The Collapse Of Malaysia's Largest Steel Company

[@BehindAsia]

The fall of Perwaja Steel is just one of numerous cautionary tales. What measures do you believe the government could have taken to prevent such circumstances from unfolding? Let us know down below!

[@abmalikahmad3454]

If a Government owned company is run by Corrupted Officers ... it is Doomed to DIE!! You may have good, clean .& dedicated officers, BUT if their Bosses are Corrupted nothing can be done!! That is the VERY SAD TALE of Malaysia GLCs... CORRUPTED TO THE CORE!!! And the other sad thing, The Government has no Forward Planning, mostly Knee Jerk Proposals by the "pea brained" Politicians!! If I understand well, the Federal Govt has an Economic Planning Unit... very high class and Elite. Sadly they mostly Bang Balls enjoying their Fat Salary and Good Perks, going round for hopless meetings, and jockeying for positions.... especially when retirement is coming.

[@tomastan4944]

Perwaja Steel was during Mahatir's watch of incompetence and corruption...

[@ngeukp8571]

100% agreed

[@ravim111]

Perwaja Steel accumulated losses of over RM10 billion (US$2.6 billion) between 1982 and 2002. The company was originally set up as a joint venture between the Malaysian government and the Japanese company Nippon Steel Corporation. However, it was plagued by problems from the start, including high production costs, low productivity, and poor management. In 1996, the Malaysian government decided to privatize Perwaja Steel. However, the privatization was not successful, and the company continued to lose money. In 2002, Perwaja Steel was shut down, and its assets were sold to a private company.

[@adzizi]

During Mahathir's administration, mismanagement & bailout by fed govt like this was so common.

[@seowpj1401]

Mahathir legacy : Proton, Renong, Perwaja steel, Bank Bumiputra,。MAS which needs huge government funding to rescue . Mahathir business mentality is special priviledges for these companies to obtain funding from.government.

[@irwanibrahim96]

I did my internship in the same area near one of its plant. It was heartbreaking to see such big factory fall into ruins due to incompetent management and corruption. Hopefully now is the new era where it was a thing of the past.

[@SteveSentosa]

I worked on its construction as a concrete technician in '83. There were many Japanese trained Malaysians working as part of the construction team, were you one of them??

[@soosainathan1753]

When you combine incompetence with lack of integrity it will result in utter failure.

[@ronaldhoole6888]

Mathair had his hand on pewaja steel bankruptcy, and his horse was Eric chia.

[@chanyuchin527]

When politicians involved, the MD will know what to do. No body in d world, separate d steel making d rolling mill far far away, n it is politicians decision...created a corruption good opportunity to d MD n belows...

[@Reeti_Science_Show]

It was Eric Chia who looted the company through its associate company. He even gave contract for gardener and cleaning company of RM200k per month. Many such bogus means used by him to cheat Perwaja.

[@stmpo5595]

KUALA LUMPUR - A former steel tycoon embroiled in Malaysia's biggest financial scandal was acquitted of corruption Tuesday when the trial judge ruled that government prosecutors had failed to mount sufficient evidence against him. Eric Chia, 74, who had close ties to former Prime Minister Mahathir bin Mohamad's government in the 1990s, is one of the few high-profile figures to have been charged in court for graft since the current leader, Abdullah Ahmad Badawi, took office in October 2003 and pledged to fix Malaysia's reputation for corruption and cronyism.

[@dont_listen_to_Albo]

The initial technology provided by the Japanese would have been obsolete, as they don’t want a viable competitor.

[@chanyuchin527]

Correct! Right in d beginning of planning, they Japanese already planned n foresee d failures...

[@reubensher8144]

happens when you employ part time farmers and fishermen. Malaysia's best workforce are the 400,000 commuting to Singapore daily. Period.

[@ilhammunir7683]

what a small pond u live in

[@azahariawang9155]

Racist

[@balibuba]

this sounds familiar like most of the GLC company, huge lost, financial assistance again and again, but most of it still continue to lose money till this day

[@superbeingp-vortex8610]

Anything that has Mahathir involved will die off. And furthermore the largely Malays running and operating it sure doomed to fail. Those who have work with them before knows what I am saying. Corruption, laziness, racialism, nepotism all contribute to Malaysia almost stagnant growth.

