Premier Seeks His Mandate in Malaysia


By PATRICK BARTA | Wall Street Journal

SINGAPORE — The pace of social and economic reform in Malaysia is likely to slow over the coming months but the country remains committed to opening its heavily regulated economy to more competition in the long term, Prime Minister Najib Razak said Friday.

In a rare private interview, Mr. Najib said that steps he has taken since assuming power in April, including relaxing rules for foreign investment in business services and tourism, are “quite unprecedented” for Malaysia.

But more dramatic overhauls, including major restructuring of a race-based political system that reserves ownership of much of Malaysia’s economy for ethnic Malays, will likely have to wait.

“For the next few months, we want to deliver what we have promised” rather than focus on big new reforms, he said. Short-term efforts will include achieving “performance indicators” announced by the government this year to curb crime and improve government services and infrastructure — a program Mr. Najib hopes will further bolster the popularity of his government.

“I need the political support, I need the political base” if more dramatic reform is to be achieved, said the premier, who was chosen for the post by his predecessor, and installed by his party.

Like many emerging economies in Asia, Malaysia has seen its export-oriented economic model — it is Asia’s third-most trade-dependent economy after Hong Kong and Singapore — suffer badly over the past year. Growth contracted sharply in the first half of the year, and while there have been signs of a recovery, Malaysia’s position as one of Asia’s manufacturing hubs faces increasingly tough competition from China and Vietnam, where wages are often cheaper.

Malaysia also faces rising political discord after years of stability, with deep dissatisfaction over its affirmative-action program. Established in the 1970s to help put 30% of the economy in the hands of ethnic Malays, who make up 60% of Malaysia’s 27 million people, the program has left many ethnic Chinese and Indian residents feeling disadvantaged.

Dissatisfaction, led by opposition leader Anwar Ibrahim, spread last year, and the governing National Front coalition — which has ruled Malaysia since 1957 — lost its long-held two-thirds majority in Malaysia’s parliament. That forced former Prime Minister Abdullah Ahmad Badawi to accelerate a handover of power to Mr. Najib, his deputy.

The soft-spoken, British-educated son of Malaysia’s second prime minister surprised many investors by moving quickly to placate critics, despite having a reputation as a defender of Malay privilege.

Mr. Najib’s government relaxed rules requiring companies to allocate 30% of their equity to Malays when listing on the Kuala Lumpur Stock Exchange, and eliminated the need for foreigners to take ethnic Malay partners in certain sectors such as health and tourism.

“I read the signals from the last general election, and a responsible government has to respond,” Mr. Najib said in the interview Friday, held between meetings at the Asia-Pacific Economic Cooperation summit in Singapore. “I’ve made necessary changes,” he said.

But the changes didn’t include politically sensitive industries such as air travel, utilities and retail, and some investors have argued the government needs to force more competition.

The changes so far are “just PR spin,” says James Chin, a political-science professor at the Malaysian campus of Australia’s Monash University. “My impression is that this guy wants to do reforms but he cannot until he goes to an election and gets an election mandate.”

Mr. Chin says he suspects Mr. Najib will call an election next year if the economy recovers, though he isn’t obliged to do so by law until 2013.

Mr. Najib said he agrees Malaysia needs to take bolder steps eventually. He said he is planning to unveil a new economic plan to diversify the local economy. While he declined to say exactly what it would entail, he said Malaysia needs to boost the role of services and encourage more domestic consumption to reduce over-reliance on exports.

He said he would also like to promote niche industries such as Islamic finance, which now accounts for a sizable part of the country’s banking assets.

The government will also aim to rein in its sizable spending on consumer subsidy programs next year, potentially freeing up cash for more productive investments, he said. Malaysia allocates nearly $200 million a year subsidizing the price of sugar, for instance.

The government is working with a local bank to create “smart cards” that will allow it to direct subsidies only to low-income consumers who need them, he said, while redirecting government assistance away “from people who drive Ferraris.”

Whether these additional steps will be enough to appease investors is uncertain.

Mr. Najib’s ideas are “a good start,” says Ed Teather, an economist at UBS in Singapore, especially the bid to cut subsidies. “The concern is that the promises of the government aren’t always followed through on.” He says he believes Malaysia’s growth will rebound to 6% next year before easing to 5% the following year — lower than what some economists think Malaysia must maintain to significantly increase living standards.

Mr. Najib said he also intends to rein in corruption, which has long been an issue of concern for foreign investors. Corruption “is a problem,” Mr. Najib said, but added, “it’s a problem of many countries.”

