Creating a level playing field (Better be ready or else.......!)

The Nut Graph, 24 Mar 10 : 8.00AM

By Ding Jo-Ann
dingjoann@thenutgraph.com

PRIME Minister Datuk Seri Najib Razak is all set to role out a new economic model for growth in Malaysia. The indications are that the subsidy regime and price controls will be abolished once the new economic model is in place. This would be in line with Najib's other efforts to promote competition and achieve "high-income" status. In April 2009, for example, the government abolished bumiputera quotas for 27 service sub-sectors. Two months later, it scrapped the 30% bumiputera equity ownership requirement in public listed companies.

These economic reforms, however, have rung alarm bells in certain quarters, who believe the reforms signal an end to preferential treatment for bumiputera established under the New Economic Policy. Member of Parliament Datuk Ibrahim Ali, for example, told Malaysiakini that Malay Malaysians were still "amateurs" compared to the premier-league Chinese Malaysian community. Therefore, according to Ibrahim, subsidies and government assistance for Malay Malaysians should continue until they have caught up.

But are Ibrahim's assumptions correct? Are all Malay Malaysians still lagging behind their fellow citizens economically? And is the continuing of subsidies the best way to help those who have less opportunities to improve their economic status?

With a limping worldwide economy, widening budget deficit, and increasing competition from our Asian neighbours, can Malaysia even afford to continue distorting the market economy through ethnicity-determined government handouts?

Learning to compete

Universiti Kebangsaan Malaysia economist Professor Dr Ragayah Mat Zin, who is with the Institute of Malaysian and International Studies (Ikmas), disagrees with the assertion that Malay Malaysians are not ready to compete. "Not all Malay [Malaysians] are poor," she says. "That's the problem. Whenever we talk about subsidies for Malay [Malaysians], whether it's scholarships or affirmative action, it's not the poor Malay [Malaysians] who benefit, it's more often the rich ones.

"We should 'give fish' only to those who cannot fish. For those who can, they must be made to fish. They cannot sit back and wait for government handouts. If we don't work for it, we'll not be able to improve and become a high-income nation," she says in a phone interview.

"We have to learn to compete," says Datuk Dr Jenison Jayasooria, principal research fellow at UKM's Institute of Ethnic Studies. He says that opposing liberalisation would only disadvantage Malay Malaysians. "If people really want Malay [Malaysians] to benefit, they need to help them build capacity and empower them to face competition in the open market. Don't assist them by isolating them."

Competing worldwide

Denison points out that the "enemy" is not within the country. "It is outside," he says, noting that Malaysia is already finding it difficult to compete with countries like Indonesia and Thailand, more so with bigger economies like China and India.

He argues that while the government can control the distribution of resources within the country, foreign investments are not beholden in any way, and will move on if our economy is no longer competitive. "Then what do we do?" he asks. "We have to enable positive competition. If not, we're going to see negative growth."

Ratings Agency Malaysia chief economist Dr Yeah Kim Leng agrees, saying we should no longer be fixated on distributing economic wealth within the country. "Instead, we should concentrate on attracting businesses through good government policies and regulations. This would help create jobs, enhance employees' skills, and result in positive spillover effects to suppliers and service providers. Only through growth and empowerment can we have sustainable distribution.

"By focusing on [internal] distribution, we may actually be missing the point and killing the goose that laid the golden egg," argues Yeah. "If the government sets the wrong rules, businesses and capital will migrate.

The government must ensure we have an economy that is dynamic and continues to sustain growth and create jobs."

Benefiting the poor

Yeah adds that promoting market forces helps to bring out the best in people, so that every person's potential can be maximised. However, he says, enhancing greater market efficiency is not incompatible with assisting the poor and disadvantaged.

"Economics is not heartless. While we promote market forces and efficiency, we note that there are different inherent abilities and endowments.

"So there is a place for affirmative policies for the needy and disadvantaged. This is widely practised [worldwide], mainly to assist minorities and disadvantaged groups who do not have equal access to opportunities."

Ragayah, whose research interests include development economics and income distribution, says international statistics show that liberalisation is actually good for the poor. "When demand is stimulated, there is a multiplier effect which will benefit everyone. This will actually lift the income of the absolute poor," she says, adding that the poor would also benefit from cheaper imported goods.

Liberalisation would also lead to increased production in areas where Malaysia has a comparative advantage, she notes. This would lead to a more efficient use of resources, hence making us more attractive as an investments destination.

She says helping the poor doesn't necessarily mean implementing subsidies that distort the market, which is ultimately expensive and unsustainable. "In Malaysia, we subsidise everybody, the rich and the poor. Subsidies [for items such as toll and petrol] in fact tend to benefit the rich more than the poor, because they consume more."

