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Wednesday, 18 September 2019

The real issue is intra-Malay economic inequality

NIK NAZMI NIK AHMAD

Our 2019 Merdeka and Malaysia Day celebrations were marred by calls from certain quarters for the Malay community to prioritise Muslim businesses and boycott non-Muslim businesses.

The supposed reasons for this initiative is to improve the economic standing of the Malays, as well as to somehow defend the position of Islam and Malays. The underlying reason was the upcoming Umno-PAS gathering.

But is a boycott a viable solution for both causes?

The economic problems of the Malays are not new. The British Colonial policy of divide and rule, as well as the failed laissez-faire policies of the post-Merdeka Alliance government, contributed to the May 13, 1969, tragedy.

After that, the New Economic Policy (NEP) was introduced, which aimed to eradicate poverty irrespective of race and to eliminate the identification of ethnicity with economic function.

In its earlier stages, the NEP involved large investments in education, with extensive scholarship opportunities. This is what largely drove the creation of today’s Malay middle class.

But the NEP was only supposed to last for 20 years, meaning its “expiry date” was back in 1990.

Today, the NEP, as well as the practices it inspired, are still in place. However, the gap between rich and poor Malays has widened.

No one is denying the good the NEP did.

However, today, this policy that only takes race into account disproportionately benefits the Malay elite. It gives them better educational and economic outcomes than their fellow Malay counterparts: the urban poor, low-ranked government employees, Felda settlers and fishermen.

Why? Part of it is because the NEP became a victim of its own success.

Let us consider the bumiputra-reserved Amanah Saham Bumiputra’s (ASB) investment statistics. A total of 7.4 million unit holders or 76.92 percent of them have unit sizes below RM5,000, based on ASB’s 2018 Annual Report.

Only 0.24 percent have a holding size of RM500,001 and above. However, 9.15 percent of the unit holders have subscribed to 81.83 percent of total units or more than RM127.5 billion! The 7.4 million holders of the smallest units only have RM4.1 billion or just 2.65 percent of the total units.

The same is true for Tabung Haji (TH). The original function of TH was to enable savings by the Muslim community to perform the Hajj. It was not supposed to morph into a form of investments for the public.

However, 50 percent of the funds in TH’s savings accounts come from only 1.3 percent of its contributors. There is, according to media reports, an individual who contributed RM190 million!

Widening gap between rich and poor Malays

These statistics show that although the NEP created a Malay middle class, it has done little to close the widening gap between rich and poor Malays. This is the community’s biggest economic challenge today.

Our focus has been on the disparities among the races, but not within Malaysia’s ethnic groups - including the Malays. Continuing to ignore this will condemn the less well-off Malays and Malaysians to indefinite penury and exclusion.

Progress away from this paradigm has been hampered by the fact that our economic model is still stuck in the old, low-wage export model framework. It’s typically used for emerging economies to compete.

This was the transition that South Korea, Taiwan and Singapore - economies that were once at the same level as us - had gone through. However, they increased productivity and wage rates by adding value to their economies.

However, unlike them wages in Malaysia have stagnated. Our open policy in hiring foreign workers has also not helped.

We must also not forget how our economy fell victim to corruption and abuse of power.

The damage that the 1MDB, TH, Yapeim and other alleged scandals have caused on not only Malaysia’s public image, but also the credibility of bumiputra institutions are well known.

Interestingly, PAS, which has backed the boycott campaign, had visited the 1MDB and TH managements when they first began to ally with Umno. PAS’ leaders reportedly even stated that they were satisfied with the excuses given to them over the various allegations.

Rather than act as a check-and-balance, PAS instead inexplicably chose to provide “cover” to the abuses of the previous government.

What must we do to move our community forward? We have a choice.

Yes, there have been studies on discrimination faced by the bumiputra in the private sector, and that must be dealt with.

But are we going to be swayed by demagoguery or are we going to take concrete steps to resolve the Malay - and hence the wider national economic crisis - by looking at the problems within our community?

Countries like Vietnam have surpassed us while Malaysia wallows in its archaic economic model and endemic corruption.

Need to free the T20 Malays to compete with other races

We need to free the T20 Malays to compete with other races while providing support to the urban poor, farmers and workers, many of whom are Malays and bumiputra.

Bumiputra affirmative action must be appropriate and needs-driven: T20 Malays should no longer exploit benefits meant for their B40 and M40 compatriots.

For instance, the government should consider whether ASB accounts that are over the investment limit of RM200,000 should be allowed to reinvest their dividends or if accounts only below that value are to be prioritised - because the latter make up the majority.

Currently, accounts are still permitted to collect dividends that can be invested on top of the RM200,000 cap, arguably benefiting only a small Malay elite.

Tabung Haji should also return to its roots as a savings fund for Hajj at a reasonable rate.

In 2019, the Muassasah Hajj cost stood at around RM22,900 while the subsidy given out by Tabung Haji is RM12,920. Therefore, those who wish to perform the Hajj only need to save RM9,980.

Non-core GLCs and those that have overlapping functions at the federal and state levels can be rationalised through management buyouts (MBOs), subject to terms and conditions.

The majority of GLC managements consists of bumiputras. Therefore, they will benefit from the experience of competing and succeeding in the corporate world. Also, the government sector will not monopolise the financial market.

It is likely that these proposals may spark further controversy. But if we are not ready to face these issues head-on and honestly, ordinary Malays will continue to be left behind.

I have delved more deeply into these issues in my book, Moving Forward: Malays for the 21st Century, which was first published in 2009 and has now been re-released with a new foreword and additional notes.

Boycotts are not the solution to uplift the Malays. Rather, our salvation will lie in a willingness to adopt bold and wise policies, as well as having leaders who are willing to see them through.



