When Did NEP Became Non-racial?
Since NEP was implemented, it has always been a racial issue, in fact, it is the biggest racial issue that is causing the growing rift in our society. It is also the root cause of the division of our nation along racial lines even after half a decade of achieving independence. Not only did NEP fail in its objective, it cultivated generations of people who live on hand-outs by the government instead of earning through hard work.
What are the various excuses of justifying the rebirth of NEP?
- Malays are not competing on a level playing field. If you look at education and the issue of strengthening national schools, there is nothing racial about it.
- agenda - covering ownership of land, housing, business premises and intellectual property - is aimed at increasing bumiputera share ownership of 30 percent by 2020
- NEP must be clearly revived and outlined in detail under the Ninth Malaysia Plan (9MP), so that its implementation and target of achieving the Malay Agenda could be monitored and its success assessed from time to time
Throughout all the justifications made at the annual gathering in UMNO building, we see nothing but the same old chant of the "Malay Agenda". As I recalled, the NEP is supposed to benefit all bumiputras including the bumiputras in Sabah and Sarawak, not to mention the poor orang asli (who are the real bumiputras of the land).
If this is not racial, then what is?
UMNO Youth has transformed the original aim of NEP to help all bumiputras in the country to only help the Malays (namely selected UMNO members only). Furthermore, they have the nerve of saying that this is not a racial issue.
On one hand, Najib is asking the Malays to be "glocal" and stop depending on their crutches on his opening speech for UMNO Youth meeting. On the other hand, the UMNO Youth leaders are urging the government to provide more wheel chairs to the Malays so that they can grab hold of 30% of everything (if they had not already done so).
Looking at these scenarios, I sincerely pity the Malays in terms of their future prospect in view of AFTA and globalization. From what I can see, the current leadership understands the need of forgoing the subsidise mentality in order to bring the already lagging Malays to greater heights. However, the younger minds are thinking otherwise. Maybe is a good thing that those aged leaders continue to hold on to their post in the government, or else, we will have a bunch of idiots rising up to the helm with nothing but a crave for wealth and power through discriminatory policies.
I am also particularly disappointed in various speeches and interviews given by the Youth chief. He said "there was a small group of narrow-minded people who opposed the wing’s aspiration to put forward the Malay agenda" and "It was not we who are narrow-minded but these small groups of people who have such a mindset". He also pointed out the failure of his own ministry in the government when he complained about students who are currently studying in schools that do not have water and electricity supply for not able to compete with students from Smart schools, with the best teachers and facilities.
I would like to ask Hishammuddin, who are the ones that came out with the idea of Smart school in the first place? Why are funds not provided for supplying water and electricity supply to all schools? Why is there discrimination between schools that are situated in urban areas and those which are not? Isn't it in line with our country's education philosophy to provide equal education to everyone? Why the bias to city schools? Is this part of NEP as well? I think his grandfather must be turning in his grave after all his hard work of uniting every race under the same roof.
With regards to the hotly debated AP system, some delegate suggested giving 25 APs to each of the division leaders in UMNO. Such arrogance I must say! When did AP became UMNO property? The AP system is part of the government which is formed by everyone in the country. Although its aim was to help the Malays to enter the automotive industry, there is still more than half of the country's Malays which is not part of UMNO who are honest individual like you and me, working their ass off to make a living in our country.
On one hand, the government is hitting hard at those so-called rent seekers who tend to sell off their AP to get fast profit. On another hand, idiots are calling to distribute the APs in small quantities to a larger group of beneficiaries. Where is the logic in that? How many people you do think can come up with a show room for foreign and luxury cars? How many people do you think have the capital to secure franchise agreements with foreign car manufacturers like Honda, Toyota, Kia etc.? By giving the suggested 25 APs to a particular person (read UMNO member), the government is encouraging the AP receiver to sell their AP to companies who own the franchise agreement. Isn't that rent-seeking in its purest form?
Speaking about crossing ranks, what about Hishammuddin's brave act of belittling other BN leaders such as Ong Ka Ting and Lim Keng Yaik? He should be reminded that he is a Youth wing chief, and not a party chief like Abdullah. Who does he think he is when he say he is prepared to meet Ong Ka Ting to discuss about the NEP? Isn't that up to the UMNO chief to discuss with the MCA chief? Isn't Hishammuddin crossing ranks in this instance? He should be discussing the matter with Ong Tee Kiat and other youth chief instead before he even make public his views on reviving NEP. Isn't that the spirit of Barisan Nasional? Or the spirit doesn't apply to UMNO as they have a bigger representation in the BN fold?
Such a sad week indeed for Malaysians !!

