Cowboy Caleb the liberal arts, grown-up stuff & random mischief

Malaysia’s Penang Island ‘bribed’ Motorola to stay?

Malaysia’s Penang Island ‘bribed’ Motorola to stay? The government would offer a RM1 billion project to Motorola involving the upgrading of the police force’s radio network in exchange for the multinational staying put in Penang and pump in an additional investment of RM350 million over the next five years. RM1 billion in exchange for RM350 million – didn’t anybody do the math?

comparing the numbers per se is flawed. first, RM1 billion may be over more than 5 years. second, there is a sunken cost for motorola staying put. third, the operating costs for the company may be way over the RM350 million. last and more prob more impt, the number of sub-contracts and jobs (and hence votes) created by motorola staying might be worth the extra $$.