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What is Najib’s response to the PERC’s “blistering” report and the prospect of Malaysia becoming even more uncompetitive internationally because of his failing strategy to be “all things to all people”

Yesterday, I criticised the Prime Minister Datuk Seri Najib Razak for coming up with a wishy-washy “1Malaysia” concept, which has come to mean “a thousand and one” different things even to Umno and Barisan Ministers and leaders – resulting in his lament that “I am greatly saddened that such an idea, which is not terribly complicated, is so often not understood.”

This criticism has found support in the latest report of the Hong Kong-based Political and Economic Risk Consultancy (PERC) on Malaysia which is quite pessimistic about the Najib strategy of “trying to be all things to all people, but in the end he might satisfy no one”.

In what Malaysian Insider has described as a “blistering report” on Malaysia at the end of January, PERC raised Malaysia’s risk index from 5.24 in December to 5.4 in January – out of a possible maximum score 10 for highest level of risk.

PERC maintained in its report that foreign investments into Malaysia have not been forthcoming, either in direct form or in the equity markets.

It said: “Foreign companies and investors are remaining cautious until they see how Malaysia gets its own house in order.”

PERC is confirming the alarm raised by all astute observers of the Malaysian national scene – that Malaysia is sliding down the slope of becoming even more uncompetitive internationally despite Najib’s 1Malaysia slogan and plan for a Malaysia 2.0 new economic model.

The PERC report said it is “probable” that no other Asian country is suffering from as much bad international press as Malaysia.

Among the developments that caught the attention of world media were the theft of military jet engines, detention of terror suspects from a number of African and Middle East countries following warnings that Islamic militants were planning attacks on foreigners at resorts in Sabah, renewed ethnic and religious “violence” that included arson at some churches and desecration of mosques, and controversy over the integrity of key institutions like the judicial system in the sodomy trial of opposition leader Datuk Seri Anwar Ibrahim.

The PERC report is highly critical of Najib’s premiership, as it states:

“Mr. Razak’s attempt to put the best spin on a bad situation is understandable. He is fighting for his political life and is trying to stop the erosion in confidence in Malaysia’s prospects.

“However, he is wrong in saying that Malaysia is being defined by the way the majority of the population are coming together. It is being defined by the ability of a minority to dominate the political agenda, shaping policy and compromising the reputation of key institutions in ways that hurt Malaysia’s reputation as a stable, attractive place for foreign investors.”

The PERC report said that while Islamic activists which are “threatening Malaysia’s secular credentials” are getting the widest coverage, it was the Umno elites, described as “a fringe group of insiders who have been able to profit disproportionately from the policies of the ruling coalition” that deserved the most attention.

“They are threatened with a loss of political power that could also impinge directly on their substantial business interests. Malaysia’s future will be determined largely by the tactics this group of insider elites resort to in order to stay in power and the success of those tactics. Their commitment to democracy is a major question mark. If they blatantly manipulate the system in order to remain in power, the public backlash could be worse than anything Malaysia has seen in its modern history.”

Yesterday’s latest judicial ignominy in Malaysia – the 5-0 Federal Court judgement attempting to legalise the illegal, unconstitutional, undemocratic and illegitimate power grab by Najib and Umno in Perak last year – is not calculated to inspire or enhance national and international confidence in Malaysia’s international competitiveness.

What is Najib’s response to PERC’s “blistering” report and the prospect of Malaysia becoming even more uncompetitive internationally because of his failing strategy to be “all things to all people”?

34 Replies to “What is Najib’s response to the PERC’s “blistering” report and the prospect of Malaysia becoming even more uncompetitive internationally because of his failing strategy to be “all things to all people””

  4. ///“However, he is wrong in saying that Malaysia is being defined by the way the majority of the population are coming together. It is being defined by the ability of a minority to dominate the political agenda, shaping policy and compromising the reputation of key institutions in ways that hurt Malaysia’s reputation as a stable, attractive place for foreign investors.”///

    It is amazing how this minority group of people could betray the country to achieve their selfish agenda at the expense of hurting the reputation of Malaysia’s key institutions and thus tarnishing the nation’s image as an ideal investment center.

