There can be no successful new economic model for Malaysia without a credible and meaningful new governance model

Over the weekend, Deputy Prime Minister Tan Sri Muhyiddin Yassin said that the government would announce the new economic model for the country within a month.

When Datuk Seri Najib Razak became the sixth Prime Minister in April last year, he announced that the government would introduce a new economic model for the country to ensure that Malaysia makes a quantum leap to escape the middle-income trap to become a high-income country through greater emphasis on innovation, creativity and competitiveness.

In May last year, the Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the new economic model would be announced in the second half of the year.

Why has this timeline for the new economic model been postponed until this year when according to Husni’s own admission, the country has already lost a decade in economic stagnation?

Malaysia has not only lost one decade in economic stagnation but four decades in failing to fully realize the economic potential of the rich natural and human resources of the country, resulting in Malaysia losing out not only to other countries including Singapore, Taiwan and South Korea but at risk of being overtaken by an increasing list of other countries like Vietnam, Thailand and even Indonesia.

There can however be no successful new economic model to enable Malaysia to make the quantum leap to escape from the middle-income trap to become a high-income country unless there is also a new model of good governance for Malaysia.
What is the credibility of all the government talk about a new economic model, which must entail a total innovation of the Malaysian economy and the nation-building process when Malaysia is facing a losing battle in international competitiveness as illustrated three recent adverse global rankings, viz:

  • falling three places from 21st to 24th ranking in the World Economic Forum (WEF)’s Global Competitiveness Report (GCR) 2009-2010;

  • drop of two places in the World Bank’s Doing Business 2010: Reforming Through Difficult Times from 21st to 23rd placing; and most disastrous of all,

  • nine-placing plunge in Transparency International’s Corruption Perception Index 2009 from 47th to 56th ranking.

The spate of bad news on the front of governance in the past three weeks since the start of the new year does not inspire confidence that despite all the propaganda and publicity about 1Malaysia, KPI and NKRAs, the government is prepared to remake itself with a new model of governance, without which there can be no successful new economic model.

Just to give one instance. True, the Malaysian Anti-Corruption Agency (MACC) has got a new Chief Commissioner and moved out its Selangor MACC headquarters at Plaza Masalam in Shah Alam following reports that it had been haunted after the mysterious death of Teoh Beng Hock.

But nobody is convinced that MACC is prepared to turn over a new leaf to single-mindedly declare war against corruption regardless of Barisan Nasional “ikan yu” or “ikan bilis” and stop its disgraceful role in its first year of operation as catspaw of Umno/Barisan Nasional political agenda to destroy Pakatan Rakyat-controlled state governments.

MACC played a sinister and ignoble role in the illegal, undemocratic and unconstitutional overthrow of the lawful and legitimate Pakatan Rakyat government of Perak and had tried to undermine the Pakatan Rakyat government in Selangor, the most infamous episode being the MACC’s shameful “cars and cow” allegation against the Selangor Mentri Besar Tan Sri Khalid Ibrahim.

After the national and international outrage directed at the MACC following the mysterious death of Teoh Beng Hock at the MACC Headquarters at Shah Alam on July 16 last year, the MACC stepped on the brakes to soft-pedal and suspend its operation to target the PR elected representatives and their special assistants.

Can we have an unequivocal assurance from the new MACC Chief Commissioner Datuk Abu Kassim Mohamad that the MACC will never again play the role of the Umno/BN catspaw to serve the Umno/BN political agenda to topple the PR Selangor state government and will co-operate instead with Pakatan Rakyat to create a culture of zero tolerance for corruption in public life?

This is just one instance whether the Najib premiership is prepared to usher in a new model for good governance – whether in fighting corruption, restore confidence in the judiciary, roll back the tide of endemic crime, an inclusive and tolerant nation-building policy – without which there can be no meaningful or successful new economic model.

42 Replies to “There can be no successful new economic model for Malaysia without a credible and meaningful new governance model”

  1. I agree.
    BN is world famous for lauching all types of slogans and campaigns that last for all of three months before they think of another product lauch.
    Maybe these guys are in the wrong business – more suitable for fast food business rather than leading a nation with half-baked ideas.
    I thought those famous corridors would need at least 10 years to complete.

  2. QuoteUnquote, Lee KY, Sep 1965

    How true! 45 years later, M’sia is still yelling slogans related to ketuanan, like a mad dog going after its own tail, running round n round n getting more corrupt n racist

  3. Off topic but interesting posting in FreeMalaysiaToday site.


    SHAH ALAM: APCO Worldwide, the company hired by the prime minister to redeem his flagging image, has allegedly offered similar services to dictators and corrupt leaders around the globe, according to the Times of India.
    The most influential media in India reported recently that apart from Najib, the Washington-based PR company had also serviced former Nigerian dictator Sani Abacha and Kazakhstan’s life-long president Nursultan Abishuly Nazarbayev.