The country’s progress on that front, he said, may well be judged on how it handles a few high-profile cases working through the system, including one in which a former transport minister and another top executive are accused of committing fraud during the development of a debt-ridden port and industrial facility. A parliamentary committee recently recommended that police and other authorities pursue investigations against the officials.

Mr. Najib said he would support prosecutions of the officials, if the investigations indicate such prosecutions are warranted. But “we cannot rush into it,” he said.

—Celine Fernandez contributed to this article.

  1. #1 by taiking on Saturday, 14 November 2009 - 11:57 am

    Ho. Ho. Ho. Ho.
    Najib is no santa.
    No. No. No. No.
    He will be another promisor who cannot deliver on his promise.

  2. #2 by k1980 on Saturday, 14 November 2009 - 12:30 pm

    Seeking his date again? You mean his date with Altan doesn’t count? Ka-booom!

  3. #3 by Winston on Saturday, 14 November 2009 - 1:15 pm

    “The changes so far are “just PR spin,” says James Chin, a political-science professor at the Malaysian campus of Australia’s Monash University. “My impression is that this guy wants to do reforms but he cannot until he goes to an election and gets an election mandate.”

    Prof Chin is very sadly very disappointing!
    Doesn’t he realise that our PM as well as all his cohorts will do anything under the Malaysian sun to get, not only an ordinary mandate, but the two-thirds majority that will let him “cover the sky with one hand” (an old Chinese saying).
    Once he gets that, the electorate will rue the day they were born!! Prof Chin, please be more widely read and more aware of what’s going on! We expect that of you!
    With even such “highly educated people” around, it’s no wonder that we have such a repulsive and repugnant government for the last five over decades!
    Doesn’t the good prof realise that UMNO/BN’s so-called “leaders” have been spewing all sorts of utter nonsense day in and day out? Since Merdeka Day?

  4. #4 by tenaciousB on Saturday, 14 November 2009 - 1:36 pm

    Seriously, if “major restructuring of a race-based political system that reserves ownership of much of Malaysia’s economy for ethnic Malays, will likely have to wait.” We’ll end up with a more lazy and unproductive native race.

  5. #5 by ktteokt on Saturday, 14 November 2009 - 1:42 pm

    Protecting the Malays for so many decades have made them jellyfishes! So how to compete in the open world market? Is any nation ready to give a 30% handicap to our jellyfishes?????

  6. #6 by ktteokt on Saturday, 14 November 2009 - 1:44 pm

    Najis was educated in UK but it is sad to say that he has not heard the proverb “SPARE THE ROD AND SPOIL THE CHILD!”

  7. #7 by Onlooker Politics on Saturday, 14 November 2009 - 1:45 pm

    //Mr. Najib said he would support prosecutions of the officials, if the investigations indicate such prosecutions are warranted. But “we cannot rush into it,” he said.// (Celine Fernandez)

    Correct! Correct! Correct!

    How can either MACC or the Police rush into it? If either MACC or the Police wants to prosecute any Umnoputra, it must at least wait until Najib is no longer living in this world or until Najib has stepped down from the post of Prime Minister of Malaysia. To prosecute any Umnoputra will mean that Najib is going to move a hard rock to hit his own toes. This is because the Umnoputras’ clique will quickly unite to turn fighting against Najib if the personal interest of theirs is at the stake.

    In other words, it is not easy for Umno to carry out any meaningful political reform of true sense unless both Dr, Mahathir and Pak Lah have already gone to the Heaven!

  8. #8 by tenaciousB on Saturday, 14 November 2009 - 1:58 pm

    Winston :
    With even such “highly educated people” around, it’s no wonder that we have such a repulsive and repugnant government for the last five over decades!

    Actually a degree in islamic studies does not constitute an ability to govern a nation. Especially the fanatical one have a narrow mind set. A susbtantial knowledge of world economics is fundamental. Many of the BN polticians are actually poorly educated, significant number of them can’t even converse properly in English.

    For example, syed albar the previous defence minister was a laughing stalk when he was interviewed in BBC hardtalk. Many malaysians overseas were ashamed at his ability to answer a question cluelessly.
    http://www.youtube.com/watch?v=1Y1ixwn3Isw

    Perhaps we may need to send the UMNO ministers back to school?

  9. #9 by Dap man on Saturday, 14 November 2009 - 2:13 pm

    This fellow is a con man.
    A corrupted man wants to fight corruption.
    He wants investigations into high profile cases as though Altantunya is not one of those.
    What has he been doing to democracy?
    Look at Perak?
    Look at the state of the Judiciary, PDRM and Macc.
    What kind of support does he want from voters when these have not been addresses.
    Support BN? My foot!

