The Economic Transformation of Malaysia: Part 1

This article is divided in 3 parts: Part 1 is what I believe is the sine qua non for economic transformation. Part 2 is an evaluation of previous economic polices, and finally Part 3 is the economic transformation of the rural economy.

First, Muhyidin must be a pragmatic leader, using common sense instead of theorising and philosophying. Don't be shackled by the theories of Samuelson or Friedman. Use practical and common sense. Does this policy work here?

Don't be a goody-two-shoes leader. I was aghast when a person suggested that we celebrate differences in opinion and it was suggested that we give air time to the opposition. It's not the business of this government to allow the opposition to undermine  us. Being practical means not to be caught by these airy-fairy ideas of democracy.

Being practical also means to quickly get rid of nincompoops  in  the cabinet. For instance, it was laughable to hear the new Health Minister suggest that we drink a lot of warm water to combat Covid-19. What a bozo! 

Unless of course Imperial Muhyiddin wants a court jester in his cabinet and entertain his dour existence! 

Being pragmatic also means Muhyiddin must be prepared to take unpopular measures and not be unduly concerned with ratings. If he is, then he is blowing with the wind and playing the gallery, eager to please everybody.

The PM has just announced a slew of charitable measures. They are both good and bad. 

Don't get me wrong; charitable and gratuitous money is good for the very poor infirmed sick and the economically depressed, but in  the long run is not good for the able bodied and the economic pupae soon to become butterflies.

To able bodied people, FELDA settlers, and the self employed, Laffer's Backward Supply Curve and Muth's Rational Expectations will operate.

I am talking as an economist here; the able bodied will work less and expect gratuitous economic handouts from the government. Responsibility to oneself becomes the responsibility of the government. This is not good if our intention is to create rugged individuals who roll with the punches.

The lesson for Muhyiddin here is be discriminate in his charity. I remember Najib once told me there is nothing the Malays like (he was talking about some Pekan Malays) than to get free things.

The PM must be supported by an efficient civil service. The undisputed fact is a good government requires good people.

To attract the best, we must have competitive remuneration. The salary of ministers in Singapore for instance is tied with the top 5 private sector salaries. Not only does it attracts the best, it can also discourage corruption.

I am not at all impressed by the fact we have 1.6 million civil servants if the majority consists of grade "C" eggs. 

I once gave a talk (with others) to cadets of Singapore's civil service, consisting of their brightest. I asked, the convenor herself a Cambridge graduate, "Do you take in 1st-class graduates only?" "No," she answered as a matter of factly, "2nd upper- and above." I kept quite in acceptance. That confirmed the quality of civil service needed. Having a high quality civil service means we don't have to explain  many times to make them understand. They will understand much faster. 

But having a quality civil service is not a happenstance, it does not happen willy nilly. We must assiduously cultivate it. Must consciously plan for it. I do not want the government to become an employer of last resort, attracting the riff-raff. It is time to restructure our civil service, military and police to reflect our racial composition. If non-Malays are good, we take them in.

The PM needs to control and reduce corruption. In his bid to be everything to everybody, he must not be forgiving. It is a travesty of justice if we overlook the massive corruption done by the David Duke of UMNO rednecks, the billion dollar whale Najib Razak. He must face the law. All forms of corruption, commission must not be tolerated by the PM.

The PM must promote meritocracy. This can be achieved through competition.

But how do you choose people? I used to work for Shell -- they have an appraisal system called HAIR. Kuan Yew also used this. This is a method which we can begin. It stands for Helicopter  vision, Analytical power, Imagination and Realistic. Can the person see the big picture? Can they analyise problems? Is the person imaginative? Think outsidse the box at times? And is the person realistic?

Is giving all and sundry RM1000 to RM3000 realistic? What are the consequences? Will Auntie Kiah be jumping with joy as a result of receiving RM4000, forgetting that her sarong has slipped? Or will she be sulking because Muhyiddin like Bosku Najib before  him had also lied?

Take heed of a Laffer's Backward Supply Curve and Lucas' Rational Expectations. Is Muhyiddin's RM250 billion package capable of producing a temporary financial placebo effect?