    APCO’s clients also included millionaire Mikhail Khodorkovsky, who was once the youth leader for the Russian Communist Party with links to the mafia.

    Pakatan Rakyat weekly Suara Keadilan quoted he Times of India as stating that APCO Worldwide had the capability of re-engineering the image of public figures and leaders who were not popular with the people.

    The Times had launched an investigation into APCO Worldwide after it was discovered that Gujarat Chief Minister Narendra Modi was a client of the company. (Gujarat is a state in India).

    Narendra had been fingered as the cause of religious riots in February 2002, where 1,000 people were killed, majority of whom were muslims.

    To re-build Narendra’s image the Gujarat Government had hired APCO Worldwide paying them US$25,000 a month fee for their services.

    “Although APCO’s services is three time higher than other PR firms, it was chosen because it had many former Republicans and Democrats acting as consultants,” The Times said.

    The Malaysian Government is believed to have anchored APCO with a RM20 million contract immediately after Najib became Prime Minister.

    Established in 1984, APCO Worldwide is a global communication company with a networking in 25 major cities in the world.

    Its clients include, national governments, corporate holdings, industrial organisations and not-for-profit agencies.

    APCO Worldwide began its office in Kuala Lumpur on 1 September 2009 after they were signed on by the Najib Government.

    Among the company’s key advisors are stalwarts who had once worked with Israel’s Zionist regime. They include Shimon Shein, former Israeli ambassador to Germany, Itamar Rabinovich, former Israeli ambassador to the US and Doron Bergerbest-Eilon, former chief of Israel’s national security agency.

  4. Quote” And there are some people whose grasp of history is somewhat limited and they are the people who shout these slogans: “One race, one language, one religion.”

    This country belongs to all of us. We made this country from nothing, from mud-flats. It is man, human skill, human effort which made this possible.

    If you talk, “One race, one language, one religion,” there will be a lot trouble, you know. We do not want that sort of thing. That is stupidity.

    In some places, they say, “we are all equal.” But what they mean is they are more equal, you see – which makes life very difficult. “Unquote, Lee KY, Sep 1965

    How true! 45 years later, M’sia is still yelling slogans related to ketuanan, like a mad dog going after its own tail, running round n round n getting more corrupt n racist

  5. Dr. Mahathir has hightlighted an example of the New Economic Model in his chedet blog recently, whereby he showed that out of 700 truck loads of sand sold to Singapore by the Umnoputras, 500 truck loads would be reported for paying export duty and excise tax and 200 truck loads would not be reported. Dr. Mahathir was wondering to where had the 200 truck loads gone!

    This is the New Economic Model, which indicates that out of 700 truck loads of sand, 500 truck loads are accounted for Export Income, mainly for the purpose of paying the Government the raw sand premium, the export duty and the excise duty. The other 200 truck loads (about 28.6% of 700 truck loads) will be the undercounter money to be shared among all the involved Umnoputras. This New Economic Model makes the foreign export market (in this case the Singaporean buyers) happy, makes the BN Government happy and also makes the Umnoputras (including the Top Government Officers due to their having a share in the undercounter money) happy.

    Whether this New Economic Model is credible or meaningful or not indeed will depend to a very large extent on how much you are incline to believe that you have stood to gain in terms of the “lollies” or candies, which you may or may not have already received from the BN Government!

    Can this New Economic Model be taken as an improved version of the system of Cronyism?

  6. There is no need for a new economic model and there are simply no new economic models readily available that you can pick up from the shelf to catapult Malaysia to higher income. If there is such a thing, most countries would have become high income by now.

    I am prepared to wager with anyone – get rid of the evil side of NEP (I think everybody knows what this is), reduce distortions (indiscriminate subsidies and interventions and the resultant massive corruption thereof), get rid of all the monopolies and rent seeking activities, free exports and imports, reduce wasteful expenditures, get rid of inefficient “national” or “strategic” industries (these are nonsense, trust me), reduce the overwhelming reliance of foreign unskilled labour – and our country will be on its way towards greatness and high income.

  7. US threatens sanctions over missing jets and church attack

    Tue, Jan 19, 2010 – Free Malaysia Today.

