Pakatan, BN differ on Najib’s commitment to NEM

KUALA LUMPUR, Oct 24 — Pakatan Rakyat (PR) leaders have claimed the axe has fallen on Datuk Seri Najib Razak’s New Economic Model (NEM) following his vows to uphold the pro-Bumiputra New Economic Policy (NEP) over the weekend.

In his winding up speech at the Umno general assembly yesterday, Najib (picture) assured his party faithful that he would not backtrack from the principles of the NEP introduced during the administration of his father, Tun Razak Hussein, the second prime minister.

“I do not think he has the political will to continue the NEM,” PKR secretary-general Saifuddin Nasution Ismail told The Malaysian Insider today.

“To continue means the end of his political career. The risk that he’ll face is from Umno itself with its continuous rent-seeking culture,” he added.

The Machang MP pointed out that the Umno president’s stand on maintaining NEP-style policies was an about-turn of his NEM that boldly proclaimed an end to rent-seeking and patronage through merit-based economic reforms.

“Datuk Najib’s statement on continuing the NEP but stating his commitment to do the NEM is an obvious flip flop. Datuk Najib plays to the gallery because his stand on maintaining the NEP was done during his winding up speech at the general assembly,” he said.

“Najib’s promise to continue the NEP will not bring long-term benefits,” he added.

Saifuddin cited the pervasive rent-seeking culture and race-based affirmative action in the NEP as characteristics that harmed the country’s competitiveness and alienated foreign investors.

But BN leaders insisted that the NEM was scheduled for implementation but claimed it was an extension of the NEP.

“I think the NEM will go ahead. The NEM is a continuation of the NEP,” said Umno secretary-general Datuk Seri Tengku Adnan Tengku Mansor.

“I don’t think he will take off the Bumiputra equity in the NEM. It may be 30 per cent, maybe higher,” he added.

Tengku Adnan also pointed out that Malay privileges did not necessarily slash the country’s competitiveness.

“If you give some Bumiputras some percentage, will it deprive you of competitiveness? I don’t think so,” he said.

“The NEM is to make sure that we are in a competitive society. We can’t be a competitive society when certain segments of the society are still struggling,” he added.

Malaysia dropped two spots in the World Economic Forum (WEF) competitiveness index this year to a ranking of 26 out of 132 countries, while foreign direct investment in the country plunged by 81 per cent last year.

There is widespread acknowledgment that four decades of affirmative action have hurt the country’s competitiveness and economic prowess since the inception of the NEP in 1971.

Umno vice-president Datuk Seri Shafie Apdal echoed Tengku Adnan’s views and stressed that the NEM protected the Malay agenda.

“NEM doesn’t mention that (30 per cent quota), but the interests of the Malay community is there,” said Shafie.

The Semporna MP also expressed confidence that Najib would translate the NEM into action.

“It doesn’t mean he will stick to the NEP. We must move forward and the future is RMK10 (10th Malaysia Plan), NEM, and ETP (Economic Transformation Programme),” he said.

MCA deputy president Datuk Seri Liow Tiong Lai claimed the NEM had already been kick-started.

“I think the NEM is already launched and we’ll make sure the NEM is a success,” he said, adding that Najib had also scrapped the 30 per cent Bumiputra equity target in 27 services sub-sectors in 2009.

The health minister, however, appeared to contradict his Umno colleagues when he stressed that meritocracy was crucial in determining aid to the poor.

“We are not against helping the poor, but it has to go through the meritocracy system,” said Liow.

DAP Socialist Youth chief Anthony Loke pointed out that the NEM was a moot point as Najib had said that his brainchild economic plan — which was meant to transform the country to a high-income nation — was not an official policy.

“The NEM is irrelevant. Even Najib concurred openly saying that the NEM was not an official policy of the government,” said Loke.

“NEM is definitely not on Najib’s plate. What is the point of continuing debate on the NEM when Umno’s not willing to talk about meritocracy? They are still talking about the 30 per cent quota,” he added.

Malay rights groups led by Perkasa have voiced strident views against the NEM for its aims at making affirmative action more market-friendly until Najib was forced to backtrack and call the policy a “trial balloon”.

The second part of the NEM has yet to be launched since its unveiling seven months ago on March 30.

PAS vice-president Datuk Mahfuz Omar derided Najib’s “hypocrisy” in proclaiming Umno’s fight for Malay rights which contradicted the needs-based NEM that sought to eradicate poverty irrespective of race.

“Najib has shown his hypocrisy during the general assembly when he said that Malay rights will be defended as in the Constitution, but at another point, he wants to introduce the NEM based on the 1 Malaysia spirit for all races,” said Mahfuz.

“He gives the message to non-Malays that the NEM that is based on the 1 Malaysia spirit will not happen. Maybe the NEM will be administered, but it will be done within the constraints of a narrow racial agenda,” he added.

The NEP, put in place in 1971, officially ended in 1990, but many of its programmes continue.

Former premier Tun Dr Mahathir Mohamad has defended the policy and spoken out against the NEM, signalling fears that Malays and Bumiputeras would stand lose out the most if the Administration were to implement a 100 per cent meritocracy-based system.

Najib’s brother Datuk Seri Nazir Razak — who is the CIMB group chief executive officer — however has lambasted the NEP for being “bastardised” and argued for economic reforms.