Archive for category NEP

Chronic rent-seeking due to corrupted NEP, says Ku Li

by Joseph Sipalan
Malay Mail Online
4 April 2014

KUALA LUMPUR, April 4 — “Haywire” implementation of the New Economic Policy (NEP) was the cause of the rampant cronyism and rent-seeking now ailing Malaysia, said veteran lawmaker Tengku Razaleigh Hamzah.

The former finance minister said the practice of patronage in implementing the policy had undermined the “just and noble” philosophy that underpinned the social engineering programme that was mooted in the aftermath of the May 13, 1969 racial riots.

“The entrenchment of rent-seeking and patronage system into the fabric of Malaysian life begs the question: How did this come to pass?” he said in his keynote address at the launch of the book “Rich Malaysia, Poor Malaysians” last night.

“Much as this sounds like a blame game and much as this is distasteful to swallow, the answer lies in the New Economic Policy; or rather, the NEP that had gone wrong in its implementation,” he added.

Tengku Razaleigh, or Ku Li as he is popularly known, said the country has fallen victim to the machinations of politicians habitually lining their own pockets and colluding with businessmen who were uncompetitive without preferential treatment. Read the rest of this entry »

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Najib Wrong to Blame Malaysians

by Kee Thuan Chye
Yahoo! News
Jan 14, 2014

Prime Minister Najib Razak is wrong to blame Malaysians for the country’s standing in comparison to Japan and South Korea. He says Malaysia is not as developed and economically advanced as those two countries are because Malaysians lack strong will and fighting spirit.

This is bullshit.

He should instead blame his own party, Umno, and its partners in the ruling Barisan Nasional (BN) coalition. If it were not for the New Economic Policy (NEP) and its continued existence to this day, almost a quarter-century past its original termination date of 1990, we would not be in the state we’re in now.

The NEP made us economically less competitive. Investors were reluctant to put money into ventures for which they had to yield 30 per cent share to partners who brought hardly anything to the table.

The NEP triggered a massive brain drain that is now recognised as one of the factors weakening our hopes of becoming an advanced nation. Read the rest of this entry »

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Malaysia: High Income Nation, but Low Income Rakyat

By Anas Alam Faizli
Oct. 22, 2013

Malaysia’s current socio economic structure can be summed up in four words, “Rich Malaysia, Poor Malaysians.” Malaysia is blessed with abundant natural resources with petroleum being the most precious. Add the land, other commodity resources, large youthful population and the country has all the essential ingredients to flourish. How then did this small nation of 30 million manage to end up with the unsolicited title of among the region’s most unequal nation between the rich and poor. What happened? Read the rest of this entry »

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Malaysia’s got talent, but they’re being driven away, mostly to Singapore – world economic report

The Malaysian Insider
October 10, 2013

The huge presence of foreign workers in Malaysia has led to static wages, according to the WEF report. – The Malaysian Insider pic, 10 October, 2013.The huge presence of foreign workers in Malaysia has led to static wages, according to the WEF report. – The Malaysian Insider pic, 10 October, 2013.Affirmative action policies and an overreliance on cheap foreign labour have led to Malaysia’s best and brightest leaving to find greener pastures, particularly in Singapore, according to a new report released by the World Economic Forum.

The Geneva-based body’s Human Capital Index evaluates such things as quality of healthcare, infrastructure and education, in order to gauge a country’s ability to develop a skilled workforce.

Its 2013 report ranks Malaysia at the 22nd spot in a list of 122 countries. Topping the list is Switzerland, followed by Finland, Singapore, the Netherlands and Sweden. Asean countries in the list include Thailand which is placed at number 44, Indonesia (53) and the Philippines (66).

The report notes that Putrajaya’s affirmative action policies as well as cheap migrant labour have kept Malaysia from achieving a skilled workforce to compete with its smaller and richer neighbour, Singapore. Read the rest of this entry »

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Alternative messages to the Malay heartland: Will they be heard?

