Monday, 16 July 2012

The Economics of Legal Plunder


Is Mahathirism dead? Not by a long shot. It’s not up to Dr Mahathir to say whether Mahathirism has ended or otherwise. It’s not a simple case of unsaying it. The cancer has spread to stage 4. It’s the SOP that has been institutionalized and the successors are following them. 
I like the way Tony Pua graphically puts it. When you wake up and eat the nasi lemak, you are making Syed Mokhtar richer because he controls the import and distribution of rice. This is the kind a monopoly if ever it’s going to be treated such, must be in the hands of the government. Otherwise, free the market by allowing traders to import rice. 
You drink your coffee with sugar coming out from Syed Mokhtar’s monopoly on sugar. He controls 20% of MSM and 80% of CSR. We will have to tell the imbecilic BN leaders not to suggest the lowering of sugar price by way of lowering personal consumption. Tell them the way to control the price of sugar is to eliminate monopoly in sugar trade. 
You ride the Modenas scooter- it’s built by him with license given by the government. I have always believed that if you licensed the Chinamen in Sungai Besi they can build better motorcycles and cars and sell them cheaper to us. You drive through the smart tunnel; it’s built by MMC-Gamuda, again owned by Syed Mokhtar. MMC is owned by S Mokhtar. You want to cook using Gas Malaysia? Syed Mokhtar. You use electric cooker- the electricity is supplied by Malakoff owned by Syed Mokhtar and previously owned by Mahathir’s son. You upgrade from motorcycle to a Proton car, it’s owned by Syed MOkhtar.  Honda? Syed MOkhtar’s. 
UMNO is Syed-Mokhtaring Malaysia!  You want to embark from the Port of Tanjung Pelepas to go to Indonesia? It’s owned by Syed Mokhtar. Treated water in Johor- owned by Syed Mokhtar.  You want to fly off from Senai Airport? Well Syed Mokhtar bought the airport for RM 580 million and paid RM1.2billion for the surrounding land. S Mokhtar owns MMC and also owns a part of Senai Airport. He was buying Senai from himself and who’s going to tell that maybe he overpaid himself? The RM 1.7billion purchase was mired in controversy over the pricing of the deal. 
The list goes on and on. No, is not a case why can’t a Malay have all this. If UMNO can only come up with Syed MOkhtar to showcase its Bumiputera success story, then its policies on Malay economics have failed. On the other hand, it also proves that if Syed Mokhtar can do it, any average Mamat can do it provided you give the same help and assistance. 
What is the essence of economic Mahathirism? It’s the deliberate use of government to pick and choose winners in an economic race. Through the power of government, you give licenses, exclusive awards, monopolies. You use government to impose regulations that confer advantages to one group over all others. This is why UMNO wants to retain power at all cost. Without the power of government, UMNO is nothing. 
Mahathir didn’t believe in DEB- the Malays better believe that. DEB would have called for the organic growth of Malay economics instead of what Mahathir started in 1981. That way, Malay businessmen and economic agents would have travelled the learning curve, acquired the values and skills needed as economic agents. 
Since 1981, because Mahathir thinks Malay economics would suffer slow growth, he eschewed DEB and replaced it by a policy of creating a select group of Malay elite businessmen. The government is the policy maker.  The Malay economy is to be driven by a select few. It’s the beginning of central command economics. 
That select few he took from a limited pool of acquaintances and crony circle. The result- the emergence of Joseph Mengele’s the Boys from Brazil- blond haired and blue eyed genetically manufactured businessmen elevated as the catalysts of Malay economy. 
Now you see why UMNO must defend its hold on government at all cost? UMNO is using the government to plunder the economy. 
That same kind of thinking- imposing government onto economic development is continued under Najib. What have we done actually? What we have done is to allow the government under Najib to come into our homes, take money and valuables belonging to us at gunpoint while claiming all the wonderful things he’s going to do with our stolen property. He takes our economic rights to be given to a select group of cronies just as Mahathir has done.  Frederic Bastiat- the French economist would easily call it legal plunder. 
What has Najib done? His ETP components, Entry Point Projects, PDPs, - are all bridge-to-nowhere projects that allowed (1) the few to plunder the many and (2) everybody plunders everybody. 
Number 2 above means everyone seeks to use government to enrich himself at his neighbor’s expense. Najib’s government is therefore a fiction through which everyone endeavors to live at the expense of everyone else. Remember when he said, taxi drivers who drive using someone else’s permit operate under an arrangement tantamount to modern slavery. 
Jangan cakap sahaja lah- come out with the list of the slave owners. If taxi drivers are modern day slaves, there must be modern slave owners right? That’s why he says direct permits will start in 2 years’ time allowing his buddies who owned the permits to make adjustments.

