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Najib practices a two faced NEP cum NEM economic policy

By Dr Chen Man Hin, DAP Life advisor
23 Feb 2013

Events have shown that the NEP is still enforced in the economic development of the economy – two faced NEP and NEM economic policy.

Soon after being Prime Minister, Najib launched his New Economic Model to stimulate development with the aim of achieving a high economy like that of the Asian Tigers of Singapore, S Korea, Hong Kong and Taiwan

To do this he had to get rid of the economic handicaps wrought by the New Economic Policy. It is on record that Najib announced on May 2nd 2009 that he would replace NEP with his New Economic Model (NEM).

It is now 2013, and the signs of a high economy are not encouraging. For Foreign Direct Investments (FDIs) of 2012 Malaysia scored 9 billion US dollars compared to Indonesia’s US$19 billion and Singapore US$130 billion. (World Bank figures)

Per capita income for Malaysia in 2012 was US$9500 million, compared to Hong Kong US$30 million, Singapore US$50 million and South Korea US$25 million. Can Malaysia reach a high income status of US$20million by 2020.

Much has been publicised about huge foreign investments, but the Per capita income and FDIs are the tests to show the true state of the economy.

So what has pulled down the NEM. It is the NEP which caused the economy to be sluggish. It was presented by Najib’s father Tun Razak in 1971. The NEP is very much in force, not officially but its principles are still enforced in the ministries and state governments. Reliable sources say that the administration czars demand 40% control of all new investments.

Two days ago, REHDA the highest body of private housing developers complain that the NEP conditions were hampering housing development. The imposition of 30% discounts for bumiputeras was causing huge losses to the industry.

But government and UMNO cronies enjoy exemption of the 30% clause, and they make the money.

Examples: Felda Sendayan project , Ainsdale project in Labu and the latest Railyard Project in Seremban. All three projects are exempted from the NEP as they not required to build low cost houses.

However, private developers throughout the country, including Negri Sembilan, have to follow the requirement of building 30% low cost housing.

Najib is practising a two faced economic policy – a combination of NEP and NEM. It is no wonder that a high economy will be impossible to achieve.

12 Replies to “Najib practices a two faced NEP cum NEM economic policy”

  1. I wish it was just two-faced. Najib policy are made up as he goes along. He just make stuff up and then slap the label he wants on it. subsidized middle class housing is ‘transformation’? Handouts are ‘transformation’? covering up scandals are ‘transformation’? corrupting the electoral roll and changing rules as it suits BN is ‘integrity’ and ‘transformation’?

  2. Leaving the Opposition members and small number of supporters aside…if anyone still believe in Najib…she/he must have her/his brain….. be examined.
    Najib is a compulsive liar….and is deadly cruel …with matters concerning his personal interest.

  3. The criterion for achieving the NEP target was 30 percent equity share capital of the corporate sector owned by Malays. But the government refused to get a proper accounting of how much equity Malays have accumulated, including those companies which were created to hold shares in trust for Malays. The latter morphed into GLCs. A trustworthy govnment would have declared NEP accomplished when the share capital acrued to Malays has reached 30 percent. The government can then take its time to distribute those shares fairly to the Malays, not just allowed some rich Malays to become richer.

    The government has refused to appoint a neutral body to assess the shares of equity owned by Malays even when reports produced by experts, and NGO such as ASLI challenged the reliability of EPU statistics. The government insisted that its EPU has the last words on that computation. Why did the government choose not to take pride for having achieved the NEP target? It should be embarrassed that in twice the period of twenty years duration as promised by the late Tun Razak, Najib’s father, the target has yet unachieved. The answer was simple. The government and UMNOputras intend to use NEP as a cover to enrich any Malay of its choice. For all we know Syed Mokhtar may be holding wealth in trust of other UMNOputras, and for that he is allowed govement subsidies. Thus, Syed Mokhtar can be made to be richer han Bill Gates whereas million other Malays can remain where they are, to provide UMNO the excuse to claim that there are still poor rural Malays. When poor Malays are declining in number, UMNO imports Muslims from other countries and call them Malays. They now provides UMNO the bulk of poor Malays, to support the extension of NEP.

