Hulu Selangor: A critical political litmus test

By
Bridget Welsh
 | Malaysiakini

The Hulu Selangor campaign has begun in earnest as Malaysia heads into a record 10th by-election since March 2008.

Admittedly, many Malaysians are fed-up – they are tired of the empty promises that by-elections bring, the disappointments that come with politicians on both sides of the political divide not delivering on electoral promises, the pettiness of the campaign mud-slinging and the distraction from addressing the problems the country is facing.

This election, however, is one where people should take notice. The fact of the matter is that more than any other by-election since March 2008, this is a critical political litmus test for the country’s future. It is a national contest, with national stakes.

Allow me to briefly elaborate:

1) Referendum on Najib Razak

Foremost, this is a referendum on the prime minister. One year on, this election provides voters an opportunity to provide an assessment of his tenure.

The record of Najib’s one year in office is mixed. For Malaysian voters, the crucial electoral issue has historically been the economy. Here the BN has the advantage. Najib has benefitted from the rebound in the international economy, which have contributed to increased economic growth in the last few quarters.

Malaysia’s economy is now returning to the levels it was pre-crisis in 2008. Inflation levels have stabilised, and fuel and food prices do not appear as high as they did two years ago.

This advantage is shallow, however, and will come down to perceptions. Not much of this growth has trickled down to this large constituency, around the size of the state of Malacca. In this area where population numbers have been growing as part of the sprawl of the suburban growth around Kuala Lumpur, the challenges of affordable housing, rising healthcare and education costs, sky-rocketing crime levels, stagnant wage levels and unemployment remain paramount.

Hulu Selangor is comprised of diverse economic backgrounds, but the overwhelming share of voters in this constituency is struggling to make ends meet and fulfill their dreams. On Sunday, Najib’s popularity will be tested by an election poll, rather than public opinion polling.

2) Referendum on Selangor government

Voters will struggle to assess credit and blame, as Hulu Selangor also falls within the rubric of a Pakatan Rakyat-run state government. While its three elected state representatives are from the BN, the most-contested opposition government (after Perak of course) is also facing a test.

A loss for Pakatan at the parliamentary level will translate as a loss of support and faith in Pakatan at the state level. Hulu Selangor is a constituency that has undergone considerable land development, yet remains largely semi-rural.

It has not seen large inflows of capital, just more people. It is not clear how this constituency fits within Pakatan’s plan for Selangor.

Selangor Pakatan – like Najib – faces a struggle in demonstrating concrete benefits of their efforts in government to the voters. This is particularly acute for the state government, since it has limited machinery in the area – traditionally a safe BN seat.

This contest will force Selangor Pakatan to reflect on what it has achieved and how it will deepen its efforts to bring better governance to Hulu Selangor voters.

3) Signal on rebuilding the BN

For Malaysia’s as a whole, the candidate selection within the BN has highlighted another key test for the BN. Can BN work effectively as a unit?

Since March 2008, Malaysia has been predominantly a Umno government, as the MIC and MCA have been embroiled in crises and have yet to move beyond the massive defeats they faced in the last general election.

By choosing a MIC candidate, Najib has sent a signal that he genuinely wants to rebuild the non-Malay component parties. He did not bow to pressure from Umno warlords, and in particular from Muhammad Muhammad Taib, to give the seat to one of its own and a Malay.

This is an indication that Najib respects the established model of seat allocations and still believes in the multi-ethnic coalition. He has opted to give the seat to arguably the weakest link in the BN party structure. It also shows the recognition that Umno cannot hold national power without its multi-ethnic parties.

Now the problem of working together looms. Deputy Prime Minister Muhyiddin Yassin has noted that he will follow a new electoral strategy of BN cooperation. Seeing is believing.

Relations among the component parties within the BN are frayed. Deep factions persist. Many in Umno in Selangor are deeply unhappy with the MIC choice.

The fact that a Shah Alam Umno member is an independent candidate shows that the issue of Umno fielding its own candidate runs deep. Many have a vested interest in seeing the MIC candidate lose, since it would boost the chances of this seat being given to Umno in the next general election.

The mixed ethnic composition of this constituency requires effective ethnic cooperation to win, however. The Hulu Selangor contest will test whether the support for BN at the top translates into substantial rebuilding and cohesiveness on the ground. From the perspective of strengthening BN cooperation electorally, this contest will be a real challenge.

4) Test of new blood in MIC

Part of the reason for this challenge lies with the fact that in order to field a MIC candidate, Najib has chosen to directly interfere in MIC politics. Ditto, the decision to field the ‘local’ candidate P Kamalanathan from the neighbouring constituency of Rawang has put MIC president S Samy Vellu on notice.

Najib has not supported his choice of successor, G Palanivel. Najib has apparently rebuffed the party president’s candidate choice and vision for the future of the party. He has used his prerogative to chose the candidate, rather than allow the MIC to choose the candidate on its own.

The candidate selection raises serious questions about the future leadership of the MIC and whether the party has autonomy over its own affairs. Is this the pattern for the future? Will leaders in the weak BN component parties be chosen by Umno leaders?

One major effect is that this move has given an opportunity for MIC to bring a new face into parliament. Kamalanathan has strong professional credentials, and is seen (so far) are relatively clean.

He is a young leader from the Indian Malaysian community. He does not seem to be completely under the thumb of the MIC party president. His victory has the potential to bring some new life to the MIC.

The issue of when S Samy Vellu will give up power and to whom, however, still looms. On the ground, the contest will test whether the party is able to bring in the new blood it needs or is riddled with infighting. The independent candidacy of disgruntled MIC member VS Chandran points to the latter rather than the former.

5) Referendum on Pakatan as national opposition

The nomination of Kelantanese Zaid Ibrahim for Pakatan continues the tradition of using this seat for national politicians. Zaid has played a major role in institutionalising the opposition, building bridges among the component opposition parties and been a spokesperson on issues of the judiciary and the rule of law, among other issues.

He is a national Malay leader that has strong appeal across the racial communities. His selection shows that the opposition is committed to strengthening its relationships internally and reaching across the ethnic divisions.

His choice also points to the fact that there is a deficit of national leaders in the opposition with governing experience, and by slating Zaid, the opposition is strengthening its national profile. It is sending the signal that it is serious about winning national power.

Zaid faces major challenges. He has crossed the political divide, so there is intensity to those who want to defeat him especially in Umno. His possible defeat will weaken PKR especially, which has suffered a slate of defections.

He is an outsider. It remains to be seen whether he can connect with the Hulu Selangor voters who want strong representation. Hulu Selangor voters will decide whether the opposition will strengthen or weaken nationally.

6) Referendum by non-Malays

This seat is a fitting place for this to happen if it does. Traditionally Hulu Selangor has been a safe seat for BN. BN even won the seat in 1999 at the height of the reformasi movement. Yet there was a change in the last round.

The change took place largely in Indian and Chinese areas. The main swing in 2008 was in Indian majority areas such as Ladang Kerling, Cangkat Asa and Sungai Coh Barat where there was a 53.8%, 42.5% and 40.7% swing respectively toward the opposition.

The opposition gains among the Indian community were significant and the critical factor that swung the seat in their favour. This contest will be a test of whether the Indian community is satisfied with the opposition, or would prefer to return their loyalty to BN, where it has traditionally been. The Indian community is rightly asking what have either side done for them.

The swing in this seat extended to the Chinese community as well. In Chinese majority areas such as Kampung Baharu Cina, Hulu Yan Lama, Hulu Yam Timur there were 38%, 31.7% and 28.8% swings.

The Chinese votes for the opposition were as important as the Indian voters, given the closeness of the race. Hulu Selangor will provide the testing ground for the new MCA leadership and be an important bellwether of non-Malay support nationally.

Underscoring this will be the 1Malaysia concept and its viability. It has already come under attack on the first day of campaigning by the opposition. Zaid will rely heavily on non-Malay support if he is to win.

7) Referendum by Malays

Since March 2008, Umno has used the issue of the lack of Malay unity to instill insecurity in the Malay community. Polls show that the Malay community is deeply divided over the New Economic Model and religious issues.

The divisions have been capitalised on by ultra nationalists in Umno and played out recently over the formation of Perkasa. The ultra perception that has been created is that Malays are under attack. This has been a strategy to bring back Malay support to Umno.

Fittingly, Zaid’s candidacy puts these issues to the test. He has written on how important his ethnic identity and directly spoken to what it means to be Malay.

Voters in Hulu Selangor will have a simple racial test – to choose a Malay or Indian candidate. If indeed race is so important for the Malay community, then one would expect a boost to Zaid.

The fact of the matter is that Hulu Selangor Malay voters did not vote purely racially in 2008. In fact, the BN made gains in many of the Malay areas, such as in its strongholds of Felda Sungai Dusun, Felda Sungai Tengi and Sungai Selisik, to name just a few. In Bukit Rasa, the BN won an increased share of 24.3% of the vote in 2008 by fielding MIC candidate Palanivel.

Given that the BN won on average an estimated 60% of the Malay votes in Hulu Selangor, it will be interesting to see if this trend continues. The nationally heated racial context will undoubtedly bring Malay issues into the campaign, from concerns over the NEP to the form of their representation.

The BN has the most to lose here, given that they depended heavily on Malays for keeping them in the race in the first place. Umno has machinery in place in these areas, which will allow them to dampen any possible Malay race-based voting.

Ironically, by not fielding a Malay candidate, the BN has hurt its chances in this contest, given the racially oriented focus of the party of late.

Umno is likely to respond to this by engaging in personal attacks on Zaid that focus on his loyalty to the Malay community. This contest will be a test of how much the ultra-racially agenda has permeated the ground and the campaign.

8) Referendum by young people

Beyond the ethnic pattern of voting, the other striking feature in past voting is age. The overwhelming majority of younger voters in this constituency voted for the opposition. This trend was across ethnic communities.