40 comments:

bruno,  16 July 2012 at 18:42  

Dato,the actions of Dr Mahathir regarding Umno suggests that the Dr is worried that this coming GE will be the beginning of the end of Mahathirism.

Anonymous,  16 July 2012 at 19:49  

Something is totally wrong with the Syed Mokhtar story. Is there only ONE Bumiputra in the whole of Malaysia? After decades of NEP, UMNO has only one person to show for?

It's an appalingly sad state of affairs. As always, I blame THAT Indian doctor.

KoSong Cafe 16 July 2012 at 20:08  

In the car industry, based on experience and business acumen, Oriental (Kah Motors) should have been given the chance to start the Malaysian car project, with minimum capital outlay from the government. They were assembling Mercedes and Hondas for many years. Look at how they made a success out of motor cycles.

But without government assistance meant no excuse or avenue for corrupt practices. By design, every mega contracts was inflated to look after the political leaders and their cronies at the expense of the people. Not only were contracts and procurement at higher prices, but people or companies with little or no experience selected to carry out the projects. There were so many instances of highly technical equipment bought but without the right people to use them! Those in charge were only interested in any reason to buy and get a cut, without having to worry about the consequences.

bruno,  16 July 2012 at 20:41  

Dato,with the Dr criss-crossing all over the country trying to shore up support for the never ending ailing Umno/BN,he is leaving behind footprints larger than the elephant's.

And tell tale signs are everywhere.Even the musang is currying up to the opposition by offering lip service.Some Umnoputras and cronies are hedging their bets on two horses,with more money going on the opposition.


Soon Ghani Patail will be coming out to say that sodomy 1 and 2 were fixed by Umno to send Anwar to political oblivion.Rats,big and small are fleeing the sinking titanic.

Tom,  16 July 2012 at 20:56  

Dato', I hope everyone gets to read your article!

Patrick 16 July 2012 at 21:27  

This is the 'economics of plunder theory'. The more that is plundered, the higher will be the hate/revenge ratio. The more UMNO plunders unabated, the faster they will fall. And when they fall, the revenge factor takes over and overkills all the plunderers in as many creative ways unimaginable. Or aggressive witch hunt. Dont take my theory as written in stone. Its littered in the pages of history.

With the ensuing chaos within UMNO and Najib/Rosmah's continued greed and isolation of all UMNO members from their inner economic circle, Mahathir has shrewdly utilised Syed Mokhtar to plunder the nation of key assets right under our noses. Mahathir has cunningly shifted his overseas wealth into San Miguel, installed his son to oversee his stake and return his wealth into Malaysia to plunder other assets that his crony, Syed Mokhtar cannot assimilate. Its a smart 2-prong economic plunder strategy employed by Mahathir to not only secure his wealth, but utilise them now to extract the best national assets under his sole control. Our nation's key food security, energy security, transport security/infra will be under the sole control of one individual.

Only idiots and petty UMNO members cant see through this tactic, while they are distracted and they battle unnecessary enemies within. It is believed that Mahathir's wealth is now poised to strike in Malaysia when the time is right. Then the people will see the true identity of Syed Mokhtar's empire or rather Mahathir's empire rear its ugly head. How will a federal govt (UMNO or PR)reign back control of key assets from an economic dictator then, will be an interesting challenge. Interesting times ahead if no change in govt is affected.

