(Speech at the opening of the Tasek Dalam DAP Branch, Ipoh on Sunday, 20th July 2008 at 12 noon)

The International Trade and Industry Minister, Tan Sri Muhyiddin Yassin said yesterday that his ministry will be looking into attracting investors who are pulling out from China because of high costs there.

Muhyiddin is being too optimistic when he should know that Malaysia has become even more uncompetitive in the past four-and-a-half months since the March 8 “political tsunami” because of the political weakness of the Prime Minister, Datuk Seri Abdullah Ahmad Badawi which has resulted in his failure to deliver his numerous long-overdue reform pledges.

This is one important reason why despite the Mid-Term Review of the Ninth Malaysia Plan, the Kuala Lumpur Composite Index (KLCI) on Friday plunged to its lowest level since the end of 2006!

After the recent general election, Abdullah had assured Malaysians that he had finally heard their voices and would begin to implement reforms to regain public confidence in his administration.

Nearly five months have passed and apart from rhetoric, very little has been delivered by Abdullah.

In the three areas of police, judicial and anti-corruption reforms which Abdullah had made specific mention, Abdullah has nothing to show.

What is worse, recent events, in particular the scandal of the two statutory declarations by private investigator Bala Subramaniam and his disappearance, the continued harassment of Anwar Ibrahim and Raja Petra Kamaruddin, the abuse of police powers and the lack of accountability by the Home Minister, Datuk Seri Syed Hamid Albar over the three-day 1,600-strong police lockdown of Kuala Lumpur and Klang Valley based on the false intelligence of a non-existing Pakatan Rakyat top leadership meeting to plan massive demonstration in Parliament, have further undermined national and international confidence in the Abdullah government.

As a result, the past four-and-a-half months have witnessed the continued deterioration of the crisis of confidence confronting Abdullah, although the Barisan Nasional had been returned with a strong majority of 58 MPs in the recent general election – with even leaders in Barisan Nasional losing confidence in Umno and BN government.

Malaysia is not going to be attractive to foreign investors unless the nation is capable of being globally competitive through major institutional reforms and by giving top priority to meritocracy in all spheres of national endeavour.