NEEP- New Economic Empowerment Policy

 

I wandered around in Kuala Terengganu. I am very familiar with Kemaman, kuala kemaman,Kerteh, Paka and kemasek. In 1973 I hitchhiked from Kuantan to KT, it took me two days to reach KT. I had to spend a night in Kemaman. That should be an indication to the traffic flow to KT.

I made it a point to go the roads less travelled. That is why I like to drive in my trusty 4 wheel-drive. It has taken me to places in Terengganu and Kelantan. My maternal grandparents were from Kelantan and perhaps beyond Kelantan, from Patani. My paternal grandparents were from Terengganu. Both states therefore provide me with emotional fascination and perhaps subconscious longing to feel I belonged.

Quite apart from these emotional and roots- like excursions, I am trying to discover answers on how to jack up our economy. Why Terengganu and Kelantan? Terengganu is a perfect example on how to apply excess revenues while Kelantan serves as an example on how to optimise whatever money one has. Both states are predominantly Malay, so they can provide useful control-room test results which could be used as generalisations.

Each time I never ceased to be amazed by the energy, drive and vigour of the common people. Thus, if a state remains poor and backward, its condition cannot be explained away by the lack of trying by the common people. Perhaps like Ludwig von Mises said, the fault lies with the leadership elite.

Terengganu is a good example to draw lessons on how to apply money. Oil revenues in the form of wang ehsan are equivalent to Terengganu having continuous injection of cash. It can treat that part of the revenue as a given. It is supposed to receive RM1 billion a year. So far only RM5 billion has been paid. It was supposed to receive RM7 billion. The PM handed Mat Said a cheque of RM400 million during the KT by election. That means if RM7 billion is due, another RM1.6billion is still owing to Terengganu.

Terengganu then should become one of the richest states in the country. The task of lawmakers in the state is to how to apply the money so that it can further stimulate the economy.

The task is also to avoid the Arab disease (a contextual variation of the Dutch Disease) gorging themselves with giddy spending that do not add to the productive capacity of the state or enhance the capability of its citizens. The number of poor, illiterates and disenfranchised remain large in Arab countries.

For many years, we non Arab Muslims looked at Arab Muslims with incredulity as they continue with reckless spending. We were troubled to see Arab tycoons investing in American companies or investing in American banks which end up financing the powers that are destroying the Arab world. So much for the equally much touted Pan Islamism.

The original Dutch disease of course refers to a situation where a country upon getting a windfall in the form of discovery of natural resource such as oil, sees a decline in its manufacturing capabilities, increases in its exchange rate, its exports reduced and imports escalating.

For a brief moment, you can see the Terengganuans catching up with the Arab disease. The effects of frivolous and ostentatious spending are everywhere. Huge and beautiful mosques are built everywhere even in under populated villages. You have floating and crystal mosques. Are there that many faithfuls in Terengganu? Taking as example, it will be like building a state mosque in Kampung Ubai in Pekan where the population of cows, goats and water melons is bigger than humans. Do they have enough mosque goers to fill up the mosques?

It seems to me, it would have been better to distribute the outlay for building such mosques to the local population. That would certainly place cash in their hands- money to spend and do business. That would be an immediate way to stimulate demand.

The energy and drive of the common people are clearly evident. Kemaman used to be a sleepy hollow during the days when I was schooling in Kuantan. Kuala Kemaman was selected by Ungku Aziz to produce his seminal work of poverty. It is now a thriving town where trading and business are brisk. People do all sorts of work. They want application. Save for the very old and sickly and the drug addicts, people want to work. People want to do business. They want to earn a living. That should immediately discredit the accepted explanation that Malays just want a free ride. The free riders are the elite who hide behind the questionable Bumiputera policies. Once again, I say, it's the bumi who are left behind, while the puteras surge ahead.

Just as an aside, I have been asked about the personalised usage of the term Bumiputera. I first heard about this I think sometime in 1969 or 1970. It was used by a prominent local member of PSRM then during many of his speeches. It was the first time I heard- Bumi di belakang ketinggalan, putera bangsawan, putera UMNO sapu semua di hadapan.

Where has been the concrete application of its oil money? In KT you can of course see the ostentatious symbol such as monsoon cup facilities, a few good hotels; beautiful mosques have sprung like mushrooms even in small villages. You can gaze in awe at the crystal mosque and the floating mosques and whatever. Undoubtedly these facilities are enjoyed and used by people in Terengganu and from elsewhere.

But I have also wandered to the Other Terengganu. About 30 years ago, I read a book written by Michael Harrington- the Other America. It tells about the America that's left behind – the America that's full of poverty, squalor and pessimism.

The Other Terengganu has something akin to Harrington's Other America. It can also be a tale of squalor- many lived in squalor, beaten down houses. You can even see these houses weaved in between glossy buildings and facilities.

Perhaps now, we can look at concrete steps to get out from the unNEP policies to policies that actually empower the masses economically. They will be looking at a National Economic Policy that will not be sabotaged by the little and big Napoleons and the cawangan gauleiters. Give resources to those who actually operate the economy.