Archive for category NEP
Najib has tough fight against NEP ‘cancer’, says report
Posted by Kit in Najib Razak, NEP on Friday, 25 February 2011
By Shannon Teoh
KUALA LUMPUR, Feb 24 — Datuk Seri Najib Razak is taking “an unprecedented gamble” by pledging to dilute the system of Malay patronage that has kept Umno in power, said a foreign report yesterday.
The Centre for Independent Studies (CIS) — an Australia-based think tank — said that the large support for the status quo and Umno’s current vulnerability meant that “Najib will have a difficult task convincing his colleagues to ‘risk all’ for the sake of Malaysia’s long-term future.”
Its foreign policy research fellow Dr John Lee also questioned the prime minister’s capacity to introduce economic reforms as the introduction of the New Economic Policy (NEP) in 1970 has cultivated a “vast and deep network of rent-seeking and patronage.” While acknowledging that the New Economic Model (NEM) introduced by Najib last year was “enormously significant,” Lee said that the decades of pro-Bumiputera affirmative action was now a “millstone around the neck of the struggling Malaysian economy and the cancer behind the country’s growing structural problems.” 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 »
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 »
Malay Rights v Special Position
Posted by Kit in Constitution, NEP, UMNO on Sunday, 9 January 2011
by Stanley Koh
Free Malaysia Today
January 9, 2011
COMMENT
“There are no Malay rights since our Constitution holds dear that all persons are equal before the law and entitled to equal protection of the law without discrimination on the basis of race and religion.”
That was what the late Ghazali Shafie said in a speech at the National Unity Convention in May 2001.
He continued: “What perhaps has come to be regarded as special rights is the special position of the Malays and natives of Sabah and Sarawak under Article 153 (of the Federal Constitution). The change from ‘position’ to ‘rights’ is frightening. Who did that, I wonder?
“In a plural society like ours, if the leadership was not bold and sincere enough to take corrective measures so that there would be a level playing field, then the situation would indeed be bleak and our society would be a playground for those who wish us ill.”
Born in Kuala Lipis, Ghazali was 88 at the time of his death in January 2010. He had a distinguished career in politics and government.
Many bigots, opportunists and self-serving leaders of today will probably dismiss those remarks on the New Economic Policy as just one man’s opinion. If they are ignorant of history, they may even question his authority.
If Ghazali were alive and facing these critics, he would probably reply in these words, which were part of the speech at the 2001 convention: Read the rest of this entry »
Calling May 13, 1969 ‘sacred’ is sacrilegious
by John Baptist
The Malaysian Insider
November 11, 2010
I read with disgust Zaini Hassan describing in the Utusan Malaysia the tragic May 13, 1969 incident as “sacred”. The Oxford Dictionary defines sacred as either “connected with God or a god; considered to be holy” or “very important and treated with great respect.”
From general reading, the incident involved carnage, destruction of private and public property, ruining of families, instilling of fear, the destruction of years of trust between the races built by our forefathers and the maligning of our nation in the eyes of the world, setting us back years in the terms of our economic potential.
I need take only carnage to exemplify that it is prohibited by all religions and hence cannot sit comfortably within the first definition of “sacred” by the Oxford Dictionary. 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.