Anonymous,  16 July 2012 at 21:37  

Who cares what you think of Mahathir.It was you who voted his UMNO/BN for those decades and now you are complaining.He will not be our next PM so why worry.Takut dengan bayang bayang ?.You know he is no nonsense man.He surely be behind BN and a force to be reckoned with.No ?.PR will not win the PRU 13 fotr sure.

OneMalaysian,  16 July 2012 at 22:40  

Dear Sakmongkol

“The Malay economy is to be driven by a select few.”

I remember some time in 1985 or 1986, Mahathir came out with this outlandish idea that the way to show the Malays that they can succeed in business is to first get hold of 20 Malays with business potential, nurture them and then ply them with endless business opportunities financed 100% by bank loans.

He did get his 20. They were like the Magnificent Seven (remember the movie starring Yul Bryner?) except that there were 20 riding around in bank financed Mercs instead of horses. This Magnificent 2o couldn’t shoot straight. In the subsequent financial depression of 1988 they all went belly up because the expensive assets they bought fell below the value of the loans. The banks foreclosed on them.

But from the ashes of this group arose smarter crony Malays. This group - the prime example is Syed Mokhtar – didn’t make the mistake of buying assets from the market. They specialized in acquiring special licences or monopolies from the government, as you have mentioned. These businesses can’t go bust – ports, airports, power stations, and sugar refineries. So they can be easily financed and they guaranteed profits because if costs went up Syed Mokhtar could simply walk into the PM’s office and ask for an increase in prices.

This creation of super cronies was the handiwork of Mahathir. So Malay wealth is concentrated in very few hands. Either this shows almost all Malays are incapable of doing business or this UMNO government and the leaders of UMNO think the correct way to redress the backwardness of Malays in business is to symbolically enrich a few undeserving Malays while impoverishing millions.

Anonymous,  16 July 2012 at 23:49  

Blame the Malays for allegedly being conned by an elite small group of Indian looking Malays, as what RPK love to call them.
Yet, they more than 50% Malays still vote Umno/Bn.

Humble Voice 16 July 2012 at 23:54  

Data, government granted monopoly is only one side of the story. The other side of the story is the bank credits that allow billionaires to be created instantly.

Where do you think the banks get the money from to lend the astronomical sum to Syed Mokhtar and countless other cronies to buy out practically all of our national assets - in the name privatization?

The banks create the money out of thin air. The current monetary system is the most evil invention of man. It work hand and glove with high level corruption to concentrate wealth in the hands of a few.

I recommend that you that a look at this documentary: PositiveMoney. I have also written a series of articles about it here

Anonymous,  17 July 2012 at 00:17  

Dato Sak,
i agree with your analysis. Looks more like he is given the consent which is manufactured by maha, it is nonetheless consensual at the expense of enslaving us the rakyat whereby we need to seriously reflect as advised by our dear thinker big brother Walla. Ponder in 4D as an individual and collectively at stalls, cafes..

Their troopers "mantra - ed" Maha & children & Syed Mokhtar Sdn Bhd made halal money... despite the facts he controls the huge private entities, a borderless business interests, ( all which are the necessities / basics of the rakyat ).

And top it up in security to enslave the rakyat - by framing the national laws / discource - infused with racism, religion, language issue, threats and fear; projects mafia power through abuse, instead of spending rakyat's tax contribution and nation's revenue prudently and accountably, it is dished out as candies to pacify youths, civil servants, cab drivers short term.

antu,  17 July 2012 at 03:18  

so what's new? its been going on for years since mahader took over as pm. btw, you missed out penang port

Anonymous,  17 July 2012 at 09:12  

In Australia, we have the Australian Competition and Consumer Commission or ACCC to ensure fair competition so that no monopoly can unfairly take advantage of pure profits through market manipulation.
Eg Mergers like MAS and Air Asia would have been nipped in the bud before it turned ugly and stank sky high like it did.
Conglomerates like Syed M's would not have cleared even the first ACCC hurdle, let alone allowed to morph into a giant private monopolies suffocating all walks of life and endangering standards of living.