5 Typical Response:
WELL SAID - BRAVO!
TUNPERAK
By
Anonymous, at Monday, July 25, 2005 12:40:00 PM
This is a good post: ALL the good questions that I want ANSWERS to.
By
Anonymous, at Monday, July 25, 2005 12:48:00 PM
Surely they know that gaining a 30% share in the economic pie is not as simple as introducing the NEP. The Malays need to improve on a lot of things such education, mentality, work rate, and networking (as highlighted in Raja Petra's story at www.malaysia-today.net).
On top of that they also need the support of the other communities (who apprently still control a big chunk of the economy) to make the NEP work? How would they expect support from the other communities when there is no meritrocacy, or equality especially when it comes to quality education?
By
GenericLife, at Monday, July 25, 2005 2:45:00 PM
The late Tan Siew Sin warned Tunku Abdul Rahman that the Malays would never catch up if the NEP was implemented.
Its sad to see he is right and will always be right.
By
Bigjoe99, at Monday, July 25, 2005 5:18:00 PM
Aug 6, 2005
> Reviving NEP, Umno's race card, again?
> By Andy Ho
> Senior Writer
>
> IN RECENT weeks, some in Malaysia's ruling party,
> Umno, have been urging that the New Economic Policy
> (NEP) be revived. This was a programme of special
> privileges and quantitative set-asides for Malays
> instituted after racial riots in 1969 sparked by
> Malay
> resentment of Chinese economic success.
> THE POLITICS BEHIND NEP: Why is Mr Khairy urging
> that
> the NEP be revived? Playing the race card may cement
> one's rising popularity. -- THE STAR
>
>
> Reviving NEP, Umno's race card, again?
>
> Running from 1971 to 1990, the NEP was to, above
> all,
> raise the 2.4 per cent share of corporate equity
> that
> Malays held in 1971 to 30 per cent by 1990. Umno
> activists now want the NEP revived as they feel the
> 30
> per cent was never achieved.
>
> Last week, in a nationally televised debate with Mr
> Khairy Jamaluddin, Umno's rising star, Malaysia's
> previous health minister Chua Jui Meng (who is now
> out
> of office) questioned the accuracy of Umno's data.
> The
> Chinese politician - who is contesting this month
> for
> the presidency of the Malaysian Chinese Association
> (MCA), the country's largest Chinese party and
> Umno's
> senior partner in the Barisan Nasional coalition -
> called his bluff: Datuk Chua said that when he spoke
> in parliament in 1988, he had referred to a 1983
> economic report that Malays 'owned 18.7 per cent of
> corporate equity'. How could it have stayed exactly
> unchanged at 18.7 per cent 22 years on, as Umno was
> claiming, he asked.
>
> Datuk Chua, giving voice to ethnic Chinese worries,
> was clearly in campaign mode: Winning the MCA
> presidency would catapult him back into the Cabinet.
> However, Mr Khairy, the articulate 29-year-old
> son-in-law of Prime Minister Abdullah Ahmad Badawi,
> declined to address the 61-year-old's contention
> directly.
>
> Why? Perhaps because the reality is that the 30 per
> cent target has long been reached.
>
> According to Dr Paul Chan Tuck Hoong of the
> University
> of Malaya in Kuala Lumpur, and Mr Kenzo Horii of the
> Institute of Developing Economies (IDE) in the Japan
> External Trade Organisation (Jetro), Tokyo, in 1984,
> the Malays were already holding 31.18 per cent of
> the
> Kuala Lumpur Stock Exchange's total capitalisation.
> Of
> all 215 firms listed on the KLSE then, Malays were
> estimated to control 90 - or 42 per cent - of them.
>
> In their 305-page IDE monograph published in 1986
> called Impact Of The NEP On The Malaysian Economy -
> With Special Reference To Ownership And Control, the
> Malay presence in hotel, properties, finance, palm
> oil
> and mining was noted to be particularly pronounced.
> This ownership was very concentrated, with Malays
> owning more than 40 per cent of each sector.
>
> In December 1988, even at par value, Malay ownership
> was 29.4 per cent, according to data in KLSE's 1989
> Annual Handbook. Putting all this together, the
> claim
> that there remains a serious shortfall in Malay
> share
> - and, correspondingly, that (widely-dispersed)
> ethnic
> Chinese capital still holds the reins - leaves much
> to
> be desired. Yet this is mindlessly repeated in the
> media.
>
> To be sure, the measurement of NEP achievement is no
> exact science, and is made more difficult by the
> lack
> of transparency on socioeconomic data deemed
> sensitive. Still, there are good reasons to believe
> that the NEP benchmark for Malays has likely been
> surpassed.
