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.

Razak’s NEP both a success and a failure, says ex-aide Abdullah Ahmad

A close confidante of Malaysia's second prime minister, Tun Abdul Razak Hussein, has rated the country's controversial affirmative action-based economic policy created by his boss as both a "great success and great failure", 45 years after it was first implemented.

Tan Sri Abdullah Ahmad, who was Razak's political secretary, said the New Economic Policy (NEP) had done well to lift the Malays out of poverty and increase the number of Malay professionals in all sectors.

But it has failed in its other objective of eradicating poverty regardless of race, Abdullah, better known as Dollah Kok Lanas, told The Malaysian Insider in an interview as part of a series to commemorate the 39th death anniversary of Razak who died on January 14, 1976.

Abdullah also noted what economists have been telling Putrajaya in recent times, that wealth inequality is no longer between races, but within each race, and in the case of the Malays, concentrated within an elite class.

"Some might argue that the enlarged national economy is indeed being shared across the three main races of the Malaysian society, but (this is) among the 1% or less. I have sympathy with this view.

"Economic policies must be implemented fairly for all, regardless of race or political affiliation, he said.

Abdullah, now 78, was a journalist when Razak took note of him and at age 26, he was appointed Razak's political secretary. It was the first time such a position had been created in Malaysia.

Abdullah later became the Member of Parliament for Kok Lanas, a seat in Kelantan, and deputy minister. Seen as powerful and ambitious, he was said to be the envy of many for having Razak's ear. After Razak died, Abdullah was detained under the Internal Security Act for allegedly being a communist.

In this interview, Abdullah shares his memories of working with his late boss, and puts Razak's pro-Bumiputera economic policies in perspective amid today's challenges.

TMI: What kind of person was Tun Razak to you as a leader, a friend and a colleague?

Abdullah: I worked for Razak for 14 consecutive years, uninterrupted from 1962 to 1976.

My designation changed once, from political secretary to deputy minister.

The job description remained the same, the addition being my ministerial duties.

My main role was to be Razak's eyes and ears, and to say the things he could not; to shield him from foes and to ensure his policies and political directives were carried out.

My opponents loved to say I was his enthusiastic enforcer and the executioner of his words.

I worked with him and not so much for him. I was a colleague; maybe a junior colleague, but I was also a politician and perceived as one. Razak told me to always remember that I was an important member of his administration, but that I was not a member of the civil service.

Razak was a good leader and excellent administrator. He was not a talker but a doer. In modern parlance, he walked the talk. He shared and delegated power.

Results were important to him. The speedier, the better; persuasion, not coercion.

As a colleague, he was dependable, loyal and generous, though rewards came slowly for his close advisers and aide. We would be the last to be thanked and shake his hand.

TMI: Please share some of the memorable things he said, or personal experiences you had with him.

Abdullah: We were once in a helicopter on the way to inspect some rural projects in Sabak Bernam, Selangor, in the '60s when we encountered some difficulties during the flight and almost crashed.

However, the Malaysian pilots, the first batch that had taken over from the foreign ones, skillfully brought the helicopter under control to land us safely.

Razak (then deputy prime minister) remained unperturbed throughout, in the tradition of the stiff upper lip, and calmly congratulated the pilots on a job well done.

There was another close shave in Bentong, Pahang, also in the '60s, when a timber lorry missed our car by inches.

We were not being escorted by a procession of outriders which, even for the deputy prime minister, was unheard of in those days.

Razak's response to the incident was again typical – he merely asked me to trace the timber company concerned and to enquire with them how such a near-miss could have happened.

TMI: What can you recall of him from the time he replaced Tunku Abdul Rahman as prime minister following the May 13, 1969 riots? Did you agree with the pressure against Tunku?

Abdullah: The Tunku was openly told by some young Umno turks, the likes of Dr Mahathir (Mohamad), Musa Hitam and some others that he should leave office and give the job to Razak.

Senior leaders were more circumspect about saying this, so what happened was no surprise to insiders.

The Tunku and his supporters had fought back but gave up when they realised he would lose out in an open fight with the emerging younger group. I was not opposed to what you call "the pressure" because I was part of the group.

TMI: Razak set up the Barisan Nasional to replace the Alliance. Do you think this formula of one-race parties sharing power in an alliance is still relevant today, or should Malaysia move towards more inclusive, multiracial political parties?

Abdullah: Yes, it is still relevant though I wish it wasn't because there is still no genuine multiracial party in Malaysia. The DAP is largely still Chinese-based and led; PKR is mainly Malay-based and led, and PAS says it is based on Islam.

It will be a long time before a genuinely multiracial party exists. On the contrary, the demographic trend is moving in the opposite (direction) to a multiracial society. Race-based parties will become stronger.

TMI: How do you evaluate Razak's economic and social integration policies, particularly through the National Economic Policy (1970-1990), in the light of the last few decades – has the policy succeeded? What went wrong? What needs to change?

Abdullah: The NEP was a great success and great failure. It succeeded in enlarging the Malay middle class and the number of professional and incipient professionals in its ranks.

However, many of the NEP's objectives remain unattained, especially the eradication of poverty regardless of race.

Its great failure is that it was not scrupulously implemented. Occupation is still identified with race in Malaysia – the Malays with the government service, including a burgeoning religious bureaucracy, and the non-Malays with the private sector.

Some might argue that the enlarged national economy is indeed being shared across the three main races of the Malaysian society, but (this is) among the 1% or less. I have sympathy with this view.

Economic policies must be implemented fairly for all, regardless of race or political affiliation.

TMI: What is Razak's legacy to Malaysia today?

Abdullah: Razak restored stability and then harmony to the country after 1969. He then reinstated parliamentary democracy when he could have ruled by fiat as head of the National Operations Council.

This is in contrast to the trend of concentration of power by those who now hold office in order to make themselves less, not more accountable to the people. Or the current trend to make populist decisions for short-term personal gain rather than correct, objective ones in the long-term public interest.

Razak was much maligned but he was a public-spirited and strategic leader.

He also initiated Malaysia's diplomatic relationship with China, the first Asean nation to do so in 1974. – January 15, 2015.

- See more at: http://www.themalaysianinsider.com/malaysia/article/razaks-nep-both-a-success-and-a-failure-says-ex-aide-abdullah-ahmad#sthash.4WAsmwXX.dpuf

Why we need a new NEP with no race bias

The DPM's recent statement deserves serious attention.

By Ramon Navaratnam - FMT

Umno Deputy President Muhyiddin Yassin made a striking statement last Tuesday at the opening of the Umno Youth, Wanita and Puteri assemblies. He said a new national economic policy needed to be drawn up to bridge the gap between the rich and poor, regardless of race.

That was exactly the real intention of the original New Economic Policy and what in fact was also proposed to the government in the New Economic Model (NEM), which has unfortunately been sidelined.

For this reason, Muhyiddin’s statement deserves much more attention than it has been given so far.

Interestingly, his statement was almost a direct quote from the original New Economic Policy (NEP) announced in 1970. Hence, after 44 years, it now appears that we have to go back to our starting point because the spirit behind the original NEP has faded away.