    SHAH ALAM: The United States may slap economic sanctions if the Umno-led Barisan Nasional government fails to resolve two key issues considered crucial by the international community, according to diplomatic sources.

    The latest edition of the Pakatan Rakyat weekly, Suara Keadilan, quoting the sources as saying that the administration of President Barrack Obama (picture) is demanding a detailed explanation from Prime Minister Najib Abdul Razak’s government on the two missing F-5E jet engines and the series of arson attacks on churches and other places of worship over the last two weeks.

    It also quoted Wisma Putra sources as saying if Najib viewed these issues lightly then Washington could slap economic sanctions on Malaysia.

    The United States is Malaysia’s number one trading partner and in recent years has been ranked among the top three foreign investors. In 2008, it was the second largest investor, with investments totalling RM8.7 billion.

    Any economic sanction will have a painful effect on the country, which is already suffering from a large deficit.

    Wisma Putra sources said Washington’s diplomatic note reflects the seriousness of the Obama administration, which until now had only voiced their objections with statements.

    “After this, if the government still dilly-dallies and takes no serious move to resolve the issues, heavier pressure will be instituted, including economic sanctions,” said one source.

    In an SMS revert to Suara Keadilan, the US embassy’s media officer, Tina Malone, said Washington took a serious view of media reports of the missing jet engines, which were manufactured in the US.

    “The US Government views seriously reports of the missing F-5E jet engines supplied to Malaysia,” said the SMS.

    “The US Government has asked the Malaysian Government to provide a comprehensive report in relation to investigations into the matter.”

    One of the Wisma Putra sources also confirmed that Waashington had sent a diplomatic note to the Malaysian Government over the petrol bomb attacks and vandalism on Christian churches.

    America’s fear was underscored by its Commissioner for International Religious Freedom, Leonard Leo, who said: “How the Malaysian leadership deals with this issue will determine the political and economic future of the country.”

    ————————————–

    No need any economic model, are we in the same league as Iran, North Korea, Iraq, Afghanistan and Angola?

  8. Its not an ‘new economic model’ its a ‘new egonomic distraction’. EVERYONE KNOWS WHAT ECONOMIC MODEL WE HAVE TO TAKE. The issue is not a model but real plan. There is no real plan or ability to execute that plan. Its ‘lets think of ways to do all the stuff we have done before but with a new twist and keep our finger cross’ plan.

  9. So Obama threatened sanction and wot not against you jib over the missing jet engines and church attacks.

    Well at least we still have angkasawan. In any event obama is lucky. Let me console you jib a little. Look at the bigger picture jib. If only obama was borned a malaysian, surely you jib could use ketuanan umno to hammer him good. So jib you see, then you could tell this ob guy to “stuff it man”. For good measure you could add this: “Go count your lucky stars ob.”

    Hows dat, huh? Good, aint it? So you go and sleep well tonite ok, jib.

  10. Economic models prior to the 1980s were fairly decent albeit with the attendant controversy of the pesky affirmative action.

    But since then all we have had during these respective years were/are:

    Mahatahi years: megalomaniac models

    Badawi years: perfect model of somnambulism

    Najibo years: MISSINGONOMICS – models of what can possibly go missing (translator, immigration records, PI, DUN, country’s brains, big fish culprits of PKFZ scandal, political secretary, jet engines, FDIs, RPK, and 1Malaysia – but now has reappeared as 2Malaysia as in legally able to use some registered trademark name of God)

  11. If Najib still does not know too well about where the economic niches and the political strength of such an Asian country as Malaysia lie, he should perhaps try to get some brainstorming by listening to the Indian-born historian Prasenjit Duara, who is the Raffles Professor of Humanities as well as director of research in the humanities and social sciences in the National University of Singapore.

    Let’s check out what Professor Duara said about the future of Asia:

    Reporter: So what should the new game be?

    Duara: Something that…brings out the most altruistic in us. We need a massive new education programme that teaches us to be civic citizens of the region and the world. (In this), Singapore has…managed to do certain things quite well.

    Reporter: Such as?

    Duara: Such as multi-culturalism. You have this very diverse population that could be at each other’s throats – and were, at one point – but have managed to live with each other. And with…every other generation, you get more and more mixed…It may seem a little corny to people coming from the West, but it works.

    Reporter: But it may not work forever.

    Duara: Yes…these things are also very changeable…It’s one thing to say you must have two people (from different races) living in the same housing project, but it’s another to have their children understand in school why it is important to encounter other cultures.

    Reporter: Speaking of change, Asia seems to be having too many demands on it to change.

