Non-bumis will be an asset for UiTM

My comment was published in malaysiakini’s “Your Say” column, available at http://www.malaysiakini.com/news/87828. An extract from that column is as below:

[Background of the issue: Khalid Ibrahim, the Selangor Menteri Besar’s (MB) suggestion to reserve 10 per cent of places in Universiti Teknologi Mara (UiTM) to non-Bumiputeras and foreigners. His suggestion received heavy protest]

Har Wai Mun: The MB's reasoning for his suggestion is to allow UiTM students to gain more exposure and be friendlier to people of other races.

If anyone thinks his reason is not correct, the logical counter-point would be along the lines of either ‘the suggestion would not allow students to gain more exposure and be friendlier to other races,' or ‘allowing students to gain more exposure and be friendlier to people of other races is not beneficial'.

Hopefully, the MB's suggestion will be viewed constructively and is not obscured by communal sentiment. Non-bumis will be an asset to UiTM.

Quoting a declaration on various placards on parade at the demonstration, the MB's suggestion might not only ‘Selamatkan UiTM' (Save UiTM), but might propel UiTM to be a world-class university that makes all Malaysians very proud!

[Note: My other published articles in malaysiakini – shorten and modified from the entries in this blog is as below]

Fuel price hike: Alternative suggestions

www.malaysiakini.com/letters/84381

A post-tsunami, early-Merdeka wish list

www.malaysiakini.com/letters/87363

Unstoppable Anwar against immovable BN

www.malaysiakini.com/letters/87496

The Malaysian Politic of “Unstoppable Forces against Immovable Object”

“Batman: The Dark Knight” make its remarkable debut recently and threaten to rewrite some of those blockbuster records. Besides adoring the battle actions and Batman’s high technology gargets, the Malaysian audience could seriously ponder the Joker’s metaphor about his battle with Batman, mentioned towards the end of the movie: “unstoppable forces against immovable object”. Well, it is similar with the battle between the Pakatan Rakyat’s “unstoppable” forces of Makkal Sakhti (People Power) against the “immovable” dominance of the Barisan Nasional (BN)? Who shall prevail? The People Power Revolution of 1986 against Ferdinand Marcos in Philippine resulted in the “unstoppable” beating the “immovable”. In the Philippine scenario, its citizens raised against years of “unmovable” authoritarian regime of Marcos that suppressed their dissatisfactions through repressive laws and political assassinations. The assassination of opposition leader Ninoy Aquino on 21 August 1983 sparked off the “unstoppable” forces of people power. Nevertheless, the same success never shared in Myanmar where the “unstoppable” forces of people power failed to free Aung San Suu Kyi and other political prisoners.

Anwar Ibrahim, the de facto leader of the Pakatan Rakyat (PR) coalition continuously insists that the currently “immovable” BN-lead government will fall by August or latest September 2008. He seem building up on the “unstoppable” forces of Makkal Sakhti that denied BN a two-third majority in Parliament for the first times in Malaysian election history. In that election, few top leaders and Ministers of the BN have been defeated include Samy Vellu (MIC president), Shahrizat Jalil, Koh Tsu Koon (Gerakan party acting President) and S. Kayveas (PPP President). The opposition coalition also won control of five states, namely Kedah, Penang, Perak, Kelantan and Selangor. Anwar “win” in his public debate with the Information Minister over the issue of oil price hike foster the forces of “unstoppable”. Yet, the BN still managed to form the federal government, giving them the invaluable chance to fortify their “immovable” defense.

Since the general election, everything remains status quo abide some non-Parliamentarians crossover between both coalitions. Anwar’s claims that Member of Parliament from the BN will be joining the PR never materialized thus far nor the BN’s claims of PAS members will cross over to UMNO and they will be taking back the Perak state. The battle remains evenly fought but will it still even few weeks or months down the road? How will the battle possibly unfold?

This battle game is simple. The BN just need to fade out the PR’s strength. Hence, time is on the BN side. The longer this battle drag on, the higher chance of victory for the BN. PR need speed and agility. Therefore, the sodomy case against Anwar is directly or indirectly a “time-buying” advantage for the BN. Perhaps, the same applies to the Prime Minister’s claim on “high level” talk between UMNO and PAS. Anwar Ibrahim is the PR’s greatest strength and also theirs greatest weakness as the whole hope of the coalition seem put on the shoulder of this man. Well, common investment lesson tells us that putting all egg in one basket is very risky but yet Warren Buffet has a different perspective – better to put all your egg in one basket (or very few baskets) and watch that basket very well to reap better return. PR seems follow the later advise that may be the reason to this phenomenon called “Anwar bashings”. Personal attacks on Anwar are obvious during and after the election campaigns and in the mentioned public debate, perhaps having the idea that if Anwar is defeated, so does the whole PR.

