ETP, NEM & Monopolies

I fully agree with Dap national publicity secretary Tony Pua and blogger Sakmongkol AK47 that the NEM is determined to continue serving the interest of well-connected big players in the country such as the likes of Gamuda, MMC, YTL, UEM and others.

The DAP suggested today that the Najib administration’s commitment to open competition under the New Economic Model (NEM) was “nothing but rhetoric,” citing as examples of patronage the MRT project, the proposal by Asas Serba to take over highway concessions, Tan Sri Syed Mokhtar Al-Bukhary’s bid to buy UEM and YTL’s involvement in the high-speed rail link to Singapore.

"Should the government decide to proceed with any of the above projects or privatisation of assets without any form of open competition, it will not only reflect the fact that the NEM is nothing but rhetoric, but it has no sincerity in wanting to promote “dynamic and efficient markets” or isn’t serious about “tapping new sources of growth,” Tony Pua said in a statement today.

I have a nagging feeling that the ETP will be used as a face by the current administration to squeeze the last drops of resources from the country through the ridiculous 131 projects worth more than RM1.4 trillion.

I had spoken against the big infrastructure projects e.g. the MRT and high-speed rail link to Singapore as non-essentials for the moment. I do not see how these projects will able to transform the country's economic landscape. The government should focus on intangibles or knowledge capital. This idea was mooted by Abdullah Badawi in his maiden Oxbridge speech and was very well received by all parties.

Malaysia's education system and a lack of skilled talent pool are not going to help in any transformation plan if they are not quickly rectified. Until today, none of PM Najib's plans and acronyms provide a comprehensive response to the need to uplift our education standards. The launch of Talent Corp is another flimsy initiative to camouflage a lack of direction on education and labour policy.

Why would talents come back to work here? Expensive researchers, spin masters and consultants should do their homework before suggesting the same which had failed in the past e.g. Talent Corp. There are several important factors why talents do not come back. First, a lack of recognition for merit and ability. Second, low salary scale and lack of a productive environment to help the knowledge workers to be most productive. Third, an irresponsible and racial based political system. Fourth, overzealous implementation of race affirmative action at all levels of government and GLCs. Fifth, a limited economic scope and base. There are not many knowledge based jobs/positions created in the economy- lack of real opportunities.

The government mentioned about a Greater KL plan. It is unfortunate that the government has done nothing in the last decades to create and rejuvenate second tier cities such as George Town, Ipoh, Kota Kinabalu, Kuching, Seremban, Kota Melaka and others. Urban planning and renewal is the most important area to promote knowledge capital.

NEM & ETP are most misguided and incomplete. Najib flip-flops on simple principles in his own policies. Should NEM promote competitiveness and meritocracy or continue as an extension of NEP? If NEM = NEP, why do we need a NEM?

ETP is supposed to promote economic development by being inclusive but it is seen as a consolidation of proposals from big companies hoping to eat the last chunk of Malaysia's economic pie.

What is the future of SMEs in Malaysia?

What is the future of Malaysian economy under BN/Umno?