  10. #10 by taiking on Saturday, 14 November 2009 - 2:18 pm

    ktteokt :Protecting the Malays for so many decades have made them jellyfishes! So how to compete in the open world market? Is any nation ready to give a 30% handicap to our jellyfishes?????

    I visited a friend’s shop in kl recently. It was pretty close to some colleges i.e. somewhere near central market. There were quite a few foreign students about – mainly african students. Those african students who came into the shop, I observed, were actually articulate, spoke english well, did mental arithmatics competently, and above all, were confident. Its a small sample and I do not know how representative that sample is to the whole. But going by this small sample I can quite surely say that they are way way better than the average college-going malay youth who rather sadly were actually deceived, misled and held back by umno’s nep policies.

    How frightening!

  11. #11 by monsterball on Saturday, 14 November 2009 - 2:22 pm

    All his programs and ideas are to promote UMNO to win 13th GE.
    Najib is the biggest liar and a real hypocritical PM we have ever had…one day say this…next day do the opposite..all in favour of UMNO..contradicting himself…so many times…that his real character is very clear to Malaysians.
    Malaysians should ignore all his political speeches to the world stage. It does not benefit us at all.
    Just observe and judge what kind of life are you living now in Malaysia and are all those corruptions revealed….and killings taken cared of….sincerely…..to your satisfactions?

  12. #12 by ringthetill on Saturday, 14 November 2009 - 3:25 pm

    There is a piece in The Star, entitled ‘PM: We’ll make Malaysia a better place’ today. Najib is saying all the right things that appeal to the common sense. Question is, are these just good sound bites or are just they just another PR exercise? Can he, his UMMNO and the government machinery at large have the will to succeed in achieving what he has said? The track records of these people for the past 30 years hasn’t been too good in these areas he talked about, i.e being able to treat all MALAYSIAN CITIZENS fairly. I think seeing the successes achieve by our neighbouring country creates a feeling of nostalgia for the opportunity lost, nothing more than that!

  13. #13 by ringthetill on Saturday, 14 November 2009 - 3:42 pm

    The news get better as the day passes. Also in The Star, Hishammuddin is quoted ‘We are looking at the red tape that might have been the reason for the delays’. He is referring to the Home Ministry’s KPI and all sorts of application affecting people living under the Malaysia sun. Suddenly they are achieving wonderful things. No, no, I mustn’t be sceptical. Give credit when it is due, especially now that they have waken from their slumber. Such matters are affecting people’s lives and livelihood. Question is, will they, from now on carry on doing a good job impartially or will they forget and go back to their lacksidaisal and cocky ways when they enjoy people’s support and feel powerful?

  14. #14 by tenaciousB on Saturday, 14 November 2009 - 8:16 pm

    Everyone thinks the non-malay races have suffered major setbacks due to race biased economic support but in reality the one’s that have actually been ripped off in cataclysmic proportions are the malays.

    UMNO have essentially groomed spoiled children, one’s that can’t cope with stress and competition. One’s that can’t perform at international levels. One’s that are severely dependent on government aid. One’s that have been ridden of all self esteem and self confidence. One’s that tremble at the slightest challenge.

    When such populations are produced it further burdens the country because they become casualties in times of economic turmoils.

  15. #15 by Taxidriver on Saturday, 14 November 2009 - 9:20 pm

    Najib speaks with forked tongue. Trying to impress foreign leaders that he is sincere about reforms and fighting corruptions in the government, but forgets what he says the moment he comes back to Bolehland.

    Najib should walk the talk and not talk the walk. For a start, show Malaysians he has the political will to tackle corruptions by instructing MACC to investigate Khir Toyol’s RM24m mansion. Find out if he had won the Big Sweep Lottery many,many times, otherswise it is dirty money. It is that simple.

  16. #16 by House Victim on Saturday, 14 November 2009 - 10:55 pm

    The Public Complaints Bureau under the PM Office does not even dare to confine the receipt of a Complaint on Lawyer Assaulting clients Case dragged and silenced by the Police and AG. What can PM shows that he can work! And, therefore, qualifies him to get Mandate from the People.

    With the MACC Acts and the Acts in duplicate the works of most of the Disciplinary bodies within the Government, he also already over-powered with Duties unperformed.

  17. #17 by Lee HS on Sunday, 15 November 2009 - 3:21 am

    All kinds of policies, laws and regulations are as good as they are written. Malaysia can have first world infractuctures (minus the substance due to substandard works as a result of corruption) and the tallest Twin Tower in the world, then what? Does it automatically bring development to the country?

