FOCUS On POVERTY alleviation, not income creation for billionaires–Mahathir’s outdated policy prescriptions


January 16, 2019

FOCUS On POVERTY alleviation, not billionaires —Mahathir’s outdated policy prescriptions

by P. Gunasegaram

Image result for the malaysian maverick by barry wain

QUESTION TIME | When Prime Minister Dr Mahathir Mohamad sank low to say that wealth should be distributed equally among races, he indicated plainly that he has no solid plan to increase incomes and alleviate poverty for all Malays and Malaysians. His priorities are elsewhere.

Note that he talks about the distribution of wealth, not increasing incomes, which is more important because this is what will eventually result in a proper redistribution of wealth by valuing fairly everyone’s contribution  to wealth creation.

During his time as Prime Minister previously for a very long 22 years from 1981 to 2003 out of 46 years of independence at that time – nearly half the period of independence – he had plenty of opportunities, but squandered them.

He did not care for the common Malay, but was instead more focused on creating Malay billionaires overnight through the awarding of lucrative operations handled by the government or government companies previously, such as roads, power producers, telecommunications and others.

He depressed labour wages by bringing in millions of workers from Indonesia, and subsequently Bangladesh and the Philippines, to alter the religious balance in Sabah. A significant number of them became Malaysian citizens over the years, altering the overall racial and religious balance in the country.

By doing that he let his own race down, many of whom were workers and small entrepreneurs whose incomes were constrained by imported labour. Even now, Mahathir has not shown a great willingness to increase minimum wages, which will help many poor Malays and bumiputeras increase their incomes.

As Mahathir himself well knows, distribution is not an easy thing. Stakes held by others cannot be simply distributed, but they have to be sold, even if it is at depressed prices as it was under the New Economic Policy or NEP, when companies wanted to get listed.

Instant millionaires

There are not enough Malays rich enough to buy these stakes, but many of them in the Mahathir era and earlier, especially the connected elite, became rich by purchasing the 30 percent stakes for bumiputeras that had to be divested upon listing by taking bank loans.

By simply flipping the stakes on the market at a higher price after they were listed, they pocketed the difference and became instant millionaires.

Image result for the permodalan nasional

It was Mahathir’s brother-in-law – the straight, honest and capable Ismail Ali – who was the architect behind the setting up of Permodalan Nasional Bhd or PNB to hold in trust for bumiputera stakes in major companies. PNB now has funds of some RM280 billion and has been enormously successful in this respect.

But Mahathir, with advice from Daim Zainuddin who became his Finance Minister, still cultivated selected bumiputera leaders, many of them Daim’s cronies, and gave them plum deals. A slew of them who were terribly over-leveraged got into trouble during the 1997-1998 financial crisis.

The government, often through Khazanah Nasional Bhd, had to rescue some of the biggest ones, resulting in Khazanah holding key stakes in many companies such as Axiata, CIMB, PLUS and so on. Recently, the government has been talking about, not surprisingly, selling these stakes to investors, accusing Khazanah of not developing bumiputera entrepreneurship, which was not anywhere in its original aims.

It becomes more obvious what Mahathir is talking about. Redistribution of wealth now will come out of the selling of government (Khazanah) and PNB stakes to individual Malay entrepreneurs to equalise wealth distribution among the races. To make it more palatable, some willing Indian entrepreneurs, too, may be found.

The modus operandi will be to sell the stakes when prices are depressed and perhaps even to offer a bulk discount to these so-called entrepreneurs who, of course, will not only be among the elite, but who are cronies. That will ensure a steady flow of funds into Bersatu in future from donations to help make it the premier party in the Pakatan Harapan coalition.

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Mahathir knows full well that equal wealth distribution is impossible – it’s never been done anywhere before and makes wealth acquisition disproportionate to intelligent effort and hard work, a sure recipe for inefficiency, corruption and patronage. As eloquently argued by prominent political economy professor Terence Gomez, patronage is king in new Malaysia – if it was cash during Najib’s time.

Mahathir does not have the wherewithal to lead anymore, if he ever had it in the first place. Eight months after GE14, he is still bereft of a plan to increase incomes and improve livelihoods. He needs to recognise he does not have one and that he stays in power because of the strength of the other parties in the coalition.