Actually, the recent United Nations Development Programme Report on Malaysia suggests clearly that the NEP has failed to reduce the gap between the rich and the poor.

Why is this so? Is it largely because we concentrated too much on the second prong of the NEP, which relates to equity ownership? The second prong was aimed at removing the identity of race with occupation. For many reasons, it was more attractive to many policy planners and implementers. Thus the issue of equity ownership was given higher priority than the issue of raising the incomes of the lower 40% income groups .

Education standards have been low and they have not helped to produce graduates of sufficiently high calibre. That is why we have low-productivity graduates and high graduate unemployment. If our graduates, at levels from schools to universities, were better equipped, especially in Science, Technology and the English language, they would be able to earn much higher incomes for their technical skills and greater productivity. This would have helped to considerably reduce the serious income disparities that have developed over the years..

Cronies of all kinds

Corruption has badly undermined the noble original aims of the NEP. Much of the land alienated for farming (for example, in Cameron Highlands), equity shares, permits, licenses and non-tendered government contracts, were easily provided to many incapable Malay and Bumiputera contractors and to cronies of all kinds. Thus Malay and Bumiputera businessmen lost out despite the billions of ringgit of public funds allocated to develop a more active and sustainable entrepreneurial class among them. Incomes therefore did not rise much for Malay and Bumiputera participants, except for a few.

Urban poverty was not given the high priority that rural poverty enjoyed under the premiership of Tun Abdul Razak Hussein. Today, the vast majority of our population is settled in the urban areas. Yet the financial and human resources directed to urban development to improve the welfare and quality of life of the urban poor have been quite inadequate. This has also increased income disparities.

Competition has been curtailed by many continued protectionist policies and practices. Thus a Culture of Mediocrity has seeped in throughout the whole socio-economic system and even the political system.

We have to examine the performance of the Malays and Bumiputeras in all fields to understand the debilitating consequences of pampering or “manja manja”. For instance, we need to assess how they fare in education and business, after so much financial support given so liberally for so long. Why, people ask, is there a predominance of graduate unemployment amongst them? Is it not because they are found wanting in their abilities? Don’t we realise that any good businessman or woman, regardless of race, cannot afford not to employ competent and competitive graduates, regardless of race?

The Ethos of Bumiputeraism and Ketuanan are in themselves psychologically and emotionally disruptive and self deprecating.

Why, for example, should young people – and for that matter even the older ones – want to work hard and excel if they believe that pampering and progress in their careers or businesses, are their birth rights which they may feel is the government’s responsibility to provide for them regardless of their ability to perform?

The observations above provide some insights into why there is growing income disparity and why we have to take up the challenge to review the NEP and move towards a better and more equitable, prosperous and stable Malaysia.

We hope that the DPM’s call for a review of the NEP will help to narrow the gap between the rich and the poor, without any race bias, as we are all Malaysians first and foremost.

Tan Sri Ramon Navaratnam is Chairman of the ASLI Centre of Public Policy Studies.

Muhyiddin: ‘New’ NEP needed to bridge gap between rich and poor

(The Star) – Tan Sri Muhyiddin Yassin has said that a ‘new’ National Economic Policy (NEP) is needed that treats the bumiputra economic agenda as a national agenda, and not a race-based one as Malays were still lagging behind other races economically.

“I would like to propose that a new NEP is designed to drive equality initiatives,” said the Umno deputy president.

He said most bumiputra were still trapped in the low-income group although Malaysia’s economic growth had reached 6.3% – one of the highest in Asia and recorded RM216.5bil in foreign direct investment (FDI) in 2013, the best in history.

“Do we keep our eyes closed and choose not to do anything if the bumiputra, which comprise 67.4% of the population are still in the low-income group; if four million from 6.5 million employees who contribute to EPF (Employees Provident Fund) earn less than RM2,000 a month?

“How about if the income gap disparity in our country is among the highest in the region; if the people are still not able to own their own home?” Muhyiddin told Umno delegates at Putra World Trade Centre here, Tuesday.

Muhyiddin, when officiating the annual gathering of Umno Youth, Women and Puteri wings, said the Government now faced with beliefs that opposed any implementation of bumiputra empowerment agenda, which he claimed deterred economic development.

“In fact, this kind of policy was used by developed countries more than half a century before they reached the level of developed nations,” he said, adding that the disparity in society was “terrifying” as Malaysians now competed in a more open economy.

He said it was time for the country to reassess the economic model although Malaysia’s economic record showed that the country was on track to become a high-income, developed nation by 2020.

“Therefore, we need to make the bumiputra economic agenda the national agenda, not the agenda of race,” he said, further suggesting that the policies and strategies of the economic agenda be made the main thrust in the 11th Malaysia Plan.

“The bumiputra economic agenda cannot be implemented separately from the framework of national economy. It needs to be implemented inclusively and comprehensively across all sectors of the economy.

Sultan: Agihan kekayaan tak seimbang undang rasuah

Perak ruler says Strepsils will not cure graft

 

Expressing concern over the New Economic Model (NEM) data report, the Sultan of Perak said the nation can no longer remain in a denial mindset.

Sultan Nazrin Muizuddin Shah is worried that the disproportionate distribution of wealth and the widening income gap would fertilise the culture of corruption.

Speaking at the Malaysian Anti-Corruption Commission (MACC) anniversary today, Sultan Nazrin said the nation is facing a major challenge.

"This is not a temporary sore throat which can be cured with Strepsils.

"It is a serious social illness that requires intensive treatment from social doctors and surgeons.

"It requires a medical formula from the social pharmacy, which is capable of drawing up a comprehensive and holistic social policy," he said.

Sultan Nazrin questioned what options civil servants or private sector employees have when their salaries do not commensurate with the daily cost of living.

"The majority in this category actually do not wish to take bribes.

"The number of those in this category will increase if an effective formula is not introduced, with focus on housing, food, transport and healthcare," he added.

Greed plunges man into sin

The NEM report revealed that 80 percent of the households earned less than RM5,000 a month, 40 percent less than RM2,000 whereas 78.6 percent of Employee Provident Fund (EPF) contributors earn less than RM3,000 a month.

The sultan also referred to the request by civil servants union (Cuepacs) for banks to include more RM10 notes in their ATM machines.

This, he said, showed that at certain times, a number of ATM card holders had less than the minimum RM50 in their accounts.

The Perak ruler also underlined two prerequisites in combating corruption which involved stern and non-selective punitive measures as well as preventive action to strengthen integrity.

He cited the example of the first magistrate appointed in Penang more than 200 years ago during the colonial era who was terminated for bribery.

"Taking stern action which is not selective is not an option but a must," he added.

As for preventive measures, Sultan Nazrin said this required initiatives to ensure that people possess the will power to refrain from such practices.

Greed, he added, is often the factor that plunges man into sin.

How government has failed poor Malays

The billions of ringgit spent under the NEP don't seem to be helping the people targeted for affirmative action.

By Mariam Mokhtar

Why would a father bludgeon his own son to death? The father had not caught his son abusing his siblings or having sex with someone. The son was not taking drugs or robbing people.

