Archive for category NEM
Idris Jala: Pemandu not bothered by racial rhetoric
By Regina Lee | May 23, 11
Malaysiakini
INTERVIEW When the New Economic Model was first unveiled back in March 2010, possibly the loudest debate was centred around its affirmative action policies.
Prime Minister Najib Abdul Razak (left) had called to do away with race-based affirmative action and to replace it with a needs-based one instead, undoing 40 years of the New Economic Policy (NEM).
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Pua: Reform failure behind economic ranking slip
Posted by Kit in 1Malaysia, Najib Razak, NEM on Saturday, 21 May 2011
By Boo Su-Lyn
The Malaysian Insider
May 21, 2011
KUALA LUMPUR, May 21 — The Najib administration’s failure to implement economic reforms was to blame for Malaysia’s recent six-place drop on a global competitiveness scale, DAP’s Tony Pua said today.
The DAP publicity chief also disputed International Trade and Industry Minister Datuk Seri Mustapa Mohamed’s claim that the results were largely due to the perception of the business community.
“Both the prime minister and minister of international trade and industry must recognise that it is the government’s failure to implement the necessary reforms as well as its repeated U-turns in policy-making which have caused the stark drop in global competitiveness rankings,” said Pua in a statement today.
The Petaling Jaya Utara MP said the business community and the public had realised that “real change” was not forthcoming, despite hearing “transformation” rhetoric from Prime Minister Datuk Seri Najib Razak’s administration for more than two years. Read the rest of this entry »
Implications of GTP on ETP-2: Government facilitation
By Dr. Daphne Loke | May 18, 2011
The Malaysian Insider
May 18 — This article concerns the numerous private sector projects proposed for development and have been left to languish indefinitely in the hands of government departments at the proposal stage.
I remember applying for an IPTS license many years ago. The department concerned displayed on a notice board the list of applications which could not be processed due to lack of certain documents still pending from the applicant. Each applicant was provided with a complete checklist of documents required and a process flowchart for this activity.
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MP writes an obituary for NEM
Posted by Kit in Najib Razak, NEM on Wednesday, 11 May 2011
By Liew Chin Tong
Malaysiakini
I would like to pay tribute to members of the National Economic Advisory Council for producing arguably the most candid official report on the problems of the Malaysian political economic structure known as the New Economic Model.
The NEM is indeed stillborn as the old rent-seeking model continues to thrive under its current ill-disguised incarnation.
In what amounts to a farewell luncheon for members of the National Economic Advisory Council, which was tasked to draft the New Economic Model, Prime Minister Najib Razak thanked NEAC members for their work and contribution in preparing the NEM report.
“And, although your work is over, you are most welcome to be part of this journey and be part of future contributions to Malaysia,” he said.
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NEP, brain drain holding back Malaysia, says World Bank
Posted by Kit in Brain drain, Economics, Najib Razak, NEM on Friday, 29 April 2011
The Malaysian Insider
Apr 28, 2011
KUALA LUMPUR, April 28 — More than one million Malaysians live abroad, the World Bank said today, adding that policies favouring Malays are holding back the economy, causing a brain drain and limiting foreign investment.
In a Bloomberg news service report today, World Bank senior economist Philip Schellekens was also quoted as saying that foreign investment could be five times the current levels if the country had Singapore’s talent base.
“Migration is very much an ethnic phenomenon in Malaysia, mostly Chinese but also Indian,” Schellekens told Bloomberg in Kuala Lumpur on Tuesday ahead of the report’s release today.
Governance issues and lack of meritocracy are “fundamental constraints” to Malaysia’s expansion because “competition is what drives innovation,” he said. Read the rest of this entry »
Present NEM for formal adoption by Parliament next month if Muhyiddin’s denial that it had been “watered down” is to have any credibility
Posted by Kit in Muhyiddin Yassin, NEM on Thursday, 10 February 2011
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. Read the rest of this entry »
Perkasa hijacked NEM, says NEAC man
Aidila Razak | Feb 8, 11
Malaysiakini
Malay rights NGO Perkasa’s fierce objections to aspects of the first part of the New Economic Model (NEM) forced its second part to be watered down.