Dr Lim Teck Ghee
CPI
27th September 2013

In the last few weeks, with the chorus of chest-beating messages on the need for greater entrenchment of Malay rights and privileges growing stronger ahead of the coming Umno general assembly, there have emerged two Malay leaders who are willing to go against the chauvinistic tide to provide a different analysis of what is wrong with Umno and its political ideology and how to correct the Malay dilemma of poverty or stagnation for its masses amidst unprecedented wealth, power and privilege for its elite.

Datuk Zaid Ibrahim and Tengku Razaleigh Hamzah are no ordinary dissidents. They also cannot in any way be seen as traitors or disloyal to the Malay cause. They have been long-time staunch members of Umno with proven track records of dedicated public service and reputations of higher standards in integrity and honesty than most of their colleagues among our elite.

Their messages to the Malay heartland are sombre and brutal. They will certainly be seen as unwelcome and cruel. But in seeking to drive home the many uncomfortable truths that the contestants jostling for high positions pretend to not see or know about, they are doing the party and its followers much greater service than may be apparent.

Their views and the alternatives offered are important not only for Umno members and other Malays to appraise and debate; they are also important for all Malaysians to reflect upon as we search for the right road to ensure a fair and just future for all. Read the rest of this entry »

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Beep beep here comes the roadrunner!

– Sakmongkol AK47
The Malaysian Insider
September 24, 2013

Najib has launched the Bumiputera economic empowerment Plan. BEEP. It has come to this now. Twittering, face booking, blogging, whats-apping and now beep-ing the country. Najib will be beep-ing the Malays so that they can take their rightful place in our country. After NEPing the country, Malay equity stands around 23%? Does ownership of this 23% mean anything to the ordinary Malays who have the face the daily grind of life?

Many of us know exactly what the BEEP means. It means a license to pillage and plunder in the name of king, religion and country. The Malay elite salivate at the prospects of carving out wealth earning resources.

23% is owned by GLCs, the Malay elite, the privileged and the Malay monied class. This BEEP is going to turn into another excuse to justify the rape and plunder. After raping the girl repeatedly, the rapist presents her with a bunch of flowers. This is exactly what the BEEP announced by Najib represents, the presentation of a bunch of flowers after the raping the Malay lady over and over again.

If you can’t dazzle people with your brilliance, confound them with your bullshit.

There are almost 10 million Malays living with a monthly income of RM1500. Why these people aren’t directly aided? Why do we arrogate ourselves the authority and omniscience to even claim we know what is best for the Malays? The ordinary Malay knows he wants to get out of poverty and destitution if only he has the means to. So why don’t we give them the means to? The problems of the present lot of 10 million people must be tackled immediately. Read the rest of this entry »

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First day back, Kit Siang targets new Bumi agenda, says only for Umnoputras

by Jennifer Gomez
The Malaysian Insider
September 23, 2013

DAP national adviser Lim Kit Siang fired the first salvo when Parliament’s new session began today, saying that the government transformation programmes had failed and that the new Bumiputera agenda went against the grain of the New Economic Model which hinged on merit and not based on race.

He said this after Deputy Minister in the Prime Minister’s Department Datuk Razali Ibrahim responded to a question from Lenggong Member of Parliament Datuk Shamsul Anuar Nasarah to state the achievements of the transformation programmes.

Lim pointed out that the new Bumiputera agenda only benefitted a select few “Umnoputras” when there were many other Bumiputeras and non-Bumis who lived below the poverty line and needed government assistance.

“Isn’t this evidence that the government programmes have failed?” Lim, the Gelang Patah MP, asked.

He questioned whether Umno leaders were willing to pledge that they were Malaysian first and Malay second. Read the rest of this entry »

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10 ways to really help bumis

P Gunasegaram
Malaysiakini
Sep 20, 2013

QUESTION TIME The recent RM30 billion package (although I am not sure how it works out to that) for bumiputera economic empowerment is certainly not something that will help or have any kind of impact on the vast majority of bumiputeras who form 67 percent of the population.

