NEP overwhelming Najib’s reforms, say reports

By Shannon Teoh
The Malaysian Insider
March 04, 2011

KUALA LUMPUR, March 4 — New York-based business newspapers took aim at the Najib administration’s reform policies today, claiming that a “phony war on affirmative action” has failed to overcome pessimism in the local market.

The Wall Street Journal said in an opinion article that the government’s failure to speed up economic reforms while racial tensions increase have slowed productivity as the country labours under the legacy of the New Economic Policy (NEP).

“The risk now is that political parties representing the three races will be steered by extremist groups that exacerbate conflict for their own gain,” the Wall Street Journal said today.

Malaysia reported a 7.2 per cent economic growth last year, after a 1.7 per cent dip the year before.

However, its tiny southern neighbour Singapore registered a 14.5 per cent jump, equalling it as Southeast Asia’s third largest economy.

The Wall Street Journal added in its opinion article that the events in the past month, referring to demonstrations by Indian rights group Hindraf, suggest that the decades of pro-Bumiputera policies under the NEP designed to “paper over ethnic divisions have only perpetuated the strife instead.”

Groups like Hindraf accuse the ruling coalition of yielding too readily to nativist Malay voices that agitate against meritocratic reforms, the newspaper said.

Bloomberg’s BusinessWeek also ran a column by Australian researcher John Lee which said that pro-Bumiputera group Perkasa’s influence among Umno’s Malay constituents made it difficult for Prime Minister Datuk Seri Najib Razak to push through reforms.

“So far, little has been done to roll back pro-Bumiputera restructuring and redistribution policies or initiatives that would reduce the role of the state in the economy,” the weekly newspaper said, calling the government’s efforts “a phony war on affirmative action.”

“Significantly, Najib has backed away from abandoning the four-decade-old sacred tenet that Malays own at least 30 per cent of all corporate assets in the country,” wrote Lee, who was born in Ipoh, Malaysia.

“The obsession, however, with improving the lives of Bumiputera-Malaysians rather than all Malaysians has come at a heavy price. Many NEP affirmative action policies are still in place today (and some have even been extended). This living legacy is behind much of the pessimism surrounding the country today,” he said.

The article added that economic protection in the name of affirmative action has led to unproductive and wasteful habits.

“Foreign perception that Malaysia’s affirmative action economic environment makes the country an uncompetitive place to invest is damage enough,” Lee wrote.

He added that Malaysia’s net foreign direct investment (FDI) fell from US$2.56 billion (RM7.76 billion) in 2004 to negative US$7.67 billion in 2008 and recovered to only US$1.95 billion in 2009 — the worse decline among its developing and developed neighbours.

  1. #1 by hairu_321 on Friday, 4 March 2011 - 12:47 pm

    The article above indicate that we are loosing our competativeness and I 100% agreed to it. As a Malaysian this is very allarming and that is why we must change the federal government in order to effect the changes. As long as the federal government being in the hand of BN we will never see the changes that we require. Personally for me the BN is acting like a tyrant. therefore the interest of the people of malaysia will never be in their heart. Through my own personal experience i can assure you that although i was born as a Malay, I have never got anything from the so called affirmative bumiputra action plan. I feel like a second class malay, where we a just like any other minority group in this country. As a malaysian besides the race, we the malaysian people are entitle to a certain rights. Why cant the so called subsidy be given direct to the people. Why cant the malaysian people be enjoying the profit of our resources (PETROL). Why cant we the people of malaysia be given equal oportunity. Can all of this be enjoyed by the malaysian people. certainly not from BN.

  2. #2 by baochingtian on Friday, 4 March 2011 - 1:50 pm

    With all these idiotic ministers at work, i dread my rice bowl may go kaput with the withdrawal of my foreign boss to close down the factory here …..

  3. #3 by DAP man on Friday, 4 March 2011 - 1:54 pm

    NEP is a ‘skin policy’ to make Malays millionaires by giving shares in public listed companies. They neded not set up a company and build it from scratch.
    Malays are rewarded for mediocre qualifications – places in universities and jobs in the public service.
    They want a comfortable life without having to work hard.
    If they cannot stand on their feet after 50+ years of UMNO rule, whom do you blame?

  4. #4 by yhsiew on Friday, 4 March 2011 - 1:56 pm

    With tumbling foreign investment and spiralling government borrowing, the country is heading towards bankruptcy.

