Malay Economics and the wealth distribution machinery

 

The list regarding who and which companies get what on preferential and secretive sweetheart terms is not exhaustive. It would require a major study by itself to inform the public. It requires super sleuthing work and willingness from sources to reveal facts. These are becoming harder by the day.

The way the government does things- i.e. managing the wealth distribution machinery is questionable. The same people and players seem to dominate all the big deals- Vincent tan, Ananda, Gamuda, Sp Setia, etc. the government is playing favorites to a very select few. The same fellows get the big deals. The same fellows seem to have the 'know' whats coming.

We may come out with some novel and esoteric ideas such as the Swiss challenge system. The proponent or proposer submits a project proposal to the government. The government is obliged to publish the proposal and invite 3^rd parties to challenge the original proposal. The original proposer is often given the right to counter.

Unfortunately here in Malaysia it is doubtful whether the Swiss Challenge system is used in an even handed manner. Who determines the 3^rd parties? - They may even be friendly associates of the original proposer who submit their challenges to make the original proposer look good. It's all a PR gimmick. I immediately recall the many cases that are happening in DBKL. One big player has 20 class A contractors under his control. He then does a carpet bombing- offering all 20 bids by his class A contractors which are manipulated in such a way so as to favor one target bidder- also his.

So, the Swiss challenge system in Malaysia, if it is adopted here very often gets lost in translation. Once it is Malaysianised, it becomes just a put on show to prove transparency.

So today, I am at a loss as to what to say about Gamuda being hopeful that its bid and offer to build some rail project for RM 35,000,000,000 will be accepted by the government. I say man old chap- don't be coy. You will get it.

In the end what do you have? You have a layered system of society, dominated by the rich elite whose wealth keeps on increasing because- it's the reasoning of successes breeding success. We forget, that the success wasn't anything organic or self created but assisted by the state. What the state does is playing favorites. So, Swiss challenge, Belgium chocs, Patchi, or whatever- it's all One BS.

The majority of business people, even whole societies have never learnt the art of becoming favourties. That 'black art' it seems, belonged to a select few.

How do you rectify the situation? How would you correct, correct, correct the situation?

It boils down to an incorruptible and determined leadership—determined to correct things. You carry out policies and actions even if you have to tweak the wealth distribution machine. Why not impose a moratorium on these tier one companies- the Gamudas, Berjayas, Tanjung whatever, Syed Mokhtar?- impose a temporary ban on them. They are not to participate in any government deals for the simple reason they have gotten enough. You think others are not as clever as them? Try others too.

So, Gamuda has come out with a plan. The government can choose to buy the concept and then holds out open tender. The concept owner is also invited of course. Do the same with the Sungai Besi airforce base, the RRI land, the Matrade land, Jalan Cochrane Land, Jalan Ampang government quarters land. You help us, we help you one.

You think no one can come up with a greater Kuala Lumpur Plan? Or redevelopment of the Sungai Besi airbase? Or the RRI land in Sungai Buloh, the government quarters land in Cochrane Road? Just advertise openly and invite bids. I tell you maybe we can get cheaper and better proposals. Just wait.

We need these doses of sanity in these uncertain times. Nothing is sacrosanct anymore nowadays. Now the Pudu Jail- because it's sitting on a valuable piece of real property. Probably some are already eyeing or re-hatching plans for the U Malaya Land, the UPM land. Later on probably, the land on which Masjid Negara stands is not beyond grab.

But again and again, it comes to having the incorruptible and determined leadership. We certainly cannot sustain a leadership which is long on nebulous ideas but short on ideas that work. Ideas that work are more important than grandiose plans which probably served to massage huge egos.

So we want to implement the NEM. Begin first by owning up to certain facts. Has the NEP failed? If it has, own up and come out with a better mouse trap. Say it boldly that in the NEM, affirmative policies are still in place, but the enabling elements- hard work, education, skills, merits must also come along. Saying so, you own up to the fact that Malays are lacking in 2 departments- they are not as hardworking or are as capable as others- maybe. It's painful to own up on these aspects but it's even more important to find ways to fortify the Malays in these two departments.

What do you need first of all? That elusive determined and disciplined leadership. Doesn't matter if it's called soft authoritarian. The Malays are more suited or shall I say more at home and accustomed to a structured and ordered style of governance. So, you have to impose discipline on them- except this time its market discipline.

You have to have consistency. If all big deals have to go through open tender process, then apply it rigorously. Once you allow discretionary adjustments, then the whole system breaks down because, the decision to determine when something comes under common open tender terms and when some come under discretionary treatment depends on personal choice. The dividing lines are blurred by personal inclinations.

How do you then obtain the position to be within the personal choice radar of the decision maker? By sending mountain-high bouquet of flowers when it's the wife's birthday or holding out some private parties for the supreme leaders. How?Maybe we have to learn from Taek Jho Low.