Anonymous,  17 July 2012 at 09:19  

" Yet, they more than 50% Malays still vote Umno/Bn."

To majority of the Malays, as long as their own make it, they do not mind.

The economy has to hit the brick wall for the people to fully understand its serious consequences before any real, permanent and meaningful change will happen.

Anonymous,  17 July 2012 at 09:19  

dear sir,

who would it be if not syed mokhtar?

was it better when it was not syed mokhtar?

may Allah SWT save us all from fitnah.

thank you.

northern mountain

Anonymous,  17 July 2012 at 09:58  

Anonymous said...
Who cares what you think of Mahathir...PR will not win the PRU 13 fotr sure.

16 July 2012 21:37

With Malay votes deeply divided & the peninsular non Malay votes virtually non existent, the only way BN s gonna win is with "newly-minted Malaysians" ie Filipinos & Bangla Myanmarese Indons strategically placed in Sabah & thin majority areas in Peninsular. Of course for b*stards like you its all kosher "asal orang Melayu i.e Umnoputeras" like you wins !

Adlan Noh,  17 July 2012 at 10:44  

The attempt to portray UMNO/BN as the saviour and champion from modern slavery through 'emancipating' taxi drivers is actually an exposure of UMNO/BN once cruel and short-sighted policy of allowing monopolization of cab business. If it weren't for the policy to centralise cab business, no one was put under 'slavery' in the first place. So, WHAT IS SOOOOOO GREAT ABOUT 'EMANCIPATING' THESE CAB DRIVERS WHEN YOU (UMNO/BN) WERE THE ONES WHO WERE RESPONSIBLE FOR THE ERA OF THEIR SLAVERY. Unfortunately, we DO HAVE some cab drivers who still look up to the Najib adminsitration as working for the people.

Anonymous,  17 July 2012 at 11:19  

If they can not get the malay vote then Umno can get the Indo/Fili/Bangla...vote.

Siapa yang menjadi Pengkianat Negara yang menrugikan Melayu?

wongty robert 17 July 2012 at 12:03  

Dato, blackmailing/bullying are criminal acts, but UMNO/BN in partnership with MCA and MIC have legalised them. Examples? Plenty, just take a look at the
"graduates" from Sarawk, Sabah, AG chambers, MACC, PDRM to Putra Jaya. Now, UMNO/BN is going big time in water blackmailing/ bullying.
This time, to Malaysians in Selangor. No water if UMNO/BN is not return to power or PKR don't handover the water assets! Reason, water levels at critical level at all the "treatment plants". Not catchment areas/dams. Anyone out there believe this "spin" with rain falling around us everyday. Whoever wants us to believe this "spin" is either dumb or plain stupid! On the other hand, could this UMNO nominee Razali fellow, a one-time lawyer, managed to "borrow" the Sarawak CM bomoh to stop the rain falling anywhere close to all the catchment areas/dams!
Members in UMNO should now rise up and tell their leaders, stop this nonsence, enough is enough, we are all Malaysians!

Quiet Despair,  17 July 2012 at 12:57  

I like the term legal plunder. It's legal, right. So?
Too bad if our livelihood comes from one man. We either live with it or we live without. Easy peasy.
Or we choose not to eat rice, imbibe sugar drinks or use the road and bridges and ports that Syd Mokhtar build.
Start growing our own paddy or sugar-cane. Start bulding kapchai in our back-yard.
I salute Mahathir for creating some entreprenurial Malays to rival the Ah Bengs and Anands who are also plundering our wealth. Some via illegal means too.
Using some Malays as a vehicle to get the creme de la creme projects.
If we give to Sg Besi Chinese, who is to say they will be not do worse things than all the Syed Mokhtars in the world.
We should believe in free enterprise where the best and the mostest can thrive and survive.
And Syed Mokhtar is the embodiment of that. One whom Malays can look up to as an icon which can spur them to be billionaires too.
Still he's not in the list of the top 3 super rich in Tanah Melayu, right?
Why so much angst against him???