Revealing this today, National Economic Advisory Council member Zainal Aznam Mohd Yusof said Perkasa and other right wing groups were up in arms particularly over the NEM’s rejection of 30 percent bumiputera equity and the proposal of an equal opportunities commission.
“(These suggestions) were lambasted and strangled by right wing groups led by Perkasa. They wanted to burn part one (of the NEM).
“…Perkasa said we did not have roh Melayu (the Malay spirit),” he lamented.
Speaking at a forum organised by think-tank Institue of Democracy and Economic Affairs (Ideas) in Kuala Lumpur, Zainal Aznam added that listening to the right wing groups meant that the cabinet had failed the test on reforms.
“This was the government’s litmus test and at this time, I have to say that there is no political will,” he said. Read the rest of this entry »
Can Malaysia graduate?
East Asia Forum
January 19th, 2011
Author: Hal Hill, ANU
Malaysia is one of the developing world’s great success stories. Few countries outside of East Asia can match its development record. Since its independence over 53 years ago per capita incomes have risen more than eight-fold, and absolute poverty has been all but eliminated.
But it currently faces three key, interrelated challenges, some generic to upper middle income developing countries, others specific to Malaysia itself.
The first, how to graduate to the rich-country club, has been clearly articulated by the country’s Prime Minister, Tun Najib: ‘We are now at a critical juncture, either to remain trapped in a middle-income group or advance to a high-income economy … We now have to shift to a new economic model based on innovation, creativity and high value added activities.’
The second, shared by some of its Southeast Asian neighbours, is the country’s slower development trajectory since the Asian financial crisis of the late 1990s. Even before the current global financial crisis, which it has navigated quite successfully, economic growth in the 2000’s was about two percentage points below that of the decade 1986-96.
Particularly worrisome is the slump in investment, which has been stuck at little more than 20 per cent of GDP since the late 1990s. This is 10-15 percentage points of GDP lower than the country’s historic ratio. With savings remaining buoyant, the country’s external position has been transformed dramatically. In 2002, the country had net liabilities equivalent to 35 per cent of GDP. By 2008, this had been transformed to net assets of 20 per cent of GDP. Put simply, Malaysians have been finding overseas investment increasingly attractive, while foreigners have been less attracted to Malaysia.
The third challenge relates to the development of high-quality institutions to underpin a modern market economy in a country that has experienced continuous one-party rule for over half a century. Malaysia’s ruling United Malays National Organisation (UMNO) is in fact the world’s longest-serving governing party currently in power among all ‘quasi democracies’. Not surprisingly, elements of UMNO exhibit the problems of complacence and arrogance that one expects from entrenched one-party dominance. Read the rest of this entry »
When did Najib get the veto power as BN Chairman to veto parliamentary and state assembly candidates proposed by the other BN component parties?
The Prime Minister, Datuk Seri Najib Razak announced in Kuching yesterday that he will exercise his rights as Barisan Nasional (BN) chairman to veto potential candidates to ensure only winnable ones become BN candidates in the next election.
It is public knowledge that all along, the final decision on the list of candidates rests with the presidents of the respective Barisan Nasional component parties, whether MCA, Gerakan, MIC, PPP or the Sarawak/Sabah component parties.
When did Najib get the veto power as BN Chairman to veto parliamentary and state assembly candidates proposed by BN component parties?
There is nothing in the Barisan Nasional constitution which confers on the BN Chairman the veto powers to reject the parliamentary or state assembly candidates proposed BN component parties.
If Najib can veto potential candidates proposed by Barisan Nasional component parties to ensure only winnable ones become BN candidates, can leaders of the other BN component parties veto proposed Umno candidates on similar ground of winnability in the next general election?
