By Dr Chen Man Hin, DAP Life Advisor
REFORMS BY PRIME MINISTER NAJIB RAZAK ARE NOT LIBERAL OR MODERN ENOUGH TO PROPEL MALAYSIA TO BE COMPETITIVE TO MEET THE CHALLENGES OF A GLOBAL WORLD
PM NAJIB RAZAK have introduced a series of reforms in an attempt to transform Malaysia to a high income country. He has slimmed down the NEP by reducing the 30% bumiputra equity quota to 12.5%. He has also curbed the powers of the Foreign Investment Committee and substituted it with a smaller committee.
To reassure the bumiputras, he has retained the 30% bumiputra equity target, but will use different modes to achieve the objective.
It is a pity that the PM has not understood why the 40 year old NEP has failed to help poor Malaysians, whether Malays, Chinese or Indians. The average poor Malay household only earn about RM3,000 per household or only RM500 per person (in a family of 5). Admittedly, the NEP enriched Umno cronies who became obscenely rich, while the Malays in rural areas are still mired in poverty.
PM NAJIB SHOULD LEARN FROM THE NEP EXPERIENCE
The 40 year old NEP slowed down economic growth since it was implemented in 1971. In 1957 at independence, Malaysia had the second highest per capita income (PCI) in Asia, after Japan. The World Bank has statistics that showed the per capita income slowed down since 1971, and has fallen behind S Korea, Taiwan, Hong Kong and Singapore. In 2008, Malaysia has a PCI of US$6,000, while S Korea has US$19,000, Taiwan US$17,000, Hong Kong US$30,000 and Singapore US$34,000.
It was Malaysia’s natural resources that saved the day, otherwise our pci would be much lower in the company of banana republics.
THE CAUSES
1.The NEP drove away foreign investors, and last year our FDI was only RM46 billion, and estimated to fall by half this year. Thailand has more FDIs than Malaysia.
2. The bumiputra quota system. Bumiputras have been showered with quotas from the day they were born, they were pampered in every field of personal endeavour. The quota system has engendered a dependent psychology which has affected their performance in education, in jobs and in business. In other words, the country is moving at 50% capacity, and resulting in a low per capita income. If all citizens have put their shoulders to the wheel, the per capital income (nominal) should be near US$20,000 as in a developed country.
THE OLD FORMULA OF QUOTAS AND BUMIPUTRAISM HAS FAILED TO BRING PROSPERITY
PM NAJIB has himself admitted that the NEP quota system is outdated and not productive any more. However he did not advocate a new philsophy for the country. Instead, he did say that in the future, the 30% target is still the objective, and a new model is contemplated to achieve that. This is unbelievable. What he is proposing would be equivalent to reviving NEP, in which case, he is condemning Malaysia to another 40 years of economic stagnation and the plight of the poor will get worse.
TIME TO ADOPT A CULTURE OF MERITOCRACY AND COMPETITIVENESS
We live in new global age where race is neutral and where nations interact on the principle of competitiveness, accountability and transparency. We must have good governance, because in the new era the investment climate must be liberal, open, corruption free and judicial independence.
The ability of the indigenous people, whether Malays, Dayaks or Ibans are as good as their Malaysian brothers and sisters. Statistics show that 50% or more are professionals, engineers, doctors, accountants and corporation executives, many are doing well in service industries.
Education is the key to success for all. The next is discipline and hard work. These are the same qualities of successful people in other countries, especially developed countries in the States, Europe, Japan, or India.
China is the classic example of success. from a poor communist country, she has become the third richest country of the world because a former premier, Deng Xiao Peng promulated four modern liberalisation policies of a free market economy. The people put in a lot of hard work and discipline. China, it is predicted that she will overtake Japan in 2010, and become the world’s second richest country.
Malaysia can be a developed country also, if it modernises like China and is united like one people as Malaysians, no ketuanan melayu and no bumi and non bumiputras.
#1 by limkamput on Monday, 6 July 2009 - 2:28 pm
Rojak, your writing is exactly like your name, rojak. You have to make up your mind what precisely are you getting at. I mean who do not know the excesses of “free market capitalism” on one end and the excesses of govt intervention on the other.
Dr Chen’s observation was that the govt has skewed too much to the left (too much intervention and mediocrity and too little competition and free market), is that wrong?
This is Malaysia; I suggest you don’t to write Courtney English here.
#2 by SpeakUp on Monday, 6 July 2009 - 2:35 pm
Frankyapp … I love what you say la BUT in Malaysia its those who want to hold on to power that are afraid of change. History has shown it many times. Yeah, we need to embrace change but those that we will opt for in replacement of BN need to be SINCERE with INTEGRITY and they need to hold the whole nation’s interest at heart. Are they able to? I am scared to think about it.
Jeff … this PM is smarter than the last, like you say he has advisers for sure. Even the whole Perak debacle was done with a very good adviser BUT that adviser did not read the Perak constitution la.