Read the rest of this entry »
Malays competitive and competent – need for New Pro-Poor Economic Policy/Reform
Malaysia’s Development Strategy Revisited (5)
by Dr. Mohamed Ariff*
A New Pro-Poor Economic Policy and Reform
There is certainly a need for a clear focus on the needs of the poor and marginalized regardless of race, colour or religion. In other words, Malaysia needs a ‘new’ New Economic Policy that is explicitly pro-poor. The main beneficiary of such a policy would still be Malay households, as they account for roughly three-quarters of the bottom 40 per cent of households in terms of income distribution. Read the rest of this entry »
NEP “outlived its usefulness” – does not make sense to keep an obsolete policy ticking along on life support
Posted by Kit in Corruption, Economics, Finance, NEP on Friday, 22 October 2010
Malaysia’s Development Strategy Revisited (3)
by Dr. Mohamed Ariff*
The New Economic Policy: Pervasive Poverty in the Malay Community
Multi-racial Malaysia’s major structural problems are largely attributable to the New Economic Policy initiated in 1970 in the aftermath of the May 1969 racial riots. With its emphasis on ‘positive’ discrimination in favour of the then backward Bumiputeras (literally ‘sons of the soil’), the objectives of the policy were laudable, serious misgivings about its implementation notwithstanding. The New Economic Policy continued to exist after reincarnating itself in various forms beyond the original 1990 deadline. While it has undeniably helped narrow interethnic income differences, all is not well judging by the outcomes. While interethnic income disparity has narrowed considerably, intraethnic income disparity, especially within the Bumiputera community, has widened. Read the rest of this entry »
A nation of failed economic development plans
Malaysiakini
AB Sulaiman
Sep 20, 10
COMMENT
The world can be a nasty place especially in terms of planning, where your best and well intentioned plans can produce the worst unintended results. The country’s numerous development plans is a perfect example of this.
Since Independence we have always strived to be a country with strong social, economic and political credentials: a strong healthy and united people, public safety and security, great infrastructure, mature democracy, clean human rights record, good education system, governed under rule of law, and of course, a justice-minded judiciary.
To top them all off we are to enjoy a per capita income equal to the peoples in advanced economies. We wish to be an advanced country in our own right.
The current realities are anything but. The people are fragmented while some are migrating to friendlier lands, our infrastructure while adequate is wasteful, our democracy is an ugly disguise for authoritarianism, our education system produces non-thinking graduates, the rule of law has become the rule by law, and the judiciary is an international laughing stock. Read the rest of this entry »
Will PM Najib Razak push through an effective NEM to transform a failed problem ridden Malaysia?
Posted by Kit in 1Malaysia, Dr. Chen Man Hin, Economics, Najib Razak, NEM, NEP on Tuesday, 14 September 2010
by Dr Chen Man Hin, life adviser DAP
IT WILL TAKE A LIBERAL NEW ECONOMIC MODEL AND A STRONG PRIME MINISTER TO PUSH MUCH NEEDED REFORMS TO TRANSFORM MALAYSIA INTO A HIGH INCOME COUNTRY WITH DEMOCRACY, JUSTICE AND PROSPERITY FOR ALL REGARDLESS OF RACE OR RELIGION.
The political and economic outlook for the country is critical. We are riddled with multiple problems of corruption, lack of judicial independence, racialism, brain drain, with 40% of households living below the poverty level of RM1,500, and four out of five poor households are bumiputras.
All these things are happening even after two years of PM Najib rule since April 2008. His 1 Malaysia and mediocre attempts at reforms have failed.
WORLD RANKINGS OF MALAYSIA
The sorry state of political and economic development is reflected in the world ranking status of Malaysia on areas which indicate whether a society is honest, democratic, transparent,and just.
Read the rest of this entry »
Umno and the average Malay
By Cheong Suk-Wai, Senior Writer
The Straits Times, June 1, 2010
TABLE TALK WITH MAZNAH MOHAMAD
IT USED to be that whenever it came to election time in Malaysia, the country’s ruling party Umno would gets its community development workers to fan out to all the hamlets on bicycles and on foot to take the political temperature and assure villagers that Umno was the best doctor for them, taking care of their births, deaths and everything in between. But then village youth began migrating en masse to towns from the 1980s and Umno lost these rural forts.
Malaysian sociologist Maznah Mohamad recalls Umno’s women telling her how urban folk would shoo them away and even hurl insults at them if they tried to woo them. Dr Maznah, 54, notes wryly: ‘You can’t go knocking on doors in, say, Subang Jaya. People will just chase you away. There’s no community spirit in such neighbourhoods. Anyway, they’re urbanised, so why would they need you to help them?’
