Urgent parliamentary debate on EU Ambassador’s critical speech on NEP, productivity and competitiveness

I have given notice to the Speaker, Tan Sri Ramli Ngah to move a motion of urgent definite public importance on Wednesday on the controversial speech by the European Commission Ambassador to Malaysia Thierry Rommel critical of the New Economic Policy and the country’s declining FDIs and competitiveness.

The motion I have submitted is as follows:

“That under Standing Order 18(1), the House gives leave to Ketua Pembangkang YB Lim Kit Siang to move a motion of urgent definite public importance, viz: the speech by European Commission Ambassador to Malaysia Thierry Rommel critical of the New Economic Policy (NEP) and the country’s productivity and competitiveness losing out in foreign direct investment.

“Last Thursday, speaking at the EUMCCI luncheon talk of local and foreign businessmen, Rommel said the NEP was discriminatory and amounted to protectionism against foreign companies.

“He added that the Government was using the NEP as an excuse to practise ‘significant protectionism of its own market,’ including the automotive sector, steel, consumer goods, agricultural products, services and government contracts.

“In his speech, Rommel also gave a ‘factual, non-emotional’ six-point critique of Malaysia’s productivity and competitiveness, viz:

  • human capital development and the public education system;
  • the public service delivery system;
  • transparency and predictability in the ‘rules of the game’ concerning government regulations, decisions affecting business, public procurement;
  • corruption;
  • the rule of law to everyone; and
  • security – physical, administrative and legal.

“The Deputy Prime Minister, the Education Minister and the Foreign Minister have accused Rommel of meddling in the internal affairs of the country and of being ‘arrogant’ and having ‘overstepped his authority’.

“Although the Deputy Prime Minister said Rommel’s speech was ‘factually disputable’, this has not been done. What does the government propose to do if Rommel can factually back up his criticisms when summoned to explain his speech?

“It is more important for Malaysia’s international image as a democratic and progressive country prepared to face the challenges of globalization that Rommel’s speech should be openly disputed than to shut him up.

“Parliament should have an urgent debate to show the world that the nation and government is prepared to face criticism.”

Deputy Prime Minister Datuk Seri Najib Razak has said that Rommel’s remarks are “factually disputable” while the Foreign Minister Datuk Seri Syed Hamid Albar said that Rommel’s statement was not based on facts.

However, up to now, Najib, Hamid and Umno Youth leader Datuk Seri Hisammuddin Hussein, who is spearheading a Barisan Nasional youth protest against Rommel’s speech, have not laid out the facts to prove Rommel wrong, which should be the “smart” way of operation in an information and knowledge era with the advent of information and communications technologies.

Hishammuddin should clarify whether he has the full authority of MCA Youth, Gerakan Youth, MIC Youth, SUPP Youth and youth wings of other Barisan Nasional parties to speak on their behalf on this issue — and if so, why the other BN Youth leaders have been so conspicuously silent.

I have no doubt that if Rommel had praised the NEP and the productivity and competitiveness policies of the Barisan Nasional government, there would be no protests but full of praises and and even bouquets for Rommel.

Rommel has denied in today’s press that he had any intention to meddle in Malaysia’s domestic affairs and that it was not the rationale of his speech.

He clarified that the NEP would have bearing on the negotiations with the Free Trade Agreement between EU and ASEAN and that the bumiputra policy is an issue on the horizon, as it would limit room to manoeuvre for Malaysian negotiations due to the open nature of the FTA itself.

Instead of protests and saber-rattling by Hishammuddin and the Barisan Nasional Youth, the most sensible and productive response is to ask for full clarification from Rommel and to have a full debate in Parliament.

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46 Replies to “Urgent parliamentary debate on EU Ambassador’s critical speech on NEP, productivity and competitiveness”

  1. Thierry Rommel speaks of Malaysia’s NEP in the same way the rest of the world speaks of Myanmar and Aung San Su Kyii, Uganda and Idi Amin, Mugabe and Zimbabwe, Bush and USA, Saddam and Iraq.