There are a 1,000 additional new voters registered. For either side to win, they have to win over these crucial decisive voters, whose proximity to Kuala Lumpur will assure that they will likely go home to vote. Which campaign has the most appeal to the young will win. This will mean that both parties will have to use different campaigning techniques – Internet and canvassing – to gain support.

Every vote will count. The need for a fair fight in this important constituency is crucial. Expect high voter turnout, a tense dynamic contest and ultimately important national markers for the future of Malaysian politics.

Based on trends in polling and the traditional advantage of the BN machinery in this constituency, in contrast to the views of others, I believe that BN has the advantage.

For me, this constituency has the potential to be more easily swayed by financial rewards, which give the BN an advantage and are the norm in a by-election where the money flows in.

The campaign has begun, however, and it is a highly competitive race that can go either way. If the opposition wants to win this seat they will have to fight hard for it.

BRIDGET WELSH is an Associate Professor of Political Science at Singapore Management University and can be reached at
[email protected]
.

                This entry was posted on Tuesday, 20 April 2010, 9:43 am and is filed under
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Most important issue in Hulu Selangor by-election – send stirring message to all Malaysians that time has come for Putrajaya change of power

The most important issue in the Hulu Selangor by-election on April 25 is to send the stirring  message to all Malaysians all over the country that the time has come for national change of power in Putrajaya come the 13th General Elections.

Yesterday at the launch of the DAP SuperSunday 18 Walkabouts by DAP MPs, SAs and party leaders in 18 locations in the Hulu Selangor constituency, I had said that the Hulu Selangor by-election is no sure-winner for the Pakatan Rakyat and our candidate Datuk Zaid Ibrahim and there must be no complacency on the part of any Pakatan Rakyat campaigner, whether DAP, PKR or PAS.

I had used some wrong data for the 2008 general election results for the Hulu Selangor parliamentary and the constituent three state assembly constituency results for Hulu Bernam, Batang Kali and Kuala Kubu Baru, but the underlying thrust of my warning remains unchanged.

To put the record straight, the Barisan Nasional polled a total majority of 6,176 votes in winning the three state assembly seats of Hulu Bernam, Batang Kali and Kuala Kubu Baru but for the Hulu Selangor parliamentary contest, the BN incumbent candidate G. Palanivel lost the seat to the PKR candidate Datuk Zainal Abidin in a wafer-thin majority of 198 votes.

Palanivel secured 22,979 votes for the Hulu Selangor parliamentary seat, which is 3,285 votes less than the total of 26,264 votes cast for the three BN state assembly seats.

Clearly over 3,000 voters for the BN at the State Assembly elections in 2008 did not vote for Palanivel but split their votes by voting for PKR at the parliamentary level.

Will these 3,000 voters go back to BN in the by-election?

It is clear that the BN strategists are also zeroing on these 3,000 “split” votes in the last general elections, which explains the talk emanating from Umno camps about BN winning the by-election with 3,000 majority on April 25.

Undoubtedly, the resort to very dirty and unscrupulous election campaigning by Umno, including character assassination of Zaid, is meant to enhance Umno’s chances of ensuring BN victory in the by-election.

All Pakatan Rakyat election workers should be on notice that the Hulu Selangor by-election is of paramount importance not only to the constituency and Selangor state but also the future of Malaysia and go all out to ensure that every vote counts if Zaid is to win in the uphill by-election on Sunday.

[
Speech at the Pakatan Rakyat Hulu Selangor by-election ceramah in Kalumpang on Monday, 19th April 2010 at 10 pm
]

                This entry was posted on Tuesday, 20 April 2010, 11:09 am and is filed under
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NEM: Pakatan sets out acid tests for Barisan Nasional to prove its commitment to economic reforms

Press Release : Pakatan Rakyat Leadership Council

Pakatan Rakyat has scrutinised the 193-page report on New Economic Model for Malaysia (Part 1) prepared by National Economic Advisory Council (NEAC); released in conjunction with the launching of New Economic Model (NEM) by Prime Minister on 30th March 2010.

For a start, YAB Dato’ Seri Najib Tun Razak must clarify to the public the status of NEM prepared by NEAC for his Minister of Economic Planning Unit (EPU), Tan Sri Nor Mohd Yakcop has openly declared that NEM is a compilation of suggestions by NEAC forwarded to the government for consideration; and not government policy.  This puts into question whether the Government is serious about the NEM, or it’s just another public relations exercise!

Nevertheless, Pakatan Rakyat feels vindicated that our diagnosis on the problems of the economy highlighted over the past 15 years is finally conceded by the Government. The NEM admitted that our “economic engine is slowing”, “private investors have taken a back seat”, “productivity is growing… far too slowly”, “we are not developing talent and what we do have is leaving”, “the gap between rich and poor is widening” and we are “stuck in a middle income trap”.

While the NEAC has finally recognised the severe problems the Malaysian economy faces, we are not convinced that the Cabinet is serious about reforming the economy.  The objections in the Cabinet to the many recommendations of the NEAC have resulted in persistent delays in the announcement of the full NEM from last year, to February this year, to March, then June and now the 3rd quarter of 2010.

The speech by YAB Dato’ Seri Najib Tun Razak which said that “we can no longer tolerate practices that support the behavior of rent-seeking and patronage” rings hollow when we see how the same BN administration failed to achieve Tun Abdullah Ahmad Badawi’s  call to rid the country of our “addiction to rent-seeking”.

We are concerned that the NEM will suffer the same fate as both the “Knowledge-based Economy Masterplan” and the “National Integrity Plan” which was launched by Tun Dr Mahathir in 2002, and Tun Abdullah Badawi in 2004 respectively.  Both plans were launched with much fanfare, and both have been equally forgotten within a few years, despite their similarities to the proposed NEM.

In fact, Barisan Nasional never owned publicly to its failure to meet the economic growth and poverty eradication targets set for 8MP and 9MP. Malaysia fails to meet the growth target set in 8MP in any of the planning year. Moreover, since the overall GDP growth target of 6.0% on average was only achieved (or exceeded) in 2007, Malaysia is bound to fail to meet that target throughout the 2006 – 2010 period. Worse still, the overall poverty rate (based on the unrealistic 2007 methodology to define poverty) actually was reduced to just 3.6% in 2007 as opposed to the 8MP target to bring absolute poverty to 0.5% by 2005. It remains unclear whether Malaysia can lower the overall poverty rate further to meet the 9MP target of 2.8% by 2010.

The moral standing of Barisan Nasional in championing economic reforms contained in NEM is diluted further by its various contradictory decisions even as NEM was being unveiled.

The mystery surrounding the disappearance of RM52 billion worth of Bumiputra shares remains unexplained. Barisan Nasional does not even blink to provide an answer of how such a massive example of rent seeking and misappropriation of well-intended policies by the connected few went undetected for so long even as it preaches against rent seeking culture in NEM.

At the same time, the cost for National Cancer Institute (believed to be directly awarded to an unknown entity connected to the ruling elite) ballooned from RM340 million (when announced in 2007) to RM700 million in 2009. The escalation in cost is understandable – the unknown entity by the name of Kiara Teratai Sdn Bhd is expected to appoint IJM as a subcontractor for the project and in the process makes instant profit to the tune of hundreds million of dollars. If this is not rent seeking then Malaysia must be the haven of the commission takers of the world.

What is however, blatantly missing from the NEM is the fact that Barisan Nasional will remove various subsidies enjoyed by the rakyat today in the name of restructuring the economy, yet it continues to protect the “rights” of big private crony corporations to make exorbitant profits at the expense of the public.

Pakatan Rakyat has been consistent that the subsidy removal must be approached holistically – the restructuring of lopsided agreements and review of “corporate subsidies” to IPPs, water and toll concessionaires must precede the gradual removal of subsidies for the common people in order to lower their daily cost of living and enhance their quality of life. Such is the contradiction of NEM – Barisan Nasional advocates to the poor to embrace economic liberalisation and competition but is silent on removing protection and monopoly of the rich.

In fact, it is most ironical that the Prime Minister seeks to jointly develop 3,000 acres of land with the EPF, which does not have an expertise in property development, while at the same time preaching that the “the era of government knows best is over”, and the “private sector to drive growth”.  Worse is the news that the overall project will be awarded directly to MRCB without any open, transparent and competitive tenders that makes a mockery of the NEM’s goals of “creating a competitive domestic economy” and YAB Dato’ Seri Najib Tun Razak’s call to not “tolerate rent-seeking and patronage”.

Hence the New Economic Model while having rightly identified and admitted to the weaknesses in the Malaysian economy, it has failed in its prescription by leaving out four critical elements which forms the acid test to ensuring a fully restructured economy.  They include:

Restruturing of four key utilities namely electricity, water, toll expressways and broadband services to lessen the financial burden on the public due to skewed monopolistic commercial arrangements that favour big crony corporations, especially in light of TNB’s latest admission that the reserve margin in the country has reached a whopping 66% (which profits only the independent power producers and impoverish the rakyat);

Implementation of the necessary steps to bring the country closer to the introduction of minimum wage to reduce dependence on foreign labour, restructure and “push” our industries into higher value-added activities and to ensure a social safety net for the nation’s poorest.

Introduction of more support for young people and young families including review of areas that impose significant financial burden on take-home pay of young families and restructuring of income tax brackets; and

Reforms of key institutions that are central in restoring confidence, justice, fairness, competition and security to the economy such as the judiciary, the AG’s Chambers, MACC and the police force.

Lastly, Pakatan Rakyat reiterates that meaningful and holistic reforms must come first before any other fancy economic plans are brought into the picture as these reforms will strengthen the foundation of our economy. Only with strong foundation can we eliminate corruption and liberate the economy to adjust to whatever economic model we intend to put into effect.