Has anyone heard of Manzhouli? It's a city in China near the Russian border. There, the Chinese built a Russian town, complete with Russian architecture, buildings, restaurants, a large inland port etc. Russian immigrants bring their ballet, trade values, their industriousness etc. It is not an uncommon sight to see people queuing up to buy bread. China exports fruits and vegetables to Russia. Manzhouli has turned into an economic and a social hub. The Chinese and Russians learn from one another. The Chinese has pushed the IDEA of learning from others to the extreme. I think learning from others should be part of our economic policy.

We can do similar things in Malaysia. We should forget about the Look East policy for the moment. It's not directly profitable to us. 

We can do an Indonesia town here. I and others have pushed the idea of building a bridge from Dumai to Malacca. So Malacca is the best candidate for an Indonesia Town. The Indonesians can bring their cuisine, culture, values, and industry to Malaysia. We can gain access to its huge market. Don't think Indonesia as a source of maids only. Learn from them.

These are the factors we require. First of all, to launch an economic transformation of Malaysia. We proceed from first principles. Muhyiddin must remember he cannot please everyone.

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Malaysia: The Way Forward

I am not exactly a big fan of Muhyiddin, as I don't believe he has the constitution to be a good PM. I was dismayed at his failure to deal with the pollution in Johore. That was why I said Johore was run by dullards and Muhyiddin was the Ketua Perhubungan. 

To compensate for that deficiency, he -- as the current PM -- has surrounded himself with some good people (save for a few muddied buffaloes).

For these reasons, I am willing to allow Muhyiddin and his cabinet to prove their mettle. Who knows, there may be a few gems in the cabinet. Dr Abdul Latif, Noraini Ahmad, Shamsul Nasarah, Ismail Said, and Ismail Sabri seemed promising.

Having said that, I am not looking down on Dr M. I still believe he is a master chess player. He has not taken out another piece of king from his pocket. But he seems to have lost his mojo. He cannot form a musical-chair cabinet if he comes around again. 

Meanwhile let us give Muhyiddin space.

Out of deference to Dr M, I have called him the 'Man who can walk on water' and the 'Don Corleone of Malaysian  politics'. History will judge him favourably.

By the end of 2020, Muhyiddin will have to accommodate with the idea of a more meaningful unity government, other than being  confined to Saravanan and Wee Kah Siong. They are hardly representative of their communities. Whether he likes or not, he has to accommodate the non-Malays, especially DAP.

I predict at the next elections, Amanah will be greatly reduced  while PKR will suffer the same fate. Bersatu should contest in all seats held by Amana and PKR. In the mean time, Muhyiddin should make efforts to co-opt individual umno members into PPBM.

PAS should be able to sit down with DAP. Doesn't the Qur'an say that races are created many so that they could befriend one another? The idea is to isolate UMNO -- if the raison d'être of PAS is to defend Islam, it is better for them to be part of the government. The cooperation with UMNO is not profitable!

Automatic voter registration would ensure Malays would remain numerically superior so that UMNO can never play the race card. And at the end of 2020, the government can carry out its delineation exercise to say, create 350 parliament seats instead of 222. Most of these seats are Malay dominated anyway, ensuring Malay political  dominance. Malays have nothing to be fearful of.

Ban all forms of hate crime -- UMNO won't be able to talk about racism. So will PAS, DAP and all other parties. Ban the affixture of Islam to the name of political parties. PAS has no monopoly over Islam. 

The government must be serious in wanting a unified country.

The ECR project must be carried out. A railway line must link the interior of the nations -- linking Gua Musang, Jerantut, Kuala Lipis, Raub, Bentong and KL. Forget about the 2nd causeway to Singapore. Build a bridge from Dumai to Malacca.

Indonesia is our sleeping giant. If it gets its act together, it can surpass Malaysia in terms of economic growth. So let us establish physical links with Indonesia. Singapore should be less of a priority to us. Sooner or later we will catch up to them in terms of human capital. So what will Singapore offer us?

While doing these we must not forget about our fundamental issue: the pervasive corruption perpetrated by Najib and his apparatchiks. By the middle of next year, do a cabinet reshuffle and get rid of the remaining crooks of UMNO.  

That is, if Muhyiddin survives.