Wrong direction

The only way to close the wealth gap is to increase future incomes across all races. Anything else is the expropriation of other people’s wealth. In the meantime, the holding of wealth in trust by state agencies is perfectly acceptable because the income comes back to the government.

This can be wisely used to improve the quality of education, get better quality investments, raise productivity and hence labour wages, and provide equal opportunities for growth and innovation among all communities. As so many people have said before me, you can equalise opportunities, but not outcomes.

So far, 61 years of UMNO-BN have not managed to equalise opportunities for all as the government education system is in shambles, among others. And eight months of Harapan is heading in the wrong direction under Mahathir.

Despite Bersatu being a party expressly formed to fight for Malay rights, Mahathir’s party had the lowest support from Malays of parties looking after Malay rights, including Umno, PAS, PKR and Amanah.

He is still stuck in a mode to widen his rather narrow and vulnerable power base (his Bersatu won only 13 seats of 52 contested, the worst win rate of any party in the coalition) unethically by attracting tarnished MPs from Umno into the Bersatu fold, in the process willing to break agreements with other coalition partners and doing/advocating things which are against the principles of a properly functioning democracy.

He has also said he will not honour some manifesto promises, saying that these were made when Harapan did not expect to win the elections – a rather lame excuse. He has not even made solid moves to undo repressive laws introduced by his predecessor Najib Abdul Razak.

Mahathir, obviously, has no intention plan to improve the livelihood of the common Malay and all Malaysians;  he is stuck in old-school forced distribution which is injurious to the economy, maybe even fatal in the long term.

 Malaysians don’t want the creation of Malay (or any other ) billionaires from government wealth.


Old wine in a new bottle is still sour. E-mail: t.p.guna@gmail.com

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

 

 

How can Malaysia become a developed nation? –Practise meritocracy


January 15, 2019

How can Malaysia become a developed nation?

-Practise Meritocracy.

 
2020
 

 

2020 will soon pass us by. 2050? Maybe. If we Practise Meritocracy

On June 12 last year, while delivering his keynote address at the 24th Nikkei Conference on the Future of Asia, Dr. Mahathir Mohamad said Malaysia could achieve developed nation status provided that the right policies were in place, and that Malaysians worked very hard.

When he stepped down as Prime Minister back in 2003, he believed that Malaysia could attain developed nation status by 2020. But the policies put in place were changed by the succeeding Prime Ministers. Even if we work extremely hard, we cannot achieve this by 2020. Maybe by 2025.

In 1970, when the New Economic Policy (NEP) was introduced, our GRP per capita was the same as Singapore, Taiwan and South Korea. After 49 years, the GDP per capita of these countries respectively is four, three and 2.5 times bigger than ours. These countries do not even have timber to build houses. They import almost everything.

At one time, we were the world’s biggest producer of tin, rubber and palm oil. We also had petroleum. Yet we could not become a developed nation. Why?

The biggest albatross was the implementation of the NEP. The policy of helping the Malays become competitive was very good, but it was poorly implemented.

Of late, many government officers including former Prime Minister Najib Razak have been charged with corruption over huge sums of money. Najib, as 1MDB chairman, had RM2.6 billion supposedly channeled into his personal account. He said it was a generous donation from the Saudi Royal Family.

Corruption is ruining Malaysia, which is now branded as one of the most corrupt countries in the world, worse than many countries in Africa.

My proposal: Practise Meritocracy.

Managing the country is like managing thousands of companies and conglomerates. Mahathir must appoint the best people as Ministers and Deputy Ministers, irrespective of race. If these leaders are really good, they would know how to make rules and regulations to help the people do better than before.

The government must always appoint the best people in its civil service. It must also practise meritocracy in promotions at all levels of management so that the whole machinery can operate efficiently.

Image result for Krishnan Tan

This reminds me of an experience I had when I was on the Board of Directors of IJM Corporation Bhd. All the Directors were engineers, and our Chief Financial Officer was WHO practiseD meritocracy ( pic above Krishnan Tan). When we wanted to borrow huge sums of money from the bank for some projects and expansion, Krishnan suggested that a more effective and less costly way would be to issue irredeemable convertible unsecured loan stocks or ICULS.

As engineers, we did not know anything about ICULS. We all agreed that Krishnan was the best man to manage the company. So we appointed him as CEO in 1984. His management was so efficient that the company continued to make more and more profit every year. As a result, the company’s share price continued to climb. The current market capitalisation of IJM Corp is about RM12 billion.