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Pre-polls reforms unlikely, says Roubini’s RGE
By Yow Hong Chieh
The Malaysian Insider
January 13, 2011
KUALA LUMPUR, Jan 13 — Much-needed reforms to Malaysia’s pro-Bumiputera policies will likely be put on the back burner until Prime Minister Datuk Seri Najib Razak secures a new electoral mandate, a report by star economist Nouriel Roubini’s RGE global economic analysis firm has predicted.
RGE said in its “Wednesday Note — Malaysia’s Middle-Income Malaise” released yesterday that Umno was “unlikely” to revamp such policies “blocking” Malaysia’s rise to high-income nation status before the next general election for fear of antagonising Malay voters.
Najib’s market-friendly reforms under the New Economic Model (NEM) have received lukewarm to hostile response from the Malays, many of whom regard such proposals as a challenge to the special position of Bumiputeras outlined in the Constitution.
“[Given] the governing party’s reliance on Bumiputera support, major changes are unlikely until new elections are held and the government has the political confidence to confront popular resistance to reform,” RGE said. Read the rest of this entry »
Malaysian as top Singaporean student for third consecutive year should be important agenda of Cabinet meeting tomorrow
A Malaysian as top Singapore student for the third consecutive year should be important agenda of the Cabinet meeting tomorrow if the Prime Minister Datuk Seri Najib Razak is serious about the New Economic Model and the Economic Transformation Programme to give top priority to retain and attract talents to catalyse Malaysia’s economic transformation.
In Singapore’s GCE ‘O’ Level examinations results yesterday, a Malaysian, 16-year-old Chia Pei Yun, was the topscorer with 10A1s from the school-leaving examination.
Chia, from Kuala Lumpur, completed a hattrick for Malaysians and also her school, Convent CHIJ St. Nicholas Girls’ School after following the footsteps of Selangor girls Lai Kai Rou and Haw Sue Sern.
Chia is a former student of Kuen Cheng Girls’ School in Kuala Lumpur.
The Cabinet tomorrow should be reminded of the dire warnings of the New Economic Model last March, which said:
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Former Deputy Bank Negara Governor Lin See Yan’s personal testimony that claims of GTP/NKRA success in reducing crime do not translate to Malaysians feeling more safe from becoming victims of crime
In Parliament, DAP and Pakatan Rakyat MPs had posed the question to the Home Minister and the Deputy Home Minister whether Malaysians feel more safe from crime and the fear of crime despite government and police claims of success of the Government Transformation Programme (GTP) in delivering results for the National Key Results Area (NKRA) target to reduce crime – to achieve at least a 5% reduction in overall reported index crime every year for the next three years and for street crimes, a 20% reduction by December 2010.
A very eloquent answer was given yesterday by former Deputy Bank Governor Governor, Tan Sri Dr. Lin See Yan, in his article “The mystique of national transformation” arguing that “The challenge is to convince stakeholders to buy in and take ownership of the array of programmes” in the StarBizWeek Year Starter issue with the theme “In Transformation”.
This is what Dr. Lin wrote: Read the rest of this entry »
NEM 2 a big disappointment to the people
Posted by Kit in Dr. Chen Man Hin, Economics, Najib Razak, NEM on Wednesday, 8 December 2010
By Dr Chen Man Hin, DAP life adviser
NEM 2 unlikely to attract investors to help create a high income economy for Malaysia
When NEM 1 was presented to the people, it showed promise, and there was hope that this time, there is a chance to have an high economy that is dynamic and booming. The report talked about liberalisation of the economy and that it would be inclusive, meaning that NEM would cater to the interest of all the the people whether Malays, Chinese, Indians and the natives of Sarawak and Sabah. So people waited expectantly for announcement of NEM 2.
Unfortunately, there were rumblings of dissatisfaction from a group of extremists – Perkasa. They vehemently opposed the proposal to dump the NEP (New Economic Policy) with its bumi equity quota. PM Najib attended a meeting with Perkasa, and because of their objections, Najib agreed to rescind the proposal to drop NEP.
