel affordable to Malaysians. At the age of 37, Fernandes, who was vice-president for South-East Asia for Warner Music Group from 1992-2001, left the music industry to buy AirAsia, the then bankrupt carrier for a token sum of RM1.00. "This dream that's happened today is due to your hard work," said Fernandes, as he thanked AirAsia staff, management and his partners and aircraft manufacturer Airbus for believing in his dream, at the official handing over of the first Airbus A330 for its low-cost long-haul affiliate, AirAsia X Sdn Bhd, in Toulouse, France recently. The Airbus A330, costing US$200 million (US$1=RM3.54), is expected to significantly reduce the airlines fuel consumption and operating costs. The ceremony, witnessed by Transport Minister Datuk Seri Ong Tee Keat, came just weeks after AirAsia switched the entire Malaysian operations to an all-Airbus A320 fleet. Fernandes, 44, is often described as Richard Branson of Asian airlines and hailed as Asia's answer to easyJets Stelios. British billionaire Sir Richard Branson is founder of Virgin Group of UK while Sir Stelios Haji-Ionannou is founder of easyJet plc, a budget airliner based at London Luton airport. AirAsia X, launched in January 2007, is 48 percent-owned by Aero Ventures (a venture of Tony Fernandes and several of his business associates), followed by 16 percent Virgin Group and 16 percent owned by AirAsia. Bahrain-based Manara Consortium and Japan-based Orix Corp have taken a total 20 percent stake in the long-haul low-cost carrier. "We started with a small dream with AirAsia, two planes, 200,000 passengers a year. Six years later, we had 20 million passengers with more than 80 aircraft. Our eventual dream will be 60 million passengers in 2013 with 175 A320s. "That dream was only for four hours (short haul). Today, with A330, and hopefully A350, we will be able to bring everyone to our magnificent hub in Kuala Lumpur from Europe, Africa and America. And really, we will make the world a small place," said Fernandes. Fernandes founded Tune Air Sdn Bhd in 2001, with a vision to make air travel more affordable to Malaysians. With that in mind, Tony and his three partners in the same year bought over AirAsia from its owner DRB-HICOM. "That same year along with some partners, I formed a partnership to set up Tune Air Sdn Bhd and bought AirAsia for a token sum of RM1.00. Subsequently AirAsia was remodelled into a low-cost carrier and by January 2002, our vision to make air travel more affordable for Malaysians and all Asians took flight," Fernandes says in his blog. Under his leadership, the fledging airline with a RM40 million debt became a blooming, thriving business and has grown into the regions largest budget carrier operating more than 100 routes covering over 60 destinations. From a two-aircraft operation of Boeing 737-300, AirAsia currently boasts a fleet of 72, and has to date carried more than 50 million passengers since its first day of operation. "Today is the start of a dream my partners and I from the music industry had seven years ago, that is to make travel affordable, democratising travel to everyone. Hence, we came out with a tagline: 'Now Everyone Can Fly' (AirAsia). We did for the region. Today, we are in Stage Two 'Now Everyone Can Fly Xtra Long' (AirAsia X)." AirAsia was established in 1993 by government-linked company DRB-HICOM, and started its operations in 1996, but was not successful. Air Asia was then bought by Fernandes in 2001 and he turned it around financially within a year. The ceremony in Toulouse marked the first delivery of AirAsia Xs orders. The carrier placed earlier this year an order for 25 Airbus A330 aircraft to be delivered over the next five years. It is expected to receive its second carrier in December which would further lower its operating costs. AirAsia has since 2005 placed 175 orders for A320s. To-date, 50 have been delivered. The Airbus A330 is powered by Rolls Royce Trent 700 engines. The cabin has 383 black leather upholstery seats, with optional premium XL seats for extra width and leg room as well as the latest in-flight entertainment system featuring innovative contents and applications provided by Thales of UK. To Airbus president and chief executive officer Tom Enders who was present at the historic event, Fernandes said: "We made a deal on the phone and sealed it past midnight in Malaysia. I look forward to a long relationship. "We always say at AirAsia, dream the impossible. Its always good to dream, people will always knock you down, (saying that) I was crazy, can't be done. If you don't dream, some reality wont come true, wont happen. We encourage people to dream. From some dreams, reality will come. "Today is a phenomenal reality for me. And we say believe the unbelievable. Who would think these guys from the music industry would revolutionise air travel in Asia. Keep on believing. Thanks to Airbus for supporting us in very troubled times," said Fernandes. Enders, in his speech, described the event as another important milestone in the strong partnership between Airbus and the AirAsia Group. "It is incredible to believe that it is less than four years since AirAsia placed its first order with Airbus. Since that time, the group has ordered a total of 200 aircraft from Airbus, including 175 A320s for the AirAsia short haul operation and 25 A330s for AirAsia X, making the group one of our largest airline customers," he said. AirAsia X started its commercial service with its flight from Kuala Lumpur to the Gold Coast, Australia on Nov 2 2007, before adding the Kuala Lumpur-Hangzhou route in February 2008. Exactly a year later, AirAsia X ushered in a new chapter of low-cost international travel by flying to its second Australian destination, Perth. The inaugural AirAsia X flight between Kuala Lumpur and Perth touched down on Western Australian soil at 2.40pm on Nov 2 (Sunday), using the airlines brand new wide-bodied Airbus A330. The A330 was freshly delivered from the Airbus facility in Toulouse, France on Oct 31 (Friday). AirAsia X now serves the Kuala Lumpur-Perth route with six direct return flights per week. The airline plans to upgrade this schedule to a daily service by mid-December. It will also commence services between Kuala Lumpur and Melbourne on Wednesday. -- BERNAMA