    Duara: Yes, Asia’s having everything thrown in at the same time but I don’t see that as a huge problem. Asians are very much younger in the process of nation-building and so are (simultaneously doing that) and region-building. It’s one thing to have different links across time and another thing to have an evolving system of integration, which we don’t. I think economically and culturally, there will be more connections. But (not) politically and militarily and we shouldn’t try to make those.

    What we should try (to do) is go with what we have and develop fora for negotiation.

    http://themalaysianinsider.com/index.php/world/50054-asias-best-bets-for-the-future

  12. YB,

    If what Jamesy said in comment #13 is true it could explain why the story of jet engines missing broke out in mainstream media after a lag of 2 years : it was not meant to be divulged but the American discovery (earlier) of the sting makes decidedly a better choice in crying theft than as what you once said, Kleptocracy.

  13. The UmnoUtusan model of economy is none other than how to divide the pie among themselves.

    As to the reason why it is delayed, it is because they are disagreeing over who should get what !

    UmnoUtusans are still having a good time because Malaysians are generally very timid and just drift with the flow. This is the tragedy for the country !

  14. ///America’s fear was underscored by its Commissioner for International Religious Freedom, Leonard Leo, who said: “How the Malaysian leadership deals with this issue will determine the political and economic future of the country.”///
    – Quote from Free Malaysia Today from Jamesy.

    You mean the Americans will believe a low ranking RMAF sergeant could in collaboration with another person outside could steal fighter jet engines from a military secure area and sell it all the way to overseas black market????

    You mean our political and economic future will hinge on this story line?

    When new economic model if our main trading partner (USA) slap economic sanctions?

    What new economic model in the face of sanctions?

  15. in order to create a new economic model for the 21st century, we need an administration and population who embraces new knowledge, tecnology, with high technical and language skills as well as capacity for high work, innovation and entrepreneurship

    as such, we have
    1) Rais Yatim who advocate censorship of internet or curbing usage of facebook

    2) Naib Menteri Pendidikan Mohd Puad Zarkashi yang menyatakan bahawa bertutur dalam Bahasa Inggeris adalah ganjil

    http://wangsamajuformalaysia.blogspot.com/2009/11/keluhan-dan-cadangan-seorang-ibu-melayu.html

    3) UiTM students who participated in a seemingly well organised and sponsored protest against a mere 10% opening for non-bumi students

    4) an administration, who depsite decades of endeavour via Dewan Bahasa dan Pustake, thinks that the Malays cannot understand a single religious terminology in their mother tongue and with certain representative advocates for “1Malaysia, 2 Terminology”

    5) recognition of foreign talent via, a MACC officer lodging a police report against a renowned foreign forensic expert engaged by the federal administration to assist in autopsy that has attracted local and international attention

    As a tax payer, I hold Barisan Nasional administration for the state of affairs of this nation, socially, economically and culturally

  16. I have a feeling these jokers up there don’t really know or even understand why the Malaysia is sinking. All these stupid grand plans and economic models for what. They want to quantum leap to become a high income develop nation by talibanising the country. Wasting precious time and effort playing dirty politics and embroiding needlessly in useless issue like right to use the word Allah is mindless. They want to develop talent in the country by chasing away precious talent. The modern world is embracing equality and they want to Ketuanan and apartheid. Why the hell must our talented men and women stay in the country if they got no chance to develop their talents and being constantly reminded that they are born to be the servant of a master race or more accurately substrate for parasites. How is the country going to develop itself when the primary aims of our leaders are first to enrich themselves, their families and cronies. However the blame must lie as much with the electorate which voted these people in to position of power.

  17. You have the share for hard work (to toil and sweat ) but don’t have the share to enjoy free education, 5% discount in house prices etc. You think this kind of economic model will work? Come on, have some sense!

  18. Just as you cannot wash dirty clothes with dirty water and expect a clean laundry, one cannot expect better results using the same BN methodologies. But then again, BN is going more crazy each day.
    LGE’s middle Malaysia would be a great platform to start reforms and I believe Penangites will fully support his initiatives. But a lot more need to be done and hopefully PR can stay focused on the major issues, with BN always playing the jackass in the background.

  19. New Economic Model :-
    1. more corruption
    2. abuse of the courts
    3. GLCs headed by Malays
    4. 30% of IPOs to Malays
    5. university for Malays
    6. contract for Malays
    7. APs for Malays
    8. XXX for Malays

    As for Chinese, pay taxes and shut up. Indians , keep forming new parties.

  20. May I propose University Utara MalaySAI, under the creator of BTN starts the bachelor, master and Doctorate degrees in “SLOGANEERING” especially for people from African countries of related talent such as Zimbabwe and our local students who are of the same inclination.

