Bersatu and the shaping of new realities


January 19, 2019

Bersatu and the shaping of new realities

Opinion  |  Nathaniel Tan

 

COMMENT | I am grateful to be read by so esteemed and prolific a writer as S Thayaparan. Needless to say, like any two writers, the good Commander and I can hardly be expected to agree on everything – this is a healthy thing.

In his article on Jan 9, Thayaparan alludes to what I believe are a good many shared goals and even some shared analyses. What differences we may have could arguably be ascribed to the fundamental level of optimism versus cynicism. Of course, this is my own biased view.

I agree with Thayaparan that UMNO’s core strategy of feudal patronage was indeed very successful in securing Malay votes, especially in rural areas.

How else could we account for the fact that in terms of individual parties, UMNO had won the most seats in Parliament? Or the fact that nationally, Harapan only won approximately 25-30 percent of the Malay votes.

I also agree with Thayaparan in that this is a very tempting strategy to replicate, in order to achieve the same level of Malay support that UMNO achieved; as well as with the fact that there are undeniably some in Bersatu and Harapan who wish to pursue this path.

Thayaparan seems to believe that it is inevitable that Bersatu will indeed go down this same road. Here perhaps we differ.

I am no seer, so it would be foolish to say definitively whether Bersatu will or will not turn out like UMNO in the end. I will be willing to say however: it certainly isn’t an inevitability.

In terms of electoral strategy, I think the primary argument that should be put forth to those trying to emulate UMNO’s strategy of feudal patronage is that the votes you win very likely come at the cost of other votes.

Once again, I quote the Aesop fable where the dog with the bone saw his reflection in the river, and dropped the bone he had in greedy pursuit of a second bone.

Should a party follow UMNO too far, especially in terms of its approach to race, the backlash will be real. That constituency of voters should not be taken for granted, as GE 14 demonstrated decisively their willingness to vote in protest.

Knowing one’s opponent

Secondly, every political strategy must obviously take into consideration context and landscape.

Simply put, Harapan needs to know exactly who it’ll be up against in GE 15.

Thayaparan writes:

‘A Bersatu grassroots activist, who I usually call on because she gives it to me straight, told me that it is easy for the other Harapan components to criticise Rashid. It gets them good press and makes them seem like heroes, like young Syed Saddiq. But, the “beloved” (and she means it when she says this) prime minister not only has to ensure that Bersatu is a viable party, but also that “Harapan does not mampus (die)”.

Okay, I said, if your rural heartland base needs to be better informed, then why not begin the process of dismantling the system – political tactics included – which separates them from the urban Malay voter? “You want us to win or you want PAS or UMNOo to win?” she replied.’

Two prominent young Harapan leaders, Youth and Sports Minister Syed Saddiq Abdul Rahman and Setiawangsa MP Nik Nazmi Nik Ahmad have both used America’s transition from Barack Obama to Donald Trump as an example of a right-wing backlash.

This article does not look to ‘ignore’ these warnings and advocate some sort of no-holds-barred progressive agenda; nor does it intend to underestimate any particular political movement.

That said, if Harapan is posturing to fight the wrong enemy in the wrong way, it could end up shooting itself in the foot.

Feudalism impossible without controlling the government

The main problem with UMNO and PAS is that they cannot rule alone; for the same reason they can’t rule alone, these two can’t rule together either.

The Malay population currently stands at 55 percent. Unless you twist and turn electoral boundaries into some unrecognisable mangle, it is essentially impossible for UMOmno and PAS to appeal to non-Malays enough to win the federal government without some sort of ally.

Indeed, one can very easily argue that this scenario has already played out – not in GE-15, but in GE-14.

UMNO’s entire mandate was based on its leadership of BN, where every community was supposed to be represented.

With whatever shreds of that illusion now being shattered conclusively, UMNO is left as a party with a very narrow, exclusive ideology, and very few genuine allies.

PAS meanwhile has a dismal history of going it alone. In 1995 and 2004, they contested alone and won only seven seats each time. In 1999, 2008 and 2013, they contested in coalitions with PKR and DAP, and won 27, 23 and 21 seats respectively.

2018 was a bit of an outlier, with PAS winning 18 seats, but with each and every one of those seats coming from only three states (Kelantan, Terengganu and Kedah) – making it fairly obvious that PAS cannot win elsewhere without strong allies.

So, it has to be asked: Who will Harapan really be fighting in GE-15?

As always, we should not imagine voters to be stupid. Even if they wanted to vote in someone they think would be more willing to deliver them government goodies feudal-patronage style, surely they understand that their candidate cannot do so if he is not part of the federal government.