Cronyism: A Penny For Your Thoughts, Tun

Tun Dr Mahathir Mohamad’s advice last Sunday to prime minister-in-waiting, Datuk Seri Najib Tun Razak to keep his cronies and family members at bay when he takes over the reins of leadership is worth pondering.

Dr Mahathir knows best. After all, he has ruled the nation for 22 years. In fact, Dr Mahathir came under virulent attacks by the western media, alleging him of practising cronyism during his term in office as prime minister.

In his website www.chedet.com, which is named after the pseudonym he used when he wrote articles for the newspapers, Dr Mahathir says that when the New Economic Policy began to show some results in the early 80s, the western media and local opponents of the government began to talk about cronyism.

“I came in for virulent attacks because some Malays actually did well in business. They were all labelled my cronies whether they were indeed my cronies or not. Anyone who succeeded was immediately defined as my crony. Many close friends, relatives and members of my family who failed in business would not be called cronies.

It is not the actual relation or association with the leader that qualifies one to be the crony of the Prime Minister. It is the success of the individual. Failures, no matter how close they may be to the Prime Minister would not be called cronies.

This left me in a quandary. As head of the Government, I had to ensure the success of the NEP objective of reducing the disparities between the bumiputeras and the non-bumis. This reduction must be achieved at all levels, not excluding the rich and the very rich. It wouldn't do to have parity among the low income and middle income only, while big businesses are all in the hands of the non-Bumiputera millionaires,” says Dr Mahathir.

But what is cronyism?

Wikipedia, the free encyclopedia has defined cronyism as partiality to long-standing friends, especially by appointing them to positions of authority, regardless of their qualifications.

“Governments are particularly susceptible to accusations of cronyism, as they spend public money. Many democratic governments are encouraged to practice administrative transparency in accounting and contracting, however there often is no clear delineation of when an appointment to government office is "cronyism".

It is not unusual for a politician to surround him- or herself with highly-qualified subordinates, and to develop social, business, or political friendships leading to the appointment to office of friends, likewise in granting government contracts. In fact, the counsel of such friends is why the officeholder successfully obtained his or her powerful position — therefore, cronyism usually is easier to perceive than to demonstrate and prove.

In the private sector, cronyism exists in organisations, often termed ‘the old boys club’ or 'the golden circle', again the boundary between cronyism and 'networking' is difficult to delineate.”

According to Wikipedia, cronyism can exist anywhere, in both free and not-so-free states. Some notable situations and examples of cronyism in world history include:

George Washington was criticised for appointing Alexander Hamilton as the first U.S. Secretary of the Treasury after Hamilton had served as Washington’s aide during the American
Revolutionary War.

Examples of cronyism can be found historically in a number of communist states. The cultural revolution in China was initially popular due to the perception that Mao Zedong was ridding the state of a number of officials who had obtained their positions by dint of friendship with communist authorities. One of the highest level cases of cronyism occurred during the Kennedy administration in the United States. Robert S. McNamara was appointed by President John F. Kennedy without any experience, a point that McNamara made clear in the 2003 documentary ‘The Fog of War.’ McNamara's role in the disastrous Vietnam War was crucial and he is often considered "the architect of the Vietnam War". Kennedy originally offered him a job as US Secretary of State and when McNamara admitted to having no experience he gave him Secretary of Defence. Even though McNamara confessed no experience in defence, Kennedy insisted he accept the position.

· US President George W. Bush was accused of cronyism after the nomination of Harriet Miers to the US Supreme Court. Miers had no previous judicial experience and demonstrated little knowledge of constitutional law, and her selection was rejected by many conservatives and liberals. The appointment of Michael D. Brown to the head of FEMA could also be considered a case of cronyism as Brown had no experience pertaining to his job. The administration has also been accused of cronyism for reducing Scooter Libby’s sentence in the Plame Affair.

Paul Wolfowitz was mentioned in connection with cronyism after the World Bank committee charged him with violation of ethical and governance rules as bank president by showing favouritism to his companion in 2005. The report noted that Mr Wolfowitz broke bank rules and the ethical obligations in his contract, and that he tried to hide the salary and promotion package awarded to Shaha Riza, his companion and a bank employee, from top legal and ethics officials in the months after he became bank president in 2005.