[@LuqmanHM]

The malays managing those companies could be incompetent, yup

[@tunkulailitunkushahriman3939]

Don't generalise ALL Malays are lazy and corrupted. This company was mismanaged as under Dr M's watch. Dr M himself is corrupted and practises cronyism

[@tunkulailitunkushahriman3939]

So is Eric Chia a Chinese or Malay? He was Dr M's crony running Perwaja Steel

[@myoppo3012]

Setuju

[@watahwilly5133]

Lol Malay? He's not even Malay and the one who manages pewaja was chinese

[@yusofjohan3456]

How about Lion steel? Recently retrenched quite a lot of employees

[@TonyWhite-x3c]

Political corruption and cronyism at the heart of all large Malaysian business difficulties.

[@MohdShahAbdullah]

Mahathir appointed his friend Eric Chia in 1988, after he was told that the Malay management team was incompetent, to rescue Perwaja. He led the company to bigger losses

[@anthonymas1969]

Govt can't be involved in business...too much inevitable red tape n lack of wise practical business management... If Japan can only provide expertise n not fund then there is need to stop the project... It shows no ready definite market n inappropriate appointment of directors will occur if government is involved

[@stmpo5595]

Perwaja Steel is one of financial scandals in the 1980s when Mahathir was fourth prime minister. There was Bumiputra Finance scandal in the 80s under his administration. After he stepped down as prime minister, there were other financial scandals emerged such as NFC, Scorpene submarine, 1MDB, Felda, LCS that lost billions of dollars. Taxpayers have to pay for the incompetence and inefficient under this New Economy Policy that giving priority to a special race. Malaysia is pretty much run by single race and ruined by same race. Sadly this race still doesn't wake up and learn from the mistakes.

[@caneestudio]

Is Lion steel company still around?

[@richardyap5055]

it was a good start to industrialize at that time. It have good partner NIPPON Steel, which is Japan biggest Steel Mill, to cooperate, What happen then, after few years, NIPPON Steel back out. With no backup plan and recruiting people without much knowledge in the related STEEL making. The Government could have recruit Expertise to continue. That did not happen, instead, Cronies were appointed. Where do this end. We need vey, very good Governance in all fields of Business.

[@TonyWhite-x3c]

Dr M and his NEP. Malay people ( who are lovely in their own right) but essentially land based fishermen and farmers with lower aspiration levels. Put into corporate roles funded by a corrupt government. Remember that around half a million Malaysians go to Singapore daily for work. These people have high skills high education and got there on merit. Malaysia is screwed until they move away from race based control and political corruption.

[@MrBoliao98]

Malaysia just cannot do it, the Japanese teach them and the Koreans, the Koreans their good steel and their own cars, now their Hyundai is threatening the Japanese, Proton.....

[@tenga3tango]

Please elaborate, i dont understand

[@MrBoliao98]

@@tenga3tango there is the endemic issue of corruption. There little incentive to innovate. The government used to set ridiculous tariffs that made sure they had a monopoly, and so this..

[@zeeaitwo]

Is the story complete?. Where is Maju Holding role?. What is Perwaja position now? Is this documentary for used of political party? Maju bought/take over of Perwaja Steel n tename as Maju Steel. DRB-Hicom (in the opening remark) got nothing to do with Perwaja. Intial days, Hicom is there but not DRB. I hope that the writer could write a complete naratives than not half naratives....

[@user-zz7vy3el4e]

Interestingg… you mind sharing the full narratives?

[@tengkualiff]

Exactly what I was thinking. This video should have been a deep dive in Perwaja Steel and the industry as a whole, rather than a surface level profile. If you want a channel that does a really good deep dive into these kind of topics, i recommend Asianometry. At least they ain't biased.

[@chanyuchin527]

Maju steel, Kinsteel small steel manufacturer...taking opportunity for so call "taking over"...😂

[@ogapadoga2]

The smart and talented Malaysians go to Singapore to work. End up Malaysia got all the low end manpower.

[@chanyuchin527]

Those money they eta, can easily employ good expertise to came back from Singapore...

[@Denzelkoh]

A precursor to lifeline of Tun Mamak?? 😮

[@rasidhassan6054]

Perwaja STEAL : The saga of ....

[@ismailnyeyusof3520]

The success of a high tech industry depends on a foundation of good design. Steel might not have been thought as a high tech industry because the raw materials are often from natural iron deposits and scrap metal that seemingly only require refining and melting but the customers can have very technical demands. The location of the Perwaja Steel factory was likely political rather than practical as it was far from the bustling, highly industrialised Klang Valley where at least skilled labour could be found but instead, it was built in a very undeveloped part of the country. All the rescue attempts were little more than throwing money into a deep as a result, no thanks also to the rampant, high level corruption. No solution was possible for Perwaja Steel since it was a bad deal right from the start.

