Sunday, November 19, 2006

Malaysia Boleh... Membazir?

This was published in an Australian newspaper and I concur with it. Kudos to the writer.

MALAYSIA'S been at it again, arguing about what proportion of the economy each of its two main races — the Malays and the Chinese — owns. It's an argument that's been running for 40 years. That wealth and race are not synonymous is important for national cohesion, but really it's time Malaysia grew up.

It's a tough world out there and there can be little sympathy for a country that prefers to argue about how to divide wealth rather than get on with the job of creating it.

The long-held aim is for 30 per cent of corporate equity to be in Malay hands, but the figure that the Government uses to justify handing over huge swathes of public companies to Malays but not to other races is absurd. It bases its figure on equity valued, not at market value, but at par value.

Many shares have a par value of say $1 but a market value of $12. And so the Government figure (18.9 per cent is the most recent figure) is a gross underestimate. Last month a paper by a researcher at a local think-tank came up with a figure of 45 per cent based on actual stock prices. All hell broke loose. The paper was withdrawn and the researcher resigned in protest. Part of the problem is that he is Chinese.

"Malaysia boleh!" is Malaysia's national catch cry. It translates to "Malaysia can!" and Malaysia certainly can. Few countries are as good at wasting money. It is richly endowed with natural resources and the national obsession seems to be to extract these, sell them off and then collectively spray the proceeds up against the wall.

This all happens in the context of Malaysia's grossly inflated sense of its place in the world.

Most Malaysians are convinced that the eyes of the world are on their country and that their leaders are world figures. This is thanks to Malaysia's tame media and the bravado of former prime minister Mahathir Mohamad. The truth is, few people on the streets of London or New York could point to Malaysia on a map much less name its prime minister or capital city.

As if to make this point, a recent episode of The Simpsons features a newsreader trying to announce that a tidal wave had hit some place called Kuala Lumpur. He couldn't pronounce the city's name and so made up one, as if no-one cared anyway. But the joke was on the script writers — Kuala Lumpur is inland.

Petronas, the national oil company is well run, particularly when compared to the disaster that passes for a national oil company in neighbouring Indonesia. But in some respects, this is Malaysia's problem. The very success of Petronas means that it is used to underwrite all manner of excess.

The KLCC development in central Kuala Lumpur is an example. It includes the Twin Towers, the tallest buildings in the world when they were built, which was their point.

It certainly wasn't that there was an office shortage in Kuala Lumpur — there wasn't.

Malaysians are very proud of these towers. Goodness knows why. They had little to do with them. The money for them came out of the ground and the engineering was contracted out to South Korean companies.

They don't even run the shopping centre that's beneath them. That's handled by Australia's Westfield.

Next year, a Malaysian astronaut will go into space aboard a Russian rocket — the first Malay in space. And the cost? $RM95 million ($A34.3 million), to be footed by Malaysian taxpayers. The Science and Technology Minister has said that a moon landing in 2020 is the next target, aboard a US flight. There's no indication of what the Americans will charge for this, assuming there's even a chance that they will consider it. But what is Malaysia getting by using the space programs of others as a taxi service? There are no obvious technical benefits, but no doubt Malaysians will be told once again, that they are "boleh". The trouble is, they're not. It's not their space program.

Back in July, the Government announced that it would spend $RM490 million on a sports complex near the London Olympics site so that Malaysian athletes can train there and "get used to cold weather".

But the summer Olympics are held in the summer.

So what is the complex's real purpose? The dozens of goodwill missions by ministers and bureaucrats to London to check on the centre's construction and then on the athletes while they train might provide a clue.

Bank bale outs, a formula one racing track, an entire new capital city — Petronas has paid for them all. It's been an orgy of nonsense that Malaysia can ill afford.

Why? Because Malaysia's oil will run out in about 19 years. As it is, Malaysia will become a net oil importer in 2011 — that's just five years way.

So it's in this context that the latest debate about race and wealth is so sad.

It is time to move on, time to prepare the economy for life after oil. But, like Nero fiddling while Rome burned, the Malaysian Government is more interested in stunts like sending a Malaysian into space when Malaysia's inadequate schools could have done with the cash, and arguing about wealth distribution using transparently ridiculous statistics.

That's not Malaysia "boleh", that's Malaysia "bodoh" (stupid).

Malaysia's latest 'throw-money-into-the-wind' would probably be the RM400 mil Istana Negara in planning. For crying out loud, build what? Gold toilets?? With that amount they can do so much for the people. They could be upgrading rural areas, preserve our environment/culture, give more into the education field, or heck, raise the salary of policemen so they can stop nanti rasuah. Yes yes, I know they need more for the policemen part, but RM400mil could be put aside for that methinks. I really need to read more about these issues.

Investment in the people has never gone wrong... what could you get out of bricks but just momentary recognition? Like everyone has said, first class facilities (not properly maintained) but third class citizens. Perhaps after building the people up, we could stop hanging onto success stories of foreigners (who possess a tiniest link to Malaysia will do ...say, if you applied for PR here before, or your greatgreatgreat-grand-aunt-cousin was a Malaysian etc) . If you treat the people good, they will give the equal amount of it back. Don't give me the whole love-your-country-even-with-sad-minuscule-pay. Unless the country is dirt poor, I can understand, but no. If you can afford stupid extravagant things, like this castle, the London sports complex and sending an astronaut to space to burn himself 'teh-tariking', you should be able to afford to take care of your people more.

I do believe that Malaysia boleh. Besides Boleh Parrot, I mean, really boleh. It's just that it can just be so frustrating and stifling here sometimes. If only the higher authorities owns a sort of pride that doesn't hitch a ride, not too arrogant to admit mistakes, to discuss with their brain in full usage (passion is good, but when it turns into insults and name calling, it's hard to give them respect) and not blind to the realities of this potentially great country... if only they would think thoroughly before declaring something (HP in school and reduced traffic fines, anyone?), and also be able foresee the consequences of their actions/plans, the problems that may arise from it, how to tackle it, (all these falls under good planning really) and have the intelligence+wisdom to make decisions. If they would just look within their own country more and look at the big picture.

I'm blahpetty-blah-ing because I'm waiting for my computer to be scanned since it might have some kind of annoying virus. Shit.

EDIT: [for my post on Mahathir ] Apparently the day I missed reading the papers, was when Mahathir told everyone that Badawi is not the first choice but Najib is. Ouch-low-blow??? That puts Pak Lah and Pak Ajib XD in a sort of awkward position... I don't agree about washing your clothes in the full view of the world, when it could be done behind doors . Eh, I'm a bit atas pagar for this issue.

1 comment:

gianne said...

1. Erasmus left...
Wednesday, 25 April 2007 3:37 am :: http://slouchingtowardserfdom.blogspot.c

Race-based economic distributions may seem unpalatable to anyone looking at the issue from the point of view of efficiency, yet ethnic cohesiveness is strongly correlated with national economic success.

Even if Malaysia is objectively wasting its oil revenues, the resulting ethnic unity might be a countervailing factor. This is not to suggest that Malaysia is doing something brilliant, but most countries have a long history of wasting oil wealth.