  21. Penang model someone said? Oh by none other then chengho – the umno guy in cheongsam. Yes not a bad suggestion there for once. Pakatan’s model for penang is good. With little or supremely slow-flowing federal funds (unlike in the past), Penang managed to even its keel. It is work in progress and I am positive that things can only get better. Of course for those still living the dreams of negotiated contracts, privileges and subsidies really ought to phark themselves awake. With 50 yrs of abysmal record umno has absolute no basis to go on any further.

  22. Old dogs don’t learn new tricks, sudah otak kosong
    After >50 yrs, don’t expect lah Umno/BN 2 come up with creative +ve thingy, -ve yes
    Hv mercy on them loh
    Yeah, Penang leads n rocks, but can still do better, JIA YU
    D latest performance of Pg under PR shows how useless KTK was as its CM
    He hides behind petticoats hanging down (PhD); how can he b in charge of KPI, LOL

  23. The only economic model they understand comes from Mongolia. Buy defence equipment, buyer pays commission, promises commission to others but with no intention of honouring the commitments, then dispose of these meddling middlemen using state apparatus, then go around pretending that nothing has happened.

    This is the Mongolian economic model which they will implement.

  24. Just look at how the domestic trade ministry is now attempting to formulate some sort of method to ensure that only low-middle income Malaysians will enjoy subsidised petrol/diesel fuel, and the negative feedback from the people, especially the concern about how chaotic the ministry’s implementation is likely to be.
    All right-thinking Malaysians should pray really hard that this is not some small example of what the Najib-Muhyiddin administration has in mind for our beloved nation’s new economic model.

  25. taiking :
    ”APCO Worldwide, the company hired by the prime minister to redeem his flagging image, has allegedly offered similar services to dictators and corrupt leaders around the globe, according to the Times of India.The most influential media in India reported recently that apart from Najib, the Washington-based PR company had also serviced former Nigerian dictator Sani Abacha and Kazakhstan’s life-long president Nursultan Abishuly Nazarbayev.
    The Malaysian Government is believed to have anchored APCO with a RM20 million contract immediately after Najib became Prime Minister.
    APCO Worldwide began its office in Kuala Lumpur on 1 September 2009 after they were signed on by the Najib Government.

    I think the country’s new economic model by the Najib-Muhyiddin administration includes spending millions for the services of public relations firms to shore up the rather dubious image of those in power for their personal gain.
    If that’s the case, may God help us all…

  26. And you need to keep carrying UMNO balls to earn a living.
    You are a stupid low class racist…chengho..thinking of your own benefits…not the country and people…being treated by UMNO..as not important Malaysians.
    I presume you are not a Malay..and that makes it even worst.
    You have sold your soul to UMNO.

  27. Brother Kit Siang,
    When the educational standards of a country has been compromised to the level as laid out by UMNO, you can’t expect the country to perform well in this competitive and globalise world.

    Under their scheme of things, can’t you see how the high school results were manipulated so that many students graduated with A’s? It is all self defeating when results are orchestrated to make them looks good !

    Under their scheme of things where meritocracy is not their primary objective, these generated “A’s” students are then sent overseas to universities under their quota system where they have graduated as “half good” and allowed to lead the country while the smart ones are sidelined.

    If any of these UMNO funded graduates are to be pitted against any one of Singapore’s young graduates, these UMNO graduates stick out like a bunch of novices.

    When meritocracy is no longer the benchmark, one is not trained to stand the rigour played out in the real world. Hence, in any negotiations, they will be outsmarted.

    It all boils down to one thing. UMNO/BN has lost their right to govern the nation. Malaysia is going down the same route as Zimbabwe where Robert Mugabe desperate hold on power is leading the country into the abyss.

  28. Scenario1: If UMNO/BN continues to rule, the end result will be ‘BANKRUTCY’

    Scenario 2: If PR takes over now, Malaysia will overtake Singapore within a short period of time.

    Scenario 3: If PR takes over too late, Sabah and Sarawak will divorce Malaysia.

  29. Easy way to get high incomes, immdeiately pay everybody 3 times present salaries, make everythings 3 times as expensive (include foreign exc), make all bank deposits/debts X 3 (in form of interest etc), repeat these 1 year later, then we should be counting ringgit like baht, repeat 5 more years later, then we can count ringgit like Indon rupiah (i.e. in thousands/million etc), then everybody is a millionaire, Ringgit notes can then be printed in 100,000, 50,000 etc, (high income??),

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