An interesting question here is whether the Malaysian can differentiate between logic and personal attacks? The answer to this question is a very difficult task, as it needs understanding of philosophy of logic versus rhetoric. Logic reasoning rooted back to Socrates who seeks the truth through questioning (known as “Socrates questioning”). Nowadays, his teaching hardly found not only in Malaysian but global academia, thus weakening the critical reasoning part of human mind. Of course, in Malaysian context, any critical mind is further subjected to government’s suppression, particularly causing the death of dialectics since schooling era (see Burniske 1998). There are some 47 pieces of legislation and ordinances affected mass media operations in the country. Some dated to the colonial era, such as the Printing Presses and Periodicals Act (1948) (Atkins 2002: 22). Specifically to education sector, there are various restrictions imposed on members of the academia through laws such as the Universities and Universities Colleges Act (UUCA) and Statutory Bodies Act (Manan 2005). All these instil fear for Malaysian to speak up, thus thwarting constructive support to the PR. In the absent of support from all layers of the society due to fear factor, the PR’s “unstoppable” could be running out of steam soon. Nevertheless, Malaysian praise the BN-led government’s effort to relax the control of media and freedom of speech recently, which among resulted in live telecast of Parliament preceding and agreeing to the live telecast of the public debate on oil price. On the other hand, all these freedom of speech and press are no good to the BN defence and may shaken its “immovable” dominance. Well, it is a hard decision for the BN to ponder but certainly Malaysian public do appreciate those efforts.

So, is that all their got in this historical battle of the Malaysian politic? Malaysian could expect more “unstoppable” forces from the blog; most celebrated one goes to Raja Petra Kamaruddin and perhaps the academic arena too. Anwar’s various ceramah on explaining the sodomy case ensure the “unstoppable” forces remain unfazed. There could be much more surprises from both sides as result from the on going high profile court cases. Whatever happens, this battle of “unstoppable forces against immovable object” is real, not movie and tends to have lasting impact to Malaysia’s politic, economy and social.

Reference

Atkins, William. (2002). The politics of Southeast Asia’s new media. Richmond, Surrey: Curzon Press.

Burniske, R. W. (1998). The shadow play: How the integration of technology annihilates debate in our schools. Phi Delta Kappan. Vol. 80 (2). Source: http://www.pdkintl.org/kappan/kbur9810.htm. Access date: 7 January 2008.

Manan, Adriana Nordin. (2005). Chandra: Neo-feudal culture stifles academic freedom. 27 May. Source: http://www.malaysiakini.com/news/36511. Access date: 28 May 2005.

A Dead-end to Malaysian Politics?

Written by Farish A. Noor
Wednesday, 09 July 2008

Source: http://www.othermalaysia.org/content/view/191/1/
Access date: 9 July 2008

It has become the common blight of many a postcolonial state that the discrepancy between political idealism and the realities on the ground grow wider by the day. It has also been my singular misfortune that the nature of my work as a political scientist who studies the uneven development of many such nation-states means that I have grown somewhat jaded by such contradictions that are all too evident when one is distant from the country in question.

Over the past decade I have travelled across South and Southeast Asia looking at the painfully slow pace of development in countries like Pakistan, India, Bangladesh, Malaysia, Indonesia and the rest of Southeast Asia. The political elite of these countries talk on and on about development, progress, emancipation (both economic and mental) and yet remain beholden captives to the racialised ideologies of the colonial past. Their feeble attempts at deconstructing the legacy of Empire often dwindles down to little more than a vulgar pastiche of reversed Orientalism at best, (as if the racism of Asians is somehow better than the racism of the European colonialists who came before); and their steadfast refusal to adapt to changes around them is irritating and infuriating to witness at close range.