[@azlanshah3125]

Salam we rakyat Malaysia very disappointed about waja still company corrrapte CEO s was open in 1982

[@athan7199]

lacking accountability of those in middle and top management..but no one has been punished!!!

[@ismailbinjusoh106]

Research needs time eg 50 years esp in Steel Products Also to understand Japanese Cultural in Management Thinking❤

[@anaskhoiri3653]

Malaysia just Import Steel from Indonesia no tarrif like in US-Europe Steel trade

[@merlinf2869]

First 'perwaja' means steel. So with its name as stated as " perwaja steel" , it is named as steel steel, is it not a mouthful? , and very odd and strange that the word steel is repeated twice in its name? Which instead of making the real steel, it started it's steel journey, before even it makes an honest tonne of steel, by putting way too much attention on it's name with the emphasis of naming the material it is supposed to manufacture twice (two times) in the company name. Instead of manufacturing steel , the company end up naming itself steel steel . Which instead, XYX company or ABC company could also had make the same steel without the word steel having to appear once in the company name.

[@avrinrose5457]

In my fictional world, this company never collapsed and still successful

[@maxadful]

GLC faham2 la

[@Chisel55]

Egoistic leader drags down a nation and at 98 still not show any remorse but continue to criticize others. Ironically just down south the rest of the world see what a true leader can accomplish and what another nation noticing that, followed and in 30 years became world no. 2 . To lead we have to think human first not be blind sighted by our race nor religion.

[@azahariawang9155]

Poor jack chia... Died a broken man, betrayed by his government

[@cch831012]

1mdb of the 90s.

[@ismailmokhti327]

Mahathir's cover it up

[@chengyu6443]

🏫⛲🏧💯🏤🏩

[@ongernie7216]

When comes to brain storming, Malaysia is alway been a give away. But the younger ones are generation is much better but in the olden days they are just not up to standard.

[@fghn5639]

may the hidden facts and corruption be uncovered before the passing of tun m

[@ggvggjvj1315]

Only interested Islam and politics and powers

[@michelwong1]

🤣🤣🤣🤣🤣🤣 Every thing link to KEDAH !!! The house of 【 M 】。。。。。。。。。。。。。。😁😁😁😁😁😁😁😁😁😁

[@Otherview58]

Expect fisherman n farmer to operate a sophisticated intergrated steel mill of the time .. managed by incompetent management; the CEO slept during the meeting. . Ha ha . A gold mine for the thieves to squander the rakyar money in the name of "social responsibilities " ... LoL

[@Auroqq]

This old goat mathair still dare to talk bad words on Singapore.

[@shriyasanthirakaanthan3519]

Singapore no better.

[@Auroqq]

@@shriyasanthirakaanthan3519 ya our money is bigger. eat that. haha

[@lazaruslee9505]

Thank you supported Singapore!!!!!

[@alifhashim3752]

Please use the correct flag. How about if we use George W Bush for the US Flag? 😂😂😂

[@AR-bh3mn]

Penyebabnya : Perkembangan Pabrikan Baja di Indonesia , plus Larangan Eksport Nikel dan bijih besi dari Indonesia ( Jokowi )..........

[@xinjiping2024]

Malaysia will sink the same as Proton, don't try to buy expensive defense equipment. That will make Malaysia sell other poverty assets.

[@TheFarhanfaris]

Mr xi borrow your money laa....

[@PeterWong-u3k]

All they need is a wise person 😂

[@raokumaran6187]

If one man wished not for it to succed, and that one man is and was the prime minister himself, no one can save it!! Not even god😁🤣

[@raokumaran6187]

👆Clever u are too

[@reubensher8144]

colossal flop.

[@sky-channel3163]

you should have used proper malaysian flag just like other asean countries in all your videos

[@GoodjobSkill]

old story 😴😴😴

[@TheFarhanfaris]

Whats new..😀

[@jimlim7623]

But Dr M told everyone Malaysia Boleh?

[@lazaruslee9505]

Hahahaha You answered succinctly.

[@noorsaidijohannoor7563]

the fact is wrong! Even the Perwaja logo you used is wrong. That is the logo of Maju Holding. If interested to know then truth and get the facts right, contact me.

[@TheFarhanfaris]

Hallo..any one there...tut..tut..tut

[@ianwilliams14888]

hopefully the others will follow soon 🤭

[@Easyly1953]

Hahahaha Mahathir's grand plan relying on his cronies!