The details are scanty, but we know that on July 5, 17-year-old Muhamad Hafiz Abdul Ghani, who lived in Kampung Jawa, Alor Gajah, told his father that he wanted to work to help the family. The father’s response was to repeatedly beat him with a piece of wood. When he collapsed, Hafiz was put to bed by his mother so that he could sleep off his “exhaustion”.

Was the father’s ego dented? Did his son make Abdul Ghani feel inadequate and a failure?

Abdul Ghani is a construction worker. His children don’t have birth certificates, which means that they cannot have identity cards and cannot be enrolled in school and don’t qualify for medical assistance. Hafiz is the oldest of the 10 siblings, one of whom is a special needs child.

Why were the births of the siblings not registered? Was it the parents’ laziness or ignorance? Were they illegitimate children? Were the children delivered in the backwoods, where there are no registration facilities?

We know that the family is very poor. Hafiz’s mother, 38-year-old Siti Habibah Ismail, said: “Our family can only afford porridge, banana fritters and plain water for breaking of fast.”

We are told that Abdul Ghani has a violent streak. Siti described her 52-year-old husband’s reaction when Hafiz told him he wanted to get a job so that he could buy better food for the family. “Hafiz’s father lost his temper and hit Hafiz repeatedly until he collapsed in the living room,” she said.

We have a glimpse into the character of the father, his control over the family and their fear of him. The mother was unable to prevent the beating of her son, but did Hafiz’s sense of filial piety prevent him from avoiding the blows? He could have run away and sought refuge with a neighbour or family friend.

Why did the neighbours not react? They must have heard the shouts and screams. Is our society the kind where people cannot be bothered to intervene or call the police? Perhaps people have been made to believe that the police will not interfere in “domestic cases”.

We know that Abdul Ghani is a heartless man. Siti said she was the one who took Hafiz to his room after the thrashing. Did her husband feel it beneath him to help his own son and wife?

We realise that Hafiz’s father lacks compassion and a conscience. Siti was stopped by her husband from seeking a neighbour’s help when she saw that there was something wrong with her son. He said Hafiz was merely exhausted.

We learn that Siti’s husband had a strong hold over her. She believed what he told her about Hafiz’s condition. Some women don’t have the moral or physical courage to confront their husbands or defy them even when they know they have to.

Important lessons

We also wonder about Siti’s mental state or level of wisdom. She said, “I woke him up for sahur at 4am, but he gave no response. I thought he was sleeping and I did not suspect anything.”

We suspect Abdul Ghani is a coward from Siti’s description of how he slunked out of the house on the morning after the beating.

After he had left, Siti checked on Hafiz. Failing to elicit any response from him, she called an ambulance.

Police are investigating the case as murder.

So, could this tragedy have been prevented? Yes. There are—or should be—several forms of government assistance for the poor and marginalised. Why have they not reached families like Hafiz’s?

Perhaps the most important lesson here, at least for the Malays, is that large families are not sustainable. A breadwinner can provide only so many children with good education, good nutrition, stability and love. Malays need to understand that quality is preferable to quantity. What has happened to family planning?

As expected, in this and in other tragedies, politicians and political parties have scampered to gain brownie points for appearing to do something. A new house, the promise of a job for the mother, help to register the children with the National Registration Department, schooling and counselling for the family have all been offered.

The fact of the matter is that our politicians and the civil service have failed our poor.

We do not pay our politicians and civil servants to clean up the mess. We pay them to prevent the mess, to help the poor people in our society all the time, not after a tragedy and certainly not to make promises or visits once every five years.

Despite the hundreds of billions of ringgit spent on affirmative action in the last four decades, many Malays have not benefited from the New Economic Policy. And many don’t even know of its existence and the assistance available through it.

So, how many other families like Hafiz’s are out there?

From new economic model back to old

MP SPEAKS Prime Minister Najib Abdul Razak reversed the New Economic Model (NEM) on Sept 14, 2013, following pressure from right wing Malay extremist group Perkasa, and he went on to launch the Bumiputera Economic Empowerment Programme (BEE).

Najib’s experiments with moderate politics ended when he declared: “Therefore, the Malays and bumiputeras, as the core of the national agenda, cannot be denied by anybody. Indeed, any matter which is national in nature, which does not take into account or neglects the agenda of the Malays and bumiputeras is not fair and just.

“…[for] the support given by Malays and bumiputeras at the 13th general election recently, today the government decides to make a big shift to implement concrete and total strategies and approaches.

“... All these we undertake to look after the lot of the Malay and bumiputera communities, since the past, present and forever.”

David A Lake and Donald Rothchild said ethnic conflict is most often caused by collective “fears of the future, lived through the past”. They suggest it is important to reassure the different groups of both their physical and cultural security by demonstrations of respect and confidence building measures.

In Malaysia, there is no chance of this happening because we are not dealing with just individual racism but also institutional racism.

Administrative officers often are at the very least sympathetic to the Umno cause. The close relationship between the bureaucracy and the party dates back to Umno’s founding. In the 1955 elections, 80 percent of the Umno candidates were former civil service officers. Of the seven Malays in Tunku Abdul Rahman’s cabinet, six were former civil servants.

Based on complaints received, the Biro Tata Negara (BTN) civics course trains graduates to implement racist and religious-discriminating policies. In the Mid-Term Review of the Ninth Malaysia Plan, it is reported that 1,016,749 participants benefited from the BTN programmes.

Too fearful to speak out for their rights

Those who viewed the ‘Listen, Listen, Listen’ video will note that the majority of the students applauded Suara Wanita 1Malaysia president Sharifah Zohra Jabeen Syed Shah Miskin’s castigation of K Bawani, the lone objector to Sharifah’s arguments.

The others, Bawani said, were too fearful to stand up and speak out for their rights.

To counter ethnic politics, right thinking Malaysians must break the chains of fear and ignorance holding back the 47 percent. Malaysians have to undergo a personal internal reformation.

Pakatan Rakyat holding more public rallies and giving speeches will come to naught if Malaysians are unable to make this internal reform. This is the key factor. We have to make this change in order to touch the hearts of those that Umno is holding in its grasp.

Lip-service and fine cosmetic words cannot do it. We must remember that “out of the abundance of the heart, the mouth speaks”. Meaning that not only our words, but our attitudes toward one another must come from our genuine heart-felt feelings.

All the talk of wanting our country to change will not happen if our emotions and feelings toward another of a different race are not changed. The most effective and lasting change in racial politics can only take place when we reform in our hearts.

It’s our heart that needs to change

It is not our mind that so much needs to change as our heart, to excise the prejudgment, preconceived notions and predisposition we have of another race. There must be a paradigm shift in us. This type of change emerges from an understanding and practice of genuine justice.

Genuine justice is based on fairness. John Rawls in his book, ‘A Theory of Justice’, advocated distributive justice to compensate for social and economic inequalities. Thus genuine justice is based on need.

Racism, on the other hand, is nothing but the systemic indifference justified by biological or cultural differences. Since people’s needs differ due to differing socio-historical circumstances, true justice springs from what they need.

Oliver Wendell Homes said: “There is no greater equality than the equal treatment of unequals.”

At the heart of justice is affirmative action based on need. It is based on the principle of redress that undeserved inequalities call for rectification. Since inequalities of birth are undeserved, these inequalities must be compensated for.

