DO away the NEP altogether

The DPM has mentioned that certain elements of the NEP will be done away in the not too distant future.

My questions are:

What is the not too distant future? Time is relative. A century can be a long time or can also be  “not too distant future”,  depending on the scale of referece.

What are the elemens that are going to be dismantled?

Why not the whole policy be replaced by one that is based on “needs” and “merit”?

The world is in a deep financial crisis, the scale of which has not be seen since the deep Depression of the thirties.

If we are not changing to a economy that is based on “needs” and “merits”, changes around us will over take us and left us in a quandary.

Our economic cake is going to shrink. 

One aspect of the financial world that i would like to point out is that the financial world is not going to be fair to the losers.

 It takes a economic cake of 100 Ib size to lose 50% to become a 50 lbs one. But for the 50lbs cake to go back to its 100 lbs. size, it needs to double itself and achieve a 100% growth. That is why stocks and shares, once in decline, takes a longer period to recover than coming down.

For a share of $10, it can drop to $5 by losing 50% of its value. But for the $5 share to go back to $10, it needs to double itself.

For any serious player in the stock and economic world, this is the basic tenet of how the winners are rewarded and losers have everything stacked against them.

So, we must do our very best , in this economic storm, to make sure that the tide of the economic storm does not result in our economic cake shrinking ( recession). Policies like the NEP actually retard the economic growth, and only the well connected really benefit from its implementation.

So, I would like to suggest to our national leaders to just do away the NEP and replace it with a market orientated, ‘needs’-based and merit-based economy. That way, at least we can protect our economic cake from being eroded to a mere pudding.

 

 

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28 Comments (+add yours?)

  1. Richard Loh
    Oct 25, 2008 @ 15:36:27

    It’s always the big talk when they are confronted directly, but will the big talk turn into action, your guess is as good as mine.

    I never trust this man, (the soon to be PM,) when I know about him during my early age and now at my old age will still never trust him.

    Like

  2. Muhammad Yunus
    Oct 25, 2008 @ 17:16:50

    Not a big fan of politics all together, not a big fan of merits, not a big fan on how the State executes the NEP as well … but perhaps to your dismay, I’m a fan of policies that tries to answer the economic disequilibrium that exists within our countries societal framework.

    NEP may need to be revised, to answer the current economic status quo … but to rid of it all together is nerve-wrecking. Merit is not all to fluffy: http://mlysn.wordpress.com/2008/09/22/meritocracy-or-equality-we-cant-have-them-both/

    Like

  3. yh
    Oct 25, 2008 @ 18:15:07

    dr,

    do you think gerakan and mca will push for at least a revision in NEP?
    think they wouldnt even dare to squeak. look, PR initiated a motion for a debate of the ISA in Parliament, not even for a repeal. How many BN members supported. ONE ONLY and that member, at least to his credit for standing up for the right reason, came from East Malaysia. NOT ONE from MCA, Gerakan and MIC and other component parties.
    All the rhetoric by these component parties during the recent party elections is nothing but HOGWASH.
    Oh, lets change. keep on talking coz it doesnt cost one cent to talk, does it.

    Like

  4. clearwater
    Oct 25, 2008 @ 18:27:00

    Don’t believe NEP revision by Umno leaders will happen in my lifetime. The NEP drug has been too widely used and abused by those in power to be easily amended or discarded. Perhaps in the case of a change in government, something can and will be done. In the meantime, put up with Malaysia’s economic and intellectual backsliding. It’s not going to end anytime soon.

    Like

  5. klm
    Oct 25, 2008 @ 21:02:40

    NEP is like staring at the navel while a storm is about to strike. The 21st century has different problems. NEP distort the focus and resources that are needed for the govt to address the challenges. Simply said, we loose the efficiency, productivy and talent to tackle new probelms. We are stuck in the 1960 time warp.

    The current financial crisis will result a new world econpmic order, Before this happen, the whole world will be burned in the fire of recession. For Malaysia, the suffering is a matter of how much and how long, We cannot be isolated from this problem. NEP will just make this matter worst.