The private sector knows how to practise meritocracy to make a profit. If the government also practises meritocracy, Malaysia will become a developed nation.

The key to success is to practise meritocracy.

Koon Yew Yin is a retired chartered civil engineer and one of the founders of IJM Corporation Bhd and Gamuda Bhd.

The views expressed here are those of the author and do not necessarily reflect those of FMT.

Patronage is king in new Malaysia?


January 12, 2019

Patronage is king in new Malaysia?

by Dr.Terence Gomez

 

COMMENT | When Dr. Mahathir Mohamad led the opposition to a stunning election victory, he had an effective rallying cry that reflected why Umno’s form of governance was problematic: “Cash is king.”

If Mahathir is not careful, worrying recent trends indicate a similarly disconcerting problem about Pakatan Harapan’s government: “Patronage is king.”

When Harapan wanted to capture power, the coalition’s leaders told Malaysians to expect real change if UMNO was expelled from government. These reforms included ending ethnically-based policies, unfailingly applied since the 1970s to justify patronage favouring bumiputera, though extremely abused to enrich politicians in power.

The Prime Minister would also no longer concurrently serve as finance minister who had under his control a slew of GLCs like 1MDB and Tabung Haji, enterprises that had been persistently abused by UMNOo. Politicians would not be appointed as directors of GLCs.

These pledges contributed to Harapan’s considerable achievement of ending authoritarian rule in Malaysia. However, Harapan has been in power barely eight months and already alarming trends are appearing which suggest that this coalition is finding ways and means to renege on its pledges.

Equally troubling is a gradual and perceptible attempt to reinstitute the practice of selective patronage in the conduct of politics and in the implementation of policies, hallmarks of UMNO politics that led to its fall.

Soon after Harapan formed the government, it created the Economic Affairs Ministry, led by Mohamed Azmin Ali. Subsequently, numerous GLCs controlled by the Finance Ministry, under the jurisdiction of Lim Guan Eng, were transferred to the Economic Affairs Ministry.

Malaysia’s only sovereign wealth fund, Khazanah Nasional, was channelled from the Finance Ministry to the Prime Minister’s Department. The government did not publicly disclose why the shifting of these GLCs between ministries was necessary, but it is now clear that the Finance Ministry no longer holds enormous influence over the corporate sector.

With Khazanah under his ministry, Mahathir, though not also functioning as the Finance Minister, had secured control of Malaysia’s leading investment arm. When Mahathir argued that Khazanah had deviated from performing one of its original objectives, helping the bumiputera, this contention was disputed by numerous analysts.

Mahathir went on to appoint himself as chairperson of Khazanah, though this was, by convention, the practice. The convention also was that the finance minister should be a member of Khazanah’s board.

Instead, Azmin was given this appointment. Whether the prime minister and the economic affairs minister should have been appointed board members of Khazanah merited debate as Harapan had pledged that politicians would not be appointed as directors of government enterprises.

On Sept 1, 2018, a Congress on the Future of Bumiputeras and the Nation was convened by Azmin’s Ministry. Mahathir stressed at this convention the need to reinstitute the practice of selective patronage, targeting bumiputeras, though no longer would the government allow for the distribution of what he referred to as “easy contracts.”

Daim Zainuddin, the chair of the Committee of Eminent Persons (CEP), established to prepare a report reviewing the state of the economy, endorsed the need for such a bumiputera policy, though he acknowledged problems of the past when he said: “We want to get it right this time.” Daim also stressed that the government would strive to change the mindset of bumiputera.

The nation was not told how this policy will be altered to get it right, nor how mindsets will be changed. Meanwhile, the CEP report, though submitted to the government, was not publicly disclosed.

Instead, the bumiputera policy was stressed when the Economic Affairs Ministry released its Mid-Term Review of the 11th Malaysia Plan, while other ministers have actively affirmed that GLCs will be divested, an issue also in the 2019 budget. Given Malaysia’s long history of political patronage, worrying questions come to mind of these divestments.

For example, one important equity sale by Khazanah, an issue that barely secured any analysis in the press, was that of its interests in CIMB, the country’s second-largest bank. Khazanah reduced its equity holding in CIMB by 0.66 percent, a seemingly small divestment.