Therefore, in order to treat all persons equally and provide genuine equality of opportunity, society must give more attention to those born into or placed in less favourable social-economic positions. It cannot be based on discredited and debunked notions of racial supremacy or inferiority. It is only when Malaysians can get to this point will Malaysia be able to change.

To get to this point requires compassion. Compassion is the counter to racism. At the heart of compassion lies ‘respect”, the process whereby the other person is treated with deference, courtesy and compassion in an endeavour to safeguard the integrity, dignity, value and social worth of the individual. It means treating people they way they want to be treated.

To counter Umno’s racial politics, Malaysians have to find the compassion to reach out to the less fortunate Malays and bBumiputeras, especially those in the rural areas and in the interior of Sabah and Sarawak.

The best way to unmask the racial lies and clean up bigotry is to show Malaysia is a caring society assisting all irrespective of race or religion.

I commend the Rotary Club of Petaling Jaya in organising a health clinic in Batu Arang village, where all residents in need, irrespective of race, were given free health, dental and eyesight tests.

If more people follow this example, the long walk to freedom for all Malaysians will be one more step closer to its destination.

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WILLIAM LEONG JEE KEEN is the Member of Parliament for Selayang.

NEP to stay because…

Senator Abdul Wahid Omar claims that top management positions in Malaysia are still Chinese dominated and the government will not compromise NEP objectives.

KUALA LUMPUR: Minister in Prime Minister’s Department, Senator Abdul Wahid Omar denied that the New Economic Policy (NEP) was a factor contributing to many Malaysians leaving the country.

His denial came in reply to Selayang MP William Leong Jee Kern who questioned whether the NEP would be amended in light of the World Bank report stating that the NEP was among factors listed for Malaysians leaving the country.

“You shouldn’t just look at a single point stated in the report. The World Bank report is much more comprehensive.

“It cites lack of career development and pay scale differences as reasons too,” said Wahid.

The NEP, implemented in 1970, continued its two pronged objective of poverty eradication and to end the domination of certain races in certain sectors of the economy, until 1999.

Wahid added that the government would not want to compromise on the NEP’s objective, specifically the objective encompassing the dominance of a single race in certain business sectors.

“We want to increase the bumiputera economic level without taking away the rights of the other communities.”

He added that currently the bumiputera community only hold 20% of top management positions of business corporations in the country.

“There are 70% Chinese in the top management brass and 5–10% from the Indian community,” he added to reiterate the reason why implementation of the NEP had to be retained.

New Bumi agenda unconstitutional, say lawyer, academic

Malay Mail 
by BOO SU-LYN

KUALA LUMPUR, Sept 16 ― The pro-Bumiputera New Economic Model (NEM) violates Article 8 of the Federal Constitution that guarantees equality to all Malaysians, constitutional expert Tommy Thomas and law professor Dr Azmi Sharom said today.

Thomas called the NEM unveiled by Prime Minister Datuk Seri Najib Razak last Saturday, which provides the dominant Malay community access to over RM31 billion in aid and contracts, another “chapter” of the now-defunct New Economic Policy (NEP) that was introduced in 1971.

“This substance is absolutely discriminatory,” Thomas said at the forum “Fifty years of Democracy: Has it weakened or strengthened our Federal Constitution?” organised by the Malaysian Centre for Constitutionalism and Human Rights (MCCHR) here today.

“Article 8(2) prevents discrimination,” he added.

Azmi, who is an associate professor of law at the University of Malaya (UM), also said that the NEM goes against Article 8.

“Everybody is equal,” Azmi told the forum of over 50 participants.

“The constitution should have an influence on this, but it doesn’t,” he added.

Thomas stressed that Article 153 of the Federal Constitution, which details the special position of the Bumiputera, is “very limited to public positions, not the total takeover of shares, GLCs, where these corporations are controlled by the majority race”.

Political analyst Wan Saiful Wan Jan said at the same forum that Najib had taken the NEM to “the extent never envisioned by the drafters of the NEP”.

“We need to be sensitive to political realities, but we need to steer the conversation to why these two clauses should remain,” said Wan Saiful, referring to Article 153 and Article 3 of the Federal Constitution that spell out the special position of the Bumiputera and Islam as the religion of the federation, respectively.

Wan Saiful, who heads the think-tank Institute for Democracy and Economic Affairs (IDEAS), expressed his hopes that both clauses would be eventually removed in a decade or two.

“I’m confident that without legal protection, Malays can survive and succeed,” he told reporters after the forum.

“With Islam being from God, it does not need legal protection,” the analyst added.

Wan Saiful and other political analysts have criticised the NEM, saying it was likely a decision taken by Najib, the Umno president, to bolster his position ahead of the upcoming party polls.

Previously, Najib who is also finance minister, had said the NEM would remove the race-based affirmative action introduced in the NEP in favour of meritocracy.

The NEP had an ambitious aim to redress the socio-economic gap between the largely-urban Chinese and the rural Malays, as well as other indigenous Bumiputera, within the span of two decades.

It ended officially in 1990, but key aspects of its Malay/Bumiputera-preferred action plan remains in various forms years later.

Dr M says he fears PR's promise to remove NEP

(Harakah Daily) - Former UMNO strongman Dr Mahathir Mohamad has shot back at those who scold him for talking politics after retirement, saying he only feared Pakatan Rakyat's policies when it comes to power including its rejection of the New Economic Policy.
"When I find that the opposition rejects the NEP, I feel a need to voice my fears for the future of this, my beloved country.

"As much as my detractors have a right to object to my continued involvement in politics, I have a right to hold a different view," said Mahathir, the country's longest serving premier, in his latest blog posting.

The NEP launched by the late Tun Abdul Razak in 1971 was the controversial plan to reduce the socioeconomic disparity between the Chinese and Malay majorities, whose success has been the subject of debate.

PR had repeatedly called for a needs-based policies, saying programmes under the NEP had only enriched cronies of ruling politicians who claim to represent their respective race.

Recalling how the government of Abdullah Ahmad Badawi had weakened the country, something he said "is still felt today", Mahathir argued that since 2008, the stronger opposition had resulted in "open confrontation" between races, and defended growth plans based on race.

"Unfortunately in Malaysia we all insist on becoming identified by our race," he added.

Support for NEP coming from ‘captive minds’, says Ku Li

By Shannon Teoh - The Malaysian Insider

KUALA LUMPUR, April 1 — Tengku Razaleigh Hamzah resumed his attack on the New Economic Policy (NEP) today, stating that “captive minds” continue to support it despite Malaysia moving further from its objective of redistributing wealth through pro-Bumiputera policies.

The Umno veteran said there has been “no intellectual inquiry” into why “despite many years of implementing the NEP, inequitable distribution of income continues to plague the people” as “we have become incapable of devising an analytical method independent of current stereotypes about Malays, Chinese, Indians and others.”

Ku Li today said, “…The NEP…has produced results that are diametrically opposed to the original intention of bridging the gap between the haves and the have-nots.” — file pic
“If the doctor keeps on prescribing the same medicine which produces opposite results, then something must be wrong with the doctor, and something more serious must be wrong with the patient who keeps on trusting the same doctor.