Just think of that figure for a moment. Nearly seven out of ten people in the country are bumiputeras. Help everyone in the country who needs it and you help the bumiputera community the most. More on that later.

Prime Minister Najib Abdul Razak’s plans to economically empower bumiputeras will not help the ordinary bumiputera because he is not the one who owns shares, or will become a major entrepreneur, or live off government contracts. That affects only the rich bumiputeras.

Realistically, the economic empowerment programme is a thinly disguised ruse to help those who continue to live off the government through patronage and corruption. And in this case this is the Umno elite and many of them are likely to be among the 150,000 delegates who will vote in Umno’s forthcoming general assembly.

It’s another form of vote buying.

So what will help ALL bumiputeras and especially those who are in the poor and middle classes and thereby help bridge the income gap between bumiputeras on the one side and Chinese and Indians on the other?

For that, you simply go back to the basics. Here are are 10 things we can identify immediately. If the government had been doing this without respite and full sincerity for the last 56 years from independence we would long ago have become a developed a country, even far surpassing that of our southern neighbour Singapore which has no natural resources to speak of.

1. Raise school education levels

In the haste to increase Malay usage and hire more Malay teachers into the education system after 1970, educational quality dropped in national schools. Until today this is a major problem because of poor quality of teachers (entry standards were foolishly dropped) and lowering examination standards to favour bumiputera students. Read the rest of this entry »

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Najib Has Set Us Back 40 Years

By Kee Thuan Chye
msn.com
16 Sept 2013

Najib Razak shows once again that his actions are often driven by his own paramount desire to stay in power. He’s about to be challenged for the position of Umno party president soon or returned unopposed, a situation that will also determine whether he retains the position of prime minister. Most likely, from the look of things, he won’t be challenged, but he still needs to consolidate the reason he should stay on as president. So last Saturday, he abandoned his 1Malaysia slogan to announce a Bumiputera economic empowerment plan that is obviously designed to win him support from the ethnic community that patronises his party. He exposed his own contradiction and reaffirmed what we have come to see as his real belief – that he doesn’t care what means he uses as long as he achieves his end.

By his action, Najib also shows yet again that he is a flip-flopper. He has apparently forsaken his New Economic Model, which was introduced in 2010 to phase out the outdated New Economic Policy (NEP) in favour of affirmative action based on needs rather than race, and make Malaysia more competitive and investor-friendly. But now with the new Bumiputera economic empowerment plan – to which he is dedicating a whopping RM31 billion, to be dished out in the form of loans, contracts and programmes – it looks like he is reinforcing rent-seeking, which will retard sustainable growth.

By his action, Najib has set us back 40 years – to 1971, when the NEP was introduced. He has fortified the idea that there are two classes of citizens in Malaysia – Bumiputeras and non-Bumiputeras – thereby totally subverting his 1Malaysia stance. But whereas one of the stated objectives of the NEP was to eradicate poverty, Najib’s Bumiputera economic empowerment plan is not aimed at helping the needy. It seems to be providing crutches even for those who don’t need them. Read the rest of this entry »

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Najib’s New NEP: Step Forwards or Backwards

by Koon Yew Yin

42 years after the New Economic Policy (NEP) was launched by his father, Tun Abduk Razak, Prime Minister Najib Razak has now followed in his father’s footsteps with a new national policy specially aimed at enhancing Malay participation and control of the economy and which is expected to run into the year 2020.

There are many reasons to fear the worst from this new national policy. Firstly unlike the NEP which was initiated following the racial riots of May 1969, this policy is clearly linked to Najib’s fear of losing his position as president of UMNO in the coming UMNO general assembly elections. Najib has also made references to the fact that the new policy is to reward the Malay voters who supported UMNO during the last elections but this appears less strong a reason than his own survival as UMNO leader.