    There is such a thing as a free press and free speech in a free world.

    The fact Najib and Hishammudin just had their feathers ruffled speaks volumes about the defensibility of the NEP. Guess they are birds of a different feather with a different bird-brain!

  2. Question: Why didn’t Hishamdin wave his kris at Rommel?

    Answer: ‘Cause he’s scared stiff by the guns of Rommel’s Panzer
    Mark IVs

    Moral: Be very careful who you wave your kris at

  3. This response from Najib, Albar & Hisap-mmudin is typical of an impotent government which, for the benefit of certain in-duh-viduals, can only scream & shout, but can never come up with any rational reasons.

    Rommel has said nothing more than the truth, which by the way, was voiced by Siqui some years ago. Hisap-mmudin at that time could threaten the Chinese by calling for “bermandi darah”, because his thugs were in the majority and could bully the minorities. Let’s see him pull the same stunt against the representative of the EU. The only thing we’ll see is Hisap-mmudin running away with his tail tucked between his leg.

  4. Thierry said (The Star):
    “It is not my intention to meddle in domestic affairs and that was not the rationale of my speech.

    “The rationale of the NEP in my speech is that it has bearings on the negotiations with the Free Trade Agreement between EU and Asean.

    “I did not say the NEP was discriminatory nor did I call for it to be scrapped.

    “One should read the entire speech to understand the context,” he said yesterday.

    On the FTA, Rommel said the bumiputra policy was an issue on the horizon, as it would limit room to manoeuvre for Malaysian negotiations due to the open nature of the FTA itself.”

    Same, same. The NEP is a straitjacket and has hamstrung economic development in Malaysia for almost 3 decades! Want to know why Malaysia has been falling behind so many newly emerging economies – that’s it! The NEP is the culprit. The cake shrank in a competitive environment internationally whilst the races fought for the crumbs. UMNO-putras had the cream.

  5. ///Deputy Prime Minister Datuk Seri Najib Razak has said that Rommel’s remarks are “factually disputable” while the Foreign Minister Datuk Seri Syed Hamid Albar said that Rommel’s statement was not based on facts.///

    Whether Rommel’s statement was based on facts or not should be proved by facts and figures.

    Malaysians are awaiting the actual results with reards to the attainment by Malays of the 30% target of corporate equity ownership. The success of that has delayed the ending of NEP by 17 years now, and continuing. ASLI’s report shows that the 30% hAS LONG BE ACHIEVED, AND SURPASSED. DPM Najib more than 6 months ago announced that the government would reveal the EPU methods in the computation of the results. That has yet to be done. It is time that the government reveal to Malaysians the process, and prove that all relevant statistics have been appropriately classified and correctly tabulated. That is a proof that the government is concerned about facts and figures.

  6. It was bitter pill to swallow. So bitter that none of our newspapers dare carry his statement. When a piece of news is blacked out, it means it is true.
    The NEP cannot be defended. It is a sitting duck – to be mocked, teased and made fun of. Let’s enjoy doing that.

  7. Put it in simple term, NEP is strategically created to cover up the corruption act of a certain breed. Fellow MALAYSIANS wake up please, are you thinking they are so kind wanting to help the poor? I have met kampung folks and orang asli who are totally neglected by the government, so as to many other races Indians and Chineses included.

    Those who defend NEP meaning PRO CORRUPTION which incl. Najib, Abbar and Hishammudin.

    NEP in Malaysia is similar to Apartheid in South Africa. Malaysia has no rights to criticize other countries as we are still practicing ethnic separation in our own land after 50 yrs into independent!!!

    SHAME TO CALL OURSELVES MALAYSIANS!

  8. This is a government with forked policies and they just cannot accept truth which as usual will touch on their raw nerves and they will spit fire by loosing their head as what had also happened on the controversial findings on Malays equities by the Centre for Public Policy Studies (CPPS) and until today they had not come out with their findings which was promised to be released.