    Tun Razak was the first racist Prime Minister of Malaysia who started NEP. Mamakthir utilized NEP for twenty two years to enrich himself and made his cronies created wealth and held them in trust for him. That is how his sons get to own Petron from ESSO and San Maguel brewery in Philippines. Najib would prefere his father called a lier who could not make UMNO keep its promise than to help his father clear his name.

    Najib wanted to con non-Malays tobelieve that he was no-Mamakthir with his NEM and 1Malaysia and other permutations of Latin alphabet. He is a racial opportunist through and through.

  4. ///Najib: GE13 date only after transformation success
    Bernama | 1:53PM Feb 24, 2013 | 105
    ‘We wait because I want to prove that the national transformation policy can truly succeed,’ says the premier.///–Malaysiakini

    It may be like NEP which the government would never admit that the target had been achieved, Najib would say that transformation policy had not succeeded and hence there is no election. Malaysians can then wait for forty years for the next election to be held just like people have waited 22 years now after UMNO had finished the twenty year allotted to NEP.

    Najib has pretended to be ignorant that the election is not dependent on the results of government policy; no excuse has been provided in Malaysian constitution for him to delay general election.

  5. ///Per capita income for Malaysia in 2012 was US$9500 million, compared to Hong Kong US$30 million, Singapore US$50 million and South Korea US$25 million. Can Malaysia reach a high income status of US$20million by 2020.///–they’d author

    This paragraph needs revision.

  6. Yes it should be in thousands per capita i.e. Malaysia US$ 9,500, Hong Kong US$ 30,000, Singapore US$ 50,000, South Korea US$ 25,000, assuming he got his figures from the World Bank.

    Anyways we all get the picture even if there is an error. We are laggards, but Najib continues to imagine, dream, exaggerates and give false hopes.

    Today, two men were sitting at a table next to me chatting and they were complaining that a simple meal costs at least RM 5 in KL. How to survive, they complained. What is BR1M?

  8. “a simple meal costs at least RM 5 in KL”

    HALLO, these days, without RM10 in your pocket, don’t simply order a “simple meal” without knowing its price, NOT ONLY in KL but ALSO in almost ALL PLACES
    Nanti U hv 2 sell your pants 2 pay 4 ur meal

    Many HAWKERS selling simple meals r larfing all d way to d bank

  9. Still the wrong numbers about …. Please, correct …

    What we actually see these days is a very high percentage of inflation. Whatever the official numbers … . In the last year alone, many items of daily necessities have gone up by 10, 20 and even 30 percent. Food and drink, to name a few.
    The devilish trick is, to increase the cost of living – alas indirectly supported by minimum wages -, and then barely compensate for the increase. Devilish? In 2020 the average income could attain 20.000 USD, and yet the standard of living effectively unchanged.

    I have argued forth and back on the minimum wages that have been introduced. The gist of it was and is – alas now proven – that minimum wages are a great asset to the population, and useful to the society as well as economy. But, and this is a big but, minimum wages can also be paid only under circumstances of a minimum productivity. And as of the introduction in Malaysia, many, if not most, enterprises had not put the efficiency through a sieve to weed out positions of sub-par efficiency. Take care: I did not write ‘people’. Up and down the country, you can observe tasks being performed by obviously overstaffed, not necessarily underperforming, teams.

    It is the 101 of economics, that numerically, the income can be bumped up. But an increase of disposable income, the standard of living, also requires an increase in turn-over of employee per time-span, be it in the service industry or manufacturing.

  10. ((Per capita income for Malaysia in 2012 was US$9500 million, compared to Hong Kong US$30 million, Singapore US$50 million and South Korea US$25 million. Can Malaysia reach a high income status of US$20million by 2020.))

    Uncle Lim, you should be more careful, before putting this article on line, it is so misleading with the ((million)), you know it will be read by thousands of people????

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