Dissenting Voices on ...

The Key Issue Confronting NegaraKu, IMHO -- the Bumiputra Ownership of the Nation's Equities or Shareholdings in the country's business and commercial holdings.

I say "key" because on the basis of this issue lies the central plank for the New Economic Policy that was started in 1970, which to my mind had outlived its usefulness. Its evolution for continued implementation under better sounding National Development Polcy or whatever still remains what it is -- IT IS A RACE-BASED POLICY, when the objective at the end of the day is to achieve ECONOMIC GOALS like poverty eradication; erasing the udentification of job/occupation functions with race; and for a more equitable distriubtion of the nation's wealth. So from starting point, the policy is flawes although the populace at large accepted the NEP when it was formulated for a stated limited period of 20 years (1970-1990). But its perpetuation of the NEP after 1990 under false premises continues to bug the nation's psyche, hampering its progress towards a united nation. Indeed, it has craeted lots of unhappiness, even resentment, racial tensions, not just among the non-Bumpiputra groups, but also within the Bumputras, because in the latter group, there is enough evidence to show that the larger portion of public listed companies equities and intetrests and related benefits of the NEP only went/continue to go to a select, elitist subgroup, euphemistically labelled the UMNOputras, and in some instances, super-Bumis! So there are dissenting voices in every ethnic group.

All rational-thinking Malaysians would have welcomed a policy where the objective is to eradicate poverty, and therefore Government policy would be tailored to help those adisadvantaged groups to break out of the poverty line or upgrade them economically. Nobody in the right mind would object if the Government's priority programmes are to help the poorest the most. Yes, a NEEDS-BASED POLICY should be the Government's way to go after 1990 -- transcending Colour, Race and Creed. Across age and gender too

But no, the Government, for reasons best known to the UMNO laedership (for they are the ones known to formulate Policy, is it not? You mention MCA, MIC and other Barisan Nasional components as Partners? Hey, don't be like Ostriches burying their heads under ... did I hear the PWTC Great Hall?

So the NEP under new nomenclature continues to bedevil us. Policies implemented under its aegis continue to be the main stmbling block to nation-building. IT IS THE SINGLE MOST DIVISIVE POLICY that hampers the fostering of Bangsa Malaysia, and I have constantly averred that as long as the Government continues with such a polciy based on racial quotas, and anchored on highly questionable bases, then the Rakyat would be given short shriff by the political masters. I wouldn't forgive these leaders who are not prepared the face the reality of the monster they created and now continue to feed and rear. One day it would be too late to control or overcome the MEDUSA that UMNO has created, which even the sharpest keris would not be able to contain or slay. Whatever guises they postulate as their motivation, I will always state these politkus are taking the general populace for an expensive, and dangerous, ride, and it has gone on long enough -- for 35 yearrs! (1970-....). It is time to put an RIP TO THIS TOMBSTONE and lay the monster to rest.


The following news item summarises the "controversy" that the NEP had given birth too, and even the most academically-equiopped minds now quarrel over the bases of thow the NEP has been anchored, so what do you expect the ordinary rakat to accept as Gospel truth the Government's hard sell?

No, dear Pak Lah, you have yto use some copmmon sense, and not quote well-quoted but worn out cliche and statistics to pull wool over our eyes. We have "common sense". Even in these days of Mist and Haze, Malaysians in general are able to discern the Truth from half-truths, propaganda, and downright lies.

The only problem they face is a lack of HONOUR AMONG THE LEADERS.
May there arise ONE MALAYSIAN LEADER WHO WILL DO THE HONOURABLE THING?

Pray very hrd such a leader emerges in thhe next decade, for when the oil dollars run out, may Medusa-like mosters will run amok throughout thie belooved land, and besiege NegaraKu. Even many "ISAmens" will be too late!


From the Singapore's STRAITS TIMES is a good summary of what I'm crapping about; maybe I'll add some "desserts". Meanwhile, just mention I have always held Ms Carolyn Hong -- even during her News Straits Times days back home -- with high esteem for her writes. ~~ Desi

Saturday, October 07, 2006
What is real stake of bumis in KL market?

Govt and think-tank differ on whether 30% target has been reached

By Carolyn Hong


THE issue of how large an equity stake bumiputeras have in the country is back to the fore.

This follows a study by a think-tank which concludes that the bumiputeras own 45 per cent of the business equity in Malaysia.

Prime Minister Abdullah Badawi rejected the independent study on Thursday, calling it irresponsible and saying Malays are still far behind.