    It is not surprising that every time somebody spoke the truth and touches on their raw nerves they will run amok and blame others for interfering in their internal affairs. I think many a times they had also interfere in the internal matters of other countries, though sometimes they disguise it like as though they are helping, some very good examples are in matters in Southern Thailand, Southern Philippines, Singapore and also South Africa where they had spoken strongly against the Apartheid regime which NEP is not much better.

  9. BN cannot take critisim, they can only take compliments… SO typical! MCA or MIC to comment? You can never ask dogs to bite their owner, can you?

    All is rest on the oppositions! A true noble cause that you are on Uncle Kit, please continue to fight for us! WE ARE WITH U ALL THE WAY!

  10. If the Govt is sitting in the negotiation tables in the International arena, it better come out with a better methodology of using PAR VALUE of paid up capital of companies as the 30% benchmark for NEP knowing fully well that using par value, the 30% benchmark won’t be achieved for eternity. This is because par value of paid up capital of bumiputra shares is a static figure. It is liken to a scam saying you can change $10 to $1,000 using a magic wand; that $10 will remain $10 for eternity unless the magician decides to put in more money – which he won’t!

    Foreigners aren’t going to take that stupid methodology lying down, unlike Malaysians. They won’t like being scammed or taken as a fool neither.

    At the end of the day it’s the Malaysian Govt that is going to look stupid and the one who is scamming its Rakyat!

  11. You just cannot stand the sick characters of some of the UMNO ministers. They only just want to have their ways to ensure their own survival. To the rakyat and even the poor Malays what do they care!!!

  12. Syabas to Rommel and the EU for the courage to highlight the injustice of NEP, and to pressure the greedy and corrupted UMNOputras to buck up! In fact, Rommel should have also brought up human rights issue in Malaysia e.g. religious and racial persecutions. There is a need for more international pressure on UMNO.

  13. I think it is BN that had failed miserably on the NEP and not NEP had failed Malaysians. What is the result? Look at Abdullah, he is selling Iskandar to the Singaporen like a prostitute.

  14. In order to understand NEP, you have got to understand Suharto’s ‘New Order’ regime as well.

    After Suharto’s 1965-66 crushing down on the communist coup and the subsequent nationwide persecution of the communists and their sympathizers, he seized power from Sukarno and started his ‘New Order’ regime, which targerted the Chinesse Indonesians.

    His 32 years’ reign did see small progress for Indonesia, but his family and his cronies were the ones who plundered the country of its wealth and enriched themselves.

    Anything happened, blame in on the Indonesian Chinese, they were the ones who controlled the economy.

    Three years after Suharto’s coming to power, in 1969, the Malay Ultra faction within Umno took a leaf out of Suharto’s book. They staged a coup d’etat to dethrone the Tunku and installed Tun Razak. What happened after is the so-called New Economic Policy, which gives preferential treatments to the so-called bumis in terms of education, jobs, civil service, etc.

    The whole purpose is, besides helping bumis, to perpetuate the political dominance of Malays, who in turn ensure UMNO would not lose hold of its power. Hence, a self-fulfilling circle was set in motion!

    And such, the powers-that-be in UMNO would behave like the rulers of this country, the mega-sultans of Malaysia, the country is theirs. They have the power to award the country’s wealth in the form of government shares and others to their politicians and cronies. Besides helping Malays, a selected few also became millionaires, with the majority of Malays still coming to terms with international competition and globalisation.

    Anything happen, blame in on Chinese, they control the economy, they prevent Malays from progressing. And because you have LKS in Parliment, Malaysia cannot be successful, so on and so on…

    If you ask Malay Singaporeans(who constitute 14% of Singapore’s 4 million population) whether they need any NEP, in general, they would say, “Don’t insult me!” If the minority in Singapore can make progress without any NEP, why can’t the majority of Malaysia???

    So you think Malaysia is a successful multi-racial model? No, if it is, it is the joke of the century!!!