“Our thinking is based completely on a racial world view when it comes to matters of politics, education, economics, planning, and so forth. Needless to say, we promote a racial world view that thrives on the policy of divide and rule,” the Kelantan prince said at a book launch in Ipoh this morning.

Tengku Razaleigh, popularly known as Ku Li, had in February said “as a former finance minister, let me emphasise that it was never the intention of the NEP to create an incubated class of Malay capitalists.”

His statement further fuelled scrutiny of former prime minister Tun Dr Mahathir Mohamad’s policies after the Najib administration decided to settle out of court the RM589 million debt owed by former Malaysia Airline System Bhd (MAS) chief Tan Sri Tajudin Ramli.

The settlement sum was undisclosed, prompting intense public criticism and attacks from the opposition over the right of taxpayers to know the amount of public funds recovered.

Tajudin, 65, had served as the airline’s executive chairman from 1994 to 2001 and was a poster boy of former finance minister Tun Daim Zainuddin’s now-discredited policy of nurturing a class of Malay corporate captains on government largesse during the Mahathir administration.

Ku Li, one of the greatest critics of the NEP and Dr Mahathir’s handling of the policy, had challenged the long-serving prime minister for leadership of Umno in 1987, which he subsequently lost by a narrow margin.

He said in his speech today that the country’s education system does “not encourage the moral and intellectual reform of the mind” resulting in a lack of debate on major issues such as good governance, corruption and rule of law.

“To this very day, the electorate has not understood the implications of the NEP which has produced results that are diametrically opposed to the original intention of bridging the gap between the haves and the have-nots. The longer we try the policy, the further we are from the original goal.

“The discrepancy between vision and reality has taken an alarming turn. It has gone far beyond economics into the realm of ethics and morality. In numerous instances it has taken the form of corruption and decadence which has pushed the economy further down the drain,” he said.

He said “wanton corruption and wasteful spending” had resulted in spiralling national debt that now amounts to RM456 billion or 53 per cent of the GDP, which “if we are not careful, it won’t take us long before we become another Greece.”

NEP reason behind UM’s falling standards

Race-based admission quotas and political interference had caused UM's poor global standing, says a World Bank report.

KUALA LUMPUR: Opposition Leader Anwar Ibrahim blamed the race-based affirmative actions of the New Economic Policy (NEP) for the dwindling standards of Universiti Malaya (UM).

A recent World Bank study said race-based admission quotas and political interference had caused UM’s poor global standing, something Anwar said was the by-product of the NEP which was only used to enrich Malay cronies.

“UM’s falling ranking is because it does not prioritise academic excellence but racial interests,” the former deputy prime minister told a press conference in his office in Parliament here.

UM, once considered a prestigious institute of higher learning, is now falling way behind in the global ranking while universities from neighbouring countries have taken over.

The World Bank study further stated that Singapore’s decision to prioritise research, keep English as the medium of instruction and maintain a merit-based admissions policy have all contributed to the success of the National University of Singapore.

It further said the NEP made Bumiputeras less competitive as the policy created more scholarships for them, special programmes to facilitate their entry into higher education institutions, and the use of the Malay language in place of English in the entire education system.

“Over time, they secured almost all senior management, administrative, and academic positions,” the study said.

Anwar’s opposition coalition has pushed for a needs-based affirmative action policy to replace the NEP which it says is abused by the Umno-led BN for the benefit of cronies.

This, however, does not mean it rejected the special privileges of the Bumiputeras and said they would continue to defend it as it was enshrined in the Federal Constitution.

“But we must ensure that the excellent Malays in need of help are aided and not just the family members or cronies of Umno-Barisan Nasional,” he said.

The NEP was launched in 1971 to upgrade the socio-economic standards of the Bumiputeras. The policy came to an end in 1990 and was re-introduced as the National Development Policy in 1991.

Malay nationalists biggest hurdle to NEM

New Economic Model is hailed as the key to Malaysia's progress but an institute warns of resistance within Umno itself.

PETALING JAYA: A new paper by the Institute of Democracy and Economic Affairs (IDEAS) has hailed the New Economic Model as the key to Malaysia’s progress but also identified Malay nationalists as the biggest hurdle in its implementation.

The NEM was unveiled on March 30, 2010 with a vision to more than double Malaysia’s per capita income by 2020 via the key tenets of high-income, sustainability and inclusiveness.

The paper recognised that these steps were significant ones in the right direction but warned that resistance from Malay nationalists from within Umno itself could derail the plan.

In a press statement today IDEAS chief executive, Wan Saiful Wan Jan, stressed that the influence of these nationalists cannot be underestimated.

He referred to the re-emergence of pro-Malay agenda in the second part of the NEM as well as the establishment of Putrajaya’s bumiputera business co-ordinator, Teraju, as an example of how Malay nationalists forced Prime Minister, Najib Tun Razak, to water down his boldness.

“Any policy change that touches on Malay privileges is risky,” Wan said. “The launch of the NEM Part 1 in March 2010 led to an outcry from Malay nationalists, particularly about the lack of a “Malay agenda” in the plan.”

“This eventually led to the pro-Malay agenda being reborn in the Concluding Part document. Complaints from ethnic Malay pressure groups were taken very seriously by the government.”

Wan Saiful pointed out that Umno, being an ethnic-based Malay party, doesn’t allow room for its leaders to ignore the demands and threats made by Malay nationalist campaigners.

NEM a breath of fresh air

“They are Umno’s core voters,” he said. “Their influence through Umno in national politics cannot be ignored. They can exert pressure on policymakers at the highest level.”

Wan Saiful further emphasised that the NEM must be supported in order for Malaysia’s economy to progress. He added that while many positive steps have been promised it is still too premature to judge the outcome.

“Nevertheless Najib must be aware that the whole country, if not the world, is keeping a keen eye to see if he truly is a transformational leader who can achieve his own vision,” he said.

Wan Saiful also observed that the NEM’s aim to reduce the role of the government makes it more “free market” than its predecessor the New Economic Policy (NEP).

“The magnitude of change espoused by the NEM should not be underestimated,” he said.

“After decades of having an economic policy heavily influenced by the politics of ethnicity, the NEM is a breath of fresh air that is trying to take Malaysia forward into politics of ideas.”

“It is undoubtedly exciting to see that there is now the promise of a policy that sets the course to a more liberalised Malaysian economy.”

IDEAS’ paper was published by an international German organisation, the Friedrich Naumann Foundation, which is a not-for-profit organisation linked to the Free Democratic Party, a member of Germany’s government coalition.

Communist Malaya?

By John Doe

"..An abundance of material wealth, allowing for distribution based on need and social relations based on freely associated individuals." -Karl Marx

"production for use and the direct allocation of economic inputs to satisfy economic demands and human needs (use value); accounting is based on physical quantities of resources, some physical magnitude, or a direct measure of labour-time.[4][5] Goods and services for consumption are distributed through markets, and distribution of income is based on the principle ofindividual merit/individual contribution..." - Socialism

Simply put, it means: "Those who have more should help those who have less..."