Secondly, unlike the NEP which was at least endorsed by a larger multi-racial grouping in the form of the National Operations Council, the main catalyst for the so-called Bumiputra empowerment policy has come from Malay pressure groups such as the Malay Economic Action Council (MTEM), Perkasa, right wing Malay media and bloggers and their god father, Dr. Mahathir. In fact the MTEM has claimed the credit for the new policy. Completely side-lined even though the nation is not under emergency rule has been the cabinet as well as Parliament.

The apparent failure of the ruling BN coalition of parties to even be minimally consulted on the new policy speaks volumes of how much respect Najib has for his non-UMNO BN colleagues and for the principles of parliamentary democracy. It also shows that Najib – despite all the rhetoric of 1Malaysia and the inclusive scope of the New Economic Model – is prepared to sacrifice the interest of the non-Bumiputra component of the country’s population to secure his own and UMNO’s Malay interest. Read the rest of this entry »

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Regime crisis, not just a ‘race riot’

— Clive Kessler
The Malay Mail Online
September 3, 2013

SEPT 3 — A regime crisis, a complete implosion of the then existing national ruling formula and framework: that, and not a “race riot”, was what occurred in May 1969.

And that fact, that distinction, needs to be emphasised and repeated.

Even now.

Especially now.

Now that Tanda Putra is being widely screened, amidst heated and acrimonious controversy.

A regime crisis, not just a “race riot”: that is a truth that has long been denied and is still routinely resisted.

But is it an essential truth that cannot forever be evaded.

Why? Read the rest of this entry »

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How Umno has successfully duped the Malay rakyat

by Tota
Aliran
1 June 2013

The rural people who lack information due to poor internet and social media penetration are victims of Umno’s religious and political propaganda, observes Tota.

Immediately after winning a slim majority to form a minority government, Najib claimed that the voters in the urban and semi-urban areas had been duped good and proper by the Opposition. Just imagine, the intelligent, the better-educated and better informed being duped wholesale!

On the other hand, the rural people who lack information owing to poor internet and social media penetration and who are victims of Umno’s religious and political propaganda are the ones said to be choosing wisely by voting for the BN. Some have said that Umno has indeed become a “parti kampung”.

In 1999, when a large member of Malays deserted Umno, a deranged ex-PM said that the rural people voted with their heads while the urbanists voted with their hearts, meaning guided by their emotions. History has repeated itself.

Below I provide concrete evidence of how Umno has successfully duped the poor Malay rakyat in the last 56 years from Dr M Bakri Musa’s book “Liberating the Malay mind”. Here are a few excerpts:
Read the rest of this entry »

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Malaysia edges toward change but comes up short

Peter Drysdale
Bangkok Post
10 May 2013

On Sunday, after a hotly contested general election, a record electoral turnout and over half a century of essentially one-party rule, the Malaysian people edged toward change _ but chose not to make the leap.

The campaign saw the ruling Barisan National (BN or National Front) emphasise stability, continuity and economic growth, and the opposition Pakatan Rakyat (PR or People’s Alliance) urge the end of corruption, the institution of minority rights and dealing with issues over the cost of living. In a contest that always seemed too close to call, Prime Minister Najib Tun Razak has held on to power, taking the prize from the indefatigable Anwar Ibrahim and his PR.

The election confronted Malaysia with big choices. While the Najib government led a tactical retreat on some elements of the old order, Mr Anwar called for its sweeping rejection.

Malaysia struggles with breaking through the “middle-income trap”. Wages have climbed to the point where the country can no longer compete internationally in labour-intensive manufacturing yet skills and systems haven’t improved so that Malaysia can compete effectively in the same product lines as more advanced countries.