    The economic crisis is putting Obama into the lead of the presidential race. This is drivng the American towards a new agenda. Even if Obama do not win, this agenda will still remain. This agenda is a new economic order in the United States.

    The impact of the new ecomic orders are many folds.

    1. Cutting America from middle oil and for the matter any bloc’s oil. Image what will be the price of oil in 10-15 years. Image what havoc the American will do to the oil price, when they dont have dependency on it. The middle east can be reclaimed the desert, for all they care.

    2. Jobs and FDI. The American multinationals are send work to be done whenre it is cheapeast. They have been hollowing the American industrial core in the latter prot of the 2oth century.

    The new economici order in the United States
    will re-tool with lower cost and new technology.
    The new order will drive new jobs to be created within the United States.

    Result. less jobs and investment outside.

    Let me give an example.

    Your computer keyboard used to need many low cost worker to make. In germany, there is one company the makes computer keyboards with just 4 worker in the factor. It makes it better and cheaper.

    What can NEP do for Malaysia? In the bigger piccture, it bleed the country of its efficieny, productity, innovation and talents. It has no role in the 21st century. If Malaysia cannot progress, it will be swept away in the new world order.

    Like

  6. Justin Choo
    Oct 25, 2008 @ 22:31:37

    Don’t believe Najib.

    I have a post in my blog, as usual a very short one.

    Since my link is going to be rejected, please go to my blog to read ” bright-sky-and-stormy-weather”, if anyone interested.

    Like

  7. petestop
    Oct 25, 2008 @ 22:44:09

    It is a shame and a SHAM…. none of MCA and Gerakan MPs signed the ISA petition, despite their earlier “strong and loud” noise against ISA.

    http://www.malaysiakini.com/news/91935

    Needless to say, Gerakan and MCA does not have any credibility at all.

    At lease one BN MP have the courage to act his conscience.

    Really, Doc Hsu, I think it is an uphill task for you.

    Koh Tsu Koon can keep talking about “conscience”, but when you don’t act it, this is basically what the Rakyat will call him as talking cock.

    Like

  8. eugene
    Oct 26, 2008 @ 13:09:31

    The mca, gerakan, mic etc are spineless bunch of hypocrites, past records show. . . . .

    They do not have the gut to support the petittion initiated by PR in support of the motion to debate ISA, not to repeal, and the reason or rather excuse given is that they had not received any instructiond from the top BN leadship regarding the matter. There have to be instructions from the top telling them what and how to response irrespective of whether the motion is beneficial to the well being of rakyat or country. This reminds me about Tan Cheng Lian of MCA who was suspended for supporting the opposition motion years ago in Penang state assembly.By the way she did that not out of bravery or justice but ignorant of BN ( Umno) policy. So you see, forget about those rhetoric and theatric before their party election, they are for getting support of potential party voters only.
    And NEP is even a much bigger and sensitive topic, needless to say, gerakan mca & mic will not have the ball to mention it. Stop dreaming. . .

    Like

  9. daffodils
    Oct 26, 2008 @ 16:01:20

    On one hand there is talk about the liberalisation of certain elements of NEP but then on the other hand there is the time frame of “the not too distant future” The NEP is past its expiry period. More than 30 years has passed and yet it is still prolonged.

    What about other disadvantaged groups? They have to plod and toil to put their children in universities because scholarships are out of reach.What about those who are academically better qualified and who apply for special positions but are turned away? The list goes on.

    Malaysia is for all Malaysians. Put everybody on equal footing. We are in the 21st century. So many countries have surged past us because of the competitive spirit. We will definitely lose out if we just hand out goodies on a platter. Give aid based on need and merit.