>
> First, note that the figures - 31.18 per cent at
> market value in 1984 or 29.4 per cent at par value
> in
> 1988 - referred to only listed firms. But there are
> also numerous private limited companies owned by
> trustees for federal and state governments. Since
> 1969, however, official data on equity ownership
> excludes these firms.
>
> Secondly, there are also nominee companies, whose
> true
> ownership is confidential but always officially
> attributed to 'other Malaysians' and foreigners. The
> masking of corporate ownership and control behind a
> wall of nominee companies, trustees and proxies (as
> well as complex share swops, a feature of the
> Malaysian corporate scene) makes unravelling who
> owns
> what very tricky.
>
> But many nominee companies are likely to be Malay: A
> published study of the KLSE's 15 largest listed
> firms
> in 1990 showed that, on painstakingly tracing the
> intricate skeins of ownership and control, their top
> 20 shareholders were indeed nominee companies linked
> to Umno. Significantly, many of these controlled
> more
> than 50 per cent of these listed firms.
>
> By 1990, nominee companies were holding RM4 billion
> worth of stocks, or 2 per cent of the KLSE's
> capitalisation. According to Chandra Muzaffar's 1977
> University of Singapore doctoral thesis on ideas
> about
> Malay rule and Malay society, this kind of
> trusteeship
> is tied up with the Malay concept of loyalty. Since
> the mid-'70s, there has been a strong correlation
> between being a Malay director in a listed company
> and
> having an Umno affiliation.
>
> Malay individuals are appointed as trustees to
> reward
> them for their loyalty to Umno. They continue to
> depend on the government for access to concessions,
> licences, monopoly rights, subsidies, approval for
> corporate takeovers, waivers of statutory
> requirements, and so on.
>
> Finally, as Dr Fong Chan Onn, who is now Malaysia's
> Human Resources Minister, noted in his 1989 book,
> The
> Malaysian Economic Challenge In The 1990s (which,
> incidentally, cites Dr Chan and Mr Horii in detail),
> big blocs of equity like Petronas, the national oil
> company, and Hicom, the national heavy industry
> giant,
> are not included in official data on Malay equity
> too.
>
> These reasons apart, since Malay ownership of wealth
> is concentrated in large corporations, its capacity
> to
> move markets and generate wealth far transcends that
> of ethnic Chinese capital. Despite its still
> substantial share, the latter is dispersed and has
> little control over sectors like finance and primary
> commodities.
>
> Thus, if 52.2 per cent of banking was British-owned
> in
> 1970, when ethnic Chinese still accounted for 24.3
> per
> cent of it, by 1986, eight of the top 10 banks had
> been acquired by Malay interests. This is according
> to
> Dr Heng Pek Koon's 1996 study published in
> South-east
> Asian Studies. In fact, because 70 per cent of
> banking
> was already Malay-owned by 1986, the regulations
> were
> changed to allow banks to acquire equity in non-bank
> corporations to accelerate Malay ownership of the
> corporate sector.
>
> Two main strategies made it possible for Malays to
> control more than a third of Malaysia's corporate
> wealth within 20 years.
>
> First, in the mid-'80s, Umno folded the
> privatisation
> policy into the NEP agenda. Operating without
> conflict-of-interest rules, Umno's control over the
> regulatory agencies and the financial sector
> (including an extra-legal Panel on Takeovers and
> Mergers) enabled it to divest public assets at will.
> Thus the national power company, the national
> airline
> and the national telco could be divested at
> below-market prices to handpicked Malay businessmen
> without open, competitive bidding. These privatised
> entities would then go on to reap huge profits as
> monopolies.
>
> Outside the centrally planned economies of the time,
> Malaysia also had the world's largest programme of
> state-owned enterprises. These, too, were divested
> to
> private individuals and the listed companies they
> headed would go on to become favoured beneficiaries
> of
> huge contracts the government doled out for its many
> mega development projects.
>
> Because these high-profile corporate movers and
> shakers were Malays, they were held out as trustees
> for the Malay race. They included the likes of Tan
> Sri
> Tajudin Ramli, who virtually owned Malaysia Airlines
> at one point, and Tan Sri Halim Saad, who basically
> owned Renong whose money spinner was the tolled
> North-South Highway spanning the length of
> Peninsular
> Malaysia.
>
> However, these conglomerates were built on the back
> of
> complex corporate manoeuvres, rather than solid
> fundamentals and synergies, so they were very
> dependent on KLSE trends. Thus the Asian financial
> crisis of 1997 saw many of them teeter on the brink
> of
> disaster. For this reason, among others, capital
> controls were imposed in September 1998, which
> stabilised the KLSE and saved Umno's empire.