This brings us to the most important point – why do we have to ‘out-feudal’ the enemy, when the purported enemy is in no real position to be the next feudal lord?

Certainly one should not preach complacency, but one should equally not be sending warships into waters where there are no enemies, leaving other flanks vulnerable.

Indeed, Harapan’s biggest enemy could be Harapan itself; if elections were to be held, say within a year, the biggest reason behind votes against Harapan would likely be under-performance.

Worrying about maintaining and growing Malay support is not necessarily wrong, but this can easily be a strategic misstep as a counterpoint to enemies who are now mere phantoms.

Umno has already been defeated, and at its current state of disintegration – caused in the first place by the party’s dependence on government-funded feudal patronage – it remains to be seen if it would even exist come GE-15.

PAS on the other hand has shown extreme resilience over the decades, and we can expect them to be a real force, but unless they do a 180 degree turn and somehow start to appeal to non-Muslim political movements, they will not be a primary contender for the federal government.

Redefining Malay politics

This brings us to the question of what then will the fight for the Malay heartland be about?Image result for FEUDAL MALAYS

A  feudal Umno  Patron

The impression I personally got from Thayaparan’s article was a belief that these rural Malays will always be dependent feudal peasants.

I choose a more optimistic view.

Bersatu and Harapan’s unique position – resulting from UMNO’s and PAS’ extremely weak position – gives them a golden opportunity to redefine what Malay politics is about.

There are numerous examples of late showing that there are clearly elements within Bersatu who want to go the UMNOo way, but I daresay the battle for the party’s heart and soul is not over yet.

As I wrote recently, at the very top of Bersatu is Prime Minister Dr. Mahathir Mohamad, and his oldest dream to invigorate the Malay community – propelling them to become successful entrepreneurs, leading professionals and captains of industry.

While his unrelenting sarcasm and unfavourable comparisons might not be the best way to bring this about, I don’t think we can doubt the sincerity of his intentions.

All that remains to determine is methodology.

It won’t be any walk in the park, but I do believe that with the right leadership and policies, we can transition out from the rural heartland’s dependency on feudal patronage, into governance based on genuine empowerment – setting everything in place for Malays to succeed on their own merits.

If we take the time to look, there are always a few encouraging signs here and there – the takeover of Perlis Bersatu by Bersatu headquarters could be one such sign.

I am all for realistic analysis. It is foolishness not to base your plans on what the objective truth on the ground is. At the same time, all the realism in the world will do us no good if we have no vision; reality, after all, is often nothing more than what all of us make it.

Image result for Man of La Mancha

 

 

On my first day driving to my new job, I listened to a song from the musical The Man of La Mancha. Perhaps not for the last time, allow me – in the style of the good Commander – to quote some lines from the show:

‘I have lived nearly fifty years, and I have seen life as it is. Pain, misery, hunger … cruelty beyond belief. I have heard the singing from taverns and the moans from bundles of filth on the streets. I have been a soldier and seen my comrades fall in battle … or die more slowly under the lash in Africa. I have held them in my arms at the final moment. These were men who saw life as it is, yet they died despairing. No glory, no gallant last words … only their eyes filled with confusion, whimpering the question, “Why?”

I do not think they asked why they were dying, but why they had lived. When life itself seems lunatic, who knows where madness lies? Perhaps to be too practical is madness. To surrender dreams — this may be madness. To seek treasure where there is only trash. Too much sanity may be madness — and maddest of all: to see life as it is, and not as it should be!’


 

NATHANIEL TAN is delighted to have begun a new job at Emir Research.

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

Is Anwar Ibrahim really our great white hope


January 18, 2019

Is Anwar Ibrahim really our great white hope?

Opinion  | by Mariam Mokhtar

 

  “Anwar seems to have one face for speaking in Malaysia and another for speaking when he is abroad. So, who is the real Anwar Ibrahim, and can we trust him’?”–Mariam Mokhtar

COMMENT by Mariam Mokhtar

http://www.malaysiakini.com

Their leader, Anwar Ibrahim, told England’s newspaper The Guardian that he would “…root out corruption and end a system of affirmative action for ethnic Malays…” if he were toform the next government.

Remember this word, “end”.

Soon after the GE-14 win, on May 10, 2018, Anwar was pardoned and released from prison.

On May 17, he told Associated Press (AP) that affirmative action policies for Malays must be discarded in favour of a new programme to help the poor, regardless of race.

Anwar said, “I have said that the NEP should be dismantled, but the affirmative action must be more effective. I believe that poor, underprivileged Malays will benefit more through a transparent, effective affirmative action policy than the New Economic Policy which has been hijacked to enrich a few cronies.”

