Thursday, April 23, 2009

Match Bumi Quota Liberalisation With Real Permanent Commitment

Yesterday, I applauded the PM's move to liberalise 27 sub-sectors in the services sector by lifting the requirement for 30% bumi equity. But it is too early for us to celebrate this move.

I would like to see the government commits itself to 3 important moves:

1) A memorandum should be submitted to all departments and agencies at the implementation level. It has been a long standing complaint that some agencies, regardless of the federal directive, have refused to change their requirement. This will end up frustrating most companies. The government should immediately establish a federal level one-stop centre at all states to ensure the smooth implementation of this liberalisation - serving enquiries, resolve confusion and accept complaints

2) Open up government procurement to all Malaysian listed/registered companies without favouring any particular type of companies. This must be done because of GLCs requirement to support only Bumi companies. Open tenders must be clearly and fairly implemented.

3) Government must support all local companies without using the liberalisation to channel aid, grants and financial support to only Bumi companies to help to compete with the rest.

It will be meaningless if the liberalisation is announced to the detriment of other local companies if more subtle discrimination is to be implemented.


nckeat88 said...

Give him some time. After all it's a good start. You can still fry him if he don't deliver later. Something better than nothing.

clearwater said...

Do you really believe a simple announcement will unlock decades of cronyism and corruption resulting from discrimination and wrongful implementation of the NEP? The civil servants and others down the line still think they have Napoleonic powers and one way or another, will get their piece of the action. The culture cannot change overnight. Who is tasked with ensuring a paradigm shift in their mentality? If there is no change in their mentality, all efforts at liberalisation are moot.

Anonymous said...

Hi khoo,

I personally felt that if the BN/Umno govt is sincere enough why only 27 sector.
I dont buy that, this is done just to satisfy that reform is taking place and time is needed.(buying time)
To me it's just the same, time will tell. To have this and that lifted is one thing but to implement is another thing remember.

Anonymous said...

I still dont trust the buggers. I will not commit any investment until this is proven to be something serious. And not just another big horn blowing.

Jeremiah said...

Removing the NEP policy and the political agenda behind it is essential. But what is more essential for bloggers/the media and the public to understand is that distibution of human and financial resources based on race is economically most wasteful and greatest disincentive for economic wealth.

When one person based on race/class/religion is allocated a reserved advantage over the next person who is different, then economic resources are not going to the most efficient. There are huge opportunity costs that Malaysia's bumiputra policies (as distinct from but not unrelated to cronysm).

So Najib's commendable move should spark a fresh wave of analysis why Malaysian policymakers need recognise the stupidity of economic disincentives and to allocate its resources in the market efficient way. Everyone benefits from a bigger pie.