The NEP is directly based on the above two core concepts of Communism, and Socialism. I'd like to see UMNO scream, and shout, and rant now. In fact, Socialists inspired by the Soviet model of economic development, such as Marxist-Leninists, have advocated the creation of centrally planned economies directed by a single-party state that owns the means of production.

Read all the key words above again. They are nouns. Perfect Nouns. Socialism, Communism, Marxist-Leninists, distribution based on need and social relations, Centrally-planned economies and single-party state. And the verb is "own the means of production". Now for brain-exercise time. Who issues the licenses? Who controls the licenses of what people listen to? Who issues the license of what people watch on TV? Who says the richer shall help the poorer? Who says that the very concept of NEP is not Communal in nature?

Let's look at other terms in use: 

'The proletariat', who collectively constitute the main producer of wealth in society, and who are perpetually exploited and marginalized. Surely even one with  a feeble mind does not need to think very hard to guess who that refers to.

"No matter what specific form the communist revolution takes, its aim is for the working class to replace the exploiter class as the ruling class to establish a society without class divisions, called socialism..."

It has become very obvious that UMNO read and memorized Karl Marx's book, Communist Manifesto. For in it, he laid out a 10-point plan advising the redistribution of land and production to begin the transition to communism, but he ensured that even this was very general and all-encompassing. It has always been presumed that Marx intended these theories to read this way specifically so that later theorists in specific situations could adapt communism to their own localities and conditions.

On the History issue again, let us start to rewrite Malayan History, by starting out with:

Malaya was conquered by a Hindu Indonesian from Palembang. Malaya was then known as Tanah Siam. Sejarah Melayu confirms this, when it  demonstrates how the King of Temasik was murdered by this incoming Hindu Prince from Indonesia. This murdering Hindu Indonesian did not respect the Sovereignty of Thailand. He just came in and took whatever he wanted. None of his descendants have been punished for those crimes  yet. Yes, Sin can be passed down Genealogically. Just ask any Christian, Muslim or Jew. So, if your Grandaddy did something wrong, and if he was not punished yet, then you, the grandchild needs to pay for it. Illogical? Tell that to all those who say "I believe, and therefore, its true".

Back on the History of Malaya, subsequent conquerers came and went. Anyone who fought the conquerers are heroes, any who did not are deemed traitors to the land. Simple as that. Check the year, and if it was a year where locals fought the "Foreign Party", then, they should be called heroes. Amazingly, Malaysia decided to award Bumiputraship to the Portuguese, adopt 15% of the Portuguese Language into their own, and work with the Japanese Forces during WW 2 instead. Look East is a clear demonstration of how Malaya sucks up to their non-Muslim former invaders. Stupid? who knows... Ironically, UMNO is also actively shooting those who contribute the most to the Income-Tax Coffers of Malaya.

Perhaps Ghaddafi should be the next UMNO leader. He has plenty of money, is currently in dire need of a new home, and looks rather Malay-like anyway. Just pop a non-Islamic songkok and samping on him, and he'll blend right in. But hey, according to the Constitution, even an Eskimo, or Osama bin Laden can be a Malay.

I'll end with "Stupid is as stupid does". In the meantime, let's all get rid of UMNO.

The NEP and the downfall of Malays

The NEP may have caused an increase in the wealth of the Malay urban middle class but on the whole, many Malays remain poor.

COMMENT

Dr Mahathir Mohamad came to the defence of the New Economic Policy (NEP) when economist Ramon Navaratnam and Opposition Leader Anwar Ibrahim condemned the NEP for discouraging foreign investment and for promoting corruption.

However, Mahathir failed to note that the NEP, like many of the government’s other programs with catchy, meaningless acronyms are only publicity stunts which fail to address the underlying problems that face many Malaysians, principally the Malays.

He said: “There may be corruption involved in some cases but the charge is not warranted because in most cases, the benefits of NEP have been enjoyed by almost every Malay and bumiputera. In fact, indirectly and, in some cases, directly it has benefited the non-bumiputera as well.”

The former prime minister’s selective amnesia serves him well. The NEP’s short-term benefits may have impressed his Cabinet colleagues but in the long term, the NEP has disadvantaged all other Malaysians.

The warped policies have destroyed racial harmony and in East Malaysia, the bumiputeas are more desperate than ever. There is increasing resentment against the Malays who many believe, have squandered the benefits they have been given.

The NEP may have caused an increase in the wealth of the Malay urban middle class but on the whole, many Malays remain poor.

Despite the housing privileges and discounts, how many Malays can afford to buy houses? How many possess the business acumen to sustain a business without going bust in the first year?

Undeniably, those who benefit the most are Umno cronies, whilst the majority of Malays remain marginalised, hoping that things will get better, only because Umno says so.

Thus, many live in hope and some shun jobs because one day, they hope to become rich without putting in any effort.

The business incentives may have given the Malays a kick-start in life but many did not use them wisely. They did not reinvest the money in the company but instead spent it on the teak desk, the gold watch and the Mercedes car.

It was not just his work that was a sham. His private life was just the same. There was no personal responsibility and those Malays who entered into polygamous marriages with two or three families to support, invariably ended up with dysfunctional families. The kids would be feral, without a father figure and no rôle model in their lives.

Many of the children do not have a family life to speak of and education is not an important factor in their lives. Many grow up lacking aspiration and become adults who are just as irresponsible.

There are some decent people amongst this lot, but they are trapped in the system, with no way out.

Moving forward together

Mahathir claimed that under the Federal Land Development Authority (Felda) scheme, the settlers were much better off with higher incomes and children who were better educated.

He failed to note that there were serious issues that have cropped up. Few of the children of the original Felda settlers want to make a living off the land like their grandparents or parents did.

The social problems are many and Mahathir may have praised the businesses and jobs that the children and women have gone into, but none of these are to do with the land.

They are things like tailoring or aircraft maintenance, which are totally unconnected to Felda.

It would have meant more if some of the children had diversified into the downstream oleo industry like soap making, bio-diesel fuels or some other small-scale cottage industry from the  palm oil that they produce on their farms.

Mahathir said: “The settlers have much higher incomes while their children are much better educated. All these are due to NEP”.

Like the NEP, Mahathir has not addressed the problem of what happens to the small holding of the Felda settler as his children have no desire to carry on the tradition and many farmers resort to hiring foreign workers to make a success of the land.

Projects like the NEP are doomed to fail. Most important of all, the Malays will get a hammering from the other races and very few people will appreciate the efforts of the Malays who have struggled on their own to achieve their ambitions.

How many more stupid acronyms must the Malaysians endure? When will this government realise that helping only one section of the community is detrimental to the nation, as a whole?

As a society, the Malays must accept that we must move forwards as one nation. That means that we include the other races in our policies.

The system that our leaders have implemented for us isn’t working.

Not if making it easier for the Malays means never having to learn to do things the hard way, never having to take responsibility for themselves and not having to follow the rules that most of us have to go by.

Mariam Mokhtar is a FMT columnist.

In Dr M’s elephant clash, the deer perishes

Based on P Uthayakumar's interpretation of the former premier's defence of the NEP, the elephants are the Malays and well-heeled Chinese, whereas the poor Indians represent the mouse deer.

PETALING JAYA: Dr Mahathir Mohamad penned a lengthy defence of the New Economic Policy (NEP), detailing how the affirmative action blueprint elevated the status of the Malays and other bumiputeras.