In India and Pakistan I watched as my fellow academic friends who play the role of public intellectuals and who have been calling for peace and reconciliation between the two countries have been systematically denounced as 'race traitors', 'cowards', the fifth column within, etc. Some of the best minds that secular democratic India has produced have been pilloried and harrangued by right-wing Hindutva fundamentalists who have called them 'traitors' to the great Hindu cause, labelled them 'Muslim-lovers' or worse still, apologists for the great Western conspiracy against the motherland.

The same level of puerile non-debate can be seen in Southeast Asia too: Thai pacifists who have called for a settled end to the hostilities in the Muslim south have been denounced as apologists for Muslim extremists; in Malaysia academics who have called for the re-working and re-negotiation of the social contract have been labelled 'race traitors'; in Indonesia moderate Muslim intellectuals who have defended Indonesia's plural society and culture have been branded enemies of Islam. So what gives?

The country that is closest to my heart is, of course, Malaysia and the recent developments in the country has given me reason to be worried about its future. Religious and racial sectarianism remain the dominant features on its political landscape and there is the apparent need for some form of national reconciliation and healing.

Yet events over the past two weeks have made a mockery of Malaysia's claim to be a developing country with first world ambitions: Despite the skyscrappers that claw at the heavens above Kuala Lumpur, the mega-malls that devour their consumers by the thousands, the massive highways that are crammed with cars; the state of Malaysian politics today beggars belief.

At a time when all of Asia is on the brink of a global recession sparked by the rising costs of oil and gas and the collapse of the American Dollar, the issues that count ought to be structural-economic ones instead. But what has transpired over the past two weeks have shown that despite the flashy suits and corporate videos broadcasting the bold and brazen image of Malaysia Inc., the country's politics remains trapped in the swamp of the banal and ridiculous.

For a start sodomy season has returned to Malaysia with a vengeance with allegations of sodomy being levelled against Anwar Ibrahim, de facto head of the Peoples Justice Party (PKR) and advisor to the Peoples Alliance opposition coalition. Not to be outdone, those close to Anwar have also made disclosures about the alleged sexcapades of Malaysia's ruling elite and senior politicians in the country; but only to have the very same allegations withdrawn a day later. The rally to protest the rise in oil prices on 6 July that was aiming to gather a million Malaysians only managed to bring together 25 to 30 thousand, and was marred by an equally embarrassing incident when conservative Islamists stormed the stage during the performance of a punk rock band, the lead singer of which decided to moon the crowd. In the midst of this, have we forgotten our economic essentials? And the real reason behind this global economic meltdown which happened to be the skewered uneven global economy we have all inadvertently created thanks to our dependency on the US economy? Or has politics been reduced to bottoms and sodomy for now?

All of this has made it increasingly difficult for me to explain the nature of Malaysian politics to my European colleagues where I am currently on the seminar circuit. How, pray tell, does a global economic crisis degenerate to the level of sodomy allegations and why on earth does the personality of politicians matter more at a time when the overbearing global economic structures have taken on a life of their own?

Voodoo politics was a term once fashionable in the 1970s and we seem to have returned to our political myths and ghost-stories with relish. As oil and gas prices are set to soar across Asia, the manifestations of public outrage and frustration is bound to spill into the streets. But in Malaysia, as in the case of Indonesia, the results are freaky and unpredictable at best. Why, in Indonesia the ones who seem to have benefitted the most are the Islamist parties that have been scoring hits at all the local elections. So once again, what gives?

Politics has always been influenced by elements that are variable and sometimes even irrational; but this time round the wierd and wonderful manifestation of collective anger and frustration may take us to the end of politics itself, and with that our aspirations for development, progress and political maturity can be dumped into the bin as well. How terribly sad.

Malaysia Should Move on Beyond Political Tsunami

The days since our 50^th anniversary Merdeka celebration in 2007 to the coming 31^st August 2008 seem too eventful, witnessing a so-called “political tsunami”, shocking fuel price increase, and repeated claims and denials of government change. As every natural disaster needs time to recover, Malaysian tsunami seem take too long, hence the nation forget that continuous progress is still utmost important. Increasing uncertainties in global economies, particularly the sub-prime crisis in the United States, rising global crude oil price and possible of China economy exhausting itself after the Olympic need our urgent attention. All Malaysians need to “sediakan payung sebelum hujan”, as said by the wisdom of this Malay proverb. Therefore, the country should move on. Attentions should not be stagnated at the days of political tsunami of the Malaysian 12^th General Election in March 2008. The following list needs utmost important attention too.

