This would indicate why SIA and Shangri-La share some common DNA when it comes to service. Robert became an SIA Director and the long running question on who played the service ground. The answer lies with 3 people - Kok, Pillay and Batey.
Kuok: M’sia-S’pore Airlines split like separating Siamese twins
FMT Reporters
| November 25, 2017
Billionaire Robert Kuok, who was MSA chairman for 2 years, shares how dominant S'pore board members were just too good for their Malaysian counterparts to handle.
PETALING JAYA: Malaysian tycoon Robert Kuok, in his new autobiography, reveals that the move to dismantle and separate Malaysia-Singapore Airlines (MSA) was like performing surgery on Siamese twins, as it took them a long time to carry out the operation.
The South China Morning Post has published excerpts from his book, “Robert Kuok, A Memoir”, which hit the shelves in Hong Kong and Singapore today. The Malaysian release is set for Dec 1.
“Serving as chairman of MSA was a thankless task and I was working like a slave, virtually day and night,” Kuok said of the role he took up reluctantly in 1969 at the prompting of the Singapore government who preferred him over the candidate proposed by the Malaysian government.
“The Malaysian government had proposed MCA’s Dr Lim Swee Aun, the former minister of commerce and industry, who had failed to get re-elected in the elections of May 1969.
“But Singapore said they ‘did not like him’,” writes the 94-year-old billionaire in his book.
Kuok says he decided to quit his role as chairman of MSA almost two years later as he could see that the assurance given to him that the airline would be maintained as one to “preserve ties” between the two counties, was not going to be fulfilled.
“I had been under the impression that the link between the two countries would be preserved. Now that the decision to split was imminent, I decided to resign,” he said.
Kuok, who said he was already involved in the sugar business at the time, said he knew the split would be even more difficult having already faced much resistance from the two countries’ representatives on the MSA board since he became chairman.
“The board of 15 directors comprised one chairman, four directors nominated by the Malaysian government, another four by the Singapore government, one director from Straits Steamship (then a British shipping company controlled by Blue Funnel Group), two directors each from British Airways and Qantas Airways and the managing director, who was on loan from British Airways,” Kuok said.
“There were six white men, eight Malaysians and Singaporeans, and myself, a Malaysian. You couldn’t have had worse bickering than between the Singapore and Malaysian government-nominated directors.
“If one side raised a point and asked for a resolution to be passed, the other side would object. Each side tried to peel off the skin to see what hidden agenda existed under that resolution,” he said of the airline which was established in 1966, one year after Singapore left the federation of Malaysia.
Looking into the future
Kuok also praised the Singapore members of the board and management, whom he said were efficient and also understood the economics of the airline industry.
“They began to realise that the Malaysian domestic routes were profit-making, but looking into the future, they could not see such air travel as big-scale business,” he said.
He said with Singapore’s international airport, the government there could see the growing international traffic was the jewel in the crown of the airline industry in the region.
“So, the Singapore government felt it would be useful to break Malaysia-Singapore Airlines into two and let each country go its own way,” Kuok said, adding that board meetings had already been acrimonious as it was.
“I was acting as referee, but I was seeing the poor Malaysian directors slaughtered at every meeting because the Singapore directors had minds as sharp as razors.”
Kuok had particular praise for Singapore board member Joe YM Pillay, whom he said had “tremendous intellect that had no superior in the Singapore/Malaysia region”.
Kuok, who is Malaysia’s richest man according to Forbes, said following his resignation, the two governments agreed to having two co-chairmen, one from each country.
“They could not have asked for a more classic mongoose and cobra arrangement.
“The Malaysian government chose Ismail Ali, then Bank Negara governor, while the Singapore side picked Pillay,” he said.
Kuok said what the two co-chairmen presided over eventually, was like a funeral, as MSA reached the end of the road with the split into two separate airlines – Malaysian Airlines System (MAS) and Singapore Airlines (SIA).