According to Human Rights Party (HRP) leader P Uthayakumar, the former premier’s stand was akin to the Malay proverb of a mouse deer being trampled to death in the midst of two clashing elephants.

Based on his interpretation, the two elephants were the Malays and economically superior Chinese whereas the mouse deer represented the poor Indians.

“Mahathir, the prime minister for 22 long years conceded that almost all those (Malays) who succeeded benefitted from the NEP.

“The whole of Mahathir’s view vis-a-vis Umno’s position reminds us of the Malay proverb ‘gajah sama gajah berlaga, pelanduk mati ditengah’,” said Uthayakumar.

He argued that while the entire framework of the NEP was crafted to ensure that the Malays matched the successful Chinese who controlled some 70% of the nation’s economy, poor Indians were also conveniently lumped in the same non-bumiputera category with the abovementioned segment of the Chinese community.

“Thereafter being the soft targets, segregated and excluded from the mainstream development in Malaysia,” he said, adding that Umno justified this based on Article 153 of the Federal Constitution.

The article provided for the safeguarding of the special position of the Malays, which Uthayakumar claimed, had been “stretched to the brim” over the past 54 years and in the process, victimising the Indian poor.

“It must be emphasised that neither special rights nor special privileges (as widely proclaimed by Umno) has ever been provided for in Article 153 (1) of the Federal Constitution or any law in Malaysia.

“But what Umno has successfully and completely sidestepped is the second limb of Article 153 (1) that is ‘the Yang Di Pertuan Agong shall safeguard the legitimate interests of the non- Malays’.

“If at all this special position may be a specification for affirmative action policies for the Malay poor, it was never intended to be implemented as Malay-Muslim supremacy as it is today and oppressing and segregating especially the Indians in the process,” he said.

Uthayakumar, a lawyer by profession, asked where in the Federal Constitution or other laws was it stated that the deserving Indian poor could be discriminated, segregated and excluded?

‘From womb to tomb’

Claiming that the discrimination, segregation and exclusion were almost 100%, starting from the womb and ending in the tomb, he cited several examples.

“Being denied birth certificates, Permata kindergardens, places in the 12,440 vacancies in fully residential MRSM Colleges, almost 98% of full overseas and local PSD, Petronas, Yayasan, GLC scholarships, 98% of civil service jobs and 100% of the 200,000 places in UITM is for Malays only.

“Even foreign Muslim students are allowed entry into UITM but not fifth generation Malaysian- born deserving Indian students,” he said.

“In almost all other areas like securing direct government contracts, becoming vendors and suppliers to government agencies and GLCs and in the private sector, government and GLC panelship for professionals like lawyers, doctors, architects, engineers and accountants, Indians are also segregated and excluded,” he added.

As far as Uthayakumar was concerned, Malaysian Indians were segregated and excluded in almost every aspect of their lives.

“This level of racism and religious supremacy does not exist in any other part of the world,” he said.
In a blog posting yesterday, Mahathir defended the NEP, introduced in 1971, against its critics, including his former deputy and current opposition leader Anwar Ibrahim.

He accused the opposition of giving the impression that the NEP was the most deplorable policy ever conceived and implemented in Malaysia.

The former premier said that non-bumiputeras had also benefitted from the policy, which some claimed helped cement the Malay superiority concept, due to the trickling down effect.

NEP under attack: Dr M to the rescue

The former premier takes the policy's critics, including Anwar Ibrahim, to task. He argues that NEP has done much for the bumiputera while the non-bumis also benefitted.

PETALING JAYA: Dr Mahathir Mohamad has defended the New Economic Policy (NEP), the controversial socio-economic restructuring affirmative action programme launched in 1971

Taking the critics, including Anwar Ibrahim, to task, the former premier said NEP had been denigrated by opposition politicians to the point that it appeared to be the worst policy ever conceived and implemented.

“While (prominent economist) Ramon Navaratnam blames NEP as being the cause of foreign investors not coming to Malaysia, Anwar condemned it for the abuses and corruption involved in its implementation,” he said in a blog posting.

“Anwar loudly proclaims that NEP benefits only the cronies of the government and that the contracts, Approval Permits (APs) and licences given out under NEP, involve corruption.

“He makes it sound as if NEP did not benefit the Malays and other Bumiputera at all,” he added.
However, Mahathir admitted that a few of the recipients of APs, contracts and licences might know the leaders of government or were members of Umno

“And there may be corruption involved in some cases but the charge is not warranted because in most cases, the benefits of NEP have been enjoyed by almost every Malay and Bumiputera. In fact, indirectly and, in some cases, directly it has benefited the non-Bumiputera as well,” he said.

Giving them education

For example, Mahathir said, every Malay child was helped in his or her education with free textbooks and often with free meals.“Schools are built in the remotest areas where before there were no schools.

Hostels are built mostly for Malay and other Bumiputera children so that they can live a better life and are able to study in better surroundings than in their homes in the villages,” he added.

For the qualified, the former premier noted, tertiary education was readily accessible, with huge numbers of scholarships.

As a result, he said, many of the children of poor families or of families unable to pay high fees, now held university degrees, were highly qualified and many were professionals.

“Before only 5% of the doctors in Malaysia were Malays and Bumiputera; now 40% of them are Malays,” the doctor-turned-politician said, adding that it was the same with other professions.

“Just count the number of students in public universities in the country and those abroad on scholarships and one will appreciate how NEP has benefited the Malays and other Bumiputera in education,” he said.

Mahathir also said when, under NEP, shares of companies were allocated to Malay applicants, they invariably sold the shares for capital gains almost immediately.

“This is because they did not have the money to purchase the shares and had to repay bank loans. To avoid this, the government decided to create unit trusts so that the shares could only be sold back to the managers. Thus, the National Equity Corporation was born.

“Today, more than 10.5 million Malays and other Bumiputera hold shares in these unit trusts with total holdings valued at RM135 billion. This is a direct benefit from NEP. The unit trust makes up a substantial percentage of corporate wealth held by the Bumiputera,” he said.

Many success stories

Under NEP, Mahathir said, the role of the Federal Land Development Authority (Felda) was also greatly augmented and settlers benefited from the spin-offs into the transport business, refining and marketing of the produce.

“Felda was nursed until it has become the biggest plantation company in the world.
“The settlers have much higher incomes while their children are much better educated. All these are due to NEP,” he said.

Mahathir said microcredit was extended to the smallest village enterprises and this helped tens of thousands of Bumiputera villagers, especially the women in business.

“There are now thousands of Bumiputera businessmen who benefited from the importation of used and new cars, from becoming agents and vendors to the national car projects and also in the oil and gas business as a result of NEP.

“The best of them have grown big, some very big, becoming car dealers and assemblers, housing developers, steel fabricators, boat and ship builders; IT, transport, ports and shipping; food and cosmetic manufacturers and many other businesses.”

The privatisation scheme, noted the former premier, had also benefited Bumiputera business greatly, including the supply of materials and employment of engineers.

“Are they all cronies, these successful ones?” he asked.