New Delhi rebuts PM’s ‘India don’t want Zakir back’ claim

New Delhi has rebutted Prime Minister Dr Mahathir Mohamad’s assertion that India did not insist on the return on Islamic preacher Dr Zakir Naik.

According to the Hindustan Times, Indian External Affairs Minister S Jaishankar (above) was quoted saying that India has instead been “persistently and relentlessly” pursuing the fugitive.

The controversial preacher is wanted back in his native India to answer to several criminal charges concerning money laundering, terrorism and inciting hate speech. Zakir has denied any wrongdoing.

He currently lives in Malaysia, where he enjoys permanent resident status granted by the BN-led government.

“Let me make it very clear for the record.

“There is an extradition request (sent in January 2018). We want Zakir Naik back and that is what we are working on,” Jaishankar was quoted telling reporters there yesterday.

He also reportedly insisted India’s expectation of Zakir being extradited was communicated at the meeting between the two prime ministers in Russia earlier this month.

The meeting between the two leaders took place in Vladivostok, ahead of the three-day Eastern Economic Summit.

Jaishankar was referring to comments made by Mahathir during an interview with business radio station BFM yesterday.

During the interview, the premier insisted that no other country was willing to accept Zakir. He added that India also had not insisted on the preacher’s return.

"I met (Indian Prime Minister Narendra) Modi and he didn't (tell) me that he wants this man back. This man could also be troublesome for India," Mahathir had said.

Mahathir had previously also stated that Modi had merely mentioned Zakir during the Russian meet but “didn't ask for anything”.

However, it has been reported that India had filed an extradition request with Malaysia in January, last year, and made repeated attempts to get Interpol to issue a red notice against Zakir but has been unsuccessful.

An Interpol red notice is a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action.

HINDRAF 2.0 letter to Tun & IGP


HINDRAF 2.0 letter to Tun & IGP: On Malaysia Day, 2 Malaysian Indians & 1 British P.R. family mere suspects shot dead by police, ‘enforced disappearance’ of the wife.SOS: Stop police “shoot to kill policy” & “enforced disappearance” under Pakatan Harapan's’ New Malaysia, forthwith implement IPCMC, guns & bullets Audit, & Urgent Appointment with IGP. We refer with serious concern the aforesaid reported public interest matters especially so when the paramount public interest as stipulated in Article 5 of the Federal Constitution guarantees the Right to Life, which we believe is not for decoration! From the monitoring of our Police Watch files, we regret to note that yet again in what appears to be the Standard Operating “Repeat Police Storyline” …

HINDRAF 2.0 (Hindu Rights Action Force) 13-3-2(A) , 
Taman Bukit Angkasa, Jalan Pantai Dalam, 
59200, Kuala Lumpur. 
Tel/Fax :03-20115620 / 013-3504711
p.uthayakumar@hotmail.com
Your Ref :
Our Ref : PH/tun&igp/2019

Date: 17/9/2019

Yang Amat Berhormat                                              e-mail: ppm@pmo.gov.my
Tun Dr.Mahathir Mohamad,                                     e-mail: rajmah.jamal@pmo.gov.my
Pejabat Perdana Menteri,                                          Fax : 03-88883973
Putrajaya.
Tan Sri Abdul Hamid Bador,                                    e-mail: kpn@rmp.gov.my
Ibu Pejabat Polis Diraja Malaysia,                            Fax : 03-22733536
Bukit Aman,
50560 Kuala Lumpur.

Y.A.B. Tun / Y.Bhg Tan Sri,
(1) On Malaysia Day, 2 Malaysian Indians & 1 British P.R. family mere suspects shot dead by police, ‘enforced disappearance’ of wife.

(2) SOS: Stop police “shoot to kill policy” & “enforced disappearance” under Pakatan Harapan's’ New Malaysia, forthwith implement IPCMC, guns & bullets Audit, & Urgent Appointment with IGP.

Greetings Tun Dr. Mahathir and congratulations Tan Sri Abdul Hamid Bador.

We refer with serious concern the aforesaid reported public interest matters especially so when the paramount public interest as stipulated in Article 5 of the Federal Constitution guarantees the Right to Life, which we believe is not for decoration!

From the monitoring of our Police Watch files, we regret to note that yet again in what appears to be the Standard Operating “Repeat Police Storyline”, under the cover of Section 15(3) of the Criminal Procedure Code, two(2) innocent until proven guilty merely suspected Malaysian Indians and another British Permanent Resident husband of a Malaysian were mercilessly murdered by the police during the long Malaysia Day holidays.

If at all the Rule of Law dictates that these victims should have been arrested and put to trial in a Court of Law. The Chief Police Officer of Selangor’s Official Police “repeat storyline” is far from convincing if not insulting the intelligence of the Malaysian public especially so in refusing to disclose the whereabouts @ what appears to be the “enforced disappearance” of the fourth victim, also the wife of the shot dead foreign tourist, who has been in the country for just over two(2) weeks, visiting a sick relative, last visited Malaysia six(6) years ago and merely left home to have dinner in a peaceful country! … vis a vis the trauma and misery the 17-year-old orphaned son, his younger siblings and their families are going through.

We hereby once again humbly call upon Tun and IGP to forthwith end what may be perceived to be the “police shoot to kill policy” now under Pakatan Harapan's’ New Malaysia, implement the IPCMC, Audit PDRM’s guns and bullets and urgently reveal the whereabouts of the “enforced disappearance” victim for we thought we would no longer see the likes of Pastor Koh and Amri ever again!
To this effect may we seek an Urgent Appointment with the Inspector General of Police with the view to formally present our public interest input also on other police matters @ 21st Century standards expected in Malaysia Baru.

Thank you.

Yours faithfully.
P.Uthayakumar
De Facto Leader Hindraf 2.0
 (013-3504711)