'Such findings will only create negative reactions, raise all sorts of questions and accusations,' he said.

If the study's conclusions are true, it would mean the bumiputeras are well ahead of the government's target of 30 per cent Malay ownership by 2020. In other words, it would mean the government's affirmative action policy has achieved its aim.

The study was conducted by the Asian Strategy and Leadership Institute (Asli) as input for the Ninth Malaysia Plan, a development blueprint launched in March.

It reported that the Malays owned 45 per cent of the shares in the stock market, while official statistics have put the stake at 18.9 per cent for the past 20 years.

This data is crucial to the continuation of a government policy that helps Malays get a larger share of the economic pie. This goal was first articulated as the New Economic Policy in 1970, and restated in the Ninth Malaysia Plan this year.

The exact level of bumiputera ownership has long been questioned.

Last year, former Cabinet minister Chua Jui Meng questioned the accuracy of official data and called for an independent review.

The Asli study is the first to provide an alternative to official figures. The difference in findings boils down to different methods of calculation.

Asli surveyed 1,000 companies on the stock exchange, including government-linked companies (GLCs). By counting the GLCs, which are massive in size and value, the data changed dramatically.

Asli estimated that bumiputeras own 70 per cent of the shares in GLCs, which make up a third of the market value of the stock exchange.

They include utility companies such as Tenaga Nasional and Telekom Malaysia, and Malaysia's biggest bank, Maybank.

Asli also did its sums using the market values of the shares, rather than the par or nominal values, for the simple reason that it is market value that actually denotes the value of a company.

Mr Khoo Kay Peng, a policy analyst for think-tank Sedar, said more than 90 per cent of the companies in Malaysia would fall into the classification small or medium.

There is no one-to-one correspondence between their shares and those of giant companies like the GLCs.

But Datuk Seri Abdullah disagreed. He said the Economic Planning Unit's method was more accurate because it surveyed the 600,000 companies registered in Malaysia, excluding GLCs, and did its calculations using the par value of the shares.

He said it was not right to include the GLCs.

'The revenues reaped by GLCs will be handed over to the government to be saved in funds for use by the people and the country,' he said.

Tan Sri Ramon Navaratnam, who was previously the deputy secretary-general of the Treasury but now heads the Asli Centre for Public Policy, said the institute is prepared to defend its methodology.

'The whole purpose is to improve the methodology because it will increase public confidence,' he told The Straits Times.

He said the government's methodology has been in use since the 1970s, when the GLCs were not as significant as they are today.

He stressed that Asli's intention is not to challenge affirmative action, but to improve its implementation.

Mr Khoo, from Sedar, said the Asli data showed that the policy had not helped the majority of bumiputeras, but had concentrated wealth in the hands of a few.

'Who controls the majority of the wealth attributed to the bumiputera community?' he asked in an article on news portal Malaysiakini.

This is a much-debated issue, and it is unlikely to be resolved any time soon.

Government's calculation

THE Economic Planning Unit's method took in the 600,000 companies registered in Malaysia, excluding GLCs, and did its calculations using the par value of the shares.

Datuk Seri Abdullah Badawi said it was not right to include the GLCs as their revenues will be handed over to the government to be saved for use by the people and the country.

Think-tank's calculation

ASLI surveyed 1,000 companies on the stock exchange, including government-linked companies (GLCs).

By counting the GLCs, the data changed dramatically.

