The New Economic Model (NEM) should be presented to Parliament next month for formal adoption if Deputy Prime Minister, Tan Sri Muhyiddin Yassin’s denial that it had been “watered down” is to have any credibility.
In fact, the revelation by National Economic Advisory Council member Datuk Dr. Zainal Aznam Mohd Yusuf on Tuesday that the NEM had been “watered down” due to pressure by Perkasa and other right-wing groups had not come as a surprise, as it merely confirmed what had been obvious to many.
The theme of my speech in Parliament on the Tenth Malaysia Plan on 21st June last year (less than three months after the official launching of the NEM by the Prime Minister, Datuk Seri Najib Razak), was “Tenth Malaysia Plan: Long live NEP – RIP NEM”:
“The Prime Minister unveiled the New Economic Model on 30th March and presented the Tenth Malaysia Plan in Parliament on 10th June. A sea-change took place in the intervening two months, with Najib retreating from his national transformation programme when he succumbed to pressures from extremist groups making baseless and incendiary claims such as that the Malays are under siege and that the Chinese would take over the economy and country.
“As a result, instead of the first policy operationalisation of the NEM, the Tenth Malaysia Plan is a funeral requiem for the NEM.
“The NEM admission that ‘the excessive focus on ethnicity-based distribution of resources has contributed to growing separateness and dissension’ is completely absent in the Prime Minister’s presentation of the Tenth Malaysia Plan.”
What is there for Muhyiddin to deny when Zainal, as NEAC member, had only confirmed what is known to all?
The most significant “watering down” of the NEM is the abandonment of the most important of the eight Strategic Reform Initiative (SRI) described as “fundamental to achieving the NEM” – on “Transparent and market-friendly affirmative action”, viz:
“Existing affirmative action programme and institutions will continue in NEM but, in line with views of the main stakeholders, will be revamped to remove the rent seeking and market distorting features which have blemished the effectiveness of the programme. Affirmative action will consider all ethnic groups fairly and equally as long as they are in the low income 40% of the households. Affirmative action programmes would be based on market-friendly and market-based criteria together taking into consideration the need and merits of the applicants. An Equal Opportunities Commission will be established to ensure fairness and address undue discrimination when occasional abuses by dominant groups are encountered.” (Chapter 6 of NEM – p. 117)
The promises of the NEM of a needs-and-merit based transformation of the affirmative programme, to focus assistance on the low-inocme 40% of the houeholds earning less than RM1,500 per month (of which 77.2% are bumiputras), to promote building of capacity and capability, which will mean a dismanting of ethnic quotas, preferences, APs, closed tenders and other non-competitive processes, were very short-lived – all because of failure of political will and leadership.
The NEM had warned of the dire consequences of failure of political will and leadership to carry out far-reaching national political, economic, social and government transformation.
It rightly identified the most important enablers of the NEM are political will and leadership to break the log-jam of resistance by vested interest groups and preparing the rakyat to support deep-seated changes in policy directions.
It called for political will and leadership to put emphasis on coherent explanation of the vision and agenda of the NEM and transformation process and “to put in place a critical mass of bold measures” to “create an unstoppable wave of support from all segments of society for this vision”.
It warned:
“The government must take prompt action when resistance is encountered and stay the course”.
But all the NEM vision, agenda and warnings have come to nought with the “watering down” of the NEM as a result of opposition of Perkasa and other right-wing extremist groups.
Lets put Muhyiddin to the test when he denied any “watering down” of the NEM? Is he prepared to support the tabling of the NEM to Parliament when it reconvenes for a month from 7th March for MPs to adopt and endorse the NEM without any “watering down”?
#1 by k1980 on Thursday, 10 February 2011 - 2:54 pm
All discrimination is negative. It is always wrong to select on any basis other than merit and ability. Affirmative action leads to able applicants being unfairly passed over.
Affirmative action results in less able applicants filling positions. Employers must have the flexibility to employ the best candidates to ensure efficiency and productivity.
Affirmative action undermines the achievements of its receivers by creating the impression that success was unearned. Some of its receivers see affirmative action as patronizing and as tokenism.
Affirmative action causes resentment among those who
do not benefit from it and creates a backlash.
