Ex-US diplomat warns Malaysia against resisting reforms

KUALA LUMPUR, Feb 8 – Former US ambassador to Malaysia John Malott warned the Najib administration today against delaying its reform plans.

Malott added that Malaysia also risked further losing its competitiveness over the actions of the ruling party in stoking racial sentiment.

“But stalling reform will mean a further loss in competitiveness and slower growth. It also means that the cronyism and no-bid contracts that favour the well-connected will continue,” said Malott in an article published by the Wall Street Journal today.

“All this sends a discouraging signal to many young Malaysians that no matter how hard they study or work, they will have a hard time getting ahead,” he said.

Malott said that the Prime Minister Datuk Seri Najib Razak has been forced to give in to pressure by Perkasa who has spoken out against the government’s economic reforms plans for fear that they would threaten the special position of the Malays.

“Although Mr. Najib held out the hope of change a year ago with his New Economic Model, which promised an ‘inclusive’ affirmative action policy that would be, in Mr. Najib’s words, ‘market friendly, merit-based, transparent and needs-based,’ he has failed to follow through,” said Malott.

“This is because of opposition from right-wing militant Malay groups such as Perkasa, which believe that a move towards meritocracy and transparency threatens what they call Malay rights,” he added.

Malott said the political parties in the ruling coalition tasked with representing the non-Malays have been unable to perform their duties and have contributed to the migration of 500,000 members of minority groups between 2007 and 2009.

“The Chinese and Indian political parties in the ruling coalition are supposed to protect the interests of their communities, but over the past few years, they have been neutered,” he said.

“They stand largely silent in the face of the growing racial insults hurled by their Malay political partners,” said Malott

The former diplomat who served in Kuala Lumpur from 1995 to 1998 said while he believed that Najib may not share his party’s racial rhetoric, he has been forced to accept it to maintain the support of the Malay electorate.

“It’s politically convenient at a time when his party faces its most serious opposition challenge in recent memory – and especially when the opposition is challenging the government on ethnic policy and its economic consequences,” said Malott.

“Malaysia’s government might find it politically expedient to stir the racial and religious pot, but its opportunism comes with an economic price tag.

“Its citizens will continue to vote with their feet and take their money and talents with them. And foreign investors, concerned about racial instability and the absence of meaningful economic reform, will continue to look elsewhere to do business,” he added.