Therefore, if Barisan Nasional is serious about re-making our economy and bringing it to a new era instead of just engaging in a well-staged public relations exercise, it must respond to the four acid tests outlined by Pakatan Rakyat which will ensure that the interest of the rakyat will be protected.

DATO’ SERI ANWAR IBRAHIM

Opposition Leader and

Ketua Umum,

Parti Keadilan Rakyat

DATO’ SERI HAJI ABDUL HADI AWANG

President,

Parti Islam Se-Malaysia

LIM KIT SIANG

Parliamentary Leader,

Democratic Action Party

                This entry was posted on Tuesday, 20 April 2010, 2:45 pm and is filed under
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Pakatan Rakyat’s policy statement on New Economic Model (Part 2)

PART II: ASSESSMENT OF CURRENT ECONOMIC POSITION AND CLIMATE

Right Diagnosis Vindicated Pakatan Rakyat

Pakatan Rakyat feels vindicated that the diagnosis on our economic position presented by NEAC in the report corroborates directly with Pakatan Rakyat’s views.

On 25th February 2010, Leader of Opposition YB Dato’ Seri Anwar Ibrahim had cautioned the Prime Minister in prematurely declaring that the “worst is over” for the economy and that Malalysia could put the impact of the global economic recession behind us.

In reality Malaysia’s performance is lagging relative to other economies in the region. YB Dato Seri Anwar Ibrahim highlighted the worrying decade long trend of stagnant private investment which was a direct result of an over reliance on pump priming measures. This analysis was elaborated at length in the NEAC Report published approximately a month later.

Consequently, in his speech to Dewan Rakyat on 16th March 2010, YB Dato’ Seri Anwar Ibrahim again outlined five critical economic areas which require urgent remedy if the country were to escape from the middle-income trap. These are:

Over reliance on petro-dollars and widening public-private investment gaps;

Capital flight;

Severe drop in new capital investments and value added growth of manufacturing sector;

Lagging human development that is unable to support liberalised economy; and

Unmatched savings and investment rates symptomatic of problem of access to credit.

Each of these problems were highlighted extensively in the NEAC report.

It is ecouraging that the NEAC, as an influential body that was created by the government, has explained in great detail the extent of the problems our economy faces. These are issues that Pakatan Rakyat has been highlighting since the March 2008 election and which the opposition identified even prior to 2008 and as early as 2005. Determining the correct diagnosis is vital in order to ensure that we develop the right prescription for our problems.

Yet herein lies the fault. All these problems were known for many years and yet there was hardly any effort to mitigate and/or resolve them by the Federal Government. This leads many to believe that either the government does not take these issues seriously or there is a serious problem in the policy making and implementation process of the government.

Barisan Nasional’s Poor Track Record

Pakatan Rakyat is deeply concerned by Barisan Nasional’s poor track record in achieving previous targets it has established in earlier economic policies. The non-correlation between economic planning and targets with actual implementation and results is alarming.

Malaysia indulges with grand economic planning at fairly regular intervals. Currently, there are at least three grand economic plans being implemented, not including the newly launched NEM.

First, we have the 3rd Outline Perspective Plan (OPP3) or Rangka Rancangan Jangka Panjang Ketiga (RRJP3) which covers the period of 2000 to 2010. Within RRJP3, we also have National Vision Policy or Dasar Wawasan Negara.

In additon the government has also announced the 8th Malaysian Plan and 9th Malaysian Plan as the first and second phase of the RRJP3 respectively. Within this key economic planning framework, we have at least a dozen national policies on automotive, biotechnology and other sectors.

Pakatan Rakyat is not against economic planning. We firmly believe that sound economic planning leads to sustainable growth, higher incomes and more jobs for Malaysians. These are keys to positioning our economy in niche areas ahead of regional competitors.

However, economic planning must not be done solely for the sake of planning. In any organisation; let alone a nation – the leadership must be held accountable for the achievement of key targets and direction set out in the planning process.

Therefore, the first thing that anyone should do to analyse the NEM is to revisit Barisan Nasional’s track record in meeting the economic targets it has set for itself in the past.

A good example is the targets set in the 8th Malaysian Plan (8MP) and 9th Malaysian Plan (9MP) covering the period of 2000 to 2005 and 2006 to 2010 respectively (as the data are readily available by now).

The 8MP set nine strategic goals as follows:

Pursuing sound macroeconomic management, and ensuring prudent fiscal and monetary policies as well as enhancing efforts to develop a knowledge-based economy;

Strengthening and streamlining distributional strategies and programmes to ensure balanced participation among and within ethnic and income groups as well as regions;

Enhancing productivity growth through improvement in workers’ knowledge, skills and expertise as well as upgrading of R&D and science and technology (S&T);

Increasing competitiveness and economic resilience through accelerating the shift of the key economic sectors towards more efficient production processes and high value-added activities;

Expanding the usage of ICT within and across sectors to accelerate the growth process;

Strengthening the human resource base to ensure the availability of manpower with higher levels of knowledge, technical and thinking skills;

Adopting an integrated and holistic approach in addressing environmental and resource issues to attain sustainable development;

Enhancing further the quality of life through improving accessibility to social services as well as developing the aesthetic aspects of life; and

Intensifying efforts to nurture and inculcate positive values and attributes among Malaysians through the education system, social and religious organizations and the media.

There are also specific targets in 8MP with regards to economic growth and poverty eradication.

Page 7 of 8MP states that “during the Eighth Plan period, growth will be targeted at 7.5 percent per annum”.

For poverty reduction, Barisan Nasional boldly claimed that “during the Plan period, the thrust of poverty eradication will be directed towards reducing the incidence of absolute poverty to 0.5 per cent by 2005”.

Did we achieve the targets?

Malaysian economic growth measured in terms of gross domestic product (based on 1987 constant prices) for the period of 2001 to 2005 is as follows:

2001

2002

2002

2003

2004 (e)

2005 (p)

Simple Average
2001 – 2005

GDP (RM b)

210.6

211.2

220.4

232.5

249.3

262.3

235.1

Growth (%)

–

0.3

4.3

5.5

7.2

5.2

4.5

The statistics should be alarming to all Malaysians. In spite of the massive pump priming between the period of 2003 to 2007 (of which significant portion of the amount was spent in 2003 to 2005), Barisan Nasional failed to achieve its most important target of the 8MP.

Not only did the average growth for the period fall remarkably short of the 7.5% target (simple average of 4.5%), Barisan Nasional also failed to achieve the 7.5% target in any single year of the entire period.

For 9MP, since the overall GDP growth target of 6.0% on average was only achieved (or exceeded) in 2007, Malaysia is bound to fail to meet that target set throughout the 2006 – 2010 period.

In the case of NEM, Barisan Nasional sets a growth target of 6.5% for the period of 2011 to 2020 to achieve the aim of doubling private investment and achieving a national income per capita of USD17,700 by 2020.

At the same time, NEAC has issued a projection of growth of 6.2% for the period of 2011 to 2015. As this is the more likely growth the country will experience, this means Malaysian economy needs to grow by an average of 6.9% for the period of 2016 to 2020.

This is a rather ambitious undertaking considering the trend of growth rates for the last 10 years as well as the continued possibility of global economic and financial shocks that may affect our economy; especially given BN’s poor track record of achieving the growth target in 8MP.

It is not so much the unrealistic economic growth target that worries Pakatan Rakyat. It is the haphazard manner in which economic planning is done; as if the public can be misled continuously by tossing around attractive growth targets that are never achieved.

For poverty eradication, Barisan Nasional unashamedly claimed its success for lowering the overall poverty rate to 3.6% in 2007; totally oblivious to its own target in 8MP to reduce absolute poverty rate to 0.5% by 2005.

This also means that if overall poverty rate still stands at 3.6% in 2007, it remains unclear whether Malaysia can lower the overall poverty rate further to meet the 9MP target of 2.8% by 2010.

In fact, the overall poverty rate had actually climbed by 0.6 percentage point in between 2002 (5.1%) and 2004 (5.7%) – right in the middle of 8MP implementation that had set an absolute poverty target of 0.5%.

The fact that not only the absolute poverty eradication target was missed but overall poverty was increasing throughout the period of the 8MP speaks volume of the failure of Barisan Nasional’s economic planning. Neither were its targets realistic nor did it even come close to achieving some scant progress towards them.

To put things into another perspective, the benchmark income levels used to determine absolute and hardcore poverty are absurdly low. Yet in spite of this, Barisan Nasional has failed to reduce poverty rate.

It is not surprising that the main themes in NEM are recycled and rehashed from previous economic plans stretching from as far back as pre-2000.

The key initiatives of leveraging on research and technology (R&D) to move up the value chain, moving from assembling to innovation for key sectors like electrical and electronics, bringing in knowledge-based economy – have all been mentioned before.

Barisan Nasional has also failed over the last decade to make much head way with these initiatives as well. The fact that they can be re-introduced every few years as if they are new and innovative ideas is a clear indication of how little progress has actually been made in the last decade.

Thus Pakatan Rakyat’s scepticism over these repackaged themes adopted by the NEM with a new set of lofty targets is not without basis. Our concerns are largely shared by the public and business and investor community.

                This entry was posted on Tuesday, 20 April 2010, 4:09 pm and is filed under
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Pakatan Rakyat’s policy statement on New Economic Model (Part 1)

PART I: INTRODUCTION

The question of what direction to steer the Malaysan economy to lift it from its prolonged state of lethargy and decay is one that should command the immediate attention of our government. The decisions that are taken today will have serioues ramifications for the livelihood of future generations.

An all encompassing economic framework designed to dramatically shift the trajectory of our economy should have been given the utmost priority at all level of public and government discourses.

It is therefore deeply troubling that the commendable report prepared by the National Economic Advisory Council (NEAC) was from its onset sullied with partisanship and politicking as the Dewan Rakyat was never consulted during its formulation nor was its content ever presented and deliberated upon even after its launch.