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Pride Goes Before The Fall

I am happy to see that Najib is spirited enough to do some sabre rattling with Dr M. He is emboldened enough to do so, believing Muhyiddin will go soft on him. Let him be lulled into a false sense of security.

In a smirk retort to Dr M, Najib said how could he be responsible for the downfall of PH? He plays only with FB. He should be playing PS4. Well, smirking means silly and conceited. We shouldn't be surprised at Najib's response. He's a natural.

The not-so-clever Najib, true to his ascriptive character misses the point, attributing greater importance to himself more than he deserves. He is NOT the immediate cause of PH's downfall but he has been planning for it since 2018. Ever since he and his 1MDB lost the 13th GE. 

How did he do it? He was sufficiently sly to exploit the fears and insecurities of Malays by combining 2 important elements: UMNO's xenophobic bigotry and Islamic jingoism. Suddenly Pee Wee Najib became the champion of Malay nationalism and Islamic jingoism. According to him, the two are under threat from the Yellow Menace (the Chinese). These 2 elements became the potent concoction that fertilised the servile mind of the Malay.

Najib's UMNO played the theme to a hilt; Malay interests and Islam are under grave threat. The Malay gov is controlled by the DAP, DAP are true communists, etc. That despite the fact that by 2030, Malays will constitute 80% of the population.

How could a numerically superior community become a stooge to a numerically inferior community is beyond me. But Najib believed  the LIE because deep down he believes the Malays are stupid and naive. So he exploited the primordial fears of the Malays. That is how he contributed to the downfall of PH. 

But the not-so-clever Najib misses the point.

Najib is feeling upbeat of the whole thing possibly because :- 
1. He has managed to help bring down Mahathir's PH.
2. Through backdoor machinations, UMNO has become part of the new gov. 
3. He thinks he can be acquitted by softie Muhyiddin.

Najib is possibly energised by rumours circulating around that he has taken a young wife. Personally, I don't believe in such rumours. Rosie will have none of these shenanigans. She will probably do a John Wayne Bobbit on Najib. Imagine the spectacle not only will we have a former PMin the gaol, we will also have a former pm with a reattached private organ!

The reality is, Najib is a menace to the Malay race. To him Malays are mere digits to be used and exploited as and when. Bossku should be a political pariah!

After losing the 13th GE, his only remaining amour-propre are Malay nationalism and Islamic parochialism. Unfortunately, he has managed to graft these as the fin de siecle of 21st century UMNO. 

I hope UMNO can rid itself of this Najibian imprimatur!

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Malaysia's Political Smorgasborg (Re-issued)

(Originally published on 15.10.2019. Re-edited and re-formatted for mistakes. Re-published due to relevance.)

Innahu sulaimana
Wainnahu bismilllahirahmanirrahim
Alla tanqlu alayya
Wa,tsuni muslimin
Jazzallah anna
Muhammadan saw
Ma huwa ah luh

In an interview with CNN's Fareed Zakaria, Mr Lee Kua Yew said that he is a social Darwinist; the prerequisite of progress is change. The enabling idea may be attributable to Darwin; but the statement is not quite correct. The idea of change is more attributable to H.G.Wells' 'adapt or perish'.

People must change in order to progress; reform, revolutionise, etc. The Qur'an is more precise when God says He will not change the lot of a race provided the people first change what is inside them. This requires changes in value sets, skill sets, Weltanschauung, attitude, aptitude etc.

In 1978, people in China’s countryside were starving, eating tree bark and branches. But within one generation, China prospered tremendously and now has one of highest GDPs on the planet. This would not be possible without the changes I mentioned. 18 people changed the principles of command economics and adopted some free market economics and supported Deng Xiaoping.

It is important for our leaders to make changes and a group of people to be the change agents. So leadership is important, as well as having a group of committed people.

To be rich is glorious.

Take corruption for example; we must be indignant and be repulsed by it. Some irrational people may continue to adore "Bossku" but we must see Najib as he is -- an uncommon thief. He was the embezzler-in-chief. He stole billions through 1MDB, SRC, and maybe through Felda, Felcra, Sime Darby ad other SPEs. The government must leave no stones unturned in investigating these -- like the Malay saying, "Sampai ke lubang cacing".