Donplaypuks® 17 July 2012 at 13:13  

Plunder, by definition, cannot be legal. Therefore, what has been happening under successive BUMNO/BN Governments, is grossly criminal.

It only needs an independent judiciary and police to bring to book all these prime ministers, ministers and civil servants who have been robbing us blind.

For that to happen, we need a regime change. ABU!

Dpp
we are all of 1 Race, the Human race

Anonymous,  17 July 2012 at 13:18  

Anonymous said...

Something is totally wrong with the Syed Mokhtar story. Is there only ONE Bumiputra in the whole of Malaysia? After decades of NEP, UMNO has only one person to show for?

It's an appalingly sad state of affairs. As always, I blame THAT Indian doctor.

_____________________________

Its a matter of TTUST. Syed Mokhtar was logically the 'chosen one' simply because Mahathir cannot trust any other malay anymoe. Look at Samsuddin, Amin Shah, Tajuddin, etc, etc. Once they had wealth and power, they simply broke away from Mahathir's grip and took all the money with them. Syed Mokhtar can still be trusted to be proxy for Mahathi'rs ambition. That is why his group is in debt to the tune of billions as the banking community knows he has Mahathir and his money to back him up.

UMNO has become so greedy from Mahathir's own doing, that nobody can be trusted as proxy anymore. Also, without govt support, 99% of UMNO cant run a nasi lemak stall on their own, let alone sugar manufacturing. Also, the big businesses that are going to Syed Mokhtar/Mahathir are all govt support, on going businesses and not from scratch businesses. There is no record of successful UMNO businesses to date. And Mahathir knows this too well.

Unless Syad Mokhtar gets overly greedy and run away with the billions he has earned through Mahathir, he will be the sole dominant malay businessman in the Malaysian economy.

Anonymous,  17 July 2012 at 13:54  

Dear Dato

Startling degree of resemblance between today's Malaysia and
yesterday's (Ferdinand Marcos)
Philippines.

Phua Kai Lit

Anonymous,  17 July 2012 at 14:37  

Dato'

One only needs to be either born in a political big shot family or rub shoulders with the powers that-be to make it big and successful in business. Knowing nuts about the business matters not.

It is repugnant to see that the private sector has to compete fiercely among itself and at the same time, the government sets up various GLCs to make matters worse. What was nationalized was later privatized and soon monopolized.

Salam. Observer.

Anonymous,  17 July 2012 at 15:08  

Alamak...kenapa Najib is so desperate? Semua tempat i pergi, nampak iklan dengan muka dia tampal sani sini...di luar badan keretapi pun tak spare... tut..tut..tut...

nampak sangat pada rakyat..Pm kita ni sangat desperate to win!

It will only backfire when it is overdone!!!!

Anonymous,  17 July 2012 at 15:11  

We are tired of this Mamak Kutty- Bapak Plunderer.He is a big time hypocrite.To the Middle Eastern Govt he recently preached to them to do real business.But in this country this pendatang are plundering, stripping and piratising. What business did he and his cronies and family organically grow?.Jail term is too kind for this kind of corrupted scum.

Anonymous,  17 July 2012 at 17:14  

To all those who blame the citizens who voted BN to power I have this to say. We were under the impression because of their constant public display of beiing religious that they were all God Fearing Men who understood that they cannot take it all with them when they finally go.

Anonymous,  17 July 2012 at 17:25  

NEP properly implemented is OK.

Because it failed for decades, it created a By-Product of NEP who would only take care of themselves at all cost.

They know that the small Chinese business owners, being self-employed without support and entitlements, will do anything and work very hard to make a living to support a family and for retirement.

So, this area of the economy is safe.

Anonymous,  17 July 2012 at 19:30  

Dear Anon 16 July 2012 21:37

let's play you the fantastic soundtrack
Limahl - The Neverending Story 2011... but in mahathir's case, it is predictable, both deafening sad and victorious.