In fact, Tan Sri Nor Mohamed Yakcob, Minister in the Prime Minister’s Department went on record in Parliament on 1 April 2010 to clarify that the New Economic Model as presented in the NEAC Report is not a government document. According to him, it is a proposal by NEAC that shall be considered by the government and it is only a part and parcel of the so-called consultative process being undertaken by the government.

Nevertheless Pakatan Rakyat has reviewed with great detail and vigour the New Economic Model for Malaysia (Part 1) prepared by NEAC; released in conjunction with the launching of New Economic Model (NEM) by Prime Minister on 30 March 2010.

Given the secretive manner in which the document was prepared without bipartisan input we express certain grave concerns.

Firstly, in the absence of a consultative process there are serious doubts expressed by policy makers, economists and business leaders that the government has the political will to implement necessary and painful economic reforms recommended in the NEAC report.

The Minister in charge of the NEM’s formulation’s open declaration that the NEM is not a government document and is only a “suggestion”, implies that the government, despite its bold statements, has not truly committed itself to the bold measures espoused in the NEM.

Given Barisan Nasional’s track record in receiving memoranda and suggestions from various parties to gain short-term support only to turn back on earlier promises when it has achieved its short term political objectives (the most colourful episode was Suqiu’s appeal prior to 10th General Election in 1999), it is imperative that the government clarify to the public its true commitment to economic reform such as those outlined in the NEAC’s Report.

Secondly; the doubts on the political willingness of Barisan Nasional to implement economic reforms will be amplified even further now that the government minister openly implied that the government has not even “owned up” to the content of the report.

Despite the aforementioned needed for a concerted and deliberate attempt to review and revise our national economic strategy, Pakatan Rakayat fears that the NEAC’s report and the launching of the NEM will amount to nothing more than a public relations stunt.

Pakatan Rakyat has consistently maintained our commitment to engage with all political parties on policy matters that are in the national interest. We will offer our feedback and guidance in debating the NEM, present our views to the public with the ultimate objective of ensuring the necessary economic reforms take place. This is crucial to the long term survival of our economy.

                This entry was posted on Tuesday, 20 April 2010, 4:07 pm and is filed under
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Fastest withdrawal of Bill thanks to HS by-election –  proposal to increase traffic compound fines from RM300 to RM1,000 pulled back after 48 hrs

It is an adverse reflection on the mediocrity of the Barisan Nasional Cabinet that the Road Transport (Amendment) Bill tabled in Parliament for first reading on Monday will now be withdrawn after 48 hours because of pressures from the Hulu Selangor by-election on Sunday.

When speaking in Batang Kali last night for the Hulu Selangor by-election campaign of the Pakatan Rakyat candidate, Datuk Zaid Ibrahim, I had spoken specifically to censure the Transport Minister and former MCA President, Datuk Seri Ong Tee Keat, other MCA Ministers and the MCA national leadership, as well as the entire Barisan Nasional Cabinet for tabling an amendment Bill to the Road Transport Act to increase compound fines for traffic offences by more than three-fold from RM300 to RM1,000.

I described this as “the act of a Transport Minister and government which  are completely unconcerned and unsympathetic about the plight of the ordinary people in these difficult times”.

During the ceramah, the crowd in Batang Kali unanimously asked me to speak on their behalf in Parliament to demand that the proposal to increase compound fines for traffic offences from RM300 to RM1,000 should be withdrawn altogether or this would be one reason why the Barisan Nasional should  be taught a lesson on the by-election polling day on Sunday, April 25, 2010.

This morning, the Minister in the Prime Minister’s Department Datuk Seri Mohd Nazri Abdul Aziz announced that the Road Transport (Amendment) Bill will be withdrawn for further revision.

Clearly, the public anger expressed at the Pakatan Rakyat ceramah in Batang Kali last night had reached the ears of the Barisan Nasional leaders and who have now realized that this will cost them dear in the Hulu Selangor by-election if the Road Transport (Amendment) Bill remains in its present form.

This shows the power of public views in a pending by-election which voters must be able to fully take advantage of.

This must go down in history at the speed at which a public grievance is addressed, where it is attended to even before I need to take it up in Parliament the next day!

I welcome this super-speed of the Barisan Nasional to attend to public grievances, which should be the normal practice and not only when it is during a by-election campaign.

Ong Tee Keat, as Transport Minister, must explain why he agreed to increase compound fines for traffic offences by more than three-fold from RM300 to RM1,000 which will be a great oppression of the people.

The other MCA leaders and the MCA national leadership should also explain why they allowed Tee Keat to proceed with such an objectionable amendment to the Road Transport Act.

                This entry was posted on Wednesday, 21 April 2010, 4:29 pm and is filed under
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Datuk Hee? So ‘Hee-larious’!

By
Martin Jalleh

It was an historic occasion for Hee Yit Foong. She was bestowed the honorary title “Datuk” by his Highness the Sultan of Perak, Sultan Azlan Shah, on the occasion of his 82nd birthday.

Hee must have been “hee-elated”. It was the high point of her life after having gone through the depths of great public humiliation and to contend with the hate heaped on her especially by Perakians.

Indeed, she has been hounded and abuses have been hurled on her when she did the hop-step-and-jump political dance. She hopped out of her party, stepped on the people’s will and jumped into the waiting arms of the BN as an “independent”.

During a State Assembly meeting, several DAP lawmakers gave her hell, threw RM1 notes at her and told her to resign as they said she had no honour left for selling her soul and State away!

Some in her Jelapang constituency hung an effigy of her and burnt it in a mock Chinese funeral rite! Others wanted to get their hands on her whose defection from DAP triggered BN’s takeover of Perak.

Hee was hoping that the people would be hoodwinked by her hee-haw over how she was supposedly shunned, smeared, sidelined and “squeezed out of the DAP step-by-step” by its party leaders.

She denied that she had left the party because she was hankering after a state exco seat and huffing and puffing and making a hue and cry over not being given a new Camry!

The DAP called her excuses pure humbug. They had not only groomed her to such great heights in politics but made her the first non-Malay, female and physically-disabled deputy speaker in the country’s history.

In February, Zambry harped about Hee’s “service record” and asked Perakians to give her “a chance to serve” as an assemblywoman. The rakyat of course saw no reason to give heed to the bogus MB!

Alas, the people are humoured by the State’s high recognition of Hee through the Sultan. What did she do to deserve being conferred such a title?  What is the hidden reason for the crowning of this overnight “heeroine” of Zambry’s “State Government”?

Zambry’s hype about Hee’s “service record” does not really hold. Soon after she had hopped over to be independent of the people’s will and vote, she went into hiding in order to save her own hide.

Till today she has holed herself up. Her constituents in Jelapang confirm she is in hibernation. The DAP has formed the Jelapang Service Team (JST) to handle the needs of her constituents.

Further, how has Hee performed in the State Assembly?  Has she contributed significantly to the debates (considering her halting Bahasa Malaysia) and to policy making? The answer is very obvious.

Two highlights of Hee’s contribution do stand out.

First, when she became “hee-sterical” and insisted that she had the power as deputy speaker to chair the Perak state assembly to get Ganesan (illegally) elected as the new speaker in the chaotic sitting.

The other instance was when she flashed a pepper spray at a PR assembly member in the House. She denied doing it but her histrionics in the State Assembly were captured on YouTube!

Surely the public cannot be blamed for its strong hunch that Hee’s datukship has very much to do with her role in helping the BN hijack the Perak State Government.

Hee Yit Foong will remain haunted for the rest of her life for having committed the “hee-nious” crime of betraying the trust of those who voted for the party that she once represented.

As Hee makes hay while the sun shines, it is very clear that she will be history when the next general election comes!

For now the rakyat of Perak has to bear up with the new Datuk’s “hee-pocrisy”!

                This entry was posted on Wednesday, 21 April 2010, 9:34 am and is filed under
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How Pakatan can beat BN at its own game

By
Greg Lopez

In academic circles, Malaysia is categorised as a dysfunctional democracy. In this context, the electoral process is used to legitimate the BN’s authoritarian rule and not as a means to elect a representative government.

Government strictures limit the ability of Malaysians to make an informed decision and opposition parties to compete on equal footing. Despite these limitations, electoral competitions throw surprises as reflected in the third, eighth, tenth and twelfth general elections.

In preparing for the thirteenth general election, it is important to identify the key factors that create these surprising electoral results. The analysis of Malaysia’s history of electoral competition raises several key focal points that Malaysians should be aware.

BN’s 53 year rule has destroyed the concept of “separation of powers”, the hallmark of a health democracy. Hence, Malaysians cannot appeal to an impartial judiciary to interpret the constitution; a police force to impartially enforce the rule of law; a professional civil service that acts in the interest of the nation; or the media to provide a balanced view of the issues.

Any action outside the electoral competition is easily neutralised by the heavy hand of the government. Sporadic actions, such as demonstrations; handing over of petitions/memorandum; initiating legal action or appealing to other legal means; using the alternative media – while important to inform voters – has limited effect in ensuring immediate democratic outcomes.

However a strong result for the opposition sees the ruling party scrambling to win back lost ground by delivering – at least on some of – the demands of the rakyat. Hence, Malaysians must realise the importance of electoral competition in achieving democratic outcomes and participate fully in it.

At the 12th general election, there were approximately 11 million voters on the electoral role but the number of eligible voters (based on age) was approximately 15 million. Hence, any coalition that can register these 4 million Malaysians (approximately 27 percent of total eligible voters) and convince them to support their cause increases their chances at the ballot box significantly.

Secondly, in a typical general election, the average voter turnout is between 70 to 75 percent.

Any coalition that can increase this percentage in voter turnout also improves its chances of winning especially in marginal seats. As example, the Human Rights Party notes that close to 0.5 million Malaysians of Indian heritage are not registered voters. Malaysians of Indian heritage are critical in several marginal seats and can sway the outcome as demonstrated in the 12th general election.

