By Yow Hong Chieh
The Malaysian Insider
December 06, 2010
KUALA LUMPUR, Dec 6 — The Najib administration will face continued investor scepticism until it is more explicit on how to make Malaysia a high-income nation, warned one of those who drafted the New Economic Policy (NEP).
Tan Sri Dr Ramon Navaratnam, who had helped Tun Abdul Razak draft the NEP following the deadly 1969 race riots, said the recently unveiled second New Economic Model (NEM) report was filled with good intentions but “very short” on specific measures.
“And therein lies the problem… Investors, after waiting so long, find they’re back almost to square one in terms of the specifics and policy proposals they can act on,” Navaratnam (picture) told The Malaysian Insider.
“I had expected much more from part two. To that extent, I am disappointed,” the former senior civil servant said about the NEM 2 unveiled last Friday.
The Asian Strategy and Leadership Institute (Asli) Centre for Public Policy Studies chairman stressed that more concrete proposals were needed to reassure domestic and foreign investors alike so they would not take their money elsewhere.
Private sector confidence is critical to the success of Prime Minister Datuk Seri Najib Razak’s ambitious NEM as the government expects the private sector to fund 92 per cent of the US$444 billion (RM1.37 trillion) needed to sustain the Economic Transformation Plan (ETP) over its 10-year period.
“How can FDI (foreign direct investment) feel comfortable when there are a lot of motherhood statements but no specific proposals that can affect policy?” Navaratnam asked.
The former Finance Ministry deputy secretary-general pointed out that investors had already been made “uncomfortable” be delays to the second half of the NEM, as that suggested Najib’s administration had “misgivings” about some of the reforms proposed by the National Economic Advisory Council (NEAC).
“For example, what is the position of Bumiputera equity? Is it on or off? And for how long more?” he asked.
Navaratnam said the government — which rejected an Asli report stating that the 30 per cent Bumiputera equity target had already been achieved and even surpassed — had yet to commission an independent study as recommended by the think-tank.
“This 30 per cent issue, there is doubt as to whether or not it has not been achieved,” he said.
“The Bumiputera share has well exceeded 30 per cent and it’s no longer an issue, unless they’re now bringing about a change in policy and wanting more than 30 per cent.”
The outflow of domestic and foreign investment and capital will continue until the government can convince investors there was enough political certainty in Malaysia, the former Transparency International Malaysia president added.
He stressed that time was critical for investors, who were more than willing to go to Indonesia, China, India, or anywhere else in the world where there was a greater level of certainty.
“My hope and prayer is that, having made the mistake of not coming out with specifics, that these specifics be spelt out as soon as possible in a comprehensive manner and not in dribs and drabs,” he said.
Navaratnam urged Putrajaya to act quickly in this respect, even as the ongoing movement of capital and talent away from Malaysia “erodes” the prospect of Najib’s ambitious transformation plan.
“The sooner the matter is settled, the better for the economy and the prospects for take-off rather than a dive-down,” he said.
To be frank, Nah! Jib is not qualified to run this country.
Worse still if he’s to take charge of the country’s finance.
He’s just a spoilt brat who knows only how to spend along with his Big Fat Mama.
Both of them does not feel the pinch because it’s not their money so why bother.
Not enough money, just “squeeze” it out from the rakyat.
Many are happy to be “squeeze” anyway.
Thanks to these buggers!!!
FDI? You have got to be kidding. Its an issue of capital flight already. What is holding things up is the fact that EPF is still growing strongly. Corporate capital is leaving already. There are so many people looking to cash out of their business to leave.
why would any sane corporation forked out 30% to these brain dead goons? they will be running away in a split second. and there are plenty of places to go in these region. see how volkswagen keep on resisting these parasites for sometime now. once they stuck and suck, man, the company will be gone in 60 minutes.
those who stayed are those who do not need to succumb to the 30% and whatever idiotic hidden in fine print rules.
Navaratnam said the government — which rejected an Asli report stating that the 30 per cent Bumiputera equity target had already been achieved and even surpassed — had yet to commission an independent study as recommended by the think-tank.
“This 30 per cent issue, there is doubt as to whether or not it has not been achieved,” he said.
“The Bumiputera share has well exceeded 30 per cent and it’s no longer an issue, unless they’re now bringing about a change in policy and wanting more than 30 per cent.”
He has spoken like a TRUE Asian Strategy and Leadership Institute (Asli) Centre for Public Policy Studies chairman.
For this statement alone, PERKOSA and those of its ilk will be baying for ISA, Sedition Act, ……
Remember what Bad Awi did just before the 2004 GE— he ordered the arrest for corruption of Eric Chia and Kasitak Gadam. And they were found not guilty immediately after the elections.
Now is Jib’s turn to order the arrest of the Javanese toyol
I tend to agree with k1980. I think the timing of the Toyo arrest and charge is all part of a big charade to win votes for the GE soon. This arrest will give the embattled MACC and the BN Govt the desperately needed credibility and the various GTP. And you can bet your bottom dollar they (using UTUSAN) will be going to town with this arrest and charge.
I suspect that they will go through the motions of a trial and probably even find him guilty in the first round to make it even more credible. Then the case will be appealed and it will be thrown out either at the second or final stage. Remember Perak?
I will only believe this trial when I see the final verdict. Ditto for the PKFZ cases.
Toyol volunteered 2 go through this charade of ‘hardship plan’ lah in order 2 re-emerge as hero when he is later acquitted of all charges mah
We know that for Najib’s plans to succeed, he must at least change up to 90% of his ministers, and so on and so it goes.
Why must investors give top priority to invest in a race-based economy? After all, there are other much better investment destinations such as China, Chile etc.
///Navaratnam said the government — which rejected an Asli report stating that the 30 per cent Bumiputera equity target had already been achieved and even surpassed — had yet to commission an independent study as recommended by the think-tank.///
Najib has to follow the instructions from Mamakthir. Mamakthir has spoken through Perkasa that the 30% target had not been achieved. Whatever that 30% meant Mamakthir knew that by claiming that the 30% had not been achieved, NEP can continue. There is therefore no need to commission any study. If UMNO had intended to honour the promise then Mamakthir should have commissioned the study back then in 1990, and made a fast-track approach to achieve that target. There were tons of Petronas cash which could have been used to buy up as much equity as needed, and distribute them to Malays, however Malay was defined. Obviously the 30% target is just an excuse. Najib could not even suspend the 30% policy; he certainly dared not call for the truthful statistics to be produced. He knew certainly that the 30% target had been attained, but he would not dare to declare NEP accomplished. That achievement would kill his political career for how else can UMNOputras share government coffers without NEP providing the cover to enrich Malays, whoever they may be. In fact now rainbow Malay is the preferred race; that was why Hishsamuddin had called attention to the ‘impurity’ of his blood.
NEM failed to tell foreign investors why Malaysia is better than China, Vietnam, Indonesia and Guadalcanal as their investment destination
Still harping on bumiputra equity while our competitors have no such moneky on their back
I believe if the cake is enlarged and the citizens enabled, regardless of race, will get their stnadard of living improved.
having the ability to earn a living as a useful professional is more important than being a holder of passive investment – shares can go bad when the company goes up in smoke, but skilled workers can move on to new employers or start their own business
When you are a member of Ali Baba and the forty thieves, you hold too many secrets to be expelled from the gang. Ali Baba and the forty thieves hold each other by the b@lls, and nobody is really going to squeeze that hard. Least of all Najib.