What happened to the word “end”, which he mentioned in 2008?

Politicians make all sorts of promises, many of which they know they cannot keep. Why should Anwar be any different? What a pity that in Malaysia Baru politicians continue to pander to the ultra-sensitive Malays.

So, how does one unite a nation, when one section of the community is treated like ‘Little Emperors’, while the rest of the population is told to get on with the limited resources available?

On January 13, at a dinner to celebrate his win as president of PKR, Anwar urged the non-Malays to understand the concerns of the Malays and bumiputeras, who feared that their rights and position would be threatened.

Instead, Anwar should have highlighted the betrayal and exploitation of some Malays by other Malays. He should have mentioned Tabung Haji, Felda, Mara, the silence of the previous Malay-majority cabinet about the scandal involving 1MDB, and embezzlement in the various ministries by senior civil servants. Malays were at the helm of these institutions.

Another Pandora’s Box

For decades, PAS and UMNO Baru made the outrageous claim that the non-Malays, specifically the Chinese, wanted to destroy the nation, make it Christian and get rid of Islam and Muslims. The real enemy is within the Malay fold. We have yet to investigate the alleged corruption of the money donated to mosques, or tahfiz schools, which will open another Pandora’s Box.

Affirmative action policies make Malays weak, arrogant and dependent upon handouts. If the selection criteria for army recruits were to be lowered, we would have snowflakes defending the nation. A lowering of the examination pass mark, for the Malays, is self-defeating. The Malays cannot thrive in an environment which stifles competition and creativity. In the law of the jungle, only the fittest and those who are willing to adapt will survive.

In his monthly assembly speech at the Prime Minister’s Department, Dr Mahathir Mohamad said that Malaysia had not achieved true unity ‘despite six decades of independence, because each race wanted to maintain their own culture and heritage’. He said, “We accept the fact that we cannot be a country where the people identify themselves as one race.”

Mahathir is confused by the definition of “race”. How can the rakyat identify themselves as Malaysians when they are discriminated against with race-based policies for housing, schools, universities, business loans and more. Get rid of affirmative action policies and help all Malaysians, irrespective of skin colour or religion. Get rid of the bangsa and agama (race and religion) on our identity card.

So, is Anwar the great white hope?

The taxi drivers seem to think so. Najib could not help them, nor Mahathir. Taxi drivers fail to comprehend that they need to change their attitudes, to improve customer service. They think Anwar is their last bastion of hope.

During his five-day working visit to India, Anwar told the Indian newspaper, The Hindu, that Dr Wan Azizah Wan Ismail would vacate her position when he became PM.

He said, “Yes, she has said she wants to step down when I assume office, because she feels it will not be proper. She will continue to play her role, especially for health and culture and welfare.”

Did she really say that she will step down? Or was Anwar speaking for her?

The threat of nepotism means that many very good people will not want to work for the party. They know they will not progress far. Few people are prepared to criticise the boss’s wife, or daughter. Already, PKR is known as “Party Keluarga & Rakan-rakan”.

After eight months, the new Pakatan Harapan administration should have addressed serious issues concerning welfare and women and children’s rights. They seem to have avoided those issues, especially in matters pertaining to child marriages, treatment of single mothers who have been wronged by the system, lesbians who have been whipped and transgenders who have been murdered. Can a dutiful Malay wife go against her husband’s wishes?

In 2008, Anwar said he wanted to end affirmative action policies. A few days ago, he urged non-Malays to understand the concerns of the Malays. Can he make up his mind?

Anwar seems to have one face for speaking in Malaysia and another for speaking when he is abroad. So, who is the real Anwar Ibrahim, and can we trust him?


MARIAM MOKHTAR is a defender of the truth, the admiral-general of the Green Bean Army and president of the Perak Liberation Organisation (PLO). Blog, Twitter.

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

 

Orang Asli Development: A New Starting Point Needed


January 17, 2019

 

Orang Asli Development: A New Starting Point Needed. It is time to stop playing  politics with their future.

By Dr. Lim Teck Ghee

Image result for orang asli malaysia The neglected and humiliated original Malaysians. Time to stop playing  politics with their future.

In the last few weeks there has been an unusual flurry of press statements drawing attention to the Orang Asli community. They include the announcement of a national conference to be held on January 11 to discuss proactive proposals to resolve the issues faced by the 200,000 Orang Asli in our country.

The conference – which seems to have been aborted – was to have been preceded by a roundtable discussion on January 6 to identify the primary issues faced by the community, including rights to land, infrastructure access, education, the digital gap and youth empowerment.