1. Comprehensive plan on fuel price

There are already mountains of response on this issue since the announcement of the fuel hike. Nevertheless, the government neither calms the nation through its rebate compensation nor looks confident in their decision. Various new measures announced or proposed from time to time in respond to the citizens’ uproar, implying that the shakiness of the “subsidies restructuring plan”. Effect of inflation already felt, thus a comprehensive plan on fuel price and show of confident of the highest level from the government to its own plan are urgently needed for the benefit of the nation.

2. Proceed with banking reform

The banking mergers as the result of Asian Crisis 1997/98 were the only major and systematic reform we have so far. However, is that supposing not the last planned banking reform? So, when will be the next wave of strengthening our banking system? Globalization tsunami has already kicked in lots of pressure to liberalize the Malaysian economy, bringing in fierce competitions that might easily sweep our smaller banks into trouble water. Do we need to wait for another crisis?

3. How about the Corridors?

Since the Iskandar Development Region (now, renamed “Iskandar Malaysia”) was officially launched in November 2006, Malaysia proudly and rapidly launched four other economic corridors (regions) within the space of less than 16 months. On one hand, the ruling government claimed that these corridors will propel Malaysia to another higher stage of economic success but the oppositions beg to differ. Blueprint for each have been successfully developed but that was before the food crisis and fuel price hike. Would these two factors derail the progress of these five corridors? Most importantly, are these corridors, launched just before the general election, are for “show” as claimed by the oppositions? More transparency and highlights are needed to enable the public from laymen to academicians to monitor the development of these corridors. Hopefully, these corridors would not become white elephant nor the plan being derailed due to political reason.

4. FDI and new strategies for competitiveness

It cannot be denied that Malaysia has somehow lost its relative competitions in attracting foreign direct investment (FDI) due to rising cost of labour. China, India and Vietnam have taken over as the major destination for FDI. Increase in Malaysian fuel price certainly doesn’t help either. So, are we going to sit idle and wait for our destiny? Well, Malaysia has other strength to capitalize on to attract FDI. Skill labours cum first-class infrastructures are the most obvious. Grassroots-education-to-all policy seems work well in generating abundance supply of skill labours in Malaysia. In addition, great supporting industry linkages, which might not be a commonly seen positive factor, should be further enhanced and promoted.

5. Poverty – Micro-finance as alternative solution

Last but not least, poverty issue should not be neglected from the needed attention in the period of the Millennium Development Goal that wish to halve, between 1990 and 2015, world poverty and proportion of people who suffer from hunger. In this aspect, Malaysia should learn from the success of the Nobel Peace Prize winning Grameen Bank and its founder Muhammad Yunus in reducing poverty in Bangladesh through micro-finance. In Malaysia, some of the most influential micro-finance institutions like Amanah Ikhtiar Malaysia (AIM) did not performed well. Despite strong effort by Bank Negara Malaysia to come out with master plan to actively promote the development of micro-finance since end of 2007, concrete success like the Grameen Bank certainly not easy to emulate but it will greatly help reducing poverty in Malaysia. Thus, the nation should give more effort and support to the development of micro-finance as alternative solution to poverty alleviation.

Hopefully, Malaysians will not be celebrating a sunset economy comes this 31^st August 2008, but an ever brightly shining “Malaysia Boleh” and “Malaysia Gemilang” economy.

Fuel Hike: Lame Justification and Helpless Poor Malaysian

Many Malaysian might have believed that fuel and electricity tariff increase is inevitable, despite repeat denial by the ministers before the 12^th general election. Nevertheless, the magnitude of the hike is rather very shocking, so do the justifications given. Comparing petrol and diesel price of neighbouring countries make no sense but just rhetoric. Countless opinions from fellow Malaysian already voice out that those neighbouring countries especially Singapore has much higher income per capita. The Star (5 June 2008) reported that petrol and diesel price in Singapore are respectively RM5.20 and RM4.22. Given the exchange rate of about RM2.40 for S$1.00, the mentioned prices in Singapore dollar would be S$2.17 and S$1.76 respective. Neutralizing the exchange rate factor, those prices are much lower than Malaysia’s new petrol and diesel price of RM2.70 per litre and RM2.58 per litre respectively. Our Prime Minister, Abdullah Badawi asked the public to change their lifestyle to ensure no wastage of resources. However, how about the ministers’ and government officers’ lifestyles? Talking about “waste of resources”, how many resources has our government wasted? From the training centre in United Kingdom to the crooked bridge in Johor, who is wasting resources and public money? How about those findings from the General Auditor’s Report?