Initiatives such as Voter Get Voter, registration exercise by the Election Commission, political parties and civil society movements are all crucial in ensuring the most number of eligible voters participate in the electoral competition.

BN always formidable

Fifty-three years of chicanery has made BN an expert at manipulating the electoral competition. Such is the sophistication that the international community while voicing concerns over several electoral practises, still endorses Malaysia’s electoral results.

Therefore, the BN should not be taken lightly at all even when it seems that it is weak. Its use of the ‘3M’ (machinery – party and government; money and the media) ensures that it goes into any election with tremendous advantages.

These include granting salary increments for civil servants, generous donations to ethnic, religious and special interest groups, announcement of development projects, government contracts to political warlords and BN friendly captains of industries, assurance and/or concessions to key stakeholders especially the chambers of commerce and cultural rights group.

This process essentially coopts representatives of the various communities and special interests groups -who then deliver the votes to BN.

The mainstream media has traditionally been crucial in spreading misinformation and destroying the credibility of the opposition.

How can this can be stopped as Malaysians aspire to higher principles and not limit themselves to only ‘bread and butter issues’ and reject blatant ‘corrupt’ practises mentioned above and reject the mainstream media outright.

Malapportionment, gerrymandering

A method that the BN has ‘almost’ perfected in ensuring electoral victory is malapportionment and gerrymandering. The table below indicates that although the disparity in popular votes between BN and the opposition is often narrow, it is magnified when it comes to actual number of seats in Parliament – a result of malapportionment and gerrymandering.

On a positive note, the opposition, despite its limitations, have on four different occasions collected more than 45 percent in popular vote suggesting that BN is not invincible. On the negative side, it suggests that the opposition will have to win by at least 60 percent to secure a majority in Parliament.

The opposition can turn the tables on BN if it can make inroads into Sabah and Sarawak and the south of Peninsular Malaysia. Since the 1999 election, BN has increasingly relied on Johor, Sabah and Sarawak to deliver them.

Therefore, two actions are needed. Firstly, it is important to level the playing field before the elections. Here, the works of civil society movements such as Bersih and Mafrel have been crucial. More importantly, forward planning by the opposition parties to limit BN’s abuse of the electoral process is crucial.

Ensuring that Najib does not have the super-majority in Parliament is critical to stop further re-delineating of electoral boundaries to suit BN. Furthermore, highlighting the blatant abuse of power by the Election Commission and rectifying it is also important.

Secondly, Peninsular Malaysians and Sabah and Sarawakians should reach out to each other. The common enemy is not each other but the BN-led Federal government.

Here the excellent work of Saya Anak Bangsa Malaysia and the historical pact between marginalised minorities in Malaysia represented by Hindraf and several indigenous communities of Sabah and Sarawak is critical in fostering a common understanding on the issues affecting Malaysians.

Opposition coalition quality

On four occasions, the opposition parties worked together – either by having a gentlemen’s agreement not to contest each other as in 1969 or more formal alliance as in 1990, 1999 and 2008.

While the stellar performance of the opposition parties in these elections cannot be attributed solely to the electoral pact, it is by no means an important strategy. The Malaysian political terrain is such that no party on its own can expect to do well.

Pakatan Rakyat will have to move beyond a common manifesto and electoral pacts to demonstrate to the electorate that it is indeed a ‘government-in-waiting.’

Secondly, the quality of the members of the opposition coalition will need to be improved. It cannot rely on social activists alone and must be able to attract prominent members of society from different age groups and professions.

This will signal its broad appeal to the general public. Malaysians of high standing should at the same time take a stand and put their names in support of the opposition coalition to break the monopoly that only BN has the support of Malaysia’s elite.

It is therefore critical that Pakatan Rakyat demonstrate to the general public that it is not only capable of administrating the nation but also resolving the key issues facing the nation by having a competent line-up.

If the four focal issues stated above can be addressed, then time specific issues such as economic performance, race and religious issues, quality of life issues, governance etc can be presented within a better framework and reach a wider audience.

Then, it is likely that the BN would be His Majesty’s loyal opposition after the 13th general election.

GREG LOPEZ is a postgraduate scholar at the Crawford School of Economics and Government, Australian National University (ANU).

                This entry was posted on Wednesday, 21 April 2010, 9:41 am and is filed under
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Kit Siang claims beer-bashing is Umno ploy to implicate Najib, Hisham

By
Shazwan Mustafa Kamal
 | The Malaysian Insider

DAP advisor Lim Kit Siang wants Prime Minister Datuk Seri Najib Razak to put an end to “dirty politics” in the Hulu Selangor by-election, claiming that the attacks on PKR candidate Datuk Zaid Ibrahim were part of a ploy to implicate the PM as being a drinker.

The veteran politician told reporters in Parliament that there was an “ulterior motive” behind the unwarranted attack on Zaid, who was a former Umno member, in order to “target” top Umno leaders like Najib as well as Home Minister Datuk Seri Hishammuddin Hussein.

“There are layers of conspiracy and power struggles in Umno.”

“I wonder whether those responsible for these dirty politics, making this unwarranted attack on Zaid Ibrahim have ulterior objectives.”

“Their objective is to attack Najib and Hishammuddin because Hishammuddin is now dragged in, Najib also dragged in. The people behind this attack, are they going for a larger target?” quipped Lim.

The DAP leader stressed that Pakatan Rakyat (PR) had never used the alcohol issue as a campaign strategy, in response to photos of Hishammuddin allegedly consuming alcohol being circulated on the Internet.

“The report of alcohol attack on Zaid, now it has spread to Hishammuddin and the denial from Hishammuddin about the photo on the net, he said its doctored eight years ago..we never touched on it, never used it , why now it’s an issue? It’s all thanks to Umno’s dirty campaign in the Hulu Selangor,” added Lim.

The issue on alcohol consumption has become a campaign attack on Zaid’s character by Umno.

Zaid, however, has admitted to drinking in the past but has promised Hulu Selangor voters that he is now a reformed man.

PAS has thrown its weight behind the PKR candidate, with its president Datuk Seri Abdul Hadi Awang coming out to back Zaid.

Pictures of Umno leaders allegedly consuming alcohol have also surfaced in the past week.

“PM is going to Hulu Selangor on Friday. Is he going to say that he never drank in the past? This is the direction of election strategy that DAP doesn’t want to see in the country.”

“I call on the Prime Minister and the Home Minister to send out clear directives to put an end to dirty politics in Hulu Selangor,” said Lim.

                This entry was posted on Wednesday, 21 April 2010, 3:20 pm and is filed under
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Malaysia has degenerated into a “lebih kurang” nation thanks to four decades of Barisan Nasional “lebih kurang” government

In Tokyo yesterday the Prime Minister Datuk Seri Najib Razak said Malaysia is no more a focused and high-achieving nation.

He said: “In Bahasa Malaysia, we have lebih kurang or more or less; we should be less lebih kurang but more precise.”

Hu Shih, noted Chinese scholar, philosopher and a leading light of the 1919 May Fourth Movement once wrote an article to pinpoint the ills of China which made China “the sick man of Asia”, entitled “The Story of Mr. Lebih Kurang” to explain why China had become a nation of sloths.

Najib has correctly diagnosed the “Lebih Kurang” disease which has afflicted Malaysia turning the country into a “lebih kurang” nation and why Malaysia had slipped from one of the most advanced nations on achievement of Independence in 1957 – second in Asia after Japan – to be caught in a “middle income trap”, left behind by other nations like Singapore, South Korea, Hong Kong and Japan and now at risk in losing out to even more countries like Thailand, Vietnam and even Indonesia.

Malaysia is losing out in international competitiveness, slipping to 24th placing as compared to No. 21 the previous year.

We once had a world-class university ranked among the world’s top 100 countries but have now lost that strategic advantage.

On Transparency International’s annual  Corruption Perception Index, it has been a story of relentless fall from 23rd placing in 1995 to 56th placing in 2009.

We have not been able to retain the nation’s best and brightest brains who could have ensured Malaysia continue as a focused and high-achieving nation – with some two million leaving our shores since New Economic Policy in 1970  because they are not convinced that they have a future in this country of mediocrity and “lebih kurang”.

It is this “lebih kurang” malaise which is the reason for institutions like the judiciary and the civil service losing public confidence and why highways and roof of stadiums collapse, hospitals are paralysed by fungus and sub-standard construction and a whole string of national woes.

If the Competititon Commission Bill is to make any significant contribution to make Malaysia a focused and high-achieving nation, then we must eliminate this “lebih kurang” mentality which has turned Malaysia into “a sick man” in the region.

Malaysia has degenerated into a “lebih kurang” nation thanks to four decades of Barisan Nasional “lebih kurang” government.

May be the only cure is to vote out the Barisan Nasional government in the next general election so that the country can earnestly start on the process of reform and renewal to become again a focused and high-achieving nation.

[
Speech on the Competition Commission Bill in Parliament on Wednesday, 21st April 2010
]

                This entry was posted on Wednesday, 21 April 2010, 2:25 pm and is filed under
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Pakatan Rakyat’s policy statement on New Economic Model (Part 3a)

PART III: SHORTCOMINGS AND CONTRADICTIONS

Originality Is Suspect

The three main thrusts of sustainability, inclusiveness and high income bear striking resemblance to basic tenets enumerated in Pakatan Rakyat’s Malaysian Economic Agenda (MEA).

In fact, the concept of needs-based “affirmative action” (rather than the race-based approach as espoused in the New Ecomomic Policy) that is being touted as a major breakthrough for Barisan Nasional is clearly borrowed from MEA which first proposed the idea in 2006.

The extent of copycat does not stop there. NEM talks extensively about the need to abolish rent seeking culture in order to reinvigorate the economy.

