Will NEM go the way of the NEP?

For  any economic model to succeed, there must be meritocracy, fair competition, proper use of resources, adequate training (which must be of certain high standard) of its populace, good planning and execution of govenrment policies, transparency and accountability… There must also be a social safe netting in place to help the poorer sections of the people, regardless of race.

I have stated many times in this blog that the only way for the country to progress is to adopt an economic model that has all the characteristics of what is mentioned above.

Today, PM unveiled a New Economic Model very similar to the economic model that was mentioned above.

The three principles of this model are:

1. aiming to be a high income nation by 2020, with per capita income  rising from US7000 to US 15000.

2. Sustainability

3. Inclusiveness.

These 3 principles, if can be implemented fairly, would be good for the country. There are however a few nagging questions in my mind:

1. To achieve US 15000 per capita, we need a growth rate of slightly more than 7% per annum. It will not be an easy task, looking at the economy from 1997 till now. Having said that, even if we can achieve a per capita income of US 12000 , it would be an achievement in my mind, since to do that we need a consistent 6% growth, which is not easy to achieve, so the next question is:

2.  Do we have enough skilled manpower and human resources to do so? are we innovative enough? or productive enough?

3. Looking at out school system and the products of our tertiary education at the moment, we need to have a major overhaul of the whole education system to produce thinking and innovative skill work force, and that itself will takes years to be transform.

4. As the PM himself has said, we need a blueprint for this model to succeed. A lot will depend on the blue print that will be drawn up later.

5. How will this blueprint be translated to action? This depends mainly on the civil service, and with the ascendancy of the right wing politics that is in direct resistance to this New Economic Model, will the civil service give full cooperation and will the implementation be skewed again, like the NEP before?

6. The affirmative action in this NEM will be based on the following principles, according to the PM:

– it must be market friendly,

– it must be merit based,

– it must be transparent and

– it must be needs based.

I welcome these principles which in fact have always been what the civil society is pushing for. But with the right wing resistance within the party , how is this going to be put into practiced is a big question mark.

On the whole , what is promulgated should be  welcomed if it can be translated into a real economic policy that transcends racial consideration. Whether this can be achieved remains to be seen.

Even the NEP, when it was first being introduced in the 70s, was supposed to be good  and its aim of eradication of poverty irrespective of race was noble; but somewhere along the way, it was hijacked to benefits certain cronies and  rent seekers, and resulted in a culture of patronage and corruption. Will history repeat itself? For the sake of Malaysia’s  future, I really hope not!

FOr the full text of the report, click here: The New Economic Model

13 Comments (+add yours?)

  1. klm
    Mar 30, 2010 @ 15:44:23

    On paper it is very good. But our civil servants are already used to get greasing money from the processes they are supposed to administer. If the NEM is implemented how are they going to finance their lifestyle. Like what my favourite Indonesian immigration officer said, “Awak makan angin, saya makan apa?”

    Like

  2. CYC
    Mar 30, 2010 @ 17:38:12

    This model is just like the essay entitled “My ambition” or “my fantasies” that most of us have written before during our primary or secondary school days. but lets ask how many of us have actually achieved our ambition or had diverted into something alien to our original wishes. Give us the blueprint with anticipated obstacles that need to be tackled. We have seen enough proposed great policies only to be dropped or watered down due to its impracticality or simply non executable. worst still there is a higher obstacle : political correctness.

    See, our Bursa Saham did not have a erection in respond to this announcement Does this not sum up the reservations all the foreign fund mangers have in mind? Fantastic targets, just see if we achieve it by 2020 – USD15000 per capital income. Perhaps lets hope USD crash and RM could convert to USD in the ratio of 2 : 1.

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  3. disgusted
    Mar 30, 2010 @ 22:48:10

    I agree with Kim 101 per cent.

    Bolehland’s policy always “looks” good, fair and pretty.

    I have NO confidence as the implemented by 99.9% by one dominant race is always “sen-gat” (lop-sided) and always been you know what.

    Sorry, unless…….change this government.

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  4. disgusted
    Mar 30, 2010 @ 22:58:04

    Kim, what NEM stands for? Is it Never-ending Exclusives (for) Malays?

    Or “Nurturing Elitist Malays” policy?

    Like

  5. Amin
    Mar 30, 2010 @ 23:59:34

    Najib’s is apparently a very shallow and weak government, more adept in rhetoric than in substance. Very vague and general directions clouded in grandeur terms cannot be a procedural scheme of things capable of being implemented by the not so bright civil servants. Take the 1Malaysia for example. I personally have not seen a firm and committed no-nonsense official statement as to what it is all about precisely. I suspect some ministers including the DPM are ignorant of it as countless divisive and racialist attacks were made against other races despite all the hipe by Najib.

    This NEM, although good in principle, may be all talk but no show. I am the happiest man if I am proven wrong.

