Has Najib finally abandoned the New Economic Model (NEM)?

One question for the Prime Minister, Datuk Seri Najib Razak following his announcement of the Bumiputera Economic Empowerment Agenda on Saturday is whether he has finally abandoned the New Economic Model (NEM) which he announced three years ago on 30th March 2010.

The NEM admitted that “the excessive focus on ethnicity-based distribution of resources has contributed to growing separateness and dissension”.

NEM stated in Chapter 6 (p. 117):

“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 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.”

Because of opposition from racist and chauvinists, Najib had abandoned the idea of an Equal Opportunities Commission.

Has he now abandoned the entire NEM with regard to a needs-and-merit based transformation of the affirmative programme, to promote building of capacity and capability, focusing on the low income 40% of the households?

Chapter 7 of NEM warned: “The time for change is now – Malaysia deserves no less.”

When the NEM was unveiled in March 2010, the country was warned of the dire consequences of the failure to undertake a major economic transformation.

The NEM said:

“Our shortcoming are preventing us from getting out of the middle income trap. Almost all economies of South East Asia are poised to achieve high economic growth in this decade. But Malaysia runs the imminent risk of a downward spiral and faces the painful possibility of stagnation.”

The NEM rightly identified “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” as “the most important enablers” of the NEM.

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”.

Najib should state whether he has finally given up the ghost of the NEM, as he lacks the political will and leadership to defend the NEM and stay the course so that the country could get out of the middle income trap when confronted with opposition and resistance from within his own ranks in UMNO?

  1. #1 by yhsiew on Monday, 16 September 2013 - 7:22 am

    Yes, in view of the upcoming Umno party-election, he has abandoned the NEM in order to save his position and job. This is the problem of selfish leaders who only think of themselves and not the well-being of the country.

  2. #2 by undertaker888 on Monday, 16 September 2013 - 7:30 am

    Mamak won’t let him abandon nem. Mamak needs the rent seeking and market distortion schemes to enrich his family and cronies.

    He will do that wven in his dying bed.

  3. #3 by Godfather on Monday, 16 September 2013 - 7:46 am

    Najib abandoned the NEM just as soon as it was published, but he did so covertly. Remember he promised “open tenders” in the interests of transparency ? He quietly abandoned that idea too. Now the cat is out of the bag – and they are no longer operating covertly. They are now saying openly what they have been doing for the past 40 years – the crutch system can never be abandoned, and it is here to stay whether we like it or not. If you don’t like our crutch system, then you should leave.

    I said it before – this country needs to go bankrupt, then those on crutches will not be able to walk, and will turn on themselves.

  4. #4 by Godfather on Monday, 16 September 2013 - 7:48 am

    I wonder why MCA, MIC and Gerakan still remain with BN. This new announcement of shameless empowerment surely drives the final nail into the coffin of these minority parties in BN.

  5. #5 by boh-liao on Monday, 16 September 2013 - 8:18 am

    Listen 2 how d two UmnoB top dogs barked in d last couple of days – die DIE must protect d interests of n channel more guaranteed $$$ 2 Malays/Bumi (aka UmnoB rich Malays)

    Save dis page 4 d next GE n 2 remind nonMalays/nonBumi of d ultra racist belief of UmnoB


    Whenever U hv a chance, ask MCA, Gerakan, MIC, etc 2 tell U their stand on d above statement

  6. #6 by boh-liao on Monday, 16 September 2013 - 8:23 am

    Also save dis page 4 d next GE n 2 remind nonMalays/nonBumi of d ultra racist belief of UmnoB
    “For me, today is a very lucky day and indeed the most-awaited event. We are not apologetic or worried if the non-bumiputeras or even the international communities see this as something concerning only a certain group,” moooed I-Malay first ultra-racist MooHee Dim

  7. #7 by TheWrathOfGrapes on Monday, 16 September 2013 - 10:23 am

    NEP _ New Economic Policy (1971-1990)
    NDP – New Development Policy (1990-2000)
    NVP – New Vision Policy (2000-2010)
    NEM – New Economic Model (2010-2013?)
    NSP – Najib’s Super Model (2013-RIP)

    Same wine in different bottles.