However, does this sale mark the beginning of the transfer of control of CIMB to well-connected business people, even proxies of politicians, a common practice by UMNO in the 1990s? Will Harapan, through such divestments, move to create a new breed of powerful well-connected business groups, even oligarchs, a trend seen in other countries transiting from authoritarian rule to democracy?

‘Dr M should know better’

Another worrying issue occurred recently. Rural and Regional Development Minister Rina Harun of Mahathir’s party, Bersatu, approved the appointment of politicians from her party to the boards of directors of GLCs under her control.

This is extremely worrying because, under UMNO, the Rural and Regional Development Ministry was persistently embroiled in allegations of corruption, with MARA being the prime example.

The practice of patronage through GLCs to draw electoral support was rampant under this ministry as it has a huge presence in states with a bumiputera-majority population.

So important is this ministry, in terms of mobilising electoral support, that it was always placed under the control of a senior UMNO leader. During Najib Abdul Razak’s administration, then UMNO Vice- President, Mohd Shafie Apdal, served as its minister before he was unceremoniously removed from office. Shafie was replaced by Ismail Sabri Yaakob, Najib’s close ally.

What Rina, once an UMNO member, has done by appointing politicians to GLCs under her authority is so reminiscent of patronage practices that had undermined the activities of these enterprises.

Azmin subsequently endorsed what Rina had done on the grounds that “there are some politicians who have professional background, such as accountants, engineers or architects, who can contribute to GLCs”.

Mahathir should know better than to allow this. After all, he had stressed that GLCs function to fulfil a “noble vision”, including the alleviation of poverty, equitable wealth distribution and spatial development, promotion of rural industries and the fostering of entrepreneurial companies in new sectors of the economy. Mahathir had also persistently referred to Malaysia’s complex ensemble of GLCs as a “monster.”

During Najib’s administration, this vast GLC network, created primarily to fulfil the bumiputera agenda, became tools easily exploited by UMNO, so visibly manifested in serious corruption associated with Felda and Tabung Haji.

However, Harapan has refused to establish an independent committee to review this extremely complex GLC network that operates at the federal and state levels. Is this reluctance because Harapan plans to similarly employ GLCs for the practice of patronage, as recent trends suggest?

What is clear, even becoming the norm, is Harapan’s consistent message to the nation: selectively targeted patronage will continue. The primary advocate of this message is Bersatu, an UMNO off-shoot.

 

At Bersatu’s first convention after securing power, held two weeks ago, its president, Muhyiddin Yassin, was quoted as saying: “As a party for the ‘pribumi’ or indigenous group, Bersatu should not be apologetic to champion the bumiputera agenda”.

Muhyiddin went on to say: “No one in our society will be left behind. Hence, this agenda is not a racial agenda, but a national agenda.” These statements are strikingly similar to what Umno had stressed when in power.

These trends suggest that for Harapan, and Bersatu in particular, consolidating power, by marshalling bumiputera support, is its primary concern, not instituting appropriate economic and social reforms.

If the government hopes to change mindsets, Harapan must focus on just universal-based policies that assist all Malaysians. In the process, disenfranchised bumiputera will also be supported. Patronage need not be king.


TERENCE GOMEZ is a professor of political economy at the Faculty of Economics and Administration, Universiti Malaya.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

Malaysia: Let us do the political frog our way from UMNO to Bersatu


January 3, 2019

Malaysia: Let us do the political frog our way from UMNO to Bersatu

Image result for from UMNO to Bersatu

 Kermit is not stupid fro. He has  fans around the world . Unlike political froggies from UMNO, he is worth more than a dime a dozen.

“Political frogs are now on the prowl and are available at a dime a dozen. And, in most occasions, at no cost. In accepting them into their new homes, some owners accept them to show their strength in numbers and in other cases, to tap their talent and expertise, if they have any. “– R. Nadeswaran

 

Image result for salleh keruak with najib and rosmah

UMNO’s Super Katak Salleh Keruak

SATIRE | Political frogs are now on the prowl and are available at a dime a dozen. And, in most occasions, at no cost. In accepting them into their new homes, some owners accept them to show their strength in numbers and in other cases, to tap their talent and expertise, if they have any.

Some have expertise in certain areas, including finance, technology and the lot. But there are many who excel in wheeling and dealing and have called themselves fixers. Not long ago, three Datuks called themselves “The Fixers”.