In the wake of this fuel and electricity tariff hike, inflation is expected; increases in taxi fares, lorry transportation charges, bus fares and food prices reported everywhere in Malaysia within two days of the fuel hike announcement, yet the Domestic Trade and Consumer Affairs claimed that he is confident of no spiral effect during a television interview? Could the government take actions to prevent those increments of charges, fares or prices? In current situation, the threat of organizing strike by lorry, taxi or bus associations very likely will over powered any government’s warning. If inflation is out of control, firstly, the yearly rebates would definitely not be sufficient. Secondly, the poor Malaysians that do not own any vehicle or motorcycle would not even get a single cent from the rebates. Increase in cost of living very likely further burdened the poor Malaysians. Hardship in making a decent living could spiral crimes and domestic problems and even suicides. Literacy rate in Malaysia may drop as children’s education is scarified for meeting urgent daily needs. Of course, all these is the concerns of the poor Malaysian (maybe some middle class too), not the millionaire. Companies’ bottom line very likely to be effected too, but closing off business or reduced profit margin could resulted to layoff, lack of job creation, n salary increment (despite inflation is almost certain), budget trimming on workers’ benefits and increase of selling prices (particularly in markets with inelastic demand). Hence, most (if not all) of the hardships to the powerful capitalists could be passed to the helpless labour group. Is this fair? Could this “subsidies restructuring plan” ensures fairness to all? There could be much more alternatives; with this article joining the bandwagon of suggestions regarding this matter.

Firstly, if fuel subsidies are taxing to the government, I would suggest that the government heavily increase the road tax of private vehicles with high engine capacity (usually luxury cars and luxury motorcycles). Secondly, the government could increase the personal tax of the high income bracket group to increase government revenue. Thirdly, I strongly agree that we should not allow foreigners from neighbouring countries to enjoy our subsidized petrol, thus suggesting to the government to allow higher pricing being imposed to them, not to the Malaysian citizens through differentiated pricing. Of course, new mechanism needed as foreigners could easily put in their credit card and start pumping petrol as like Malaysian at subsidized price. Lastly, Malaysia should adopt an appreciating currency policy instead of maintaining lower exchange rate to safeguard export competitiveness. The nation has been independent for half a century, thus, it is time for Malaysia to compete in term of quality not price. Developed countries hardly compete in pricing but in brand name that build on quality, franchise system that penetrate the global market with ease and continuous innovations to make sure that their products are irreplaceable (try replacing Microsoft programs, IBM or Intel products!). Furthermore, since Malaysia is expected to be a net oil importer in about 10 years time, appreciating currency also help to reduce burden of high oil price (oil price is quoted in US$ at international market). Also, imagine if our currency is S$2.40 for RM1.00, our initial RM1.92 per litre of petrol would cost the Singaporean a hefty S$4.61, hence dispersing their incentive to purposely pump cheap petrol in Malaysia. There could be much more alternative suggestions and opinions, including the government themselves to change lifestyles and not spend unnecessarily, but the current announced “subsidies restructuring plan” by the government certainly not popular and shocking to most Malaysian, particularly to the helpless poor Malaysian.

Malaysia’s Defining Moment and the New Economic Agenda - Singapore CLSA Keynote Speech

Keynote address by Anwar Ibrahim on 20th May 2008 at the CLSA Corporate Access Forum in Singapore, a high-profile gathering of corporate decision makers of the region’s most interesting companies and investment bodies.

Source: http://anwaribrahimblog.com/2008/05/20/malaysias-defining-moment-and-the-new-economic-agenda-singapore-clsa-keynote-speech/

[Access date: 22 June 2008]

Ladies and Gentleman.

On the eighth of March, with fortitude and conviction the people of Malaysia sent a clear message to the powers that be they would not continue to tolerate a corrupt and incompetent government. With resoluteness hitherto unseen they voted the Barisan Nasional out of office in four states and terminated their stranglehold two-third majority in Parliament. In the final toll, the Pakatan Rakyat, that is, the People’s Alliance, now controls five states accounting for about 60% of the nation’s GDP. Additionally, the Federal Territory of Kuala Lumpur is almost entirely represented by Pakatan representatives in Parliament. After being in power for five decades, the Barisan Nasional meanwhile is still in comatose under this knock out defeat while its dominant and dominating anchor party UMNO is in utter turmoil.