Herr Najib may say he is the victim of selected persecution or political vendetta. We say to him not to erect the wet thread. Of course there is political will to act against a person like Najib. But the government must show no one can make use of public office to make private gains. So let Najib get his deserved comeuppance. His political career is closed.

There must be a sense of urgency among our leaders to prosper the country. We must not leave everything to the PM. Why is the bullet train Maglev so fast? It is because each coach has its own engine rather than being pulled by the head coach. The PM has no time to pull every other leader. Each leader must be a Thought Leader.

What must we do to prosper the country? We must prepare the required infrastructure, and then let the people take over. That is why we must educate the people. I was listening to the interview with Maria Ressa the other day and was struck be her simple statement: after graduation, she felt she can do anything. Education is empowering.

It is important to have human capital. For example, our farmers must have good farming knowledge. We need technology so our farmers can grow varied produce. We can grow different vegetables: onions,cabbages, potatoes; we can grow Yubari melons, grapes, apples etc. Farmers can experiment with new form of businesses; a group can form limited companies and invite non-agricultural ventures to invest in them.

Let us talk about the pollution in Johore. Is the state run by dullards? Why is the state dragging its feet over this issue? If not handled properly, Johore can cost the PH goverment. There's one banal teacher who said there was no association between pollution and illness of pupils; presumably there must be one death first before there will there be an association. The state government should close down errant factories immediately. We must send the message to business people that they can do businesses but do them right. Otherwise the federal government will step in.

What is this about the unholy alliance between UMNO and PAS? They are causing us death by a thousand cuts. What they are doing is institutionalising racism. One uses the fuzzy slogan of Malay nationalsm -- the Malays par excellence, Tidak Melayu hilang di dunia, Ketuanan Melayu etc. The other uses the equally vague concept of Islamology. We acknowledge their presence but are not rolling on the floor and pulling off our hairs; as Cao Cao famously said -- "When a loser combines with a coward what can they achieve?" Or as Robert Mugabe said, "If our clothes is made of cassava leaves we do not befriend a goat". Imagine if UMNO the goat were to nibble at Haji Hadi'ss clothes; our DPM and the MP from Seputeh will faint and young children will go to sleep with nightmares.

The government ought to outlaw parochial nationalism and divisive religionism.

The minister of foreign affairs must vociferously voice the plight of Muslim Uighurs in China. It is unfortunate we have heard nothing from him. Our founding father established Southeast Asia as an area of peace and neutrality, which means we do not interfere in the internal affairs of a neighbour -- but the treatment of minority Uighurs in China is a cause for concern. Over 1 million Uighurs were sent to 're-education' classes, which are actually euphemisms for ethnic cleansing and complete erasure of culture and religion. We ought to rebuke China.

Finally we come to the vexed issue of succession. It is not a given that Anwar Ibrahim is our next PM. This is not a cult culture. This is not an elected dictatorship. Dr Mahathir and Anwar Ibrahim are not joined at the hip. Dr Mahathir doesn't have the constitutional capacity to name his successor. The next PM must be a leader of a party, and must command majority support of MPs in the House. If that person is Anwar Ibrahim, so be it -- then, he has my qualified support. But he needs to do at least two things: one, to refrain from orchestrating or bring involved in palace intrigues and machinations; two, never use public office to pursue private pursuits.

Only then he can be the next PM.

- Sakmongkol.

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Najib's Feigned Ignorance

I find it laughable to see a simpleton journalistic report saying that the RM2.6 billion corruption case against Der Fuhrer Najib has been dropped. This is premature journalistic ejaculation and an adolescent wet dream.

This is part of the Malay Fiefdom mentality to exonerate feudalistic Der Fuhrer.

Najib is said to have no knowledge of the money that went into his private account. This is easy to explain and verify. He had no knowledge because it was a normal thing for him to receive gratuitous money -- and that is an indication that he was abusing his position. If he were not PM would Unknowns want to give him free money?

We must not readily accept Dzulkifli's testimony. Why don't we call the alleged donor? 

The fact is, Der Fuhrer received free money. If ignorance of the law is no excuse, why should ignorance of what's happening to his private account be one? It's childish journalistic kite flying to rope in gullible readers.