Read the rest of this entry »
Malaysia or Malaysaja? Part 2: Clarifying and reconciling the Constitution
Posted by Kit in Constitution, NEP on Tuesday, 7 September 2010
Since I wrote my 31 August 2010 article, titled “The Ultimate Malaysian Debate: Malaysia or Malaysaja?”, which called for a constructive engagement with Perkasa, and with the stated purpose to seek clarification and not challenge or repeal the constitution, my invitation to Perkasa has not only been rejected but countless accusations and police reports were made against me.
I believe as a democracy, that all opinions made related to the article — which I hope was not lost in translation — is accepted and responded to with thanks.
With that, I invite everyone to read the full article again. (see: http://www.mysinchew.com/node/44287 )
I stand by that article and will remain a Malaysian Patriot forever.
I also recommend that the Malaysian Constitution be read in conjunction with the Articles mentioned. For brevity, the fantastic MyConstitution brochures produced by the Malaysian Bar Council are also very helpful.
Read the rest of this entry »
Revisiting the Bumiputera corporate equity issue
More than five years have passed since the Asli corporate study report revealed that Bumiputera ownership of corporate equity in the Kuala Lumpur Stock Exchange had exceeded the 30 per cent target.
The study’s findings of a 45 per cent Bumiputera share were based on a different method of measurement compared with the official one. Using market value as opposed to the par value valuation official method, and allocating the equity of GLCs according to racial share, the study noted that it was time to do away with the policy which had been implemented since the 1970s.
The study’s findings raised a hue and cry not only because it challenged the official data on the share equity attained by the Malay community but more importantly because it challenged the official orthodoxy.
Strong reactions from various Umno leaders at that time indicated their fury — and perhaps fear — that the Asli study negated a long-held belief on how the Bumiputera corporate equity strategy was necessary for Bumiputera economic advancement and synonymous with the interests of the Malays.
Read the rest of this entry »
Hishamuddin should not act both as prosecutor and judge to pass judgment that Nurul Izzah had committed the offence of sedition, dictating and usurping the powers of the Police, AG’s Chambers and judiciary
I am shocked that the Home Minister, Datuk Seri Hishammuddin Hussein has acted both as prosecutor and judge to unilaterally and arbitrarily pass judgment that the PKR MP for Lembah Pantai, Nurul Izzah Anwar has committed the offence of sedition for questioning the entrenched sensitive issue of Article 153 of the Constitution with her challenge to Perkasa to a debate on “Malaysia or Malaysaja?”
As Home Minister, with responsibility over the police, it is a gross abuse of power on his part to dictate or usurp the powers of the Police, Attorney-General’s Chambers and the judiciary by passing judgment that Nurul had committed the offence of sedition in questioning the entrenched sensitive issue of Article 153 and therefore deserves to be arrested, charged, tried and convicted for sedition.
Police reports lodged against Nurul Izzah for committing the offence of sedition by questioning Article 153 do not mean that she had done so, and it is most irresponsible and reckless on the part of Hishammuddin as Home Minister to assume that Nurul Izzah is guilty as charged in the police reports against her.
As Home Minister, Hishammuddin must be professional and rise above party politics.
Read the rest of this entry »
Mahathir is the major obstacle to Najib’s 1Malaysia and National Transformation Agenda
Posted by Kit in 1Malaysia, Mahathir, Najib Razak, nation building, NEM, NEP on Wednesday, 1 September 2010
Former Prime Minister Tun Dr. Mahathir Mohamad blogged on the 53rd National Day eve that “today the races are more divided than ever”.
The implications of Mahathir’s statement merits attention.
Here we have the country’s longest-serving Prime Minister in fact telling the current Prime Minister, Datuk Seri Najib Razak that despite this year’s Merdeka Month theme: “1Malaysia: Transforming the Nation” and the latter’s 1Malaysia policy and National Transformation Programme for 18 months since assuming the highest office in the land in April last year, national unity and inter-racial relations had never been so bad at present as compared to any time in the 22 years Mahathir had been Prime Minister from 1981 – 2003.