In this defining moment of Malaysia’s history, the courage and singularity of purpose of the people has been extraordinary. Having suffered the slings and arrows of an outrageous regime that had become very cozy with the culture of corruption, wastage and misuse of power, the people marched headlong into the battlefield and took the bull by the horns.

To my mind, the eighth of March, 2008 is the metaphor for the birth of a new era where the mill stone of race and religion which had been our burden to bear for the last fifty years has finally been shattered. With one stroke of the mighty pen, notwithstanding the overwhelming forces of electoral fraud and collusion of the organs of state, the people transformed the political landscape of the nation.

This will be a new chapter indeed for Malaysia indeed as it was for Indonesia not too long ago when the waves of reformasi swept the country taking it out of dictatorship to democracy. In a way, it was also for Myanmar though tragically the iron hand of military oppression proved far stronger than the earnest cries for justice and liberty.

A New Economic Agenda has been crafted borne of a long-term strategic vision to develop Malaysia into a prosperous and dynamic society competitive not just in the region, but in the world. We are not talking about knee-jerk reactions or strategies calculated to gain political mileage. This Agenda is a comprehensive program that we earnestly believe is sustainable in the long run.

According to a recent survey, young Malaysians are now open to more multi-racial socio-economic policies as opposed to race-based ones. The general consensus is that affirmative action should be given to the poor and the marginalized regardless of race or religion. Notions of social dominance and racial superiority find no resonance among the people except for those diehards still bigoted over ancient and archaic forms of political ideology.

That is why our New Agenda is not purely economic. Its viability depends very much on observing the principles of democracy, socio-economic justice, equal economic opportunities and religious freedom. There is no contradiction in talking about affirmative action while waving the banner of equal opportunity because a level playing field can never be level unless and until the poor and the marginalized are taken out of the vicious cycle.

The broadest platform that forms the bedrock of this New Malaysian Agenda rests on policies formulated to bring maximum benefit to the people across as broad a spectrum as possible in order to uplift the living standards of the ordinary Malaysian. Ostentatious projects will be shelved. Public expenditure will be focused on infrastructure such as transportation, health and education. There is no doubt that we will be pro-business but the New Agenda will redress the social inequities unleashed by the forces of the free market. Rent-seeking activities, for example, must be kept at bay. Predatory marketing will be outlawed. A more comprehensive regulatory structure will be crafted with the bulk of the input from people actually in the business. All this may raise the alarm that this is populist agenda which encroaches upon free market principles. On the contrary, the New Agenda aims at taking Malaysia to the status of a developed nation that is built on the people’s trust with accountability, transparency and good governance.

Let us first of all answer the question: What is Malaysia’s status today? We hear for example politicians talking about how rich Malaysia is compared to some of her neighbors and how we have recovered so well since the Asian financial crisis of 1997. The truth, however, says otherwise: South Korea and Taiwan were much poorer than us in the 1970s but today their per capita income is US$19,200 and US$15,270 respectively. Our per capita income is only US$6,240. And we haven’t begun to talk about Singapore, a city-state of four million inhabitants. At US$30,810, it is five times that of Malaysia’s. The enormous difference becomes all the more glaring if we consider that just 30 years ago, Malaysia was neck and neck with Singapore.

If we analyze deeper we will realize how even more troubling the numbers are. The per capita income scenario paints only a partial picture. What we don’t see is the gross inequality in income distribution. In 2005, Malaysia registered the most glaring GINI coefficient in Southeast Asia, worse than Indonesia and Thailand. As you know, being the most effective measure of income disparity, at 0.47, Malaysia was number two in Asia losing only to Papua New Guinea.

This is a devastating indictment of the failure of the New Economic Policy, crafted almost four decades ago. In the area of the urban-rural gap, this policy has also been a complete fiasco. In 1999, income in rural homes was 55% that of urban homes with the highest poverty in mostly Bumiputera majority states such as Kelantan, Terengganu, Kedah, Perlis, Sabah and Sarawak.