  15. Loh is right, 6 months already past yet there is no sign of the reveal of the equity share reports by the racist . all these half past six ministers want facts and statistics when facing comments.
    Lets start with what Semi Value had reveal recently that 96% of the Government projects being given out to the Bumiputras is already a solid proof of racial discrimination in the NEP process.
    I suppose Najib, Krismudin and Syed Hamid will not remember facts and figure cos Money has blind folded them . they should hv produce the factual figures on the next day immediately after Dr. Lims reveal of their 45% equity share. if Najib is honest.
    Please learn from China, and take up the challenge of the comments by just replying Mr. Rommel. as how China has been replying to the US senators. whenever The Chinese being accused.
    Its a waste of time to say other people is interfering your internal affairs especially your own people have already been descriminated by the policy. nobody should deny!

  16. What Rommel said on NEP is based on universal value. The BN value is not consistent with universal value. Based on universal value, NEP is violating human rights. NEP would only produce N.E.P.s (New Economy Parasites)

    WE can see many the New Economy Parasites in our Economy/country today.

    There are people who hold high post in the government, but just like dead woods …not productive… We have the civil engineers produced by NEP- working with the city councils but the approved structural defective buildings…

    We have the contractors chosen based on the privilege through NEP to repair government buildings ….it cost the much of the tax-payers money…millions…. but within a few months it started to leak, ceiling falling down….We should call the products of NEP as parasite, shouldn’t we?

    And these is only the tip of the mediocrity icebergs…. there are many more out there in our country… so Vision 2020 have to be extended to 2057..

  17. You expect these 3 bone heads to come out facts to challenge Rommel??? Aiya… Don’t waste time la.

    Najis can bring out his C4 and blast Rommel apart;
    Hisappudding can only bring out his keris;
    while Albar got nothing to bring.

  18. Rommel does not really understand the plight of the Bumis in this country. In fact the present NEP should be further extended to cover more benefits to the poor majority. For instance, they are given only 15% discount for a new house. So for a bungalow costing RM1 M, they have to fork out RM850,000. This is too much! It should be increased to 100% subsidy. Bumis and Bumi-owned companies should be exempted from paying income tax. Otherwise not fair what. Then only everyone is put on a level playing field. If country faces cash flow problem, blame the Chinese for being disloyal to the country. Blame Singapore for being selfish in not helping its neighbour.

  19. Why not the three bullies in UMNO talk about ketuanan Melayu and tell straight to Rummels to kow -tow to UMNO if European countries wants to do business with Malaysia and to invest in Malaysia. All this while , these UMNOputras can bully & discriminate the minorities by imposing all their discriminatory policies in Malaysia and now they thought they have grown so big and powerful that they also wants to do the same to the European countries. Rummels criticism is indirectly to tell them to wake up to the challenges of globalization. No more clutches or Tongkat Ali if they wants to be successful in this globalized world.

  20. Kit. you remembered the controversy of the EPU 19% versus ASLI 45% malay equity which you brought up in Parliament.

    That was about a year ago. Najib said that there should be no time frame where helping the poor malays are concerned.

    Fast forward that to now. Since the time of this controversy about a year ago, who got the awards of the major contracts? The Penang bridge $4.5 billion and most other recent major contracts were awarded to UEM, Scomi, and those connected to UMNO.

    These are the old faces included in the 19% malay equity. Ask Parliament, did any ordinary malays get what was promised to them by Najib? How can the 19% increase when the methodology uses “par value” and when all the new contracts were awarded to the same old faces?

    This time frame shows how sincere the Govt is in helping the less connected malays and in achieveing the 30% bumi target. They are in fact helping themselves – not the ordinary malays!!!

    The foreigners are also pissed off because they know in reality the NEP has not been used to close the wealth gap between the malays and non-malays but used as a guise to enrich the connected UMNOputras. They will be even more pissed off if they are aware of the dubious PAR VALUE methodology used in calculating the NEP.

    Nobody likes to be scammed or treated as a fool, especially foreigners!

  21. And I might add, since the controversy of the EPU 19% versus ASLI 45% malay equity about a year ago, there has been an unprecedented “leakages” – metaphorically and literally!

    How much moneys are wasted and leaked out of the system?