Image result for orang asli malaysia

Simultaneously, the Deputy Prime Minister, Dr. Wan Azizah Wan Ismail during a visit to Cameron Highlands declared that the Government was studying the need to create a comprehensive development plan in line with that of the International Labour Organisation (ILO) Convention 107 on Indigenous and Tribal Peoples which encourages governments to involve Indigenous People in development projects and provides guidance on the protection of tribal people.

Observers may be forgiven if they have linked these announcements to the coming Cameron Highlands by election. Orang Asli votes comprise over 20% of the estimated 32,000 voters for this parliamentary constituency and are perceived to be a key swing factor in the much watched election taking place on 26 January.

Another Ditched Pakatan Harapan Promise?

Image result for dr wan azizah

For GOD’s sake, Wan Azizah– Get your priorities right

But perhaps the Orang Asli voters and the larger community in the country may want to give the benefit of the doubt to the new government in view of the promises contained in the Pakatan manifesto on the preservation of Orang Asli customary land rights and concern for their welfare and development.

Will this be one key election promise made by Pakatan that can be realized without too much delay and controversy?

After all, examination of the economic and socio-cultural indicators available including infant and child mortality, life expectancy, educational levels, income levels, etc. – and there can no dispute over them in respect to those of this minority community – point to the shameful reality that 60 years after independence, the Orang Asli community – indisputably the first peoples in the Malay Peninsula – remain the poorest, the most marginalized, and the most dispossessed of home, land, means of subsistence, history, language, culture and identity.

Image result for orang asli malaysia

To expedite the process of reintegration of Orang Asli into the mainstream of society, it is imperative that the old template for resolution of the community’s problems be discarded and a new starting point of reference is established to restore the rights and status of our first peoples.

New Starting Point to Correct Past and Present Wrongs

Here are 3 suggestions for the Pakatan government (and for whoever wins the Cameron by election) to consider:

  1. Ratify ILO convention 169 on indigenous and tribal peoples in place of ILO convention 106 which was introduced more than 60 years ago.  The newer convention 169 which came into force in 1991 but which Malaysia has yet to sign on has been found necessary in view of the worsening developments in the situation of indigenous and tribal peoples in all regions of the world. This has made it appropriate for countries to adopt new international standards and to remove the assimilationist orientation of the earlier convention.

                                   ILO Convention 169

Convention No. 169 represents a consensus on the rights of indigenous and tribal peoples within the nation-States where they live and the responsibilities of governments to protect these rights. It is based on respect for the cultures and ways of life of indigenous peoples and recognizes their right to land and natural resources and to define their own priorities for development. The Convention aims at overcoming discriminatory practices affecting these peoples and enabling them to participate in decision-making that affects their lives

2   Resolve the land problems of the Orang Asli communities by recognising their ownership right to customary and ancestral lands and providing them with permanent titles. This can begin with analysis of land office, survey, mapping, forestry and other archival records of British colonial rule as well as the records of the post-colonial government which can establish the boundaries of areas where the Orang Asli have had their traditional settlements and hunting-gathering territories; and which,during the colonial period, were demarcated and regarded as Orang Asli territories.

3.  Honour the Orang Asli by recognizing their rightful place in this country through a national apology or a similar declaration from the highest level of government expressing regret for the historical injustices done to the community; pledging and honoring to right past wrongs committed during the colonial and post-colonial era; and promising action to build a sustainable and meaningful future for the community.

To date national political apologies or official expressions of remorse have taken place in Australia, New Zealand, Canada, United States of America, Norway and Sweden.  Similar expressions have also been recently made by political leaders in some Latin American countries with indigenous communities.

A declaration to this effect would be a significant first for Malaysia in the ASEAN Community while we would be the second nation after Taiwan in Asia to provide such a political initiative.

This move has been seen by scholars researching the topic of apologies to indigenous peoples in comparative perspective as having the merit of putting things on record and as a prelude to reconciliation and correction of ethical flaws in the state political culture.

More importantly to me, an official expression would demonstrate the nation’s commitment to respecting human rights, and upholding justice, equality and non-discrimination.

 

Nudging Mahathir into consensus mode


January 17,2019

Nudging  Mahathir into consensus mode

Opinion  |  P Gunasegaram

Published:  |  Modified:

 

QUESTION TIME | Prime Minister Dr Mahathir Mohamad’s current beef is wealth inequality, and so he wants to restart the redistribution of wealth – to Malays (and bumiputeras). This is something which I commented on here. But that’s not even a stopgap measure, because acquired wealth can be sold off. It also reflects the policies of old, which have been discredited.