Ragayah says that as the population increases, paying out huge subsidies is not sustainable and would be counter-productive. She says the government needs to target assistance at the poor, otherwise government expenditure would balloon. "We should just target the poor, regardless of ethnicity. If there is marginalisation, then affirmative action is needed."

She adds that the government should assist groups, such as poor farmers, to compete by helping them be more efficient in production and take advantage of the increased opportunities provided by liberalisation.

Indeed, liberalisation will not result in opportunities lessening, says Denison, who adds that the only people who should fear liberalisation are those who are unable to run businesses competently.

Bila ahli – ahli politik berjiwa amat kecil……………………..!

Malu, malu, malu dan malu!

2 ke 3 insiden yang berlaku dalam sehari dua ini menunjukkan betapa kecilnya jiwa seorang ahli politik. Jika dipandang akan tindak tanduknya jua amat kecil sekali. Seharusnya kita bersedia untuk berbeza baik dari segi pendapat, corak pandangan, serta juga tarifan berkaitan sesuatu.

Malu saya mendengar perkataan dan dakwaan – dakwaan memalukan dari mulut YB Senator Dr Syed Husin Ali. Wahai YB Senator, tuan adalah antara individu Melayu yang dikatakan one of the great Malay mind. Jadi sewajarnya ayat yang keluar dari mulut mencerminkannya. Tetapi tidak!

Malulah saya sebagai pengundi mendengar dakwaan YB Senator tentang Dato’ Salehuddin Hashim, Dato’ Seri Zahrain, Tan Tee Beng dan yang lain – lain seangkatan dengan mereka. Kalau YB Senator tahu bahawa mereka ini semua teruk – teruk belaka mengapa YB Senator sanggup bersekonkol dengan mereka semua ini masa pilihanraya yang lepas? Adalah alasannya bahawa dulu depanya manusia bersih, putih, nyaman, tetapi kini sampah yang harus dibuang? Sebagai seorang yang dikatakan one of the Malay Great Mind, silalah berhujanh tidak seperti orang – orang dibawah ini.

Tindakan YB Dr Fuad Zakarshi yang mahukan tindakan disiplin dikenakan kepada YBM Tengku Razaleigh Hamzah amat memualkan. Jangan kerana beliau tidak toe to the party line maka dicadang dikenakan tindakan. UMNO kenalah bersedia menunjukkan bahawa partinya sedia menerima pelbagai pandangan dan pendapat demi untuk meningkatkan kebajikan masyarakat terbanyak. Bukannya bull doze aje tanpa apa – apa perbahasan konkrit atas alasan tidak toe to the party line.

Apa ini? Masyarakat hari ini mahu melihat UMNO berubah. Berubah bermakna sanggup menerima perbezaan pandangan. Perbezaan pandangan ini tadi akan dibahaskan pula dan diberi perspektif yang lain. Jika pandangan YBM Tengku Razaleigh salah, maka YB Dr. Fuad wajarlah pula memberikan pandangan kerajaan supaya boleh dinilai yang mana yang lebih betul. Ini bukan zaman orang nak dengar kata kita sahaja dan menganggap ayat kita yang betul orang lain semua salah. Hallooooooo berubahlah.

Insiden flag off Le Tour De Langkawi di Kota Bharu lagi memalukan. Sepatutnya dan kalau bukan sebab protokol yang keterlaluan pun, Ketua sebuah negeri, jika hadir perlu diberikan first right of refusal untuk flag off. Ini sudahlah Menteri Besar Negeri tersebut sudah hadir dan bersetuju untuk buat perlepasan, tahu – tahu tempatnya diambil pula oleh YB Awang Adek, seorang Timbalan Menteri bertaraf subsidi. Memenaglah subsidi sebab kalah dalam pilihanraya di Kelantan dan dilantik sebagai Senator dan kemudiannya ke jawatan Timbalan Menteri Kewangan.

Malulah wahai Awang Adek. Sudahlah anda ditolak pengundi, perangai anda memperlihatkan betapa kecilnya jiwa anda dan ianya akan terpalit kepada parti anda juga. Seharusnya anda melakukan perkara yang betul dengan memberikan ruang tersebut kepada Menteri Besar Kelantan. Jika ia berlaku maka anda telahpun lulus ujian ketinggian jiwa anda. Ini tidak, anda mengikut sahaja kebodohan pegawai yang merancang semua itu. Jadilah bersedialah untuk ditolak oelah rakyat sekali lagi. Tindakan anda bukan sahaja dilihat oleh pengundi di Kelantan tetapi akan terpalit jua ke negeri – negeri lain.

Aaaaaaaaaaaaaaaaaaaaaa sudahlah!