Okay … this is what will happen when PR takes over the government:
i. Hadi will insist PM must be a true blue Muslim hence has to come from PAS;
ii. ex UMNO guys in PKR will start their nonsense in getting lucrative things done;
iii. DAP will scream blue murder about why we are not 1Malaysia since PAS will insist that bumis need to be preotected;
iv. All in PKR will fight over who is Minister and Deputy Minister;
v. DSAI will want to be PM of which DAP will actually not be so concerned but PAS will be;
vi. DSAI will be busy persecuting the BN buggers for revenge and he will get the Rakyat’s support but we do not realise its pure revenge (sounds like the French and Russian revolution now, all get killed whilst the system is not working);
vii. Civil servants will be at a lost as to what is happening but don’t mind since they can use this confusion to make all their side deals
viii. slowly PR members will start to pull out of this and that (Kedah is a great example)
ix. I almost forgot … the Kulim racist DUN (that DSAI dare not deal with openly) will force all women in Kulim to cover their heads etc.
Then we all just sit there and watch the comedy la. Wondering why we voted them in.
#3 by frankyapp on Monday, 6 July 2009 - 2:40 pm
Hi Jeffery,good to see you again.I think NR dares not make any concrete liberal reforms based on meritocracy.He knows pretty well,most Umnoputras and powerful war lords would oppose him and may even finish him off.You know NR though he’s the president, currently does not enjoy much high level and ground support except in Pahang.Hence you see he has been travelling to Sabah and Sarawak for strong and firm deposits .He’s likely to get Perak,depending on DR Zambry (Illegal MB) but until now he’s not sure of an all round support .Thus I think,much as he wishes to make certain liberal changes like the NEP ,he’s quite scare to death .On one hand he wants to reform based on competition to gain non malays support and on the other he’s afraid to risk losing malays loyalty to him.You know Umnoputras and warlords are fillty rich and Umno’s money politic is on the rampage by these powerful and power crazy warlords and they would do anything it takes to destroy NR if he tries to mess around with them AAB tried and was kick out.NR knows pretty too well,these guys in Umno are “untouchable”.NR is pretty smart and cunning too,as you can see he’s testing the ground to find out what kind of re-action from these warlords by recently making minor changes to some new IPOs and lowing the shares to malays bumis from 30% to 121/2% for company wishing to go public.I don’t think NR is really sincere in doing what he’s doing now. What’s your take ?.
#4 by OrangRojak on Monday, 6 July 2009 - 2:47 pm
Exactly limkamput! Two sides, each demanding “we want this” – that’s what’s wrong. We have to find a mutually beneficial way forward. Najib’s ‘reforms’ look a bit like meeting half-way, but are more like same old thing with a cherry on the top. All I’m saying is everybody knows what’s wrong, but there don’t seem to be any credible plans to solve it.
#5 by m2molo on Monday, 6 July 2009 - 3:47 pm
Our PCI is so low compared to that of South Korea, Taiwan, Hong Kong, and Singapore, what does it tell then? Very simple, Malaysian (Malay, Cina, India, Iban, Kadazan, etc) are not competent at all. In other words, we are more stupid compared to other nation citizens.
#6 by m2molo on Monday, 6 July 2009 - 3:49 pm
South Korea just spent 20~30 years to become #1 in many areas, e.g. semiconductor, shipping, etc. Malaysia? Probably #1 as slogan creator, and a recently added slogan – “One Malaysia”….
#7 by SpeakUp on Monday, 6 July 2009 - 3:56 pm
m2molo … maybe we are the product of a racist system, perhaps not in our generation that we shall see real change but in the next. Who will pave the way to teach the next generation that this needs to be done?
What is happening in Malaysia is called APARTHEID. In its pure sense it is called POLITICAL PARTITION, as spoken by Werner Eiselen who was the father of this notion.
UMNO, MCA and MIC been enjoying it. They say … “Vote for me and let me champion for you against that other race.” We are a nation divided today because of that.
Now, Hadi wants to still play with that card …
#8 by W KOK on Monday, 6 July 2009 - 4:46 pm
YB,
This is something quoted from Malaysiakini a few week ago before the crisis of DAP in Kedah. I think the article really made a lot of people think about Kedah and PAS.
Personally, do you think it is better for DAP in Kedah to work with BN instead of PAS? or just be an independent 3rd force in Kedah?
I think most people in Kedah (non-malays) hates PAS. Any party associating with PAS is likely to be doomed!
Kedah PKR, DAP told to abandon PAS
Athi Veeranggan | Jun 23, 09 11:01am
Even as national leaders of Pakatan Rakyat drop the hot potato that the proposed ‘unity government’ has turned out to be, Kedah Gerakan is checking out the idea at state level.
MCPX
Its Youth wing wants the state PKR and DAP to snub PAS and tie up with Barisan Nasional to form a unity state government in Alor Setar.
