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Saturday, May 21, 2005

Air Asia in banking Industry

Recent service charge by bank has lead to the public wish an Air Asia exist in banking industry. Air Asia with it low price strategy yet able to maintain profit, makes Malaysia Airline System Bhd(MAS) difficult to used it normal reason to increase it freight rate. Despite MAS price is higher than Air Asia. It local division is still making loss and have to use profit on foreign flies to subsidy it local route.

Recent banking charge has upset consumer. They hope there is a bank as competitive as Air Asia, able to maintain low price yet remain profitable exist in Malaysia banking industry.

Meanwhile, MAS still refuse to let go it loss making concessionaire on local route to Air Asia. This does not benefit both it shareholder and their customer, public consumer.

In fact such bank do occur before. Phileo Allied Bank which has been merge to Maybank is the one. Phileo Allied Bank which create "oneACCOUNT' is a current account that pay you FD interest rate. Unlike now that bank charge you if your bank account balance lower than certain limit. Bank Negara initially stated that it has no right to interfere a bank charge it customer on service it provided. However, Bank Negara impose a cap or maximum limit on charges only after some opposition from public.

If you read the book "Phileo Story" published by The Edge (Can get a copy in MPH-Midvalley).When Phileo Allied Bank wanted to extent it FD interest rate current account to corporate customer call "oneCORPORATE". Bank Negera step in to prohibit such product that benefit it customer. Why Bank Negara has right to prohibit a bank implement a product that will benefit it ccustomer but refuse to intervene when they implement something that has disadvantage to it customer?

In fact, most of Maybank customer now that using internet banking services are Phileo Allied Bank customer that become a customer of Maybank after merger. However, when I spoke to one customer that have million in his bank account. He doesn't mind paying such tiny bank charge that compare with the size of his bank balance. Only person like you and I that do not have much bank balance in account are the one who opposed. However, such charges discourage use of internet banking and E-commerce that desperately wanted by Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik.

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