    Like

  6. ong
    Mar 31, 2010 @ 10:13:29

    Actually the question of NEM replacing NEP doesn’t arise at all because NEP ended 20 years ago. NEP was supposed to have been replaced by by the NDP (National Development Policy), which was in turn replaced by the NVP (National Vision Policy). However all these claimed replacements were in fact only a mirage, sort of a magician’s sleight of hand. All the time NDP and NVP were NEP in disguise, and they were so well disguised that almost nobody remembers that there were such policies as NDP and NVP. 5 minutes ago how many of you remembered that we actually had NDP and NVP?

    As far as everyone, including the self-proclaimed princes of the land bumiputras are concerned, NEP is officially alive and kicking simply because the symptoms and effects of the NEP are still here, right until this moment. However there are rare exceptions of people who thought that NEP was over. The most famous example was MCA’s Chew Mei Fun, who when asked for her views on the NEP during an interview by Malaysiakini just before the 2008 12th general elections, replied in a matter-of-fact manner that as far as she was aware the NEP was already over then. Tragically for her that reply of hers was among the reasons for her dramatic drop in popularity with her electorate. There were some who even thought that her brain suffered some damage from her motor vehicle accident some months earlier.

    Coming back to the question: “Will NEM go the way of the NEP?”. There can only be one answer, which is a big resounding YES. Why? Because that was exactly what happened to NDP and NVP. In UMNO-BN Malaysia (Reminder to Dr. Hsu: BN still includes Gerakan), what you are promised and what you see is not what will you get. You are promised NEM but what you get will be NEP, possibly even NEPx2 (in other words, a double dose). Of course it is entirely possible for NEM to behave as NEM , but only until PERKASA and Ibrahim Ali opens his mouth and raises his kris. Then magically NEM will transform into NEP.

    That’s why when NEP says 30% quota for the self-proclaimed princes of the land bumiputras, what the self-proclaimed princes of the land bumiputras end up getting is 80%. In the case of civil service job appointments, the quota even passes the 90% mark. In Johor it is 99% according to the government’s reply to a question in the current state assembly sitting.

    Renaming NEP as NEM is just like putting dish water inside champagne or cognac bottles. The dish water is never going to taste like champagne or cognac.

    Like

  7. klm
    Mar 31, 2010 @ 12:28:07

    watch this Aljeezera clip on Minorities cry foul in Malaysia:

    The fact that this Ibrahim Ali can be vehement and foul mouth on the air, says it all. This is the UMNO ugly side to the NEM.

    I rest my case.

    Like

  8. Dr Hsu
    Mar 31, 2010 @ 12:45:11

    klm,
    The fact is the grassroot warloads of the party has turned rightist in order to win the Malay votes at all cost. Perkasa wil attempt to do what Hindraff did the last round….

    Let us see how the Ulu Selangor Malay votes go this time. It will tell us how effective right wing politics is in influencing the semi rural Malay votes that is Ulu Selangor.

    Like

  9. Dr Hsu
    Mar 31, 2010 @ 12:45:11

    klm,
    The fact is the grassroot warloads of the party has turned rightist in order to win the Malay votes at all cost. Perkasa wil attempt to do what Hindraff did the last round….

    Let us see how the Ulu Selangor Malay votes go this time. It will tell us how effective right wing politics is in influencing the semi rural Malay votes that is Ulu Selangor.

    Like

  10. klm
    Mar 31, 2010 @ 16:41:04

    Dr. Hsu. Ulu Selangor may not be tested. MIC want the seat. I have suggested Samy Vellu as the candidate.🙂

    Like

  11. CYC
    Mar 31, 2010 @ 17:12:00

    No wonder the Chinese always says only the ninth grader will join politics as the 1st grader already venture into business. Thus left the 9th grader who only good at reading out loud text prepared by their think tank. As a result, how prosperous the country will become largely depend on these think tank. but unfortunately najib only engage APCO as PR consultant and not as economic consultant. Otherwise, we will become a developed country by 2020 provided we adopt a friendly approach towards Israel. This is a sensitive matter and don’t think he has the guts to do so.

    In worldly affairs a leader is willing to sleep with his enemy. That is why and how CSL won the MCA president seat. Perhaps he and his machai share the same interest and it is therefore scandal is a non issue. The Jews business control the world business mainly because they only recognize profit as the ultimate goal and not nationality or country per se though deep in their mind their own race remain an important factor in decision making. Through control of business empire especially the financial or banking sector in the major part of the world they have skillfully control even the administration of big govt such as US and many Europe countries. Have we found some clue? No, we only interested to in controlling our kampung & village folks so they keep voting BN. Afterall, that may be the campaign tag line for KTK’s next election – We care for kampung & village folks.

    Like

  12. tonyboneka
    Mar 31, 2010 @ 22:41:37

    Awaiting for Malaysian to be petroleum net importer. I guess many UMNOputras will flee to their second home then.

    Like

  13. Atila
    Apr 11, 2010 @ 05:36:13

    DEB NEM…all passed and coming..
    In short, rubbish and nonsense products of UMNO.

    (Dr. Hsu, save my typing time…haha haha)

    Like

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