In such instances, the transfer of such mentality, proficiency and capability is always recognised as wannabe-members openly declare that they would inculcate such traits à la “transfer of technology.” They sometimes raise few eyebrows, but for political expediency, nothing counts and the philosophy of “everyone is welcome” prevails.

Early signs emerged when the party held its annual congress last week. Among the speeches of the transferees or beneficiaries of this technology, one came from someone who has worked the system to fine-tune the supposed below-the-line activities to make sure the previous party stayed in power. The electorate was balanced; the rolls were adjusted so that the then Opposition was kept out. He was answerable to no one. The members of his team were referred to as members of the “dumb and deaf” committee.

He spoke at length: “An eventful year has come to an end. We are the victors. We won. We worked hard – mentally and physically for our success. It was not easy fighting someone with one-handed tied to the back. Yet, we came out with flying colours.

“Pinch yourself – we are in power and we will continue to remain for many more years to come. We are entitled to some reward – presently and in the hereafter for our work.

“We all – the elected representatives, divisional chiefs, branch captains and even the ordinary member who put up banners and pasted posters must be rewarded for our hard work.

“It is time for us to share the spoils of the war. Representation has been made; calculations have been completed; vacancies have been identified; those who have to make way have been subtly told that they have overstayed their stay.

“Forget what we promised in the manifesto – a clean government. But that was sheer electioneering – propaganda.”

‘This is utter nonsense’

The young man who had a huge Plaster of Paris around his wrist, to cover a scratch from his girlfriend, retorted: “This is utter nonsense. Didn’t we promise that the best people would be employed for top jobs? Didn’t we promise to dismantle the abang-adik system in government departments and government agencies?”

Amid shouts of duduk (sit) and tutup mulut (shut up), he was told: “Well, that ‘cronyism must end’ battle cry was to appease the urbanites and the liberals – the English speaking mob which believed in ‘true democracy.’ Now it is our turn. Our branch leaders have to be rewarded too.”

When everyone sat down and the situation calmed down, the session Speaker announced. “I have heard enough. I want to make an important announcement.

“Phase One of ‘Ops Kita Sapu Semua’ starts tomorrow. Please change your membership cards with the latest chip technology which has been provided free by the same company that does the cards for government agencies.

“As of midnight tonight, you don’t have to pay toll anymore. Your membership card is actually equivalent of the Touch ‘n Go card, but yours is better. You don’t have to top-up. There is no value cap on it and it can only be changed if and when we are kicked out of power in the next hustings.

“As you are aware, the blue plane people have refused to collect the passenger service fee for our airports’ company. We have been told that tables will be placed at the entrance at every departure gate, where passengers will have to make cash payments before they are allowed into the departure lounges. In the case of our members, show your chip-embedded card and you will be exempted. Use the special red lane allocated for us.”

Delegate after delegate spoke, sometimes out of turn, to applaud the new initiative. “We waited for this for 61 years while they plucked all the fruits. This is our chance,” said one.

“I’m not finished yet,” the Speaker said: “Phase Two starts next week. Every job or position which comes with salaries and perks (like members of the boards of electoral reform committee, the aviation regulatory organisation, the social security agency, etc) belongs to us. We will appoint divisional chairmen and branch leaders to such posts.

“We will replace all members of the boards of government-linked companies (GLCs) as a first step. Members are humbly asked to nominate ordinary people instead of titled people. The previous regime put people there who stole and got caught. We will put people who won’t get caught because they won’t steal so much with having just passed SPM.

“To steal, we don’t need brains of those with degrees achieved or otherwise bought, as in the case of the guy we put in charge of pilgrims. As long as you are able to say setuju (agree) and angkat tangan (lift your hands), there’s no other skill required.”

‘Looking at government contracts’

In Phase Three to be launched next month, the Speaker said, “we will be looking at government contracts…” and he was rudely interrupted.

A few delegates spoke out: “This is not what we stand for. NGOs will start screaming blue murder and claim that our ruling elites are channelling government resources for themselves.”

Corruption and political patronage, they argued, emanated such a revolting stench that prompted the previous fellows being ejected. “Will they do the same to the present group?”

Another said: “These are our entitlements. No one can take those away from us. Yes, the NGOs will make noise for a while, but throw them a few crumbs in the form of non-important positions in the consumer side, and they will shut up.”