Would Najib agree to this Mahathir assessment as the present Prime Minister was during those 22 years of Mahathir premiership either Pahang Mentri Besar or a Cabinet Minister, starting as Minister for Youth and Sports before being appointed to Education and later Defence portfolios – while in Umno, occupying the posts of Umno Youth Leader (especially during the Operation Lalang years) and Umno National Vice President from 1995-2003?
Read the rest of this entry »
The ultimate Malaysian debate: Malaysia or Malaysaja?
Posted by Kit in Constitution, nation building, NEP on Tuesday, 31 August 2010
AUG 31 — Perkasa claims to defend Malay rights in a multi racial Malaysia. And these Malay rights are inalienable, non-negotiable and permanent. Those that disagree with their interpretation of these Malays rights are deemed treacherous and should leave Malaysia.
In the spirit of Ramadhan and Merdeka, I would like to invite Perkasa to a Constructive Engagement for a new beginning for Malaysia with me.
I would like to ask Perkasa, several key questions to better understand, and together seek real solutions for the crisis it claims the Malays are facing.
I believe that Perkasa is the current vocal, and not necessarily the majority voice of the Malays. And by all indication, Perkasa is the alter-ego of Umno.
If Perkasa can be engaged constructively and a resolution found, then we would have answered the acid-test of Malay concerns once and for all?
Read the rest of this entry »
Is NEM a pipe dream?
Posted by Kit in DAP, MCA, Najib Razak, NEP on Sunday, 15 August 2010
Breaking Views
The Malaysian Insider
August 15, 2010
AUG 15 — Tun Abdul Razak Hussein could never have imagined that his brainchild, the New Economic Policy (NEP), would ever split the country.
That it has 40 years after coming into being. Meant to eradicate poverty among all Malaysians and uplift the Bumiputeras who were economically backward then, it is now seen as the sacrosanct right of every Malay.
Especially the corporate ones who fear losing their tranche of Approved Permits (APs), shares and government contracts.
The NEP’s great defender today is Datuk Ibrahim Ali, the diminutive Perkasa chief with lofty ambitions of keeping privileges as Malay rights. With him, to a certain extent, is Tun Dr Mahathir Mohamad, who argues the policy is needed until the Malays reach their targets. Read the rest of this entry »
IMF wants gov’t to take ‘decisive’ action on NEM
The International Monetary Fund (IMF) has asked Malaysia to take “decisive” action on reforms under a model programme aimed at revamping a controversial four-decade-old affirmative action policy.
Malaysian Prime Minister Najib Razak announced in March a ‘New Economic Model’ or NEM, aimed at reforming elements of the policy favouring the country’s majority ethnic Malays in a bid to boost economic competitiveness.
Details of the reform programme, including its timing, have not been announced yet.
The Washington-based IMF said yesterday it was looking forward to the NEM’s rollout.
In a report after annual consultations between the IMF executive board and the Malaysian government, the fund acknowledged the “ambitious vision” of Najib’s administration for a far-reaching economic transformation over the longer term.
Read the rest of this entry »
Najib should give his personal attention to stamp out the unhealthy and disturbing trend towards very ugly, intolerant and vicious politicking illustrated by M16 bullet threat to Tony Pua
The Prime Minister, Datuk Seri Najib Razak should give his personal attention to stamp out the unhealthy and disturbing trend towards very ugly, intolerant and vicious politicking illustrated by the M16 bullet threat to DAP National Publicity Secretary and MP for Petaling Jaya Utara Tony Pua yesterday.
Pua received a live 5.56mm bullet used in M-16s with a threatening note posted from Tangkak, Johor mailed to his service centre in Damansara Utama yesterday.
The note threatened: “Tony Pua Kiam Wee. You are so brave? What do you want now? You better watch out.
“We know about your family, your house, your office, your car.”
Pua believes that the threat was probably related to his recent proposal to the Selangor government to slash Bumiputera discounts for luxury homes and commercial property in the state to improve competitiveness and restore investor confidence while retaining the seven per cent discounts enjoyed by Malays and other Bumiputeras for homes below RM500,000.
Read the rest of this entry »
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