    Success of a nation does not depend on written commandments, it is the human resources that a nation has, makes the difference.

    Look at Japan, Korea, Hong Kong, Taiwan and nearer home Singapore!

    Malaysia has not been looking after its human resources for 52 years, do you think all the talks and slogans now will change that?

    A country that does not recognise its citizen is doomed to fail.

    A country that rewards non-achievers will end up a loser.

    Grow up Malaysia! I don’t want my child and my child’s child to live in a country like a lot of countries in Africa now.

  18. #18 by Onlooker Politics on Sunday, 15 November 2009 - 6:15 am

    “A country that rewards non-achievers will end up a loser.” (Lee HS)

    Absolutely true.

    A welfare state should provide only basic needs for food, drinkable water, and shelter for the sake of human rights and social justice but the free of charge benefits should not go beyond the point of subsistence level to the extent of giving reward to the lackadaisical people.

    Meritocracy is the solution for ensuring long-term survival of a nation. Meritocracy means that every single individual will be given equal opportunity to strive to the best of his/her capability and then he/she shall be rewarded what he/she really deserves in accordance with his/her merit or basic needs, whichever is the larger amount of material well-being.

  19. #19 by Bigjoe on Sunday, 15 November 2009 - 7:01 am

    ‘quite unprecedented’??? Tooting own horn can make things worst for him. Just makes him look delusional? Concentrate on delivering??

    I hate to say it but I wish there was a double dip so that it will be revealed that nothing he has done is actually worth a damn..

    When the PM is the product of NEP, kita semua mampus.

  20. #20 by passerby on Sunday, 15 November 2009 - 10:15 am

    If he think people will support him if he make the change, then go ahead to make the change first and not after he has got the people’s support.

    Why make that a condition and do you think the people is so stupid to give you the vote first and then wait for your change? If you don’t make the change now, why should the people give you the vote? After all you are the Prime Minister and not the challenger. Deliver the goods first and you will get the payment for sure.

    This is almost like the age old scam of asking for the money first before giving the goods later.

  21. #21 by katdog on Sunday, 15 November 2009 - 1:12 pm

    ““I need the political support, I need the political base” if more dramatic reform is to be achieved, said the premier, who was chosen for the post by his predecessor, and installed by his party.

    Ha ha! This is a funny statement by PM Najib. Are we to believe that if UMNO is given more political backing by the people he will be able to implement more dramatic reforms? UMNO is all about keeping things the same!

    In ALL the by-elections we have seen, the words ‘reform’ or ‘change’ are totally absent from the UMNO-BN campaigns.

    So what joke is this claiming that he needs more political backing for reforms? Voting in UMNO warlords like Isa in Bagan Pinang sure isn’t going to help reforms. If Najib wanted more political backing for reforms, then he should have removed a tainted corrupt candidate like Isa.

  22. #22 by AhPek on Sunday, 15 November 2009 - 6:59 pm

    “Najib is saying all the right things that appeal to the common sense.”.ringthetill.

    Yes and that’s because he rules by sloganeering.Up till now his performance is best characterised as long in form and short in substance.He has even paid highly for a PR firm to spruce up the image of his government.
    But be that as it may he still does not have an answer to restructure the economy which is overly dependent on low cost and low foreign labour.His NEAC chief has identified this as a core concern.Najib has asked for a strategy to be identified to attract local talents back to the country.The brain gain progamme is certainly not the brain child of Najib.In fact this has been started by Mahathir way back (20 or more years ago)and he even claimed that he has in fact attracted Dr.Tan Kai Chah our KKB boy who performed the first living donor liver transplant in the world to come back but when Dr. Tan left Royal Brompton Hospital London his plane did not land in Subang Airport,it instead landed at Changi
    Airport.The only brains which we have managed to attract are GPs from Burma,Indonesia,Pakistan to man our government hospitals.Even then Chua Sooi Lek has to eventually sent them back for not performing to expectations!A complete disaster this programme is and what makes one think that Najib can succeed for to succeed one has to do away with favouritism and introduce meritocracy,promotional opportunities given without racial bias,salaries and benefits commensurate with their status as experts in their field. Thus if these incentives are attractive enough it would mean getting back a lot of people most of whom are non Malays and this would be unthinkable for the racist UMNO party!

  23. #23 by AhPek on Sunday, 15 November 2009 - 7:42 pm

    An addition is made and should read “Be that as it may……………..overly dependent on low cost and low skilled foreign labour.”.

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