Monday, April 02, 2007

Barbarians At The Gate

Recently our government has opened up an area in the State of Johor, south of the Malayan Peninsular called the Iskandar Development Region to help boost our struggling economy. To get foreign investors to participate, the Prime Minister unveiled incentives and also announced the relaxation of certain rules that were considered the stumbling blocks. The main one is the removal of the requirement for the foreign businessmen to set aside 30% interest in their business for local Malay business partners.

This is of course common thing to us Malaysians as it is spelt out clearly under the NEP (New Economic Policy). Initially the 30% was meant to be the guideline, which later was abused until it became not less than 30%! Until today if this matter is brought up by the non-Malays, it is considered a threat to their rights and some people will unsheath their kriss and wave it in the air and threaten blood shed!

The reason for the special rights of the Malays is to correct the economic imbalance among the races especially between the Chinese and the Malays. The NEP was launched in 1971 by Tun Abdul Razak who was the Prime Minister at that time. The NEP ended in 1990. It is now 2007! Isn't it time to do away with this racial policy? This is the Malaysian political scene. The crutch is very difficult to throw away even when you can walk without it! Such is the subsidy mentality.

The Strange thing about the Iskandar Development Region is that the government is willing to forego the 30% for the Malay businessmen just to attract the foreigners!

"The opening up of the Iskandar Development Region to foreigners should not be seen as a threat to the Malays." says Entrepreneurial and Cooperative Development Minister Datuk Seri Khaled Nordin. He also said that Malays should take up the challenge to compete against foreign companies. Why is it there is so much confidence when it comes to foreigners but not with the local businessmen?

If the government is really sincere about the matter, the 30% requirement should be abolished throughout the land on all matters and level the playing field for all Malaysians. We should first try it in the local arena before we give the opportunity to foreigners. We are already inundated with illegal Indonesians who seem to get better treatment here than they get back home! There is a Malay saying, "Kera di hutan disusukan, anak mati kelaparan!" It means feed your children first before you take care of the monkeys in the forest.

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