>
> The second strategy was one which enabled some
> corporate wealth to trickle down to other Malays.
> Apart from Umno-linked public and private firms,
> trusteeships and nominee companies, the other bloc
> of
> Malay-held equity was firmly entrenched in PNB
> (Permodalan Nasional Berhad, or the National Equity
> Corporation).
>
> PNB, whose board of directors reports directly to
> the
> prime minister, is technically the operating arm of
> Yayasan Pelaburan Bumiputera (or Malay Investment
> Foundation) to which parliament votes huge grants
> and
> no-interest loans. Last year, for example, PNB was
> given RM2 billion in this way.
>
> With this war chest at its disposal, PNB assiduously
> invested in blue chips and other instruments to
> acquire strategic stakes in all major sectors of the
> economy. For example, PNB bought up huge plantation
> companies like Guthrie and Sime Darby - and other
> large interests like Dunlop - the British owned
> until
> the 1970s. By 1993, PNB alone controlled sectors
> like
> finance (26 per cent), hotels (26 per cent),
> manufacturing (57 per cent), plantations (50 per
> cent), property (6 per cent), and tin (6 per cent).
>
> The equity was not its to keep, however. Instead,
> its
> most profitable equity was transferred to a
> subsidiary
> called ASN (Amanah Saham Negara, or National Shares
> Trust). This was an open-ended unit trust run with
> no
> management fees and kept no profits but, instead,
> paid
> out all profits as dividends and bonuses.
>
> There were no restrictions on ASN's asset shuffling.
> Poorly performing stocks were given back to PNB. For
> example, in 1986, Bank Bumiputra's Hong Kong
> subsidiary, called BMF, that was saddled with US$1
> billion in bad loans, was handed back to PNB which
> later sold it off to Petronas, flush with oil
> dollars.
>
> How did ASN goodies get to the ordinary Malay?
> Whereas
> one cannot buy into well-performing unit trusts with
> just loose change, ASN equity was sold at RM1 per
> unit
> to adults. Buying and redeeming were done at post
> offices sprinkled throughout the land while a
> passbook
> system offered tangible evidence of their holdings.
>
> Commercial banks were required to set aside
> nominal-interest-rate loans to help Malays buy ASN
> units. Of course, ASN's high dividends - guaranteed
> by
> the government to be at least 10 per cent - and
> generous bonus shares at year's end meant that loan
> repayments were assured. By 1989, some RM2.5 billion
> had been extended in loans to Malay individuals for
> such purchases.
>
> According to ASN's annual reports, by 1990, its unit
> holders had invested a total of RM6.2 billion. (When
> the NEP ended that year, ASN was replaced by a
> clone,
> ASB, which was to last indefinitely.) By 1988,
> according to an Asiaweek report, 67 per cent of all
> Malay equity was owned by individuals, not firms.
>
> Thus, 'although the government originally envisaged
> that much of the (Malay) corporate wealth would be
> held by trust agencies, private individual (Malay)
> ownership has risen from less than a third to over
> 90
> per cent', said former University of Malaya don Jomo
> Sundaram, now a United Nations assistant
> secretary-general on economic development, in a UN
> paper last year.
>
> The bad news is that a small band of Malay
> individuals
> hold most of that equity. In 1988, just 1.3 per cent
> of all ASN investors were holding 75 per cent of its
> 6.2 billion units.
>
> This has stayed unchanged. In Johor, last year, for
> example, state government figures reveal that 32 per
> cent of ASN and ASB investors held only 100-5,000
> units each while a mere 0.3 per cent actually owned
> more than 100,000 units each.
>
> So why is Mr Khairy urging that the NEP be revived?
>
> Last year, for rising up the ranks too fast, he was
> roundly booed when he spoke at Umno's annual general
> assembly. This year, he was received so much better
> he
> could even discuss that heckling in his speech to
> those assembled. Playing the race card may cement
> one's rising popularity.
>
> After all, after Prime Minister Abdullah urged at
> Umno's 2004 assembly that Malays 'not use crutches
> for
> support all the time lest the knees become weak and
> wheelchairs might become necessary', Mr Badruddin
> Amiruldin, who was elected Umno's deputy permanent
> chairman thereafter, then proceeded to wave a book
> about the 1969 race riots during his acceptance
> speech, thundering: 'No other race has the right to
> question our privileges, our religion and our
> leaders.'
>
> Ah.
>
> andyho@sph.com.sg
>
By
JOE, at Friday, August 12, 2005 5:40:00 PM
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