But the most important issue that set the delegates scratching their heads was: “What are we going to tell Uncle Lim? He put his head on the chopping block to work with us to throw out the kleptocratic government. How will the good doctor face him?”

The hall fell silent. Suddenly it dawned on them that they were in control collectively with three others. Doing it their way would sound wrong.

But then, someone provided a perfect riposte. “Our doctor not only treats the sick but has enough antidotes in his medical bag to treat even political sickness. If not, would he have made a comeback after being in the wilderness for two decades?”

There was a pin-drip silence for a moment and then the hall exploded. When everything settled down, the Speaker said: “Our doctor has a cure for everything.” This time, there was a standing ovation. Need more be said?


R NADESWARAN will pen yet another piece next month when Phase Three is implemented. Comments: citizen.nades22@gmail.com

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

Never-ending bumi policy dashes hope for ‘New Malaysia’


December 31, 2019

by Dr.Kua Kia Soong 

Never-ending bumi policy dashes hope for ‘New Malaysia’

COMMENT | We will be starting the New Year with our hopes for a New Malaysia dashed by the announcement of Prime Minister Dr Mahathir Mahathir that the bumiputera agenda (expiry date 1990) will continue.

Image result for Dr. Kua

The NEP stays for as long as The Malays have political power. Let us not kid ourselves. It is non-negotiable, although I believe it is a major obstacle to Malay economic advancement. Discrimination on the basis of race is a fact.–Din Merican. 

Image result for Dr. Kua

As in 1970 when the New Economic Policy started, and again in 1990 when the New Economic Policy was replaced by the National Development Policy which then morphed into the New Economic Model in 2010, we are treated to the same ludicrous doublespeak.

Doublespeak has been defined by some as “the ability to accept two conflicting beliefs, opinions, or facts as valid and correct, simultaneously. Doublespeak may happen because of someone being willfully perverse or as a result of faulty logic.” It is of course a word coined by George Orwell in the novel 1984.

Consider this. In the process of announcing the continuation of this Never-ending Bumiputera Policy, the Prime Minister tells Malays to stand without the ‘tongkat’ that the government is going to continue to provide them.

Even more doublespeak was the Bersatu President Muhyiddin Yassin’s pious wish that the implementation of the new bumiputera agenda as part of the Pakatan Harapan government’s core policy “must contribute towards economic growth with benefits enjoyed by all Malaysians”.

Why is it not possible to have an Affirmative Action Policy for the B40?

I find it remarkable that after more than 60 years of affirmative action for the bumiputera, we still cannot find intellectuals who can devise a race-free affirmative action policy! Our scholars and intellectuals have been schooled in the best universities overseas but they still cannot come up with a policy that does not discriminate on the basis of race.

An exception is economist Dr. Mohamed Ariff, who spoke out against such racially discriminatory policies in 2013:

“The NEP had outlived its usefulness and the government must move affirmative action policies from race-based to needs-based. This policy shift will ultimately benefit the Malays as they form the bulk of 40 percent of households in the lower-income bracket… The government’s policies seem to be populist in nature and not focused… hand-outs should only be given in crises, such as famine, as they remove the incentive to work hard. The Malays would not be able to compete in a globalised environment if they continued to depend on hand-outs.”

Image result for terence gomez universiti malaya

 

Prof Terence Gomez has often questioned the race-based criteria for wealth distribution:

“Why the continuing fixation with numbers when many Malaysians, among them even members of BN component parties, have questioned the veracity of these government-released ownership figures? Even if bumiputera equity ownership is increased to 30 percent, would this mean that wealth has been more equitably distributed among members of this community or between them and other Malaysians? And, most importantly, should we continue to perpetuate a discourse on equitable wealth distribution among Malaysians along racial lines?”

At the Bersatu general assembly, the Prime Minister has justified the continuation of this racially discriminatory policy on the grounds that more than 70 percent of the B40 are bumiputera. If that is so, why not have an affirmative action policy for the B40, which would be race-free and would be agreeable with our Icerd obligations? Why practise racial discrimination and be noted as one of the few pariah nations in the world community that do not ratify Icerd?