Against this background, analysts and economists waited for the announcement of NEM 2, hoping for the best but fearing for the worst.
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A better place for their children, not Malaysia
Posted by Kit in 1Malaysia, globalisation, nation building, NEM on Tuesday, 7 December 2010
By Melissa Chi
The Malaysian Insider
December 07, 2010
KUALA LUMPUR, Dec 7 — First-class education system, a corruption-free government, zero tolerance on racism and the basic skill to communicate properly are all on one Malaysian’s mind when he chooses to work in Australia.
Anthony Leong, 30, an application support programmer, said he is considering giving up his Malaysian citizenship and live in Australia permanently, for the sake of his future family.
He said he had become frustrated at the corrupted system, the quality of local university graduates and the red tape he had to go through to apply for welfare support for his 70-year-old disabled aunt, among other things.
He is now a permanent resident in Australia, working for the Queensland Department of Employment, Economic Development and Innovation, and is considering applying to be an Australian citizen once he has convinced his father and sister to move with him.
Low purchasing power, racism, political instability, low income, race-based policies, crime rates and non-dual citizenship laws are seen as some of the reasons that have kept a lot of Malaysian talents anywhere but here, 300,000 annually to be exact. Read the rest of this entry »
FDI at risk with vague NEM 2, says Ramon Navaratnam
By Yow Hong Chieh
The Malaysian Insider
December 06, 2010
KUALA LUMPUR, Dec 6 — The Najib administration will face continued investor scepticism until it is more explicit on how to make Malaysia a high-income nation, warned one of those who drafted the New Economic Policy (NEP).
Tan Sri Dr Ramon Navaratnam, who had helped Tun Abdul Razak draft the NEP following the deadly 1969 race riots, said the recently unveiled second New Economic Model (NEM) report was filled with good intentions but “very short” on specific measures.
“And therein lies the problem… Investors, after waiting so long, find they’re back almost to square one in terms of the specifics and policy proposals they can act on,” Navaratnam (picture) told The Malaysian Insider.
“I had expected much more from part two. To that extent, I am disappointed,” the former senior civil servant said about the NEM 2 unveiled last Friday. Read the rest of this entry »
NEM (Part 2) cannot mark beginning of quantum leap for Malaysia when country is drowned by divisive cacophony like Ketuanan Melayu (Malay supremacy) calls contradicting Najib’s 1Malaysia concept
Posted by Kit in 1Malaysia, Corruption, Najib Razak, nation building, NEM on Saturday, 4 December 2010
The Prime Minister, Datuk Seri Najib Razak said yesterday that with the New Economic Model (NEM) Concluding Part released by the National Economic Action Council (NEAC), Malaysia is all set to make the quantum leap into the future and realize its goal to emerge as a high-income, developed, sustainable and inclusive nation.
If so, yesterday should be one of the major milestones in Najib’s premiership and the event would have been marked with unprecedented fanfare.
But this was not the case, for the simple reason that NEM (Part 2) cannot mark the beginning of a quantum leap for Malaysia to become a developed, high-income, sustainable and inclusive nation especially when the country is drowned by a divisive cacophony like Ketuanan Melayu (Malay supremacy) calls which stands in contradiction to Najib’s signature concept of 1Malaysia.
In its chapter on “From Vision to Results”, the NEM Part II stressed that an important prerequisite for the success of the national economic transformation blueprint is for all Malaysian citizens, “irrespective of race, ethnicity, religion or gender…to look past what sets Malaysians apart, focus resolutely on our common interests, and work together with determination towards the success of this transformation and our collective prosperity”. But these are just words without meaning. Read the rest of this entry »
NEM hot potatoes to test Najib’s resolve
Posted by Kit in Najib Razak, NEM on Saturday, 4 December 2010
By Lee Wei Lian
The Malaysian Insider
December 04, 2010
KUALA LUMPUR, Dec 4 — The final filtered New Economic Model (NEM) report released yesterday spoke out strongly against many issues plaguing the economy including rent-seeking, and abuse of affirmative action but will be meaningful only if acted upon.