Without further reforms, it is difficult to see how Malaysia can escape from this middle-income trap. Much of the struggle to find a way through has to do with escaping the legacy from the old order _ a “New Economic Policy” framed over 40 years ago that entrenched discrimination against minorities (including the significant entrepreneurial classes) and affirmative action through government-linked corporations (and systemic entrenchment of political patronage and corruption). Read the rest of this entry »

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Malaysian government-linked corporations crowd out private investment

by Jayant Menon, ADB and ANU, and Thiam Hee Ng, ADB
East Asia Forum
April 25th, 2013

Private investment in Malaysia never fully recovered from the impact of the Asian financial crisis.

Foreigners have continued to shun Malaysia, but it now seems that even domestic investors are fleeing, with Malaysia becoming a net exporter of capital since 2005. One explanation for the sluggish performance of domestic private investment relates to the crowding-out effect of the growing dominance of government-linked corporations (GLCs) in many sectors. The influence of GLCs, however measured, is both widespread and pervasive.

The GLC share of operating revenue is approximately one-third in the aggregate, and they control more than half the industry share in utilities, transportation, warehousing, agriculture, banking, information communications and retail trade. GLCs employ around 5 per cent of the national workforce and account for approximately 36 per cent and 54 per cent, respectively, of the market capitalisation of Bursa Malaysia and the benchmark Kuala Lumpur Composite Index. Read the rest of this entry »

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The NEP and Corruption: Why Malaysia is Lagging Behind

By Koon Yew Yin | 13th April 2013

My object in writing this is to support Professor Dato Dr. Woo Wing Thye’s lecture on 12th April in Syuen Hotel, Ipoh. In his lecture he listed 5 root causes for our poor performance in comparison with South Korea and Taiwan.

Prof. Woo, possibly because of the election fever, tried to be politically correct and made little mention of the New Economic Policy role in our failure to keep up with our neighbours. In fact it is not only Prof. Woo who is silent on the NEP – most analysts appear to have sidelined this policy in the election debate to date.

This is a mistake as the real policy culprit explaining our failure to devlop as quickly as our neighbours (see table attached) is the New Economic Policy (NEP) and the abuse of power in the B.N. Government’s implimentation. As a result, our neighbours are doing much better than us in spite of the fact that they all did not have the natural resources such as oil and gas.


Read the rest of this entry »

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Has Umno helped Malays?

P Gunasegaram
Malaysiakini
Mar 14, 2013

QUESTION TIME When former prime minister Dr Mahathir Mohamad said in typical acerbic but unsubstantiated fashion that Malay rights, privileges and its position would be affected if the opposition were returned in Selangor, it begged two other questions.

What did he do for the ordinary Malay during the long 22 years he was in power from 1981 to 2003, and how much was he responsible for the lack of their progress? And to broaden the question further, how much has Umno done for the Malay on the street and in the kampung?

A good starting point to answer the question is to look back at the New Economic Policy (NEP) of the seventies which provided the framework and target for economic redress between the races. The noble twin aims of the policy which few argued with were the eradication of poverty irrespective of race and the elimination of race identification with economic function.

This restructuring was supposed to have come from an increasing economic cake so that no community would feel deprived from the process which would be made over 20 years.

But the reality was different. While there was much effort in equalisation of opportunities initially through the education of Malays and giving them chances for jobs in the government service and the private sector, the policy morphed into one that focused on the equalisation of outcomes instead.

This resulted in drops in educational standards and minimum qualifications to accommodate weaker students instead of helping weaker students to cross existing bars by increased and better tuition. Read the rest of this entry »

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M’sian caped crusader?

by Mariam Mokhtar
Malaysiakini
Mar 11, 2013

Malays could be the masters of their own destiny, but decades of spoon-feeding, reinforced by an unhealthy belief that they are morally and spiritually superior, has robbed many Malays of the power of critical thought and analysis. It is as if the strain of thinking for oneself, is too great a challenge.

When a Malay criticises the ruling party, he is seen as ‘ungrateful’. He is told that he should be appreciative for all that Umno has done for him – all the opportunities for education and work. It is conveniently forgotten that not all Malays benefit from the New Economic Policy (NEP).