It also used the market values of the shares, rather than the par or nominal values, for the simple reason that it is market value that actually denotes the value of a company.

~~~~~~~~


DESI: The highlights (THUS BOLDED) are Desi's in the news report -- which I am reproducing in FULL because I feel all Malaysians must study the report and its potential impact, and resultant outcome depending on how the Government treats its people in its policies. Will they continue to hold us in disdain. Or will PakLah restore some HONOUR and INTEGRITY, TRANSPARENCY and ACCOUNTABILTY in government and governance. Mr Prime Minister, you promised all these in your 2004 General Elections BN Manifesto, remember? Yes, I agree with you BN government has another 2-3 years before its term ends and you don't need to call an earl GE. But if you deviate or fail to deliver, I think the people will re-act accordingly. (I may add some other 3sen's worth if I am inspired -- chewing on day-expired MoonCake and fresh-brewed Chinoserie tea (from mainland China imported by a recent Malaysain returneee... if you catch what I mean.)

Now if this scribe may take a middle path, with ASLI's frigure of 45% and the Government's (rather UMNO's much toued) figure of 20% as representing the BUMI equities total, Desi ariives as a "means" (avaege) figure of 32.5%, which IS .5% ABOVE TRHE 30% TRAGET. I believe it is a fair assumption that at least the MEANS TEST RESULT must mandate the NEP's original objective as spelt out in 197o had been achieved, and it's time to abnadon the ethnic-based policy.

Even allowing for sympathy with Pak Lah's lament that the Bumi equities' total was still hovering around 20%, it means the NEP policy had "failed miserably" in staying stagnant for the period of 1985-2005 when no "percentage increase" was gained at all. Why then does a government want to puruse a polciy that has failed? (This point is also elaborated in the extract that follows. Be patient,bear with Desi, eh?)


Okay, seeking my ER's forebearance, I'm reprising the following a second time in this short precedent period because of its relevance, okay! It has RATIONALE, OK!

From August 31, 2005 Merdeka Essay Series

THE MALAYSIAN DILEMMA (6) - FINAL PART



CHALLENGES BROUGHT ABOUT BY GLOBALISATION

Is our Government properly educated and informed of this threat posed by Globalisation? I hardly think so. We are losing our young talents, in big numbers, every year. Do our leaders care? We then pay exorbitant salaries to Expatriate workers instead, also for second generation technology transfer when other countries have moved on to another higher plane. Are we suckers for international CON-men?

Like one well publicised, recent example. The UMNO YOUTH calling for the revival of the New Economic Policy (NEP), based mainly on the ground that the 30-percent share equity to be owned by Bumiputears, stated in 1970 had not been achieved. By their own leaders’ figures, the share had been raised from an initial 5 per cent to abot 18 percent in 1985. BUT 20 years later, in 2005, the figure had stayed stagnant at 18-19 percent. (The sources, Hishamuddin and Shaberry Cheek, had been quoted in DESIDERATA’s earlier posts.)

So two conclusions:

(1) The UMNO politicians have been telling us half-truths, basing their latest figures on wrong criteria and not reliable statistics. Some academic sources argue that the current Bumi share equity of 19percent DID NOT INCLUDE those stakes held in Government-Linked Companies (GLCs) which are highly capitalised, as well as those held in trust or by proxy in certain State or Federal agencies/companies whose accounts are not made public.

(2) Even if the claims stated by these UMNO Youth leaders, are true ( which Desiderata strongly believes ARE NOT TRUE), then there is no reason why a policy that had failed miserably like the NEP should be revived. I should NOT say more because those so-called Barisan Nasional brothers to UMNO Youth like MCA, MIC and Gerakan are keeping deafeningly silent. They are elected for what? Well, sharing the loot?

Otherwise, why do 21st century so-called leaders want to revive the NEP,an instrument of the 1979s-1990s that had proven to be not effective? Don't we learn from history and current developments? The big bad world of GLOBALISATION has descended on us like a Tsunami. We still want to walk with crutches. The competition now comes from China, not the local Chinese badly represented by the MCA; from the Indians from the near continet, not from the local Indians doubly badly represented by the MIC.

As Thomas Friedman in "THE LEXUS & THE OLIVE TREE" rightfully pointed out, the world is now a Global Village. Investments and big dollars go where there is the best ROI (returns on investment)-- the bottomline decides where the investors will go, and Malaysian racist politics doesn't help. It's a boderless world, and the YoungOnes know it. That's why they want to seek the best education available within their means, to arm themselves properly to face a borderless world. Manpower is now very mobile. The richest man in the world, BILL GATES, has outsourced many of MICROSOFT's operations to INDIA. (Digressing a wee bit -- can? Microsoft's total corporate net worth and share values surpass all the combined capitalisations of Malaysia's 1,000-odd listed companies -- just Food for Thought...)

Today, it's the Internet and Information Age where communications between world communities is almost instantaneous, and knowledge powers a nation's progress. We may boast the best infra-structure of the First World standard, yes, Petronas Twin Towers is still the tallest in such category, but what about our human resources. Our mindset, is it First World? Are we grooming our own young talents, or are we driving them away. Our leaders have to answer these questions with a conscience.

But some of our leaders are still living in an Age of the Fixed Telephone Line. Fixed mindset, seeing the dollar signs everywhere they venture. Indulging in rent-collection; collecting commissions, like renting out the APs for a quick and easy buck. The future they see is now -- with instant gratification. Even a village idiot can do that, collecting rents, and instantly gratifying themselves.