  6. Not only FDI are declining but even the locals are hedging their bets by moving funds overseas.
    Companies can do so by investing in projects overseas and even purchasing asets like properties.
    Yet when BNM catches illegal fund transfers, no serious action is taken.
    I guess they will trivialise the PERC report as a foreign propaganda.
    After all they control the PDRM and the courts…

    http://malaysiawatch4.blogspot.com/2009/12/malaysiakini-and-bank-negaras.html

  7. Najib response, by now, is predictable by most people – his first choice will to ignore it and his second will be to give a curt rebutal and nothing else. Najib is not one for for lengthy complicated debate. His brain just can’t take it.

    In the end, Najib’s fate depend on one thing only – oil price. If oil price don’t go up, he is in trouble. If oil price go up, he can spend his way out of trouble. Its simple as that..

  8. Frankly speaking NR is most keen to save himself and family,umnoputras and cronies rather than bothers much about PERC’s ” blistering ” report . To NR what’s PERC,even if it rises to the level of 1(one) and gets booted. I think NR’s emphazised his strategy to weaken first PKR,DAP and PAS respectively and hopping to turn PR into the history book before calling for the general election. We have seen and are seeing now again and again pretty lots of stage shows by NR and gangs and all these should be enough to convincing us that his action against all his opponents really means business. Poor PR,how to fight with egg against solid rock.Some weaker and greedy PR’s leaders know that they could not fight them (Umno),so they would like to join them,willingly to be manipulated in order to gain wealth and fortune. To think NR,his gangs,umnoputras and cronies would care for country first is pretty naive. And not to think that these same bunch of crooks would dare to harm the people who are standing along the way to block them would be pretty naive too. We must accept the fact in malaysia under the regime of Umno/Bn, that these guys would protect themselves first at all costs whatever it takes.Hence whatever we do now would not have any effect against these rogue politicians. Instead we get hit and hit badly.My suggestion is to remain vigilance, calm and united and comes 13th GE, go all out and effectively vote Umno/Bn out. This’s the best option.

  9. Najib’s response, “What, what that HongKee FRIVOLOUS report, they are just talking nonsense. My 1Malaysia is for all but of course the “Indian beggars” and “Chinese prostitutes” cannot demand too much lah since they are “beggars and prostitutes”. You know, 1Malaysia is not terribly complicated if you see what my ministers have being preaching. Learn from my 1Malaysia and maybe the HongKee can have your own 1HongKong.

    Malaysia For All

    GE 13 – Change The Federal Government No matter what, we must ensure that racist umno bn do not regain the power like they had for over the past fifty two years.

  10. So that’s how they get the millions for the High Performance schools

    From theSun (Letters)

    Fans are a must in class

    HERE I am, at 5pm typing this email to the papers, without turning on my air conditioner or fan. I am doing this to feel what my children and thousands of other schoolchildren are experiencing each school day.

    The utility budget for many schools has been slashed. The affected schools are allowed to turn on the fans in classes after 10am for the morning session while for the afternoon session, fans must be turned off by 5pm.

    Where did the Education Ministry get the RM1 million for each of the top 20 schools? Is it from the sweat of our children? How many fans need to be turned off and how many pupils need to perspire to pay for one air conditioner in the elite schools?

    Have Education Ministry officers tried working with their air conditioners and fans turned off at 5pm? How can you expect the pupils to pay attention in class in this hot humid weather?

    We have some wonderful teachers who have taken pains to make their lessons more interesting including using powerpoint presentations. Children enjoy such classes. However, because of the budget cuts, the air conditioners in the computer rooms are switched off. These teachers are resigned to carrying their laptops and projectors from class to class. Is this how the ministry motivates our teachers?

    Electricity and water are basic human rights in any developed country. Do not deny our pupils their rights.

    School utility budgets must be rectified as soon as possible.

  13. “What is Najib’s response to PERC’s “blistering” report and the prospect of Malaysia becoming even more uncompetitive internationally because of his failing strategy to be ‘all things to all people’ ?”