Anonymous,  17 July 2012 at 20:27  

Dato'

I think you should also include the Law of Increasing Plundering Returns.

Salam. Observer.

bruno,  17 July 2012 at 21:17  

Dato,indeed the rats big and small are fleeing the sinking Titanic.Now Musa Aman is out telling the world that the US100 million in his Swiss bank account is actually Umno's.

Anonymous,  17 July 2012 at 21:22  

The first time I took a taxi in Kuala Lumpur was in 1964,and up till now, I have NOT met a single taxi driver who owns the taxi he is driving. When I was younger I would sit beside the driver so that we could chat as friends, me to an older man. What is so sad today is that some 60+ yr olds are still driving taxis. After an emotional incident once, I have stopped asking who owns the taxi.

Anyone notice the increasing number of Indonesia women, probably PRs, driving taxis in KL lately? They are polite, professional and they don't cheat!

I think time is up for UMNO, MCA and MIC rent-seekers.

Pax Malaysiana for the Datos. Pox Malaysiana for Abeng, Atan and Aneh.

Anonymous,  17 July 2012 at 21:24  

S M OR SYED MOKTHAR IS ALSo THEV Super Man lah

Anonymous,  17 July 2012 at 21:39  

Dato Sak,

I am a businessman now based overseas. In my travels to Moslem countries, my hosts and customers always say how lucky we in Malaysia to have Dr M as our PM and how they wished he was their PM as well. But when I start telling them how Dr M used Petronas money to save his son and how his sons out of nowhere, are now featured in Forbes list as the richest businessmen in Malaysia, I could see their "jaws" almost dropped and there was this long silence. What I told them shattered their perception of how great a man was Dr M. Even now, foreign businessmen in the know will ask me why is Malaysia practising legalised apartheid? These businessmen are not comfortable investing in Malaysia due to the race based policies we have in place.

Anonymous,  17 July 2012 at 21:53  

Self proclaimed Maha-the-great-thief could be the richess man in the country if all the assets and shares in proxy names are totalled

Family members are already managing billion dollars companies without need to work like ordinary persons

Anonymous,  18 July 2012 at 08:35  

Dear Dato Sak

Political science researchers have noted that in corrupt Third World regimes, the circle of "trusted confidantes" of the Leader keeps shrinking and shrinking until the circle only consists of close relatives and possibly, fellow tribesmen (e.g. people from Tikrit in Saddam Hussein's Iraq and Alawites
in Bashar al-Assad's Syria).

Phua Kai Lit

Kutu Tyranny,  18 July 2012 at 13:45  

There is no magic potion so all these "bad stuffs" will be gone. When all these bad things disappear you know what will happen? It will be the End of History! No more Professor Kengkang ! :-))

We can keep tyranny but horn away the rough edges plus the wearing away by the weather, the sun, winds and water plus some nice moonlit nights!

If a tyrant acts "fair" and tries to distribute "equality" to as many as possible, either we all become "tryants" or we become "orang baik" ! Ho boh?

So how do we get Out of Tyranny?[#]

But what's the choice?

Should we all become "good free loaders"? Doesn't sound too much to ask!

Or is it?

[#] http://goo.gl/sSS9u

Anonymous,  18 July 2012 at 21:42  

Aiseh tuan, nmpk mcm ada yg tak kena, mn pegi k.ananda, ytl, kwok brothers? Klu busuk sgt pun, dlm s.moktar wajib kuar zakat. Yg lain?

Anonymous,  21 July 2012 at 19:42  

Jgn nak putar belit !! k.ananda, ytl, kwok brothers siap dgn biasiswa, derma utk kebajikan berdekad ? Tak tahu ? Mana pulak tahu, semua siap dihulurkan ?

s.moktar wajib kuar zakat. Loose change - no big deal ! 40 % of the billions reasonable. Rob the poor to give alms ? Bill Gates lagi hebat !

Wang zakat lesap !

Anonymous,  21 July 2012 at 23:43  

Questions are why the majority of the real Malays and Muslims support this crime? Or it is acceptable?

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