What happened to the slogans for ‘New Malaysia’, ‘Asian Renaissance’, ‘Malaysian Malaysia’? Have these all been empty slogans? The other leaders of Pakatan Harapan – Anwar Ibrahim, Lim Kit Siang, Mohamad Sabu, P Waythmoorthy, who have condemned racial discrimination in the past – have not said a word about the continuation of the bumiputera agenda announced by the prime minister. Does silence signify consent or indifference?

Litany of crony capitalists

Given the Pakatan Harapan manifesto, it was shocking, though sadly not surprising, to hear Bersatu vice-president Abdul Rashid Abdul Rahman (photo above) supporting delegates at its general assembly by calling for government resources to help the party. The former Election Commission chief said Bersatu must do all it could to win elections “by hook or by crook”. He said, “Looking at the situation now, we cannot defend our position as the governing party because the division chiefs are being left out of contracts.” Right, so contracts for the boys!

And was it surprising that throughout the years of the bumiputera agenda, Malaysia has featured high on The Economist’s crony capitalism index. Uncontrolled rent-seeking has allowed politically well-connected billionaires to double their wealth, thereby posing a threat to the free market, The Economist said. These rent-seeking industries include those easily monopolised, and that involve licensing or heavy state involvement, which it said was “prone to graft”.

This skewed bumiputera agenda is at the heart of the kleptocracy problem the Harapan government claims it wants to fix after the GE14.

From the 80s on, Mahathir’s privatisation of state assets ensured the divestment of state capital into the hands of favoured Malay crony capitalists. The success of the NEP in restructuring capital has, in the process, increased class differentiation within the Malay community. Thus, instead of targeting and providing strategic aid to the poor of all ethnic communities, the Umno ruling elite has continued to use the tried and trusted strategies of race-based cash aid and uplift plans aimed at bumiputeras.

Authoritarian populism of the Malaysian state

Image result for book byas Anne Munro-Kua

The truth is, as Anne Munro-Kua has analysed in her book, the Malay ruling elite in Malaysia has relied on an authoritarian populist style of rule to stem the possibility of the peoples from different ethnic communities uniting into a class-based political force and to simultaneously ensure the continued political domination of the Malay-led coalition.

  • A communal populist approach continues to be used to deflect the economic grievances of the Malay labouring classes against capitalist exploitation into a race-based ideological allegiance to the Malay ruling elite. The results from the GE14 will further ensure Harapan rely on such populist policies to try to capture the Malay rural votes.

While bumiputera policies are intended to benefit all bumiputera, the reality is that these policies have been usurped by the privileged Malay elite whose weak enterprise culture and expertise has had damaging consequences for the economic health of the nation. The bureaucracy has grown in tandem with the populist measures by the state capitalist class to carve out bigger and bigger slices of the rural and urban economic pie.

Institutional obstacles to attaining high-income status

According to an IMF working paper, Malaysia, as compared to other Asian countries, faces a larger risk of slowdown stemming from institutional and macroeconomic factors. A recent Asia Foundation Report also points to a compelling need for Malaysia to shift from a race-based to a needs-based policy in order to address imbalances in society and improve the democratic process to ensure good governance and that the rule of law prevails. It points out that poor institutions could deter innovation, hamper the efficiency of resource allocation and reduce the returns to entrepreneurship.

The report goes on to reason that despite the numerous bold policy measures and long-term plans introduced by the government over the years, Malaysia’s economic progress continues to be plagued by a lack of innovation and skills, a low level of investments in technology, declining standards in education, relatively high labour cost and sluggish growth in productivity. These lagging factors can be traced to the continuation of a backward racial discriminatory policy.

Thus far, Malaysia’s education system has failed to produce the skills and talent required to take the country’s economy to the next level. A key obstacle lies in the government’s failure to promote a fair and open economy. The bumiputera policy and insufficient checks and balances continue to hamper the country’s economy, leading to poor practices in governance. Reforms, especially the replacement of racial discriminatory policies with race-free inclusive policies are critically needed to rally the nation to achieve its economic objectives.

Affirmative action based on need, not race

In Malaysia, since the passing of the deadline for the NEP in 1990, it makes developmental sense to implement a new socially just affirmative action policy based on need or class or sector. Thus, if Malays are predominantly in the rural agricultural sector, the poor Malay farmers would be eligible to benefit from such a needs-based policy while the rich Malay land-owning class would not. Only such a race-free policy can convince the people that the government is socially just, fair and democratic.