Many middle-class Malay families complain that scholarships or study loans go to the children of well-connected parents. In businesses, and especially in government tenders, the same applies – connections count more than skills or expertise. Many senior politicians and their wives are more commonly known as Mr or Mrs “Ten percent”.

Conversely, Malays have not realised that receiving an education or business opportunity via the affirmative action policies, should not deprive them of a voice. Malays must learn that keeping the government on its toes does not mean that they are unappreciative or disloyal.

Some Malays have a child-like version of the world. In a discussion with a non-Malay, the Malay who cannot present his facts in a logical manner may invariably blurt out, “Go back to where you came from”. It is like the frustrated child who does not get his way and threatens his sibling with, “I’ll tell father what you did”. He does not care about the consequences. He just wants to hurt and get retribution.

When our leaders act in the same manner, this presents a very poor example for the Malays. As an example, former prime minister Dr Mahathir Mohamad had encouraged the stripping of Ambiga Sreenevasan’s citizenship because she wanted true democracy. Read the rest of this entry »

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Hopes for Malaysia to be a high-income economy are not bright because Najib’s NEM does not dump the NEP policy

by Dr. Chen Man Hin
DAP life advisor
2nd March 2013

Look at the FDIs inflow to Malaysia compared to other Asean countries for 2012.

According to UNCTAD Malaysia FDI for first half of 2012 was US4 billion, and for the full year would be around US 8 billion.

Whereas it was Singapore US 27.4 billion, Indonesia 8.2 billion, Thailand 5.6 billion.

World bank figures for PER CAPITA INCOME for 2011 are:

Malaysia US$ 9500 ( US$ 7440 in 2008)

Singapore 46241

Thailand 4972

HONG KONG 36012

South Korea 22424

But Malaysia’s PCI of US9500 is far way from the required high income level of US$ 16,000 Read the rest of this entry »

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Room for competent Bumiputera companies: How to become competitive

— Koon Yew Yin
The Malaysian Insider
Feb 24, 2013

FEB 24 — After reading the article “Room for Competitive Bumiputera Companies’ in The Edge this morning, I am encouraged to write this piece to support Petronas Chairman Tan Sri Shamsul Azhar Abbas.

He said that in 2010 and 2011 alone Petronas awarded about Rm 74 billion worth of contracts to Bumiputera controlled companies, a sum cannot be described as anything but huge.

Despite this Petronas has become a punching bag for Malay right wing and business groups in recent months. The Malay Economic Action Council (MTEM)- an umbrella of more than 60 business group blamed Petronas for sidelineling Bumiputera companies and favouring more competitive foreign companies.

The MTEM has called for Tan Sri Shamsul and the Menbers of the Board of Petronas to resign. This is outrageous. The Malays cannot continue to expect hand outs and juicy contracts.

It is time they must realise that they have to become more efficient and competitive to face the real business world. Read the rest of this entry »

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Najib practices a two faced NEP cum NEM economic policy

By Dr Chen Man Hin, DAP Life advisor
23 Feb 2013

Events have shown that the NEP is still enforced in the economic development of the economy – two faced NEP and NEM economic policy.

Soon after being Prime Minister, Najib launched his New Economic Model to stimulate development with the aim of achieving a high economy like that of the Asian Tigers of Singapore, S Korea, Hong Kong and Taiwan

To do this he had to get rid of the economic handicaps wrought by the New Economic Policy. It is on record that Najib announced on May 2nd 2009 that he would replace NEP with his New Economic Model (NEM).

It is now 2013, and the signs of a high economy are not encouraging. For Foreign Direct Investments (FDIs) of 2012 Malaysia scored 9 billion US dollars compared to Indonesia’s US$19 billion and Singapore US$130 billion. (World Bank figures)

Per capita income for Malaysia in 2012 was US$9500 million, compared to Hong Kong US$30 million, Singapore US$50 million and South Korea US$25 million. Can Malaysia reach a high income status of US$20million by 2020.
Read the rest of this entry »

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