The distinct lack of excitement that greeted the report however reflected general public fatigue due to previous government attempts at reform which eventually fizzles out.
While the National Economic Advisory Council (NEAC) running the NEM is supposedly independent, the need for Cabinet approval prior to public disclosure of its recommendations casts doubts on it independence.
The Malaysian Insider understands that the Cabinet had crossed out the more controversial parts of the report including those touching on political funding and timelines for affirmative action. Read the rest of this entry »
McKinsey paid RM36 million to set up Pemandu
Posted by Kit in 1Malaysia, Najib Razak, NEM on Friday, 3 December 2010
By Regina Lee | Malaysiakini
Dec 3, 10
The government think-tank – Performance Management on Delivery Units (Pemandu) – is said to have come at the mind boggling price tag of RM66 million – even before it got down to work, with foreign consultants enjoying the biggest chunks.
Several documents obtained by Malaysiakini reveal that the spending last year, prior to the Pemandu launch, was mainly on “external consultants”, including American consultancy firm McKinsey and Co, which took the lion’s share of RM36 million.
The documents also reveal that among the other foreign and local consultants hired to set up Pemandu included Hay Group (which was paid RM11 million), Ethos & Co (RM1.5 million) and Alpha Platform (M) Sdn Bhd (RM1.5 million).
A mysterious “external consultant” named “Tarmidzi” also received RM3 million for work done in setting up Pemandu.
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Khairy, Pakatan tell Najib not to ignore anti-tower protest
Posted by Kit in Najib Razak, NEM on Saturday, 30 October 2010
By Boo Su-Lyn
The Malaysian Insider
October 29, 2010
KUALA LUMPUR, Oct 29 — More than 200,000 Malaysians have backed a Facebook protest to stop the proposed construction of the 100-storey Warisan Merdeka tower as Umno Youth chief Khairy Jamaluddin joined Pakatan Rakyat (PR) leaders in calling on Datuk Seri Najib Razak not to ignore the protest.
As at 9.15pm tonight, 200,008 out of 8,815,780 Malaysian Facebook users have clicked “Like” on the “1M Malaysians Reject 100-storey Mega Tower” page to signify their opposition to the RM5 billion Permodalan Nasional Berhad (PNB) project.
The page was created anonymously hours after the prime minister announced the proposed new tower during his 2011 Budget speech on October 15.
People have been writing on the Facebook wall almost every minute since and are blaming the Najib administration for promoting grandiose projects, despite the best efforts of the government in denying that any public funds will be used.
“We need a MEGA HELP for the poor not a MEGA TOWER for the rich,” said Facebook user Nizam PerppisLd, illustrating the typical comments which have appeared on the page. Read the rest of this entry »
ETP without the NEM cannot achieve a high income economy
Posted by Kit in Dr. Chen Man Hin, Economics, Najib Razak, NEM, NEP, UMNO on Friday, 29 October 2010
by Dr Chen Man Hin, DAP life adviser
The ETP (Economic Transformation Programme) without the New Economic Model (NEM) cannot achieve a high income economy for the people of Malaysia
Immediately after the UMNO assembly where the delegates unanimously rejected the NEM proposal to liberalise the economy beginning with the removal of the 30% bumiputra equity. There was alarm that this would mean the end of the NEM which was promoted Najib since he became Prime Minister.
To assuage the fears of investors and the economic and business world, PM Najib quickly assembled a coterie of 10 foreign investors before a gathering of a few thousand people, PM Najib presented them as multi-billion investors who are investing in the country. They were the pioneers of the ETP which is expected to harvest some US$444 billion of projects to propel the economy from a middle income to a high economy status by the year 2020.
This translates to bringing in investments averaging 1,300 billion ringgits a year. The government expects 99% of the money to come from the private sector.
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