  22. The objective of NEP is to be lauded. However its implementation has left much to be desired.

    Instead of benefiting the privileged few with the connections the allocated share should be given to Malay cooperatives where all Malay employees should belong. This way the benefit would be spread to benefit as many Malays as possible.

    At the moment the privileged few would have to resort to Ali Baba arrangements in which only the few non-Malays with connections benefit.

    So the many non-Malays complain unfairly blaming the many Malays who have only their jobs to cling to.

    With a shrinking economic cake the country is now experiencing as more and more foreign investors bypass Malaysia for other Asian countries such as China, Vietnam and Singapore, the dissatisfaction and frustration are growing at the expense of the many non-Malays and Malays.

    Therefore it is imperative that a more equitable economic policy and formula be drawn up to benefit the many Malays and non-Malays for the continued wellbeing of the country.

    In the Malaysian context, any meaningful dialogue should begin with the unequivocal acknowledgement of Malay political dominance and institutions in the country to allay Malay phobia.

    An analysis must then be made to government contracts and tenders, transportation (it has been decreed as a Malay preserve), manufacturing (many non-Malay plants are unlicensed for obvious reasons) etc for the most effective and equitable ways to benefit the many Malays and non-Malays.

    Without such a starting point we can talk until the cows come home, inflaming emotions unnecessarily.

  23. Any leader who can’t take criticism is bound to fail. I’m sure Rommel is not stupid to say something which he has no facts to back him up.

    Malaysia policies be they foreign or domestic are being studied and scrutinized all-over by the foreign countries.

  24. Kit,

    DAP would be better off not playing the same game.

    Why must the Opposition respond to criticism of its own government by foreigners, who speak on behalf of their governments and foreign interests, as if we as Malaysians are incapable of thinking and reaching the same conclusion? Why must we look to foreigners and spokesmen of foreign organizations for vindication of our views?

    Is it because any direct discussion of the NEP comes within the ambit of the Sedition Act? Is it because it affords an opportunity to discuss the issue the discussion of which is otherwise closed?

    The government’s xenophobic response to criticism by foreigners has always been accompanied by calls not to interfere in the domestic affairs of Malaysia. They know it is not.

    Perhaps the Opposition should find another way rather than be accused of pandering to the demands of foreign governments or organizations. The present approach tends to cloud the issue.

  25. The NEP started with noble intentions and was a program with a definite shelf life.

    However the benefits have been highjacked by the ruling elites so that most of the poor citizens still have to struggle to exist.

    No doubt the NEP has enlarged the number of the middle class citizens but the social costs have also been tremendous.

    Of course anyone who has access to the generous perks of the NEP will not want to let go easily and some people are truly greedy.
    While the diplomat did not use diplomatic language, we should agree that at least the authorities now know that “you can’t fool all the people all of the time.”

    Maybe he was giving us an indication of how Malaysia could fall if we did not ensure a fair deal for all Malaysians.
    http://malaysiawatch2.blogspot.com/2007/04/between-malaysia-and-zimbabwe.html

  26. I believe this Rommel has no intention of meddling in the internal affairs of the host country. Having lived here some four years he knows better not to do that.

    He is not pointing out anything that is new. It is not disputed that policies like the NEP claimed by supporters to be affirmative action oriented and no more, a policy necessary according to some to restructure society so as to inject greater long term political stability a precondition to long term economic prosperity, on the domestic front, also acts as a negative influence on the free trade and globalization.

    That opinion has been expressed at international seminars MIDA organizes overseas and is the subject of numerous inquiries by foreign businessmen and organizations interested to invest in Malaysia. What makes Rommel’s comments different, and treated differently is that they appear not to have been made to a special audience but to the general public. Questioning affirmative action programs like the NEP at investment seminars organized by MIDA overseas is legitimate because it was made with a view to investment promotion and to a special audience of businessmen and bankers.

  27. It never ceases to amaze me how everytime a foreigner comments on Malaysia’s discriminating policies, he or she is almost always certain to get the standard comeback from our politicians and that is “they don’t know our history”.