In a speech to a dinner function hosted by Harvard Club of Malaysia on 5 May 2005, former Prime Minister Dato’ Seri Abdullah Ahmad Badawi lamented the widespread culture of rent seeking in practice.

He urged the public to “be willing to develop ourselves and let go of the addictions we have become accustomed to. It is a question of willingness more than a question of ability. It is a question of mentality.”

Unsurprisingly, despite a public declaration of war against rent seeking culture, scandal after scandal tarred the image of Barisan Nasional. In public the BN talks about doing the right thing, in private it continues to condone rent seeking so much so that the issue of “money politics” (the euphemism for rent seeking) becomes a permanent agenda item at Umno’s General Assembly. In the years since the former Prime Minister’s declaration the situation seems to have gone from bad to worse.

Pakatan Rakyat is not at all surprised to see that the same battle-cry of “war against rent seeking” that was once featured prominently in the previous administration; is now recycled and repackaged into NEM.

Pakatan Rakyat is not against the idea of reform – be it in the form of reduced subsidies, more equitable social welfare programs and a fight against corruption.

The fact that these themes and targets are brought forward from one economic plan to another is a proof that the government is not serious in carrying out the necessary reforms.

When three consecutive Prime Ministers from the same party talk about achieving the target that his predecessors failed to deliver, it demonstrates a complete and systemic failure on the part of the government to deliver its promises.

In that perspective, one cannot blame the public if NEM was received with lukewarm response because time and again, Barisan Nasional has the habit of employing public relations tactics to delude the people with grandiose development and growth targets; only to quietly shift the unrealised targets and objectives into the next major economic plan.

Investors’ immediate reaction to NEM was muted. Bursa Malaysia’s Composite Index hardly moved. The market’s response was a big disappointment considering how heavily the NEM had been marketed as the saviour of Malaysia’s economy. :

30 March 2010
 (the day NEM was launched)

31 March 2010
 (immediate response)

Composite Index

1,319.35

1,320.57

% change

–

0.09%

Volume traded

65,188,200

113,073,296

This sentiment is echoed by a majority of market analysts. Instead of overwhelming endorsement, the market was greeted with reviews with headings such as “New Economic Model: No Big Surprises, Awaiting Further Details” that corroborate with Pakatan Rakyat’s own sceptical view of the NEM.

Barisan Nasional must take heed that the public is impatient with the failure to deliver results and the constant repackaging of these failures into new economic planning.

This habit of delayed progress is precisely the reason we are in an untenable economic position today. In spite of the public pronouncements claiming that that NEM is a major departure from the past; in fact the NEM is nothing more than a set of repackaged failures of the earlier policies.

Lack of Political Will

The root cause of the failures to achieve the goals of consecutive economic plans lies in the utter lack of political will and seriousness on the part of Barisan Nasional leadership.

Each year, the Auditor General’s Report highlights various examples of mismanagement and misappropriation of public funds at all levels of the government.

While Pakatan Rakyat does not condone corruption or criminal breach of trust in any form or amount, one should understand the psyche of Barisan Nasional-led administration in which the topmost leadership indulges with the worst kind of alleged mismanagement.

When a minister or ADUN or Ahli Parlimen is implicated in scandals to the tune of billions of ringgit (for example the PKFZ scandal which implicates a good many politicians from Barisan Nasional), no punative action is taken, and every effort is made to cover up the scandal. It is not surprising that a lackadaisical attitude towards corruption permeates all the way downwards in the organisation.

Year after year, Auditor’s General Report highlights various mismanagement and recommendations from the lowest to the highest level of government. Among some of the highlights are as follows:

AG Report Year

Media Report

News Heading

Amount (RM)

2008

Utusan Malaysia

“Kerajaan Rugi Hampir 1 Billion” – 19 October 2009

1 billion

2008

The Star

“Extra RM10 million and Three Years To Finish Hospital” – 20 October 2009

10 million

2008

NST

“Paying RM28,500 More Than What It’s Worth” – 21 October 2009

28,500

2006

Daily Express

“Defence Ministry Bought RM6.75 Billion of Defective, Non-delivered Petrol Boats” – 14 September 2007

6.75 billion

2006

The Star

“Chief Secretary to the Government Promises Action Against Those Implicated in AG’s Report” – 12 October 2007 on National Youth Skills Institute (under the Youth and Sports Ministry) project where a car jack that cost RM50 was bought for RM5,700, a digital camera that cost RM2,990 was bought for RM8,254 and RM1,146 was paid for a set of technical pens with a market price of RM160.

8.39 million

2006

The Star

“Chief Secretary to the Government Promises Action Against Those Implicated in AG’s Report” – 12 October 2007 on the purchase of two helicopters worth RM117.75 million by the police air wing, which could not be used, as they did not meet specifications. Another RM15.4mil was spent to train pilots to fly these helicopters.

133.15 million

The findings are not a discovery for the majority of Malaysians as this culture has been accepted as being very prevalent. What surprised the nation was the extent of the losses suffered by the country due to such mismanagement and misappropriation – The Star estimated that the country lost up to RM28 billion due to the practice of direct negotiations; estimated from Auditor General’s Report 2008.

These are proofs of the sheer lack of political will on the part of Barisan Nasional leadership as each year the Auditor General’s Report continues to highlight misappropriation of epic proportion. Yet the good work of the National Audit Department as if had fallen on deaf ears and had become an annual ritual for Barisan Nasional to rubbish its findings year after year.

It is from this perspective that Pakatan Rakyat believes that NEM will not progress beyond the initial media galore. The kind of economic reforms required to ensure the success of NEM will be all encompassing and touch the backbone of the rent seeking culture prevalent especially in Barisan Nasional – so much so that Prime Minister himself admitted publicly that “his head is on a chopping block” as he proposes these reforms.

However, YAB Dato’ Seri Najib Tun Razak must come clean with the nation on his detailed plan to demonstrate his political will in pushing for reforms. The act of demonstrating moderation and openness to reforms only when he is abroad and facing foreign journalists whilst allowing quarters related to Umno to contradict every reform that his government has pledged to do; will not win him much confidence from the public and international observers.

On that basis, NEM started on a wrong footing. Prior to its unveiling, Barisan Nasional’s political goodwill to push for reforms came under serious doubt when it entertained pressures from known right wing groups such as Perkasa.

Now that Minister in the Prime Minister’s Department himself openly declared that the NEM document is a mere suggestion to the government, the public should not put too much hope that the major reforms will see the light of the day as the jostling for the status quo to remain is taking place behind the closed doors even as the country digests NEM page by page.

In the end, NEM will meet with the similar fate of its predecessors. Malaysia is never short of economic plans and grand planning – what was lacking was the political will to implement it.

Without such political will, even plans of lesser ambitions such as the 8MP had been a failure – let alone such an ambitious design to remake our economic landscape.

Pakatan Rakyat’s verdict is simple – Barisan Nasional’s leadership must convince the public of its seriousness and political will first before NEM can be accepted as the right direction for the country to take economically.

                This entry was posted on Wednesday, 21 April 2010, 3:00 am and is filed under
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Pakatan Rakyat’s policy statement on New Economic Model (Part 3b)

Contradictions

Having reviewed the NEM in details, what is most damaging to NEM does not even form any part of NEM or the documents published by NEAC.

In the end, the public shall judge Barisan Nasional by its actions – past and present; to determine the level of seriousness and political will. In this department, Barisan Nasional’s contradictory decisions and actions prior to and in the immediate instance of unveiling of NEM shall prove to be the most fatal blow to NEM.

Rent Seeking

YAB Dato’ Seri Najib Tun Razak has openly admitted that out of RM54 billion of equity allocated to Bumiputra, only RM2 billion remains due to immediate and large sell down of Bumiputra shares in the capital market.

Embarrassingly, he went on to admit that “those who received bumiputra shares were not ordinary folk but mainly influential people ‘who sat in the front rows at functions such as Tan Sris and Datuk Sris”.

It is an open secret that the majority of these shares were allocated to individuals connected to the ruling elite who went on to amass massive wealth.

In spite of the open admission, it has been almost a year since the disclosure yet there has not been any serious steps taken to get to the bottom of the problem. Barisan Nasional government has not even attempted to announce to the public the individuals or parties involved with such a massive amount.

The least that the government could have done is to publish the major recipients so as to send a signal of its seriousness to purge the rent seeking culture prevalent in its ranks.

The other example of pure rhetoric on the part of Barisan Nasional when it comes to purging the rent seeking culture is its handling of the much delayed National Cancer Institute.

On 9th January 2007, the then Prime Minister YAB Dato’ Seri Abdullah Ahmad Badawi completed the ground breaking ceremony for National Cancer Institute in Putrajaya.

Various news reports21 indicated that the centre would cost RM340 million and should be completed within 30 months from the ground breaking ceremony (expected June 2009).

The institute was also included as a project under the 9th Malaysian Plan22 and was reported extensively as a key government initiative to combat cancer.

In an answer to a question in Dewan Rakyat on 10th March 200923, the then Deputy Minister of Health, YB Datuk Dr Abdul Latiff Ahmad informed the Parliament that the government is “in the final stage to build the National Cancer Institute at a cost of RM700 million”.

24 months after the project was announced and included in 9MP, the cost has escalated by 100%.

The cost escalation can be explained by the nature of the parties involved in the project.

Pakatan Rakyat can disclose that the project was allegedly awarded by direct negotiation to a company called Kiara Teratai Sdn Bhd whose directors and shareholders are one Ahmad Zaed bin Saleh Hamdi dan Hashim Hasan.

A search on the two individuals show various filings at Bursa on transactions related to MMC and Tradewinds, two companies associated with Tan Sri Syed Mokhtar al-Bukhary. Both individuals are considered individuals connected to Tan Sri Syed Mokhtar al-Bukhary.

