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jeffooi
20-11-2002, 09:41 AM
<font size="+1">Related thread in the Web Forum:
<a href="http://www.usj.com.my/bulletin/upload/showthread.php?s=&threadid=1659">Heads will roll at MIMOS... soon?</a>

Related story at www.usj.com.my, 04.07.2002:
<a href="http://www.usj.com.my/usjXpress/details.php3?table=usjXpress&ID=280">McKinsey's recommendations to split MIMOS gain support</a>

jeffooi
20-11-2002, 10:42 AM
NEW STRAITS TIMES Business Times
Wednesday, November 20, 2002

<font size=+1">Govt nod for Mimos restructure</font>
By JENNIFER JACOBS

THE Government has approved the restructuring of Mimos Bhd, paving the way for the former government agency to separate its non-profit operations from its commercial entities.

Mimos president and chief executive Tengku Tan Sri Azzman Shariffadeen confirmed that the Cabinet decided on the fate of Mimos at its meeting last week, opting for the restructuring of the government-owned entity into units that would enable it to run more efficiently.

Mimos Bhd currently makes policies, engages in research and development (R and D) as well as making a go at fabricating wafers as a business.

“We are happy with the decision of the Cabinet to restructure Mimos into separate policy, research and development and business lines, allowing us to better focus on our task under a more dynamic framework,” said Tengku Azzman.

In an e-mail reply to a query by the Business Times, he said Mimos had asked for the separation of functions.

“This outcome is very much in line with our pursuit to have Mimos reshaped to meet the many challenges ahead and we are grateful that our views were taken into account,” he said.

Tengku Azzman did not provide details as discussions are still going on.

Mimos came under scrutiny recently after a report by management consultants McKinsey & Co became public.

The report apparently recommended, among other things, that Mimos be stripped of its business units and policy-making function and turned into a pure research and development concern.

This was hot on the heels of news that Mimos had lost some RM20 million from its investment in Metrowangsa Assets Management Bhd.

Following this, there were news reports that the Cabinet had already approved the breaking up of Mimos and that its Internet service provider unit, Jaring, which has some 500,000 subscribers and generates RM100 million cashflow every year, was to be sold off.

The market was rife with speculation as to who would take over Jaring and “turn it around”. Several businessmen were believed to have submitted their proposals to Science, Technology and Environment Minister Datuk Law Hieng Ding on the matter.

The other point of contention was its “semiconductor project”, Mysem, which was being criticised for not having anything to show for itself, after the Government had spent nearly RM1 billion on it. Mimos had received RM900 million in funds to build two wafer fabrication plants to develop the local semiconductor industry. As of now, it still does not have much to show in terms of income.

Tengku Azzman held a press conference to clarify the situation where he denied that Mimos was to be “broken up”.

“Why break up something that is working fine? Each function just needs custom-built units to take care of it. But they can remain under the same umbrella.”

He said what the organisation needed was for its “for profit” units to be treated as independent commercial entities. “If you want to run a business for profit, you must engage the right sort of people and be able to pay them.

“We are still following not only government pay, but also government procedures. If you realise that these are businesses, realise also that they have to be run like businesses,” he had said.

As to the aspersions cast on Mysem, he was highly indignant. So far, Mysem has built two wafer fabrication plants, Fab 1 and Fab 2.

He said Fab 1, which manufactures chips of about 1 micron in size, was for research and development purposes only. In building it, Mimos facilitated a transfer of technology from Germany’s Franhaufer Institute of Technology and trained 30 engineers in the processing, designing and maintenance of the chips.

Its recently-completed second plant is currently under qualification and has not started operations yet. “So it is not fair to speak about commercial success, or the lack of it, at this point.”

“The first fabrication plant, which entailed an investment of RM174 million, was meant to be a small fabrication plant with a capacity of 600 wafers per month. It was not meant for profit, but for R and D purposes exclusively.”

During the mid-1990s, Mimos felt it should develop a better process and it wanted to move up the value scale from 1 micron to 0.5 micron chips.

“We acquired the technology from NTT of Japan, which allowed us both a qualitative change as well as a chance to compare European and Eastern design philosophies.”

He said the second fabrication plant was justified in the Sixth Malaysia Plan and work on it began in 1999. It has recently been completed and is currently under qualification.

The current fabrication plant is for 0.5 micron chips but it can also do 0.35 micron chips and even 0.25 micron chips, the latter being for research purposes. The plant has a capacity of 3,000 wafers per month but it has not started operations yet.

Mimos, which was set up in 1984 as a division under the Prime Minister’s Department to drive indigenous technology development in the information and communications technology sector, became a department under the Science, Technology and Environment Ministry in 1991.


SOURCE:
http://www.nst.com.my/Current_News/BTimes/Wednesday/Frontpage/20021120010307/Article/

jeffooi
18-12-2002, 11:25 PM
NEW STRAITS TIMES Business Times
Wednesday, December 18, 2002

<font size="+1">Mimos restructuring to be completed early 2003</font>
By ZAIDI ISHAM ISMAIL

MALAYSIA’S information, communications and technology research and development body Mimos Bhd is expected to be fully restructured by early 2003.

Energy, Communications and Multimedia Minister Datuk Amar Leo Moggie said the Cabinet has given the go-ahead for the restructuring which now awaits for the steering committee to convene for its first meeting.

“Everything is in place for Mimos to be restructured into three separate functions to better streamline its operations,” Leo Moggie told reporters in Kuala Lumpur yesterday after launching Maxis Communications Bhd bridging communities programme.

“The steering committee was supposed to meet as soon as possible but had to be delayed due to the festive season.

“Once ready, Mimos operations will be divided into three separate functions — Research and Development (R and D) activities, the business side and formulating of policies.”

Leo Moggie said the steering committee will be headed by the Chief Secretary to the Government Tan Sri Samsuddin Osman with its secretariat based in his (Leo Moggie) ministry.

“Once restructured, the three areas can function better and activities can be streamlined effectively. It can also coordinate better with its parent ministry, the Science, Technology and Environment Ministry.”

Leo Moggie also denied that the restructuring was caused by a spate of several controversial rumours surrounding the former government agency.

“No, no...the restructuring has nothing to do with the rumours and not that Mimos is ineffective but rather to handle it better in the future.”

It was reported last month that Mimos came under scrutiny after management consultants McKinsey & Co recommended, among other things, that Mimos be stripped of its business units and policy-making function and turned into a pure R and D concern.

This was hot on the heels of news that Mimos had lost some RM20 million from its investment in Metrowangsa Assets Management Bhd.

In addition, there were news reports that the Cabinet had already approved the breaking up of Mimos and that Jaring, which has some 500,000 subscribers and generates RM100 million cashflow every year, was to be sold off.

Mimos had received RM900 million in funds to build two wafer fabrication plants to develop the local semiconductor industry. As of now, it still does not have much to show in terms of income.

Mimos Bhd currently makes policies, engages in R and D as well as making a go at fabricating wafers as a business.

Established in 1984, Mimos is a division under the Prime Minister’s Department to drive indigenous technology development in the ICT sector. It became a department under the Science, Technology and Environment Ministry in 1991.


SOURCE:
http://www.nst.com.my/Current_News/BTimes/Wednesday/Nation/20021218023207/Article/