    Is our history so mysterious and secretive that only a handful of politicians seem to know it? And if that is the standard reply, does that mean that no one can say anything negative about our country at all because they are not history experts?

    Instead of countering Rommel’s comments with facts and data, they simply said he doesn’t know our history. Is that the best our senior politicians can do? Even if Rommel did know our history, what he said still holds some truth and deserves to be mentioned.

    This goes to show how little “quality” our politicians possess and it will be seen by the world.

  28. “Instead of countering Rommel’s comments with facts and data, they simply said he doesn’t know our history.”

    Why should they counter anything? This is just the head of the European Delegation voicing his view as to the coming talks on free trade and how talks could falter unless steps are taken to change the status quo.

    And what do they mean by “they simply do not know our history?”
    Are they seeking to justify a policy that has outlived its original objective? Then they could have at least prod the nation’s Fat Lady to take the initiative and comment since she would be representing the country in those talks – instead of the xenophobic response.

  29. BN Ministers took the statement so offensively simply because they don’t have any facts and figures to back themselves up.

    Their limited knowledge experienced another sudden downsize.’ meddle internal affair’, ‘ history’… Those are the only groundless and crappy excuses they’re capable to think of…

    Y don’t they see the knock on effect of the Ambassador’s speech? It has a far-reachin’, adverse impact on Msia FDI from the European investors! EU, the growin’ strongest trading bloc offers enormous opportunities to the Msia economy, let’s imagine how they perceive about Msia now?

    It doesn’t take a genius to understand why we’re losing out on competitiveness and FDI to other the developin’ nations, like our ASEAN neighbours, China and India. Thanks to the idiotic, shallow Ministers!

  30. “The objective of NEP is to be lauded. However its implementation has left much to be desired.” Simon SCWee

    That seems to be the consensus.

    But may I add to that. The NEP has been hijacked by UMNOputras to serve themselves and their cronies albeit under the guise of affirmative actions.

  31. To quote Rommel, EC Ambassador to Malaysia

    “In a dominant part of the domestic economy, there is no level playing field for foreign companies.” […]”

    Yeah. Tell that to the Japanese who employ all techniques to block imported goods from coming onto their market. Try to bring for example, pineapples and you will be faced with a wall of all kinds of requirements from sizes to composition – or finished wood products and you’ll know what I mean.

    Any sovereign state has a duty to its citizens to keep jobs at home.

  32. Current aprtheid practice in Malaysia is worst than the aprtheid in its heyday many years ago in South Africa!

    Malaysia needs many more Rommels to stand up to speak against it.

    Malaysia needs a Mandela and a Tutu to appear fast before the total collapse of the whole nation!

  33. It’s written in the Book of Malaysia.
    The changes will come about when the Malays take on the Malays.
    To them, this is their country and solely for theirs.They are the rightful owners.
    All non Malays are ‘tenants’. Those who comes here as Malaysia 2nd Home program are welcome because of commercial values.
    The whole process have taken the Malays to a more value addded life style.
    They are walking away for their own colorful culture and becoming like ‘one of those’ rich and famous in the west. Funny thing is, they always claimed that they are Islam and their practices are better than those in the middle east.
    ..

  34. “Current apartheid practice in Malaysia is worst than the apartheid in its heyday many years ago in South Africa!” mendela

    Is that so??

    The attempt by some readers to compare Malaysia to South Africa and its apartheid policies, if this is not a gross exaggeration of the facts and a distortion of the truth, I don’t know what is.

    Are there in Malaysia, race laws touching every aspect of social life, including a prohibition of marriage between Malays and non-Malays, an Act like the Population Registration Act of South Africa requiring that all Malaysians be racially classified into one of three categories: brown, yellow, black or mixed (of mixed descent). Classification into these categories being based on appearance, social acceptance, and descent. The Home Affairs Ministry responsible for the classification of the citizenry? Non-compliance with the race laws are dealt with harshly. All non-Malays are required to carry “pass books” containing fingerprints, photo and information on access when they enter Malay areas?

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