“There are far too many of them to be cronies. That some are known to government leaders is to be expected because government leaders in Malaysia are accessible to everyone as a matter of policy.

“They may be Umno members. But then there are more than three million Umno members. Is the government expected to exclude them from the benefits of NEP?” he asked.

The fact was, according to Mahathir, that almost all of those who succeeded had benefited from NEP.
“Those who show capability cannot be excluded from the support under NEP. In fact, it is safer to help those with good records than to give to untried people,” he said.

“Why is it that the government is doing all these under NEP? The answer is simple. The Malay businessmen do not get opportunities from the private sector.

“They never get contracts or sub-contracts for supplies in the private sector. Even after they have proved their capabilities when carrying out government contracts, they would not get contracts from the private sector.

“On the other hand, even when NEP was being implemented, many of the government contracts still go to non-Malays,” he added.

Corruption must be condemned

Mahathir said the accusation of cronyism was made without any real basis as there were far too many benefiting from the NEP at all levels and in all fields for the policy to be enriching only the cronies.

“There may be corruption but NEP would not have succeeded to the extent shown if corruption prevailed in every case. The focus on cronyism and corruption is political, not based on the real role and achievements of NEP.

“If there is no NEP, the economic position of the Bumiputera would be dismal. There would not be as many Bumiputera professionals as there are now. The disparities in all fields of economic activities would be very much greater as the national economy grows,” he added.

Mahathir also took a swipe at some of the Malay beneficiaries of NEP who were now calling for the policy to be scrapped.

“They dislike the benefits they obtained from it to be mentioned as this would amount to, what the Malays called, ‘ungkit’, that is, to remind one of a debt of gratitude.

“Yet in Malay culture one should never forget the ‘budi’ of another. As Muslims, they should know that thankfulness for any benefit is enjoined by Islam,” he added.

Mahathir said while corruption and cronyism should be condemned, most of the accusations with regard to the NEP were unjustified.

“They are motivated by personal and sectarian politics. The fair-minded must consider also the good achieved by NEP. It is sad that people who benefited from NEP should want to deny it to others who are still in need of it,” he said.

Non-Bumis benefited as well

Mahathir conceded that while the NEP did not achieve the target to remove the disparities between races in Malaysia completely, it however reduced the disparities enough to keep Malaysia stable even during the financial crisis.

“What is more, it did this without stifling the remarkable growth,” he said.

The former premier said that non-Bumiputera also benefited from the policy, which critics claimed reduced non-Malays to the status of second-class citizens by cementing “ketuanan Melayu” (Malay supremacy).

“They have benefited simply because invariably what is given to the Bumiputera must spin off to the non-Bumis. In some cases, the Ali-Baba phenomenon is exhibited, with the Bumiputera merely getting a small portion for just lending his name.

“But even if a Bumiputera contractor decides to implement the contract, he still has to procure building materials, skilled labour etc from the non-Bumiputera companies.

“Specialised work must also be given to non-Bumiputera as there are hardly any Bumiputera sub-contractor capable of doing this. In fact, a substantial part of the projects during the NEP period went to non-Bumiputera. It cannot be that the non-Bumiputera earns no profits from these contracts, sub-contracts, supplies and skilled labour,” he said.

Mahathir, who remained in power for 22 years, said politicians must find issues to support their bids for power but condemning NEP could only be done by twisting or ignoring the contributions of that policy to political stability and the economic success of Malaysia.

THE NEP

1. Tan Sri Ramon Navaratnam is vehement that the New Economic Policy is the cause of poor inflow of Foreign Direct Investments here.

2. One can fault the NEP for a lot of things but to blame it for the current slowdown in Foreign Direct Investments is not quite correct.

3. There are of course some investors who were and are put off by the NEP and the abuses involving it. But FDI actually contributed much to Malaysia’s industrialisation. And this happened when the NEP was in full swing, in fact picked up during the time when the NEP was being implemented.

4. Between 1986 to 1997, Malaysia attained the highest growth rates with FDI contributing much towards this achievement.

 

5. The FDI began to slow down only when China and Vietnam opened themselves to foreign investments. As the cost of labour in Malaysia rose, the countries with much lower cost of labour such as Indonesia and Thailand begun to attract more foreign investment. All these affected the flow of foreign investments into Malaysia.

6. Today foreign investments have decreased because of the financial problems faced by the developed countries.

7. Blaming the NEP is political. That is all there is to it.

8. That “the majority would argue that the (NEP) policy is the source of all problems facing the nation” as quoted by Dr Muhammed Abdul Khalid here, does not mean that he agrees with the said majority.

9. Therefore he was correct in saying that Tan Sri Ramon Navaratnam was “factually incorrect”.

10. Let us resurrect at the figures of FDI before NEP, and during the years the NEP was being implemented and compare them with those of neighbouring countries. We should also look at the economic growth figures of Malaysia since the NEP was implemented and compare with the period before NEP.

11. These figures would validate or disprove the claims of Tan Sri Ramon Navaratnam and the majority that the NEP was at the root of all the problems in Malaysia.

12. Finally Malaysia was able to tackle the depression caused by the devaluation of its currency by currency traders without the social problems as witnessed in other countries affected by the Asian Financial Crisis of 1997-98 and thereafter. Indeed it was the partial success of the NEP in correcting the disparities between the races in Malaysia that the racial problems seen in neighbouring countries did not plague the nation.

Nazri's remarks raise doubts in PSD, ETP, NEM...

By Ramon Navaratnam,

The announcement by the Minister in the Prime Minister's Department Mohd Nazri Aziz, that it is government policy not to publish the list of Public Service Department scholarships, is most unfair and unreasonable!

I hope it is the minister's own personal decision and not that of the government, as it directly contradicts and negates all government's policies and the Prime Minister Najib Abdul Razak's frequent pronouncements, to promote more integrity, transparency and accountability in the whole government.

The suspicious secrecy surrounding the PSD scholarships will undermine the public confidence that was being rebuilt recently to ensure a more fair and equitable allocation of PSD scholarships.

These awards that are stated to be based on academic achievement (20%), racial composition (60%), bumiputera in Sabah and Sarawak (10%) and the socially disadvantaged (10%), will now be widely questioned, as to how reasonable these ratios are and how honestly they have been followed.

The governments`s credibility will now be unnecessarily and increasingly questioned not only in this vital area of the fair award of PSD Scholarships. All other issues relating to the implementation of the government`s Economic Transformation Programme and the New Economic Model will raise doubts.

Even today's announcement of the nine new Project Initiatives that are expected to generate RM2.77 billion in investment and 36,595 jobs will also be regarded as doubtful! Such are the problems of poor public perception and the need to be more transparent to win public support for government policies.

The public will also be peeved by the minister's claim that there is still “a lack of public understanding despite efforts to educate the people through the media”.

What the public cannot understand is the blatant lack of transparency that is worsened by the minister's attempt to justify the secrecy and his indifference to accountability and to integrity.

Hence, I am sure that the public would greatly appreciate the open and honest publication of the whole list of PSD scholars. 

We appeal to the government to fulfill the public's expectations for the government to practise the high standards of integrity that it promotes, by revealing the 'PSD secrets' urgently.

The writer is chairperson of the Center of Public Policy Studies