    Like

  10. Chauncey Gardener
    Oct 26, 2008 @ 16:03:27

    To cut the rhetoric, here are my suggestions to initiate the withdrawal of NEP. Mindful that a wholesale change may not achieve objectives, let us start with three issues that could be beneficial for all Malaysians in the medium to long term :

    a) Eliminate bumi discounts for purchase of new houses costing higher than RM250,000. Any bumiputera who can afford a house higher than this threshold doesn’t need a discount. This will also help the developer sell more units and this has a trickle down effect on the rest of the economy. Timeframe = immediate.

    b) Discard quotas based on race on university admission for professional & technical course such as medicine, law, dentistry, pharmacy, etc. We need the best brains to ensure that taxpayers money in education is harnessed for the benefit of the country. Timeframe = immediate to 3 years time

    c) Dispense with either the STP or the marticulation exam for entry into Malaysian universities. The dual system is not promoting competition, which is healthy for the benefit of the country. The upshot will be generation of better preparation of students in the SPM and SRP classes. Timeframe = 3 to 5 years from now.

    A plan has to have objectives and quantifiable goals and a defined timeframe. We don’t have to change everything, so let’s just work on three for now. Is that asking for too much ?

    Like

  11. eugene
    Oct 26, 2008 @ 20:59:19

    Correct me if I am wrong, bumi discount for new houses purchase is not part of NEP, it’s goodwill offer by developer oneway to speed up the approval of project etc. . . .

    By the way, anybody knows the actual content of the so call “social contract” ? I guess we will only have a meaningful discussion on the subject if the content is known.

    Like

  12. Frank
    Oct 26, 2008 @ 23:47:28

    To do away NEP means to do away Najib’s brother from the helm of CIMB Bank group, for his brother was a typical beneficiary from NEP-30% Bumi shares quota reserved! It also tantamount to revoke his father’s brainchild gave born in 1969 after 513, for the benefits and enjoyments of their immediate next of kins and proxies only!

    Do you still think that Najib for one will agree to the so-called do away of NEP knowing himself when all the crutches were to be confiscated and those gifted Umno goons cling to it were to reduce to wheel-chair lameducks?

    His reference of ‘not too distant future’ probably implied to mean that NEP will be streamlined to expedite the results until and unless the plan has achieved its purported function and materialization! That’s the time NEP will be declared redundant and removed………..in not too distant future!

    Like

  13. yh
    Oct 26, 2008 @ 23:59:51

    frank,

    i am no supporter of najib but to say that nazir is helming CIMB simply because of NEP is not fair. He has proven himself though his pedigree may have given him an opening. But, like I said, he has done well with CIMB as an investment bank and it will be interesting to see how he will lead CIMB as an Universal Bank thru this turbulent times. The jury is out at the moment.
    Frank, lets give credit when credit is due.

    Like

  14. langchiapek
    Oct 27, 2008 @ 09:48:57

    NEP is something that comes out from Barisan Nasional and Dr Hsu the party you are in now supports the idea.

    IMHO, as long as it is not written in the federal constitution of Malaysia, i will not care much about it let alone support it.

    http://en.wikipedia.org/wiki/Constitution_of_malaysia

    Like

  15. eugene
    Oct 27, 2008 @ 09:49:27

    Anybody happen to now the actual content of “social contract” ????

    Like

  16. Frank
    Oct 27, 2008 @ 10:54:29

    yh,

    If the proposed 5-billions EPF rescue funds inclusive of bailing out of CIMB’s devalued share prices, it’s unlikely I will give any credit to anybody who’s at helm and definitely I’ll not agree that’s not due to the policy of surviving on golden crutches!

    Whatever it is, I did not mean to be derisive but merely implied that NEC, with all the special perks and privileges shouldn,t be used only to benefit the selective group, more so not only for the enjoyment as legacies amongst the Umno’s aristocrats, worst still from the pedigree’s! Through proper implementation of NEC across the board based on flair and meritocracy and be transparent and fair, Nazir will not only the one become the technocrat, it would have achieved with greater result and probably thousands of Nazir have been groomed!