    What PERC said about Najib fighting for UMNO’s survival is true. After years of abuse, it is hard for him to reverse the trend but we must also say in the same breath that some of the things that Najib has done is quite commendable. But there are also things that are totally unpalatable like the present sodomy charge against Anwar (no, not again after his conviction on a similar charge was once overturned) and his attempt to take over the opposition states by hook or by crook.

    But Najib will be the last UMNO Prime Minister, if the RAHMAN prophesy is correct. Glad that the prophesy doesn’t end with an M, or we may have a Marcos in our hands, looking at how he ran Johor as Menteri Besar!

  14. chengho :Najib must give strong leadership in the mould of Tun M and LKY , even Kit give strong leaderhip to Dap by installing Guan Eng as Sec of Dap eventhough Deo is a better candidate.

    No lah. It’s actually better & simpler to vote in Pakatan Rakyat as the next government.

  15. Is Najib on his way out?
    ==============

    Is Muhyiddin (who just launched his blog – Muhyiddin Yassin for Malaysia), Prime Minister Najib’s Deputy, attempting to overthrow his boss? Najib, who only came into power in April of 2009, is in real danger of not completing a term as Prime Minister (read here).

    Several commentators have already suggested that Najib is facing unprecedented resistance to his reform agenda and is being sabotaged in the process (read here) as his middle of the road approach goes against the very being of UMNO.

    Najib’s position is weak — both in UMNO and nationally. His ruling coalition is unstable with all key component parties facing leadership crises. The economy continues to falter and Malaysia’s weakening reserves suggests capital flight. Anwar’s Sodomy Trial and the “Allah” issue may drive moderates further away as fundamentalists push UMNO further to the right. Judging by previous UMNO intrigue (e.g. May 13, 1969; Operasi Lalang, October 1987; Reformasi, September 1998), it is likely that Najib will have to resort to underhand tactics to save his position in UMNO — and as always it is innocent Malaysians — mostly likely opposition leaders and democracy that will pay the price.

    http://asiapacific.anu.edu.au/newmandala/2010/02/09/is-najib-on-his-way-out/cc

  18. Najib’s likely response to PERC: go to hell!
    Najib’s likely response to Pakatan Rakyat (after Perak’s fiasco): I’ve buried you in Ipoh!
    Najib’s likely response to Anwar: go to prison!
    Najib’s likely response to the RAKYAT: go fly kites. That should keep u occupied.

    That’s Najib’s sloganeering : 1 Malaysia. Malaysians either ‘go to hell’ (along with PERC), gets buried, go to prison or go fly kites!

    Rosmah’s likely not-so-soft-whisper to Najib: DO THIS, THEN DO THAT OR YOU ARE OUT!

    Now that is prime ministerial.

  19. ///What is Najib’s response to PERC’s “blistering” report…?///

    He would likely say it is very low in his priority of concerns! Greater priority is on the matters raised by Grez Lopez in the New Mandala Blog highlighted by yhsiew in #16!

    True probably no other Asian country is suffering from as much bad press as Malaysia, eg – the news of stolen military jet engines, detention of African/Middle Eastern terror suspects the desecration of places of worship after Justice Lau Bee Lan’s decision, opening of Anwar’s sodomy case and now Federal Court decision. However these are quite recent.

    However well before and throughout 2009, Malaysia, according to UBS Securities Asia Limited report, experienced the biggest foreign exchange reserve losses among Asian countries. (Foreign capital outflows from Malaysia in the last year was nearly 50 percent of the GDP). According to UMNOputras’ thinking, probably much of this outflow was due to their own people and their business cronies relocating their assets/monies, in period of uncertainty after 308 political tsunami– but once it is certain that PR is properly neutralised, and BN’s political fortunes assured in next election, some of these monies will return….

    If one is thinking of foreign portfolio investment leaving the country in exodus because of PERC’s rating, there is in the first place limited foreign portfolio investment still in the country for quite some time for the impact of PERC’s report to be earth-shaking.