Kiara Teratai Sdn Bhd’s financial statements ended 30 June 2009 confirmed that the company has received a letter of intent dated 5 January 2008 from the Government to design and build an institution for cancer.

A similar check on IJM’s market report indicated that IJM was expected to be awarded a contract to build a local, specialised hospital job for a price of RM700 million.

Connecting the dots, we can summarise the following:

The project was initially estimated at RM340 million and included at that price in 9MP;

The government then awarded the tender to a connected company named Kiara Teratai Sdn Bhd, fronted by individuals connected to Tan Sri Syed Mokhtar al-Bukhary (via a letter of intent dated 5 January 2008);

Kiara Teratai is expected to appoint IJM as a subcontractor to build the hospital at RM700 million; twice the cost estimate in 2007;

The price tag of RM700 million has been announced in Parliament by the Deputy Minister, in complete ignorance of the initial estimate of RM340 million; and

The project is delayed as completion was expected by June 2009. So far, in March 2009 – the government is only talking of “finalising” the construction.

These are only two examples taking place in our midst, despite government’s avowed mission to combat rent seeking culture.

Just as the Prime Minister and his economic advisors drafted the NEM, connected parties continue to benefit from rent seeking at the expense of the public.

                This entry was posted on Wednesday, 21 April 2010, 4:00 am and is filed under
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Pakatan Rakyat’s policy statement on New Economic Model (Part 3c)

Removing Subsidy

The double standard on the issue of subsidy removal is glaring.

Pakatan Rakyat has maintained that the issue of subsidy removal must be approached holistically. It is morally wrong to take back assistance to the people (in the form of lower petrol prices) in the name of subsidy removal – yet the huge financial incentives and soft loans to big corporations such as Independent Power Producers (IPPs), water concessionaires and toll operators are maintained in the name of “sanctity of legal agreements”.

While the Federal Government continues to dilly dally with water restructuring in Selangor to return the utility back to the public and to ensure minimal tariff in the future; it also provided Syabas with a RM320.8 million 20-year back-loaded and interest free loan.

The issue of exorbitant profits made by IPPs is well known and has become a national topic. PETRONAS has suffered a bill of RM97 billion cumulatively up to 31 March 2009 in gas subsidies; mostly to IPPs. Despite continuous public pressure, Barisan Nasional has not had the courage nor willingness to restructure IPPs given the burden to the national coffers in terms of gas subsidy that could have been used elsewhere.

In between 2003 and 2008, the public has paid RM2.84 billion in gross compensation to PLUS even when the existing toll rates were generally accepted as burdensome to the public. At the same time, for the financial year ended 31 December 2009, PLUS recorded an even higher net profit of RM1.19 billion compared to a previous year’s profit of RM1.08 billion.

The refusal of the government to restructure the toll concessions – either by way of renegotiation or complete take over to allow for more equitable review of the profit percentage to the new toll operator – outlines the double standard and different treatment by Barisan Nasional when it comes to the public.

To the public, it forges ahead with the agenda of subsidy removal in the name of new economic model. To the big corporations, it allows inefficiencies and massive profit hoarding in complete opposite to the need to promote competition and transparency.

Pakatan Rakyat’s view on subsidy removal has been consistent and well received by the public.

The review and restructuring of one-sided agreements and concessions of public utilities (such as water, electricity and highways) is a major thrust of the review of subsidy system in itself – only by ensuring an equitable profit to operators and reasonable cost to the public; can the government continue with the next step of subsidy removal.

In this manner, while the public will bear the higher petrol price, they will also benefit from lower costs of living arising from the restructuring of the utilities sector in the country.

But such is the contradiction of NEM – it preaches economic liberalisation and competition to the poor; but is silent on removing protection and monopoly of the rich.

Government’s withdrawal from business

Prime Minister YAB Dato’ Seri Najib Tun Razak announced that Khazanah and EPF will lower its equity holdings of government-linked companies listed at Bursa. This was followed by an announcement of Khazanah’s divestment of its 32% holding in Pos Malaysia.

On the other hand, EPF is expected to take direct interest in business and increase its overseas investment which currently stands at 6% of overall portfolios.

If anything, the decisions on EPF and Khazanah are proofs of inconsistency and flip-flopping nature of decision making in Putrajaya.

The move to encourage EPF to take direct interest in business is not much different from Khazanah making investments in unlisted/listed companies. On top of this, in March last year the government had also announced the setting up of Ekuinas (which until today is not much heard of).

As it is, there are three government backed agencies or corporations involved actively in taking stakes/interest in companies – Khazanah, Ekuinas and now joined by EPF; even if we were to exclude the involvement of PNB.

The message sent by the government is mixed – there seems to be a lack of coherence in coordinating the roles played by these agencies.

A policy that encourages a divestment by one agency only to allow the other agency to increase its participation brings no real change to the status quo.

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Pakatan Rakyat’s policy statement on New Economic Model (Part 3d)

The inherent lack of transparency

The market greeted government’s move to dispose its assets and develops some parcels of lands to spur economic activities with some excitement. One of the first projects announced was the development of government lands in Sungai Buloh for a gross development value of RM5 billion to be jointly developed by government and EPF.

Unfortunately, the positive response was short-lived as news soon circulated that MRCB was expected to be appointed as the contractor for the project; prompting allegations of insider trading.

Whatever optimism there was with regards to the planned disposal of government assets died instantaneously and marred the unveiling of NEM.

The basic issue of transparency did not receive adequate attention and priority in NEM when it is one of the biggest ills of our economy.

While NEM claims to promote openness to spur competition, it was rather muted on issues that are considered sensitive to the ruling elite – that of corruption, transparency and accountability.

This major contradiction will become a major impediment in the implementation of NEM; as the public and market will remain sceptical of the seriousness of economic reforms to be carried out by Barisan Nasional – when one of the prerequisites of such reforms i.e. transparency is glaringly ignored.

Discrimination by race and political affiliation

NEM dwells considerably on efforts to provide assistance to the bottom 40% of our society in what it calls a “need-based” affirmative action.

While the shift from race-based assistance to an approach based on needs is welcomed, Barisan Nasional is also notorious with another kind of discrimination that has been practised over the past decades i.e. affiliation-based discrimination.

The discrimination against non-Barisan Nasional supporters is so rampant over the years that such discrimination; especially in relation to disbursement of government financial assistance to the needy groups has been accepted as a norm.

A good example of such a flagrant abuse of public fund to discriminate non-Barisan Nasional supporters is the administration of Tekun Nasional, a RM700 million fund intended to provide soft loans to needy groups to start an enterprise.

Applicants are required to fill up a form which contains a special section for endorsement of wakil rakyat (Section G). It has been documented that Tekun Nasional only accepts forms endorsed by Barisan Nasional’s wakil rakyat which automatically excludes non-Barisan Nasional supporters.

Since 2000, the RM700 million that Barisan Nasional claimed to have disbursed goes mostly to Barisan Nasional supporters and this act of discrimination has become an ill that most Malaysians simply live with.

Unless there is a complete overhaul of the distribution and administration system to disburse the assistance to the needy 40% of our society, an additional financial allocation over and above the existing funds allocated to Tekun Nasional will create more Umno local warlords who do not think twice to discriminate non-Barisan Nasional supporters.

In this environment and administrative set up, instead of alleviating the standard of living of the society’s poor, the allocation will breed more corruption and skew the financial resources to only certain sections of the society.

It is thus not surprising that in spite of massive financial allocations over the years, we have missed our poverty eradication target year after year.

What is needed urgently goes beyond numerical allocation of financial resources. Malaysia urgently needs to eliminate discrimination in whatever forms – including discrimination based on political affiliation.

Until this is achieved, Barisan Nasional’s promise in NEM to focus on the bottom 40% of the society will ring hollow as the effort will be sabotaged by its own local warlords.

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                This entry was posted on Wednesday, 21 April 2010, 6:00 am and is filed under
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Pakatan Rakyat’s policy statement on New Economic Model (Part 4a)

PART IV: PAKATAN RAKYAT’S “ACID TEST” TO BARISAN NASIONAL

Pakatan Rakyat takes a very strong view on the need to have a strong political will to carry out economic reforms promptly and extensively.

The biggest challenge for Barisan Nasional is to prove that NEM (despite all the contradictions and gaffs already committed by Barisan Nasional leaders) is genuine and not a part of the continuous public relations gimmick, presumably developed by APCO Worldwide.

Therefore, the government needs to immediately response to the lukewarm reception of the market and public by demonstrating early political will to implement certain key economic reforms; failure of which will only confirm the prevailing sentiment that NEM is nothing more than repackaged past failures presented as a public relations campaign.

Pakatan Rakyat hereby outlines four key acid tests for Barisan Nasional that could and should be implemented immediately if it is serious in pushing economic reforms.

If Pakatan Rakyat is the government of the day, these four key economic reforms shall become a top priority as they bring about an immediate relief to the public as well as having a big impact in spurring economic growth.

Restructuring of four public utilities

There are four areas of public utilities that have been bogged down and tainted with criticisms for the burden they impose on the economy and the public.

These are electricity generation involving IPPs, water concessions, toll concessions and provision of broadband services.

Pakatan Rakyat views these four public utilities as key utilities that are vital to resuscitate the economy in two prongs.

Firstly, the provision of cheap and reliable utilities is key to lessening the burden of the public who have to pay premium while the concessionaires continue to make obscene profits at the expense of the public.

Only with the restructuring of these key utilities, the household expenditure can be reduced substantially thus allowing for other equally important reforms such as the removal of the petrol subsidy. One without the other is akin to the eyes without the ear.

Secondly, the availability of cheap and reliable utilities is a catalyst for industry to become competitive. The cost structure of our manufacturing and services sectors is very dependent on these four key utilities.

The status quo means an inherent high cost structure for the utility costs that the industry cannot control – hence why many enterprises resort to cheap foreign labours as a mean to lower down the cost structure.