Kedah Youth chief Tan Keng Liang alleged that PKR and DAP have many grouses against the leadership of Menteri Besar Azizan Abdul Razak, who is from PAS.
Moreover, he said, PKR and DAP have more in common with BN component parties such as Gerakan rather than with the Islamic-based PAS
“Hence, I suggest it would be better for PKR and DAP to snub PAS and join hands with BN to form a unity government in Kedah,” Tan (centre in photo) told Malaysiakini today.
Currently PAS is the largest single party in the state assembly, holding 16 of the 36 seats.
Umno, which is in the opposition, is second with 12, followed by PKR with five, while DAP, Gerakan and MCA have one each.
Besides filling the menteri besar’s seat, PAS dominates the state executive council with seven members while PKR has three.
Bumiputera quota hike
Tan said the state’s decision to hike the bumiputera housing quota from 30 percent to 50 percent has become the most controversial issue.
“It has provoked angry reactions from many quarters, including PKR and DAP,” he said.
Another problem, he said, is the decision to shift a pig abbatoir from its current location in Mergong, Alor Star.
“Until today the government has yet to identify an alternative site. But it plans to demolish the abattoir by end of this month,” he claimed.
Many Indian Malaysians are said to be unhappy with the state government’s lethargic handling of their grievances, especially on land, housing, employment and vernacular education.
A state government source said senior civil servants have now become more powerful than the exco in deciding, executing and managing affairs.
Unlike the previous Umno-controlled Kedah government, the PAS-helmed government has failed to tame the overzealous, and at times arrogant, senior public officers, the source said.
He added that the local municipalities are incompetent and inefficient in performing daily tasks, particularly garbage collection. This has become a major talking point.
Outdated style
Several Pakatan leaders are allegedly unhappy that the state government had retained Umno-linked companies as concessionaires in sand excavation projects all over Kedah.
“Due to this, many residents have resorted to sand theft in several prime areas,” said the government officer.
These contentious issues have been blamed on the PAS-helmed government’s lack of conviction to initiate changes.
Azizan is accused of being reluctant to abandon an orthodox political system, leadership and style of governance.
According to a Pakatan source, instead of becoming a well-oiled, refined, reformed and pro-active government, the PAS-led government has stuck with the outdated Umno style of administration.
“It is reluctant to ruffle feathers for fear of antagonising the all- powerful senior civil servants,” he said.
Meanwhile, Tan said the state economy, employment opportunities and business growth have all become stagnant.
He claimed that a BN-PKR-DAP partnership can safeguard the interests and rights of Kedah citizens and deliver constructive and progressive policies to stimulate growth.
#9 by shortie kiasu on Monday, 6 July 2009 - 6:01 pm
Anywhere in the world, governments enact policies to help the minority and the poor.
In the Malaysia, it was and still is the opposite. The government by the majority race enacts laws, policies etc to protect the majority race in the country and shut the door on the minority race.
We do not what to call this? Tyranny?
All over the years, the protectors talk about ‘liberation’ of the economic policies, but if one cares to look deeper, they are all just smoke screen.
Nothing has ever changed structurally in terms of the economic policies, somehow the government controlled by the majority race will ensure that the race is protected perpetually.
They do not realize how long can they keep taking from the minority race? There is only that much that they can take and grab whenever they have the opportunity.
There is no way the that the minority can create and expand out of nothing for the tyrants to grab.
The conclusion is foregone.
#10 by vsp on Monday, 6 July 2009 - 10:51 pm
Who planted the seed of corruption into the Malay psyche? Malays are by nature very gentle and polite. But when they become greedy they will be the worst breed of trash.
Coming back to my original question: of course, it’s the MCA Chinese. They were the original corrupters of the Malays. In doing so they are willing to stab their own brothers, sisters, mothers and fathers in order to get their hands grubby with filthy lucre.
Do you know why the MCA still want to remain in the BN fold? Because they are treated as special miniputras by UMNO. UMNO are willing to feed these greedy MCA Chinese and starve the ordinary Malays so that they can learn the secret of corruption.
So beware you Pakatan leaders: never accept any MCA or any BN refugees with open arms. Just look at Chua Soi Lek. He was grumbling away and flirting of jumping ship. But when Najib offered him some crumbs he was again singing praises for BN.
Anwar made the fatal mistake of trying to get 30 BN crooks to jump ship. They dallied and calculated the cost and finally decided not to jump. And Anwar got a load of mud splashing on his face and his sterling reputation was flushed into the sewers. So take this as a lesson, Pakatan.
#11 by siapatau on Friday, 10 July 2009 - 11:26 pm
Saudara Loh, komen saudara penuh fakta dan membawa mesej yang membangunkan. Hamba harap mesej kepada PM akan beliau papar di blog 1Malaysia.
Diharap PM membawa pembaharuan 1Malaysia tanpa kira kaum, bangsa dan agama. Rakyat Msia mesti dapat hak yang saksama.