Of course there has been some development in the country but we do not see anything impressive in the numbers unless we still want to compare ourselves with African countries. Incidentally, Malaysia’s poverty reduction statistics are unreliable because our base rate is unrealistic.

By far the most damning case against the NEP is that it has been hijacked by the ruling elite to satisfy their lust for wealth and power. No doubt this was a multi-racial rip-off of the most systematic kind: the leaders of the component parties of the ruling coalition working hand in glove with UMNO to deprive the deserving Malays, Chinese, Indians, Ibans and Kadazans of the benefits that were to be derived from the NEP.

Tender procedures, transparency and independent evaluation in privatization issues, equity distribution, all these were swept aside in the name of the NEP on the sacred ground that this was all for the benefit of the Bumiputeras. But the numbers stack hard against the hype. Just compare the money spent on scholarships with say the tens of billions expropriated by the select few in equity awards, Approved Permits, contracts to companies controlled by families and cronies, and the billions in profit reaped on account of privatization projects and schemes. There is also a high economic cost to this gross abuse of the policy. The people have to pay higher costs for energy, water, highway tolls. The people’s protest falls on deaf ears.

The decline in FDI as well as private domestic investment is serious. This collapse has led to serious underperforming by Malaysia in the region. India in the last five years saw its investment/GDP ratio rise from 22% to 34% and Brazil’s ratio shot up from 15% to 27%. Malaysia’s ratio, on the other hand, plunged to 9% last year from 30% in 1996. In terms of FDI over GDP, Malaysia plummeted from 8% to 4% for the same period. This is one of the steepest declines anywhere in the world. What these numbers signify is the plunge in the level of competitiveness and the degree of profitability of companies and there is no reason to imagine things will improve for the better barring a drastic change in circumstances. As a matter of fact, for the World Competitiveness Index for 2007/08, Malaysia dropped two notches from last year’s standing.

Yet the authorities are touting Malaysia’s so called impressive current account surplus which increased from 8% in 2002 to 14% in 2007. But what it means really is that investments have fallen and hence a decline in the import of capital goods. Even Malaysia’s growth rates for the last five years will show that private consumption is the main driver for the increase. What has not been highlighted, however, is the fact that our economic growth is essentially fuelled by borrowings to such an extent that individual indebtedness is now the highest in the region. Just last year, I spoke about the lessons of the 1997 Asian financial crisis. Once again, the question is: have the Malaysian authorities learned anything?

Malaysia lags behind other emerging economies in spite of a diversified economy with commodities and manufacturing and a relatively good physical infrastructure. Our competitiveness suffers because of the failure to develop and keep innovative human capital. Our brain drain problem is legendary. This reflects foundational weaknesses in our educational infrastructure as well as a policy of mismanaging the vast human resources. The traditional mindset of bolstering the manufacturing sector as a key driver for economic growth must also be changed in an age where information and knowledge provide the bedrock for growth and competitiveness. We suffer also because of the high cost of doing business, a cost which is reflective of the failure to observe the basic standards of good governance and to fulfill the demands of accountability. At the end of the day, these principles will continue to be compromised when those who hold the trust of the people succumb to the temptations of power and fall victim to the cancer of corruption.

The report of the Royal Commission of Inquiry into the V.K. Lingam scandal has fully vindicated our earnest efforts to expose the corruption that has beset the highest institutions of power. The Malaysian judiciary once touted as one of the best in the world has been severely compromised. Judge fixing, ghost written judgments, horse trading in judicial appointments, these are the symptoms of a judiciary ravaged by executive influence and interference and corruption by the rich and the powerful. We cannot overemphasize the importance of an independent and competent judiciary to realize the objectives of the New Agenda because bereft of such an institution, the rule of law itself hangs in the balance. When justice can be bought and sold, the economic implications are extremely far reaching. Foreign investors want impartial and fair hearings in trade and commercial disputes. The fact that most international contracts executed in the region choose Hong Kong or Singapore rather than Kuala Lumpur as the forum for arbitration speaks volumes about the level of confidence of the international business community in Malaysia’s judiciary.

From one corridor to another, with pledges of billions of ringgit to be poured into infrastructure and other projects, the Federal government is still trying to foist on the people undertakings of such a gargantuan scale that make the mega projects of the previous administration look rather tame. This lavishness in spending is symptomatic of the Barisan’s conventional responses to the economic woes of the nation. They have given supply-side economics a new meaning, predicated on the assumption that the supply of money has no limits.