    Do you feel satisfied to see only Nazir, Khairy or Musa to monopolize the use of golden crutch and other equally competent Malay brethren were kept eying and envying others’ success?! The worst scenario is, it’s painted as a picture that others’ successes, those other astute entrepreneurs have been blamed of exploiting opportunities and became the scapegoats for those real plunderers in disguised!…………

    Like

  17. Frank
    Oct 27, 2008 @ 10:58:37

    Error rectification : NEP and not NEC, my apology!

    Like

  18. nick
    Oct 27, 2008 @ 14:17:08

    The present global economic credit crunch and slow-down have now become a tidal wave, developing into a strong tsunami leaving a trail of devastation in many people’s lives. The rich and mighty rich have been hit hard. Who would have thought that the A$ could crash to just over 60 cents to the USD? Ouch! There are millions of savers in A$ and many are licking their wounds. For many Malaysians, these savings most probably represent their children’s future education in Australia. In over 2 months, the Aussie Dollar had lost ~37% of its value. Closer to home, every Malaysian citizen have now become poorer without us realizing as crude oil price at US$ 62/barrel hover just over the break-even point from Cost of Production (est US$ 60/barrel). CPO is now around RM 1,300/mt. Every commodity has collapsed. Yesterday, the scrap newspaper collector came round to my Taman and after paying me said that he may decide to abandon this business soon as there is no price or money to be made in scrap. Yes, the economic pie is getting smaller. It will continue to shrink in the next few months as events over take all of us. It is frightening. And what do our Najib do? Clueless and Blur, like our AAB. Both from the same cloth material, i.e. rich, corrupt, incorrigible UMNO. All they know is how to heap misery on poor indians and use the sledgehammer on RPK. The Budget’09 is already dead (out-dated).

    Like

  19. A true Malaysian
    Oct 27, 2008 @ 16:56:12

    Do away NEP is definitely good but how about new one to replace NEP?

    The question here is new one should be ‘newer’ than ‘new’ since NEP stands for New Economy Policy. The ‘newer’ policy should not have any element of favouring bumiputra, or else, what is the different?

    Just see how this ‘newer’ one looks like. It should be based on ‘merit’ and ‘need’ basis instead of ‘favourtism’. If an economy cannot be ‘expanded’, then no point talking about old, new or newer. Just look around other countries, they don’t even spell out what type of economic policy they are having but all fall back to merit.

    Our government is really need to look into this whole thing especially on currency management in relation to foreign exchange. If Ringgit is weak and not stable against other major currencies, the country’s wealth would depreciate in no time.

    Everything needs to be fall back to ‘fair play’. Just look at Southern Bank acquisition by CIMB. Was it fair?

    Like

  20. yh
    Oct 27, 2008 @ 18:05:46

    frank,

    lets not go off tangent. I dont see the connection between Valuecap and bail-out of Nazir! Well, the only time this is a bail-out of Nazir is to use Valuecap to buy his pledged shares, which as far as the records showed Nazir only owns insignificant shares in CIMB.
    In any event, in the current market turmoil, share price does not reflect value or performance anymore. Like I said, lets see how Nazir gonna navigate CIMB thru these tough times. Even experienced financial wizards in US and Europe have fallen by the wayside. Greenspan even has to admit he was wrong.
    As for the acquisition of southern bank, i agreed with a true malaysian, it wasnt really a market driven deal and there was much political pressure in ensuring the deal went thru. the biggest losers were minorities as without the political inteference, the takeover price would be surely higher. Did Nazir use his brother’s position to press home the deal? That is for him to answer as we can only speculate!

    Like

  21. Volcano
    Oct 27, 2008 @ 18:30:52

    Yeah, NEP, NEP creates doubts on genuine and able malays. Look at what is happening…Able Malays like Nazir, Zaid etc are seen as the results of NEP. Without NEP do you think they can be where they are now. The answer is definitely YES. Its in their blood. But with the NEP their sucess smacks of cronyism. NEP makes their success Sounds very hollow because the path appears to be line up for them.

    Like

  22. langchiapek
    Oct 27, 2008 @ 20:23:21

    Dr Hsu,

    One more sign that the party you are in DOES NOT mean a thing to UMNO no more.