    One of Najib’s greatest mistakes is by letting extremist groups steer the country’s economy for their own gain.

  5. #5 by Bunch of Suckers on Friday, 4 March 2011 - 2:58 pm

    My fella Malaysians! Don’t expect much from the bunch of suckers leading our nation.

    Malaysia was top 2 behind Japan in Asia after 50 years ago. Now, it is numbered 5 in FDI, behind Singapore, Thailand, Indonesia and Vietnam in South-East Asia (SEA) ! For SEA, it is not even qualified for top 3!!!

    Foreign Investors have to give away 30% of their equities to those suckers. Then those suckers keep sucking investors for more! Corruptions are intense and prevailing every corner! Judiciary system is crap and suck! Only those idiotic investors from the Middle East would invest here! They did for Muslim brotherhoods!

    Civil servants are sux! They will sux out your pockets whenever you approach for their services.

    All high profile murdering cases were unsolved with stooges acting and sucking in the court rooms! What else can we impress foreign investors aboard?

  6. #6 by undertaker888 on Friday, 4 March 2011 - 3:59 pm

    satu lagi projek filem negara oleh kerajaan umno yang tiada otak. otak rasuah, perompak dan kaki khalwat yang terunggul di seluruh asia tenggara.
    kais pagi, makan rasuah.kais petang, main lepak. kais malam, masuk sarong.

  7. #7 by monsterball on Friday, 4 March 2011 - 4:14 pm

    Read what Walls Street Journal from USA and Bloomberg from Australia have openly published in their papers.
    Last time…one word insuting Mahathir…UMNO B will cry for boycott this or that..with Mahathir shouting back non stop.
    So much insults publishes in books…international papers and in internet as messages by welknown world class personalities…hitting hard at UMNO B individuals and our UMNO B government.
    Our calculative cunning corrupted government..knows…..majority Malaysian voters are not able to read International papers.
    So keep on …with smiles…how successful Malaysia is under UMNO B…and no worries to loose votes..if they just ignore and pretend nothing said against them.
    How much more proof do we need to know these are a group of Malays……..that insult their own religion and race so much. ..with no shame at all. ..besides being expert thieves.
    UMNO B have never been exposed so much what they are…and only after 12th GE and the from internet….that we can listen to Najib speech from Rajang Park, Sibu… over and over again..whereas in the past…cover ups are so fool Malaysians much easier.
    Not only UMNO B is corrupted to the core…but the country is managed by a band of dirtiest politcians to steal our natural wealth..belonging to all Malaysians…and suck the country’s mone away… .high and dry.
    Lets hope the incidents in Middle East will wake up more Muslims in Malaysia.

  8. #8 by born in Malaya on Friday, 4 March 2011 - 4:17 pm

    All non-bumis in Malaysia have been cheated by UMNOs after NEP implementations.
    Party like MCA,MIC are there to be made use of by UMNOs to split the non-Malays’ vote.
    With their special rights and quota system, the world is definately not going to accept their racist terms, unlike the poor non-Malays in Malaysia who are being bullied until today. Working together to kick this racist government out is critical.

  9. #9 by monsterball on Friday, 4 March 2011 - 4:17 pm

    Too tough moderation will kill off powerful and truthful thoughts..from commentators.

  10. #10 by MalaysianRakyat on Friday, 4 March 2011 - 4:58 pm

    While DAP is critizing MCA, it should also look into this problem:

    The “Save Dominique Ng Fund”, launched in Kuching yesterday, has raised close to RM30,000.

    The fund was launched to save the Sarawak PKR state assemblyperson for Padungan from being declared a bankrupt, the result of a civil suit against him by Sarawak DAP vice-chairman Chong Siew Chiang.
    Uncle Lim, what is happening? . With Sarawak state election soon, Pakatan parties cannot afford inter-fighting!!!!

  11. #11 by donng55 on Friday, 4 March 2011 - 5:40 pm

    With an increasing number of them at the bottom of the demographic pyramid, the non-Malays have thought themselves into an existential bind.

    The predilections in the implementation of NEP, to us, is the world egg from which all the economic inequalities in the country are hatched.

    Given the manna of NEP, will the Malays, especially amongst the well-to-do elites, ever willingly give it up even after the realization of its target of 30% total national equity, stop clamoring for a bigger share of the economic pie, and allow other races to cry halves to anything that we can find?

    This is a question that should operate as a soporific on our nation’s moral feeling.