    “Insanity: doing the same thing over and over again and expecting different results.” — Albert Einstein

  8. #8 by yhsiew on Monday, 16 September 2013 - 11:23 am

    Najib’s 1Malaysia and reconciliation statement are reduced to no more than a farce following the dishing out of aid to thank a particular race for supporting him in the 13th GE.

  9. #9 by sheriff singh on Monday, 16 September 2013 - 11:49 am

    I am really confused as to what really is still valid and what is not – so many policies come and go and you just don’t know what is old and what is new and what is still valid and what is just b-s.

    Just what IS the current existing policy(ies) ? Who is doing what to whom and why ?

  10. #10 by sheriff singh on Monday, 16 September 2013 - 12:19 pm

    Najib’s latest NEP – New Ethnocentric Policy.

  11. #11 by Cinapek on Monday, 16 September 2013 - 1:12 pm

    There is an even bigger worry about the introduction of this latest pro-bumi policy. Unlike the original NEP which was at least tabled and discussed in Parliament, this latest policy was, I suspect, introduced without even consultation with UMNO’s BN partners. It is a new and dangerous precedent and portends more of such unilateral policies decided and implemented at UMNO’s whim and fancies.

    You can call it anything you want but it is clearly an apartheid policy. History will tell us such approach of governance is guaranteed to doomed the economy. When Idi Amin came to power in Uganda, he forced out the Asian minority and his country’s economy went into a tailspin. Likewise, when the Fijian military staged a coup and forced out the Asian minority, its economy too suffered badly. Malaysia is clearly heading down that slippery slope.

  12. #12 by tuahpekkong on Monday, 16 September 2013 - 3:12 pm

    Wow! Already so powerful and still need empowerment? That will make them a superpower. That is worrying to the none-Bumiputeras. The Malays are already in complete control of the Government, the GLCs and the civil service. After the completion of the Bumiputera Economic Empowerment Agenda, where would the none-Bumis stand in the country? It looks like the NEM has been abandoned. 1Malaysia is now history.

  13. #13 by john on Monday, 16 September 2013 - 3:36 pm

    As pointed out in above write-up, end of the day ALL, Semua masuk, being siphoned into THEIR (Bumnoputras’) pockets. All in name only, sure must make it legit to able masuk kuat-kuat, create lubang / kang-tow, and create avenues, jalan for them and macai, etc.
    But Ah Cheat Kok has to ensure he is in-charge for his own self-survival, life and death situation cos’ of ALTANTUYA gruesome death which he can’t ‘wash’ off his involvement completely.

  14. #14 by Bigjoe on Monday, 16 September 2013 - 5:21 pm

    I WISH HE ABANDONED IT..Sadly speaking he is not abandoning it but sadly removing the facade that it was always going to be..

    There is no modifying the NEP, bettering it etc. There is simply no such thing. Its time to abandon it and accept it was NEVER a success. It was just a lucky break it did not fail miserably.. It was NEVER going to achieve what it said it was going to achieve. NO GOVT, can make a a people competitive against others on its own. Whether a people get there depends entirely on their own..And the max opportunity a govt, even a bad one like UMNO/BN, long done.

    UMNO failed, only will fail more. The issue is when to accept it and move on..

  15. #15 by undertaker888 on Monday, 16 September 2013 - 5:52 pm

    NEP=never ending policy
    NEM=not enough money

    That’s why it never stop. It keeps going and going and going ….like the energizer bunny.

  16. #16 by Noble House on Tuesday, 17 September 2013 - 3:15 am

    Lee Kuan Yew shared his thoughts on mortality in his recently launched book One Man’s View of the World: “There is an end to everything and I want mine to come as quickly and painlessly as possible”. – UNQUOTE.

    Can the same be said for the NEP?

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