    If it were argued that the govt’s stand on Herald’s Allah issue may compromise Malaysia’s secular credentials and spook investors, then the loss of western investors may well be more than balanced by attraction of Muslim investors from the oil rich Middle East. Why it was no other person that PR’s own Selangor MBi Khalid Ibrahim who just affirmed that the ongoing sodomy trial of Anwar Ibrahim was a joke and has not deterred in any way prospective foreign investors especially from the Middle East to transform Selangor into an Islamic finance hub (See Neville Spykerman’s report of Ferb 10 in TheMalaysianInsider). What have investors got to complain when comparing with before the NEM has done away with FIC/EPU’s regulation of share acquisitions by foreigners, there being more financial liberalisation by granting foreign bank licences and raising of foreign ownership shareholding limits in existing stock broking companies and unit trust management companies for retail sector etc???

    Regarding Anwar’s sodomy case, UMNOputras probably also take the view that big business is less concerned about partiality of dispensation of justice vis-a-vis political opponents for so long as in commercial matters and contracts (that matter more to their buiness interest), there is sufficient impartial justice to business men litigating their rights and liabilities. In this respect, wshiklstb there’s controversy about the Federal Court’s ruling against PR’s MB Nizar (a political opponent) there is much clapping over the Federal Court’s decision on commercial/ land matters when it restored justice by reversing the 2001 error of Eusoff Chin’s ruling in the Adorna Properties vs Boonsoom Boonyanit case.

    Yes Malaysia has fallen behind those chop stick using countries like S. Korea, HK, Singapore and Taiwan but like the on-going brain drain this phenomenon of lagging behind has been going on for quite sometime well before PERC’s recent rating of political risk a notch higher.

    Even corruption index going up, some of these guys will argue that the problem is not so much corruption per se but whether business men know who in power to deal with, and whether once deal is struck, whether it will be delivered….

    Most unlikely they’ll not lose any night’s sleep over the PERC report.

  21. If e are going to save this country..the fight must be taken to them with no fears….the 5 judges crossed the line….there is no turning back now….anything is possible……they just sold their souls and opened the door to anarchy….

  23. Any parents who hv young children n who r concerned with their children’s education
    Shld do a SWOT (strengths, weaknesses, opportunities, threats) analysis n also a risk assessment on d future of 1M’sia n d cost of their children’s education
    N then consider a realistic risk management strategy
    Unless they r Umno/BNputras n cronies who hv access 2 big fat easy $$$

    On d other hand, if they don’t care what their children do when they r grown up
    Take heart fr d world famous enterprising unemployable university dropout
    He has shown us a novel legitimate sure way of making big fat bucks quickly, even getting an audience with DPM or PM n possibly a scholarship fr d Umno B gomen
    Like a Jollywood star, he waved n acknowledged applause fr his growing number of adoring n avid fans, all eager 2 tell him “Can I phark u today?“

  24. ///It is being defined by the ability of a minority to dominate the political agenda, shaping policy and compromising the reputation of key institutions in ways that hurt Malaysia’s reputation as a stable, attractive place for foreign investors…Malaysia’s future will be determined largely by the tactics this group of insider elites resort to in order to stay in power and the success of those tactics/// – PERC.

    All these succinctly stated are true but our problem is not knowing how small or big this so called “minority” committed to status quo system against any reform.

    If one believes page N6 of todays The Star, “the Penang Malay Chambers of Commerce has stepped up its attacks on Chief Minister Lim Guan Eng accusing him of misleading the people with incorrect statistics”.

    We don’t know whether they are ordinary businessmen as well as some members of UMNO whose members are ubiquituous, every where….

    It has always been party affiliation the way to ‘cari makan’ based on the Patronage System revolving around political affiliation/Ketuanan ideology. Its a mindset nurtured over 50 years. They will fight anyone who seeks (genuinely) to reform this system, whether it is Najib or any Opposition head/ government. I think they are not really small vocal “minority” and they are everywhere affiliated as members not just the Ruling Coalition parties but also embedded in Opposition parties waiting for the chance.
    Their dissatisfaction with Govt if any translated to votes against is not so much against the patronage NEP system of spoils per se but the unhappiness from the perception of inequitable distribution of spoils. This, the dimension of our problem. It is problem of Mindset.