  12. #12 by undertaker888 on Friday, 4 March 2011 - 8:54 pm

    the moderator should go work for Rais Yatim….

  13. #13 by tak tahan on Friday, 4 March 2011 - 10:32 pm

    Not allowed to comment.So i send my south.under regard to all here on behalf of me for a short sharing moment time.Shee..shee..beh sai kong ua.Otherwise monster moderater’ll come after me.

  14. #14 by Loh on Friday, 4 March 2011 - 10:34 pm

    ///He added that Malaysia’s net foreign direct investment (FDI) fell from US$2.56 billion (RM7.76 billion) in 2004 to negative US$7.67 billion in 2008 and recovered to only US$1.95 billion in 2009 — the worse decline among its developing and developed neighbours.///–

    FDI are peanuts compared to 889 billion ringgit which had gone out illegally during the last 9 years. The amount that left the country since NEP, which provided cover for corruption over the last 40 years had exceeded the cumulatively FDI over the years. NEP started before oil revenues came in, and the windfall could have allowed government assistance to the needy without the need for quota system. Yet, UMNO leaders found better utility of NEP for them in wealth creation and in life time tenure in office. The country as a whole suffers.

    Now Malays face real dilemma. They have to choose easy money of chicken feeds or kick out the corrupted leaders and work as equal with non-Malays so that they would keep pace with rising prices through improved income. They have lost the luxury to feel good thinking that rich Malays make them proud, while they were able to live comfortable poor life. They will soon be living at subsistence level if the thieves are not driven out from their position of power.

  15. #15 by Loh on Friday, 4 March 2011 - 10:36 pm

    Moderator, please speed up!

  16. #16 by monsterball on Saturday, 5 March 2011 - 2:11 am

    If freedom of expressions with no fouls words are still moderated…why tell us so much …how we are cheated by the billions from these crooks…yet not allowing us to sound them off with no diplomacy?
    What prevents ..a change of government becoming ..with the new one…be a two-timer too?
    What kind of People Power do Pakataan expect?
    I put on my thinking all from how I feel….and not easy to put all toughts into words…click it..out come “under moderation”
    Are we all learning to be politicians or freedom fighters?

  17. #17 by monsterball on Saturday, 5 March 2011 - 2:21 am

    I wish the moderator will release my comment at 4th March..2.11 am..and let all judge if I have offended any decent vistor or commentators..or even any PR politicians.
    We complained newspapers are telling half truths.
    Why are truths being moderated here?
    Are politicians going after each other for the fun of it… to fool all it from BN or PR?

  18. #18 by tak tahan on Saturday, 5 March 2011 - 3:40 am

  19. #19 by dagen on Saturday, 5 March 2011 - 11:48 am

    “Say some more I’ll cut your kuku.”

    The threat of all threats were promptly issued by mother um. It struck deep into the head of Soi. And mysteriously from within the depth of his head, a chip of that very much feared threat shot downwards and found for itself a target within the loose sac of soi. In the briefest of instance the sac tightened. Then it inexplicably dissapeared upwards. A wall of corrugated face stared out at the world below in place of what only a split second ago was the pride and joy of Soi.

    (Six months later.)

    “But we are buddies.” “And and I helped you a lot.” “Remember.” “Remember.” “Pleeeese.” “I beg you.”

    “Too bad Soi, rambutans are strictly for umnoputras only.”

  20. #20 by dagen on Saturday, 5 March 2011 - 1:16 pm

    Aiyah the comment above is actually meant for a later thread.

    Anyway. I say the NEP is choking and killing the NEM.

    Another thing. Stupid umno was banking on mid-east funds for our development over the next 10yrs. Now mid-east is in turmoil. So funds from mid-east may not come or may be slow in coming. This is going to be problematic. Remember, like malaysia under umno, many mid-east countries are also run by autocrats with the support of cronies. So funds from mid-east more likely than not are funds from these cronies. With the fall of their political masters, these cronies will suffer.

    Whoooa!. Phaaark man.

  21. #21 by monsterball on Saturday, 5 March 2011 - 2:38 pm


  22. #22 by monsterball on Saturday, 5 March 2011 - 3:30 pm

    Dear Moderator…thank you so very much to release my comment.
    Sorry for the test above. by my programer.
    Please delete 5th March 2.38pm

  23. #23 by Loh on Sunday, 6 March 2011 - 9:14 pm

    Your comment is awaiting moderation.

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