The cost and consequences of the racially discriminatory policy in Malaysia have been immense especially since the NEP in 1971. It has caused a crippling polarisation of Malaysian society and a costly brain drain.

While the Chinese middle and working classes in Malaysia have largely adapted to this public sector discrimination by finding ways to make a living in the private sector, this has not been so easy for working class Indians.

Many Malaysian Indians have found themselves marginalised, much like the African Americans in the US were, especially after the destruction of the traditional plantation economy. The cost of preferential treatment has also seen greater intra-community inequality, with higher class members creaming off the benefits and opportunities.

More potentially dangerous and insidious is the effect this widespread racial discrimination has had on ethnic relations in this country. Unity can only be promoted through an affirmative action policy based on need, sector or class, never on race.


KUA KIA SOONG is adviser to human rights NGO Suara Rakyat Malaysia (Suaram)..

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

Marina roasts Lim Kok Wing over his tweet in support of Mahathir


December 29,2018

Marina roasts Lim Kok Wing over his tweet in support of Mahathir

ttps://www.freemalaysiatoday.com/category/nation/2018/12/29/marina-roasts-lim-kok-wing-over-his-tweet-in-support-of-mahathir/

PETALING JAYA: Vocal activist Marina Mahathir today rebuked Lim Kok Wing over his tweet supporting Prime Minister Dr Mahathir Mohamad, after previously telling the senior politician to “shut up to protect his legacy”.

The renowned educationist had today tweeted that Mahathir was “absolutely right in saying that we just need to set our hearts and minds on achieving greater goals to be a great nation”, tagging Mahathir, Education Minister Maszlee Malik and Youth and Sports Minister Syed Saddiq Syed Abdul Rahman in the tweet.

In a reply two hours later, Marina, who is Mahathir’s daughter, called on Lim to stop what he was doing in buttering up the prime minister.

 

Do stop it @limkokwing! Where were you last year? Who was it who told Dad to shut up to ‘preserve his legacy’?

“The point is, would he have (apologised) if we hadn’t won GE14? Hmmmm?” she asked in her tweet.

Lim had, in May 2015, been appointed as Najib’s public relations campaign coordinator.

His appointment, believed to be to help burnish Najib’s image, was announced amid the 1MDB scandal, which had put Najib under the spotlight for alleged corruption.

Mahathir had, in a blog post without mentioning names, said a friend had attempted to persuade him to cease criticising Najib. He blogged that the friend had warned that if he continued doing so, he would lose his legacy.

Marina Mahathir, who is Mahathir’s daughter, calls on Lim Kok Wing to stop what he is doing in buttering up the Prime Minister.

PETALING JAYA: Vocal activist Marina Mahathir today rebuked Lim Kok Wing over his tweet supporting Prime Minister Dr Mahathir Mohamad, after previously telling the senior politician to “shut up to protect his legacy”.

The renowned Bodekist had today tweeted that Mahathir was “absolutely right in saying that we just need to set our hearts and minds on achieving greater goals to be a great nation”, tagging Mahathir, Education Minister Maszlee Malik and Youth and Sports Minister Syed Saddiq Syed Abdul Rahman in the tweet.

In a reply two hours later, Marina, who is Mahathir’s daughter, called on Lim to stop what he was doing in buttering up the prime minister.

“Do stop it @limkokwing! Where were you last year? Who was it who told Dad to shut up to ‘preserve his legacy.

’If PH hadn’t won, would you have snuck into our house uninvited at Raya to apologise? Just stop it,” she tweeted using her handle @netraKL.

Image result for lim kok wing

A Twitter user @jonathanfun then pointed out that most businessmen had “behaved the same way” under former Prime Minister Najib Razak’s term in office and then switched sides after Barisan Nasional fell, citing the case of AirAsia boss Tony Fernandes.

Marina replied the tweet by saying that Lim was “one of the worst”, and that she “couldn’t believe my eyes when I saw him skulking about our kitchen… #cantstandbullshit”.

“Tbelieved to be to help burnish Najib’s image, was announced amid the 1MDB scandal, which had put Najib under the spotlight for alleged corruption.

Mahathir had, in a blog post without mentioning names, said a friend had attempted to persuade him to cease criticizing Najib. He blogged that the friend had warned that if he continued doing so, he would lose his legacy.