In the case of broadband services (in particular high speed broadband), the country is desperate for cheap and reliable high speed broadband in order to drastically increase the internet penetration rate. The latter is crucial to widen the net so that more people can benefit directly from the vast opportunities presented by the internet and is a key prerequisite in any knowledge- and innovation-based economy.

Pakatan Rakyat has been consistent that the lopsided agreements with the toll and water concessionaires must be reviewed immediately to provide the relief to the people.

We are even willing to go one step further to take over the toll and water concessions by restructuring and consolidating the concessions so that the assets are returned to the government. Thereafter, a new concession agreement can be entered to avoid unnecessary escalation of cost to the public by ensuring an equitable and reasonable operating profit to the new concessionaires.

On gas subsidy to IPPs, Pakatan Rakyat feels that the allocation of gas subsidy to tune of billions of ringgit each year is wasteful and is counter-productive (if the intention is to provide subsidy to the public).

Most importantly, it is an open secret that the number of IPPs currently exceeds the demand for electricity in Malaysia.

Pakatan Rakyat is shocked with the revelation that “following the full commencement of the 1,400MW Jimah coal-fired power plant in July last year, the country’s power reserve margin rose to 66% in FY09”.

A reserve margin of 66% can possibly amount to one of the highest reserve margin in the world, considering that even developed countries like Australia has a common reserve margin of 25% (which is normally accepted as a reasonable reserve margin globally).

Pakatan Rakyat most certainly will conduct a holistic review of the power industry in Malaysia to ensure the right balance between demands and supply. A review of the business model of IPPs is necessary to ensure the billions of ringgit in gas subsidy borne by PETRONAS each year are allocated wisely to the area with most significant economic impact.

Finally on the broadband, while we acknowledge the huge investment commitment on the part of TM in providing the backbone infrastructure, we are of the opinion that the owner of the backbone infrastructure should not be in the business of providing the services to the end users.

Pakatan Rakyat advocates liberalisation of the internet service providers (ISPs) industry to allow for competition while the owner of the backbone infrastructure concentrates on ensuring a reliable internet infrastructure for the country.

Philosophically, this is in line with the current trend of managing public utilities where the aspect of assets maintenance and investment is separated from the distribution/services portion.

The capital-intensive assets maintenance and investment should be entrusted to a government-backed body as the availability and reliability of such key public utilities is the responsibility of the government; while service providers lease the assets to compete in bringing the best and cheapest services to the end users.

We feel this model will bring in more healthy competition and liberate Malaysia from the never ending debate on low internet service and penetration.

These four areas of public utilities exemplify the approach that Pakatan Rakyat would have taken if it is in Putrajaya because it can be implemented immediately with sufficient political will.

If Barisan Nasional is serious about economic reforms, the restructuring of key utilities as suggested here should be a test case for the public to gauge its openness to reform. Only then the public can take comfort that NEM will see the light of the day.

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                This entry was posted on Wednesday, 21 April 2010, 7:00 am and is filed under
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Pakatan Rakyat’s policy statement on New Economic Model (Part 4b)

Introduction of minimum wage

NEM sets a rather ambitious target to achieve income per capita of USD17,700 by 2020.

2020 is less than 10 years away and if going by the non-correlation of economic planning and results achievement of the past decade, it is necessary for any economists to take a more prudent view of the country’s economy for the next 10 years.

While NEM has been touted as the a game-changing economic document that will propel the country to the status of developed nation, surprisingly the measures suggested to improve personal income is not at all game-changing.

The same vague and conceptual measures of upgrading the skills, bringing in technology through R&D and going for high value services have been suggested and included as targets since 2000 in 8MP.

Clearly, the measures did not bring results as expected (more so because they were not implemented seriously as there was hardly any reform in important institutions in the country).

Therefore, Pakatan Rakyat feels the country must move beyond the usual rhetoric of up-skilling and upgrading while the government continuously allow a huge number of cheap foreign labours to be brought into the economy.

On this point, it is high time that Malaysia considers the introduction of minimum wage seriously.

Pakatan Rakyat calls upon the government to take the necessary steps to bring the country closer to the introduction of minimum wage. This should begin with thorough public discourses on the pros and cons of minimum wage to the country in a non-partisan manner to ensure the public is aware of the concept of minimum wage.

The introduction of minimum wage is expected to cause a one-off alignment in the pay structure across the board – all levels of employment and across the industry.

For the industry, it provides the urgency to automate and reduce reliance on foreign workers. Pakatan Rakyat will also review the incentives currently in place for automation in the form of reinvestment allowance as this does not necessarily encourage small and medium enterprises (SMEs) to invest to automate.

One suggestion is to divert the financial incentives from the current form of relief against future profits to a capital reinvestment fund to assist SMEs invest for automation. This way, the industry is provided with the carrot and stick measures to upgrade and automate.

The imposition of minimum wage is also expected to cause a restructuring of the industry when low cost and labour intensive industry will have to re-look at the cost structure to remain competitive.

Learning from other countries’ experience, this can lead to a re-composition of the industry whereby the industry automatically moves to higher value chain while out-sourcing or relocating the low cost and labour intensive work elsewhere.

Pakatan Rakyat acknowledges that these suggestions are anathemas to some quarters but the country requires a radical shift in order to upgrade our income level.

The least that Barisan Nasional can do is to allow and encourage healthy public discourses in non-partisan manner on these topics, so that the public is enlightened and the country can together opt for the best policy route to achieve high income by 2020.

Support for young families

One of the greatest omissions in NEM is on support for young families and young people.

72% (or 20.14 million people) out of the total of 27.73 million people in Malaysia are below 40 years old. 41% (or 11.47 million people) are in fact below 20 years old. If NEM were to have a direct impact on the country, it must sufficiently address the concerns and financial woes of the majority of the citizens i.e. the young people.

Unfortunately, NEM is conspicuously silent on any radical measures to assist young people, especially those who are entering the workforce.

A rough calculation will show that young people who enter workforce in today’s Malaysia face continuous indebtedness (either by way of credit card or personal loans) to supplement insufficient income to cover high cost of living.

This issue has been deliberated at length – the fact that income does not rise in tandem with cost of living over the years imposes significant financial burdens for the young people.

In this context, Pakatan Rakyat’s insistence on the immediate 2-prong actions to lower down the key components of household expenditure by way of restructuring of key public utilities and the introduction of minimum wage is timely and necessary to relieve the financial burdens of the young people.

Ultimately, the government must review skewed industry or sectors where profits are lopsidedly appropriated to one side by imposing significant costs to the public. One such sector is the automotive industry and the inter-relation with the lack of viable public transportation in the country.

Car instalment forms a significant portion of household expenditure for young workers. A review of the make-up of automotive industry is also key if the government were to substantially reduce the household expenditure for young workers whilst waiting for the long delayed efforts to put together a viable public transportation comes to fruition.

Pakatan Rakyat is also committed to reviewing the personal income tax structure to differentiate between extremely high earners with middle class and low income earners.

In Budget Speech 2009, YB Dato’ Seri Anwar Ibrahim mooted the idea that the highest income tax bracket should be reviewed as the current highest bracket does not differentiate between middle class and extremely high earners. The additional tax revenue from such review can be considered to be re-diverted to the young people by way of higher income tax reliefs.

These are but a few measures that could have been implemented immediately to assist the young people; if only Barisan Nasional moves beyond political rhetoric and public relations campaign in managing the economy.

Reforms of key institutions

If support for young family can be considered as one of the greatest omissions in NEM, the greatest omission is undoubtedly the muted response to the chorus for meaningful reforms in key institutions, voiced by various quarters among our citizenry over the years.

Pakatan Rakyat has long established and accepted that corruption is the biggest ill of the economy. Fighting corruption requires the strengthening of key public institutions such as the judiciary, Attorney General’s Chambers, Malaysian Anti Corruption Commission (MACC) and the police force.

There is hardly any mention or concrete proposals to increase the credibility of these institutions. This will become the very undoing of NEM in the future – the failure to accept and provide remedy to the biggest ill of our economy.

Without commitments for reform of these institutions, NEM will have limited effect to change the way business transactions are carried out or the government’s approach in its procurement exercise.

As these two changes are vital to re-landscape our economy, without them NEM will be rendered useless and ineffective.

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                This entry was posted on Wednesday, 21 April 2010, 8:00 am and is filed under
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Pakatan Rakyat’s policy statement on New Economic Model (Part 5)

PART V: CONCLUSION

In the end, NEM is nothing more than a cocktail of reincarnation of Barisan Nasional’s previously failed economic planning mixed with plagiarised concepts and ideas from Pakatan Rakyat.

If anything, NEM strengthens the belief that Prime Minister YAB Dato’ Seri Najib Tun Razak’s administration is obsessed with public relations so much so that even the most important economic document for the country is littered with public relations stunts – high targets albeit unrealistic, big words, lacking in details and political will.

But no doubt this will be spun by the public relations coordinators in Putrajaya to create some excitement and provide the feeling that the economy is heading in the right direction.

Pakatan Rakyat believes that the proofs provided in this document are sufficient to expose this public relations stunt. If Barisan Nasional is serious about re-making our economy and bringing it to a new era, it must respond to the four acid tests outlined by Pakatan Rakyat in this document.

Finally, Pakatan Rakyat reiterates that meaningful and holistic reforms must come first before any other fancy economic plans are brought into the picture as these reforms will strengthen the foundation of our economy. Only with strong foundation can we eliminate corruption and liberate the economy to adjust to whatever economic model we intend to introduce.

Therefore, Pakatan Rakyat calls fellow Malaysians not to be distracted by the NEM public relations play and focus our efforts on forcing the government to implement immediate reforms (outlined as four acid tests in this document) presented herewith.

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                This entry was posted on Wednesday, 21 April 2010, 9:00 am and is filed under
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