I find it further incredulous to be aware of what Najib thinks of Dr M. Why should it matter? Those are the words of the accused against his jailor.

Again it's a subtle and concerted attempt to dignify what Der Fuhrer said. For God's sake.... He is a known thief. Let me remind readers that the person on trial here is not Dr M but Najib, son of Razak.

The Qur'an says there is among you a man whose words  mesmerise you, but behind you he is full of intrigue and his heart full of venom.

One two three four
Satu dua tiga empat
Najib Razak kantung besar
Rakyat jelata hidup melarat

If we are easily mesmerised by what Najib says then we romanticise the halcyon fairy tales of Robin Hood-ism. Najib did not steal from the rich to give to the poor. The fact is, dear readers, Najib stole from everyone.

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The Wheat and the Chaff

I am amazed at the deluge of diversionary videos about Pakatan, Anwar, Mahathir et al while there are attempts at exonerating Mein Fuhrer Najib the Embezzler-in-Chief. Needless to say, this is mischievous.

Unfortunately, this is an extension of the Malay addiction of reading komik Gila-Gila syndrome, preferring fiction over facts.

The undisputed fact is Najib stole our money and that is more important than a thousand sensationalised fairy tales. So I urge discerning readers to separate the wheat from the chaff. Separate the facts from fiction, and don't be mesmerised by gutter politics, which only belong in the rubbish dumps. They are diversionary tactics intending to distract our attention from the heinous crimes of Mein Fuhrer Najib and Eva Rosmah Braun.

Suddenly, the testimonies of discredited Apandi Ali and Tan Sri Dzulkifli are given more prominence than they deserve. 

These are just footnotes to remind us. We have not heard the testimonies being demolished yet. So hold the congratulatory drinks.

In a sense, this is what the PM must do. Allow the court cases to reach their logical conclusion. We have no doubts these people will get their deserved comeuppance.

I want to recite this quatrain:
One, two, three, four
Satu, dua, tiga, empat
Rosmah Mansor cincin besar
Rakyat jelata apa dapat?

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The PM's Team

The big question is what party does Muhyiddin belong to? He will not last long if he does not reconcile with Tun Mahathir. He won't last long either if he excuses corrupt UMNO leaders like Najib and his cohorts. That includes Hishammudin Hussein. I am amazed by some people's infatuation with Hishammuddin.

Mahathir has more supporters than Muhyiddin. If he does not give Mahathir proper respect, Muhyiddin will evaporate quickly. He must not think his position makes him invincible. 

His need for UMNO does not mean he closes an eye over corrupt UMNO leaders, or he would undermine court proceedings. Mahathir is correct in accepting UMNO individuals and not en bloc. Muhyiddin should recognise this.

First he needs to show that Bersatu is unified. Otnerwise, he is lame duck. So whether he likes it or not, he cannot ignore Mahathir. 

Muhyiddin also needs to know that cooperation with UMNO en bloc is ephemeral so he needs to search for individual UMNO members who are interested to serve the country.

I have heard one cerebral-challenged politician said governing is a choice between a pig rearer and sheep herder betraying his bigotry. This kind of person should not be in the cabinet at all. If he is good to God he is only good for himself. But if he not good in governing, the ramifications are to society as a whole. That is why Muhyiddin should ignore Hadi absolutely. 

There are 3 factors to consider: Courage, competence and integrity. With courage all will come. These factors would rule out most of the High Priests of Malaysia's Klu Klux Klan, save a few individuals. 

Tengku Razaleigh Hamzah has been a loyal UMNO member. He has made monumental financial contributions to UMNO. Apart from his late wife, he loves UMNO most dearly. He can be a good team player. His vast experience is something Muhyiddin can rely on. I have said before he is the PM we never had. His presence in the Cabinet is a premium.

The inclusion of cerebral persons like Noraini Ahmad, Shamsul Nasaran and thinking-man Ismail Said would benefit Muhyiddin. Zuraida Kamaruddin is a hard working lady and a good team player. Azmin Ali is also a good person to have on your team. One more person to consider is the studious Mustapa Mohd.
 

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