We should not sacrifice our emphasis on merit and ability. Instead we should give everyone better access to opportunities so that we can choose on merit and without discrimination.
Continued implementation of affirmative action could lead to a backlash that stops progress.
#2 by yhsiew on Thursday, 10 February 2011 - 2:57 pm
///Present NEM for formal adoption by Parliament next month if Muhyiddin’s denial that it had been “watered down” is to have any credibility///
Don’t waste time presenting the NEM for formal adoption by Parliament as investors have already made clear their stance – disinterested! You think they still will believe Najib if he comes up with NEM2 to cover the shortcomings of the NEM? The golden opportunity is gone and Malaysia is destined to be a middle-income country for good.
#3 by dagen on Thursday, 10 February 2011 - 4:35 pm
NEM or NEP the fact of the matter is it does not really make a diff. The implementors of the NEM, even if adopted, would somehow turn it into NEP. Umno has less than 10 yrs to bring the nation to high-income status. 2010 is already gone. 2011 will also be gone before long. Yet we have not seen any result on talent drain reversal, on improved foreign investments (hot money does not count, something umno loves) etc. A lot of thunder, banging and clanging but nothing in real terms.
But at least cintanegara is still pleased with the way things are.
#4 by monsterball on Thursday, 10 February 2011 - 5:01 pm
No need to keep testing these crooks.
Their weird mentalities…behaviors and arrogance are wellknown.
I guess more than 30 years successfully stealing billions make them feel they can keep fooling for majority votes again and again.
Have you eve seen any developed government in SEA keep defending and talking politics after been elected…except in Malaysia?
They cannot stop this art…as the moment they stop…all “blocked” heads will open one by one.
That what they are afraid of.
The show must go on.
#5 by yhsiew on Thursday, 10 February 2011 - 10:06 pm
Ibrahim Ali must not deceive himself – no investor in his right mind would give top priority to invest in a race-based economy.
In a race-based economy FDI will diminish and outflow of investment funds to more liberal countries will continue. Over time, the country’s economic cake will shrink and eventually put a cap on Bumi share of the country’s wealth. The logic is simple; if you have not received (FDI), how can you share?
#6 by negarawan on Friday, 11 February 2011 - 7:21 pm
I hope the Malaysian public does not fall so easily for Najib’s nonsensical sloganeering – cakap tak serupa bikin. Even the departments under Najib’s purview are creating more racial and religious disharmony in the name of their malay race and muslim religion. Najib, what is the crime of other races and religion? This is Najib’s and UMNO’s true color:
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Valentine’s Day not Christian celebration, say churches
PETALING JAYA: Valentine’s Day is a secular observance that is not celebrated religiously by churches in Malaysia or worldwide, said the Council of Churches of Malaysia.
Its general secretary Reverend Dr Herman Shastri said the National Fatwa Council had erred when it referred to Valentine’s Day as a Christian observance and has hurt the feelings of Christians in Malaysia.
“To suggest that Valentine’s Day is observed by Christians is unfair and misleading.
“Although the word ‘Valentine’ draws some connection to St Valentine, the church’s authorities have not endorsed the connection, be it Roman Catholic or Protestant,” he said in a statement in reference to an article on Valentine’s Day posted on the website of the Malaysian Islamic Development Department (Jakim).
The website described Valentine’s Day as: “The practice of celebrating the day of love (Valentine’s Day) has not been recommended by Islam. (The) spirit (of the) festival has elements of Christianity and the practice is mixed with immoral acts (and) are prohibited by Islam that clearly contradicts the belief, Sharia and Islamic morality. Therefore, Muslims are prohibited from engaging in celebrating the day.”
Dr Shastri said the council appealed to the authorities to repeal such hurting inferences that Christianity promotes sexual promiscuity because of Valentine’s Day observance, often made in the media and in the said Fatwa.
On Thursday, Minister in the Prime Minister’s Department Datuk Jamil Khir Baharom said the National Fatwa Council had, in 2005, decreed that Muslims should refrain from celebrating Valentine’s Day, as it was not part of Islamic practices.
He added the Jakim would launch an anti-Valentine’s Day campaign on Friday.
Well-known motivator Siti Nor Bahyah Mahamood had also commented on Valentine’s Day saying “immoral activities, partying and unmarried couples associating in private are traditions of the Christian community”.