The only way that wealth can be increased and retained within a community is to increase incomes, rather than to distribute existing wealth, even if it is held by the government. And the only way incomes can be increased is to put in place plans to raise incomes for all Malaysians, since 67 percent of the population is bumiputera, with Malays forming 50.5 percent of the population.

The issue of wealth and income equality comes back eventually to the effectiveness of the government and how successful it has been in narrowing opportunity gaps between rich and poor through well thought out and carefully implemented programmes.

For that to happen, it is necessary for some steps to be taken. I agree that for this to happen, it is not just the duty of Mahathir, but also the partners in the Harapan coalition government, to exert force, for at the end of the day, Mahathir only commands a small minority of MPs in the coalition.

Considering that he is advanced in age and may be lacking in vitality, it is necessary for change to start from his other partners – the leaders in PKR, DAP and Amanah – who had envisioned a different plan and programme than that of Mahathir’s Bersatu, a racial reconstruction of UMNO, where the membership is exclusively restricted to Malays and bumiputeras, with many of its members having come from UMNO.

Exerting influence

Thus, it is incumbent upon other leaders to push Mahathir into change and consensus mode. There are at least two ways this can be done – through the Harapan presidential council and the cabinet. First, Harapan’s presidential council rightly should be the place from which all broad policies for the government should emanate.

 

Image result for mahathir's cabinet

Here is where Harapan’s de facto leader Anwar Ibrahim and his wife and Deputy Prime Minister Dr Wan Azizah Wan Ismail should exert their influence after discussions with DAP leaders such as Lim Kit Siang and Lim Guan Eng, and Amanah leaders such as Mohamad Sabu, Khalid Abdul Samad and Dzulkefly Ahmad.

Since the other parties are in the vast majority in terms of their number of MPs, their combined weight should hold a lot of sway, and Mahathir can be persuaded that the policies taken should reflect that of the majority view.

If the other Harapan leaders do not take such measures and wait patiently for Mahathir to exit the scene in a year and four months from now, they must also take joint responsibility for any wrong, improper move which delay things towards an open, freer country which moves forward based on government transparency, accountability, good governance and competence.

Pushing for Anwar’s inclusion in the cabinet

 

Image result for mahathir's cabinet

The other thing that the presidential council should do is to push for Anwar’s inclusion in the cabinet and for him to become Deputy Prime minister like in 1998 soonest.

The other thing that the presidential council should do is to push for Anwar’s inclusion in the cabinet and for him to become deputy prime minister soonest. That is the natural thing to do if Anwar is to become prime minister 16 months from now, as agreed by all the coalition partners.

That may pave the way for Wan Azizah to step down from politics, as she has said many times beforehand that she wants to do after Anwar is in the picture.

It would ensure that Anwar has enough time to have a good grasp of everything that happens in the cabinet in the lead-up to him taking over as Prime Minister. It is necessary that Harapan leaders have the gumption, courage and conviction to push for this to take place.

With the presidential council becoming a greater force in making national policy with the input of all leaders, instead of being dominated by a minority leader, even if it is Mahathir, then decision-making is likely to better reflect the true aspirations of the overall Harapan coalition instead of that of Bersatu and Mahathir – as it is now. That would reflect, too, the aspirations of voters.

Get the necessary work done

Next, the cabinet. Cabinet members seem to be waiting for Mahathir’s approval before they do anything, even though it is impossible for Mahathir – or anyone else who is Prime Minister – to understand the full implications of all measures to be undertaken by the ministries.

Thus ministers should seek to take their ministries forward in terms of increased competence, work and efficiency, with full regard at all times to such key issues as integrity, honesty and doing away with patronage in decision-making and implementation. Surely no one, not even Mahathir, would fault them for coming up with good strategies and programmes for implementation that would work.

In other words, ministers should move their butts to get the necessary work done and not wait for orders and instructions from the top, who in this case is Mahathir. If they don’t take the initiative to get things done much better than before, they can’t turn around and blame Mahathir.

It’s their job to get action plans done and present them to the cabinet for approval. If their plans are found to be good and workable, it is unlikely that Mahathir or the other members of the cabinet are going to turn them down.

These are tough times and Mahathir may well need some help to initiate changes. If he is straying from the path the coalition agreed on, who better to tell him than his coalition partners and to steer him back to the right one?

That needs courage, conviction and the willingness to face confrontation, which could eventually lead to a conciliatory path that is more beneficial to the country. After all, is that not the way of consensus, which is how the election was won by Harapan?

Next: 10 ways to increase incomes and raise living standards.


P GUNASEGARAM believes consensus comes out of genuine desire to find the right path. 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.

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.

Image result for the malaysian jomo and gomez

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.