History has already shown what dire consequences such a philosophy can bring. Forged on the anvil of greed and self-interest, these projects can only see the light of day if and only if the main beneficiaries are cronies, family members and conglomerates connected with the ruling elite. Hence, projects which were in the pipeline before the elections suddenly become unviable now that they would be in the States governed by the Pakatan. Perhaps this is the silver lining to the clouds that hang over the Pakatan-controlled states because we want no part in the plundering of the people’s wealth by the UMNO-controlled Federal government. They must be held accountable.

In spite of these concerns will honour commitments already made, excepting for gross abuse and corruption, and will seek new ways of engaging with the international investor community under the principle of responsible competitiveness that would encompass conservation, sustainability and fair labour practices.

The New Economic Agenda recognizes the multi-ethnic composition of Malaysia and therefore is fortified with a policy to foster and nurture a plural and tolerant society. After all, that was the catalyst for the formation of our nation pursuant to a social contract to build a nation that is harmonious, just and fair. That cannot be realized without a New Agenda relevant and just to all. The Bumiputera community is ready for this change because it will continue to be firmly grounded on affirmative action to help the poor and the marginalized.

The fear that such an agenda will erode the rights of the Bumiputera is but the consequence of the racist chanting of some UMNO leaders who will stand to be the biggest losers in the new agenda. So, fearing the prospect of their corrupt sources of income being reduced if not altogether eliminated they resort to stoking the fires of racist sentiments through the mainstream media controlled by them.

Our policy is simple and straightforward enough. We do not intend to do away with the affirmative action principles outlined in the NEP, but we will apply them across the board making them available for all races on a needs basis.
The question is: Should we condone the abuses of a policy which make the rich richer and the poor poorer or should we not support a policy that provides equitable assistance to all needy Malaysians?

Again, to the detractors who will continue to distort the new agenda as an anti-Bumiputera policy, let me reiterate that the interests of the Bumiputeras will never be compromised because we are committed to building a new system that is just and fair. In this new order, no one will be left behind on account of race or religion. Unlike the current scheme of things, the New Agenda will put in place mechanisms to ensure that economic aid goes to those who most need it. For example, small traders who form the bulk of the Bumiputera community in business enterprises will therefore be better off than they ever were under the NEP.

Certain detractors have pointed out the road to a more deregulated free market economy will lead to the abandonment of social instruments. We would answer this by saying that we have no intention of abandoning of our electoral promises among which is the promotion of social justice. We advocate no doubt Hayekian free enterprise but we don’t think Adam Smith’s invisible hand will be that responsive to the changing times. Hence, whenever necessary, to paraphrase John Kenneth Galbraith, we temper free market with an appropriate dose of state intervention to rectify the social inequities attendant on the interplay of pure market forces. We don’t think that we need to apologize for advocating a policy on fuel, health care and education which is calculated to ease the burden of the rising cost of living. We call this humane economics.

Bearing in mind our diagnosis of the Malaysian economy and the state of our nation, the New Agenda will set in place the drivers that will take the country out of the doldrums to greater heights.

In other words, measures will be in place to ensure that private investment as well as FDI will return with a vengeance. The conditions precedent for Malaysia to regain its status as an attractive destination for investors must include the rule of law, a regulatory framework, and incentives to develop our human capital. At the same time, with the implementation of more prudent macroeconomic management, growth will be stimulated without getting out of hand. The State economies under the control of Pakatan Rakyat will become more robust and vibrant. In spite of the efforts of the Federal government to derail development projects, we are confident that these state economies will be able to forge ahead. The SMEs too will benefit from a policy that recognizes the role that they play in an economy that will be increasingly more globalized. Take care of the head and the tail will take care of itself. With transparency and accountability in place, cronyism and corruption will die a natural death thus immediately lowering transaction costs while enhancing improvements in service delivery.

If I may conclude with an apology to Shakespeare: Now is the winter of our discontent made glorious summer by the sun of Pakatan’s New Economic Agenda. Victory lies in courage and conviction to replace the old with the new, the obsolete with the functional. Without this paradigm change, Malaysia will be adrift in an ocean of uncertainty at the risk of being marooned on the island of oblivion. We must take the current when it serves or forever lose our venture.

Thank you.