    慕沙:與檳民政絕交事件
    巫統絕不低頭
    http://www.chinapress.com.my/content_new.asp?dt=2008-10-28&sec=mas&art=1028md20.txt

    (大山腳27日訊)巫統大山腳區部主席拿督慕沙聲明,在檳州民政黨與檳州巫統絕交的事件上,巫統絕對不會低頭。

    他告訴檳州民政黨前任主席丹斯里許子根博士及現任主席拿督丁福南醫生,巫統不會要求民政黨修復兩黨之間的關係。

    他昨天在巫統大山腳區部代表大會上,如是指出。慕沙蟬聯主席一職。

    團結一致

    他也說,雖然國陣在檳州已經成為反對黨,但從本屆大選巫統仍獲得11議席分析,顯示檳州馬來人仍然需要巫統及認同巫統的鬥爭。

    他說,如今檳州巫統雖然成為反對黨,但還是團結一致。

    他說,馬來人及回教徒在目前不能分裂,必須捍衛本身的權益,否則將被其他人趁虛而入。

    較后,該區部表態,提名副首相拿督斯里納吉和馬六甲首席部長拿督莫哈末阿里分別競選巫統第一和第二高職,副主席人選則支持首相署部長拿督斯里阿末扎希、內政部長拿督斯里賽哈密和教育部長拿督斯里希山慕丁。

    Like

  23. EvanAlmighty
    Oct 27, 2008 @ 23:48:48

    When NEP later might replaced by PEN, it won’t bring any meaning to our Rakyat. If the policy mean $ & cents to certain party, I don’t think it would be let go lightly.

    We don’t “syok sendiri” when our PM in waiting mantioned about abolishment of NEP. He might just want to please those foreign investors who attended the seminar as he did not give any time frame for abolishment of NEP.

    But, what dissapointed us most is on the motions by oposition to review ISA support by 1 & only BN MP with conscience. MCA & Gerakan which earlier speak loud on abolishment ISA, todate remain as silent lamb. Are they still as old time, champion in public but loser in parlimen???

    Like

  24. yh
    Oct 28, 2008 @ 01:09:48

    volcano,

    thats hitting below the belt. with or without NEP, there will be Malays who will stand up among the crowd. come on, intelligence is not the domain of one ethnicity.

    Like

  25. Meng
    Oct 28, 2008 @ 11:13:15

    Giving up NEP is like asking UMNO to give up corruption and no more project for cronies.

    MCA and Gerakan will have no more crumbs to catch falling off from umno’s table or being spit of umno mouth.

    MCA and Gerakan have shown their true colours again for not signing the ISA petition..the colours of a Dog

    Like

  26. Frank
    Oct 28, 2008 @ 13:13:29

    Try to focus on the bull’s eye. We are skeptical of the flair and business astute of the Malay brethren! They are many Malay entrepreneurs we respect except those leeches whose astute were to suck the blood with the straw of NEP! Suchlike Amin Shah and even Daim! Where are they now after they belly-stuffed all they had plundered due to NEP paved of way?!

    The pivotal point is, how and when Najib is to dismantle all the elements of the NEP in the not too distant future? Is it only another gimmick to appease the dissents or another pungent pepper to tug the sensitive line of the malay ultras for more untoward sensation and uncalled for racial face off amongst the multi-races?! Chew the cud……………

    Like

  27. Bangsa Malaysia
    Oct 28, 2008 @ 14:36:06

    Bow wow….so bark man’s best friend.

    How can you bite the master who have been feeding you all these times? We don’t want to be seen as ungrateful or we might be send to the dog pound and be put to sleep.

    Who will care for these poor dog…from others (PKR or DAP)? I doubt it as dog meat is a delicacy among the chinese!

    Who will take care of us, when the master is gone? Whine! Whine!

    Like

  28. Frank
    Oct 28, 2008 @ 14:41:13

    To correct again: We are NOT skeptical……

    Like

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