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Wednesday, October 11, 2006

Basic Flaws in the NEP

This is one example how the NEP has failed.
Greed is always present in all humans only the degree varies.

Therefore any government policy that encourages greed must be subject to thorough checks and proper balances imposed.

There is now an uproar over the ASLI study that showed the 30% equity target has been achieved but since our leaders themselves are not certain how the numbers have been conjured the research body has been forced to retract its findings. How sad for the future of Malaysia when prominent figures can threaten others for “playing with fire.”

Such is the state of racial affairs in Malaysia when ministers can speak only in terms of race more in tune with the Klu Klax Klan.

This story illustrates just one incidence of how our legislators have been induced to approve anything that is proposed by the government. I wonder what sweet deals other senators have been provided.

From the story, the company was given “more than 500 APs a year”.

If we take the value of an AP as RM25000 each it means the company enjoyed a gross profit of

RM25000 X 500 = RM12,500,000

Now if this concession had been given to some poor village cooperative society perhaps 100 adults could have had the chance to escape the poverty trap.

Don’t senators get paid an allowance that allows them to live above the poverty line?

photo: My daughter caught this striking Ferrari in London


3 comments:

Meng said...

The NEP has fulfilled its purpose. To avert a racial clash. Today, the battle is between the classes. The rich elite belonging to the ruling government and the working class who work hard to make a decent living.

In 1998, when PAS held the seat as majority leader in Parliament, the BN government was very restless. Because it was then that it no longer became a race issue.

As long as we try our level best not to be racial, the BN government will become obsolete.

Blueheeler - the dog that sniffs out fishy news said...

Despite the necessity of NEP during a time of ethnic strife and unequal wealth-distribition in the 1970s, I think most agree that with the problems it has brought, the NEP has outlasted its economic usefulness.

I think Mahathir, in a moment of clarity prior to his stepping down as PM, lamented that the M'sian Malays have a permanent crutch mentality that demands 'hand outs' rather than work for them. As we all know, if we pull the crutch away from the cripple, s/he will fall and never get up without assitance.

Hence, the NEP, despite all its flaws, has reasons to stay; less for the benefits it'll bring, more for the crippling pain as a result of its removal.

H J Angus said...

meng and blueheeler
thanks for your comments.

Regarding crutches it is only a tool to help weak legs to get stronger unless the damage is permanent.

Just visit any rehab ward and you will find people struggling to start walking normally again.

Since NEP had a fixed time frame they should have had definite deadlines and milestones to chart the progress and not simply extend the program by another 20 years.

TDM could only build mega projects but he neglected to build up the mental strength of the people.

There is no gain without pain!