  25. I wish to digress a bit.Today’s Star reported that the court was shocked when YB Karpal called the judge a liar.Why shocked? If YB had been born with the right colour and he had chosen to work as a judge,he is anytime more qualified and competent than the so called judges of today.Go ahead YB Karpal you are right with your comment of calling that guy a liar.Again the traitor and opportunist from Bayan Baru displayed his arrogance and audacity by slinging mud on the chief minister.Only certain people in this country behave so impudently when they do not get what they want and they always think they are the majority and sons of the soil.No wonder they are not only immature but a very heavy burden to the future and progress of the country.

  26. It doesn’t mean anything at all to UMNO. It doesn’t bother to them a bit what the civilized world is thinking of Bolehland’s disregard for the rule of law. In fact, I have the feeling that they are hankering for the Zimbabwe style of chaos. In this type of environment they don’t need to be limited by international standards of governance and practices. They can interpret and accept what are advantageous to their interests and disregard what are not to their advantages. They would be the absolute masters of their own destiny without the peskiness of being placed under the telescope of the scrutiny of others.

    The main existence of the UMNOputras is the accumulation of wealth. As had already happened in the colonial past when the incumbent power mortgaged the country for their own survival, so also the UMNOputras would not hesitate to sell off pieces of Bolehland to the highest bidder for money in the face of economic collapse. This behaviour is already in their genes. So brace for the inevitable.

  27. We don’t have to go to Africa to find a parallel for what is happening to Bolehland.

    In the 50s and 60s, Manila was the place to be for culture and entertainment. The Philippines had post-war development money from the US. It was touted as one of the first countries in Asia to reach developed status. The military pulled the strings then – a small elite group of people with connections to local tycoons, mostly of Chinese or Spanish descent. Then Marcos took over, and he corrupted the entire system. He and Imelda “invented” the personal tolling system for Asia. Political opponents were assassinated – both reputation-wise and also with their lives. It took the assassination of Aquino to galvanise the people – after 19 years of pillaging by Marcos and his military friends.

    But the rot had set in far too deep. Corazon Aquino could not reverse the rot. The military, the business elite, the bureaucrats – they only knew one way of doing business, which is the erection of tolls. The Chinese tycoons moved their money to Taiwan and Hong Kong. They could not live with the lack of security in the Philippines – the spate of kidnappings and unsolved murders.

    The biggest revenue earner for the Philippines is now the export of maids to Hong Kong and the Middle East. The men all stay at home, strum their guitars and smoke their homemade joints. Everybody from the President down (including her spouse) keep looking for tolls.

    Bolehland will become another Phillipines in the next 10 years.

  29. Muhyiddin says PERC report is nonsense. What do you expect?

    Had he said that the PERC report is true, his personal assistant would had run off to the police station to claim that Mr Moo had sodded him. That’s bolehland politics.

  30. FDI not coming.
    Re-investment very little.
    KLSE good as dead.
    Brains leaving.
    Expatriates leaving.
    Capital flight = 1/2 GDP.
    Military equipment stolen and sold.
    Umno turning fanatical.
    Ketuanan claim turning vulgar.
    Crime index up.
    Corruption index up.
    Macc reputation is the gutter.
    International competitiveness down.
    International transparency down.
    Universities ranking down.
    Judiciary independence gone.
    Roof collapsed.
    Buildings collapsed.
    Bridge collapsed.
    Landslide.
    Super laptop costing 42,000 each.
    Photocopies books costing ??? (amount is too vulgar to mention).
    And what has umno got to say.
    Nah. No problem. PERC is rubbish.
    Just like johnny english.
    The man who knows no danger. Who knows no fear. Who knows nothing.

  34. chengho:
    “dagen
    what are waiting for ? fly kite..shanghai yourself to timbaktu old boy…”

    Shanghai is in eastern China;
    Timbuktu is in western Africa;
    What Malaysians now mostly fear;
    That BN will turn their nation into Zimbabwe.

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