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Sakmongkol ak 47

Tuesday 28 April 2009

Opening Up-The Economy.

One week ago the PM announced the liberalisation of 27 service sub sectors. One of the principal aims was to attract more foreign investments. FDI will enhance the contribution of the service sector to our GDP. The usual stock-in-trade arguments.

We have absolutely no quarrel with the intended aims. But don't make mountains out of molehills. DS Najib didn't mention anything about Malays being ready to compete. 

Others did. Especially those who I think did not study and analyse the service sub sectors listed. They have either not understood or have perused the list, but was thinking about political mileages. Hence, there were claims emblazoned here and there- Malays ARE ready for competition.

When I mentioned this issue in a previous article, some people went ballistic. I am repeating this again. If you don't believe me it ok, but let's have a sobering analysis. Then, rebut me on those points. Don't denigrate by saying I am bitter this and bitter that. If you don't understand what I write, go read comics. Gila Gila would be suitable.

The sub sectors being opened up have low Bumi participation in the first place. So saying whatever quota you want to have chucked out means nothing to the Bumis anyway.

When the PM announced the liberalisation of the sub sectors, he mentioned just that. These sub-sectors do not require satisfying the 30% Bumi equity requirement. He did not say the liberalisation meant Bumis are ready to compete.

For instance, look at the computer and related services. What is the Bumi participation there? The juicy potions there have been secured by the privileged few. You are familiar with the term I used before- Bumi-Putera. The putera bangsawans, putera UMNO, and the genetic elite are all in forefront grabbing what's good first. The real bumis- the soil toilers and tillers remain behind taking crumbs. Meanwhile, the rest of the field is being competed for by hardworking and brainy non Bumis.

I am telling you, in general what's opened up, and how big the gaping hole is, is of no consequence to the Malays. These are services that require higher level of brain content. By implication, since the players in the industry are mentally capable people, they should be able to compete with any one.

This must be the one which Mukhriz referred to as being ready for open competition. Brain quality is not race centric anyway. He must have spoken, when not engaging his brain. The mat salleh's brain can be as muddied as anyone else's brain.

Similarly look at health and social services, the welfare services, old folk's homes, day care centres. These are dominated by non Bumis anyway. Look at the ethnic breakdown at old folks homes- what is the percentage of old Bumis there?

Veterinary services. Let non Bumis take care of the pig farms. That will not burden government veterinary services which can then concentrate on cows and goats which are reared by Bumis. No big deal.

So before you go uncorking the wine bottles, your Dom Perignons, whisk out your expensive cohibas and coronas, waltz at the beat of sleep inducing songs, look at the service sub sectors which are being opened up.

The sectors opened up at sectors which have low Bumi content and participation in the first place. Do you see any Bumi operating 4 or 5 star hotels? Big tour operators? Who own the factories? So if these people want to have C carriers (transports to ferry their own products) why not? Bumis can still take up driving jobs. Those qualified as drivers, be drivers please. Don't expect to earn salary like a finance graduate. You have equality in opportunities to find jobs, but don't insist of getting equality in outcomes.

Those guys servicing the hajj pilgrimage services are Muslim firms naturally and they have the partners from the land of holy camel dung.

You don't see a Bumi operating a restaurant with the stature of Lafitte, do you? As one blogger ingeniously said, those are haram businesses anyway. Waa haraamun kalau makan sorang, wa halalun, kalau kongsi sama.

I say again, if the government wants to open up, pry open those economic zones dominated by the privileged few such as the construction industry. Let's see all the big guns compete with the overseas people. The insurance services, the banking services- yes break up the oligopolies. But wait, didn't Dr Mahathir lambast any attempts to open up the banking sectors fearing that the bigger banks in the world will gobble up the local players? Let's have more The Loaf clones- maybe we can buy cheaper pastries. Just love them croissants.

So before you start lambasting others and praise some people sky high, please study the list of sub-sectors below.

Computer and relater services

1. Consultancy services related to installation of computer hardware
2. Software implementation services – systems and software consulting services; systems analysis services; systems design services; programming services and systems maintenance services
3. Data processing services – input preparation servies; data processing and tabulation services; time sharing servies and other data processing services
4. Database services
5. Maintenance and repair services of computers
6. Other services – data preparation services; training services; data recovery services; and development of creative content

Health and social services

1. All veterinary services
2. Welfare services delivered through residential institutions to old person and the handicapped
3. Welfare services delivered through residential institutions to children
4. Child day-care services including day-care services for the handicapped
5. Vocational rehabilitation services for the handicapped

Tourism services
1. Theme park
2. Convention and exhibition centre
3. Travel agencies and tour operators services (for inbound travel only)
4. Hotel and restaurant services (for 4 and 5 star hotels only)
5. Food serving services (for 4 and 5 star hotels only)
6. Beverage serving services for consumption on the services (for 4 and 5 star hotels only)

Transport services
1. Class C freight transportation (Private carrier license – to transport own goods)

Sporting and other recreational services
1. Sporting services (promotion and organization services)

Business services
1. Regional distribution centre
2. International procurement centre
3. Technical testing and analysis services – composition and purity testing and analysis services, testing and analysis services of physical properties, testing and analysis services of integrated mechanical and electrical systems and technical inspection services
4. Management consulting services – general, financial (excluding business tax), marketing, human resources production and public relations services

Rental/Leasing services without operators
1. Rental/leasing services of ships that excludes cabotage and offshore trades
2. Rental of cargo vessels without crew (Bareboat Charter) for international shipping

Supporting and Auxiliary Transport Services
1. Maritime agency services
2. Vessel salvage and refloating services


Ayoyo- please lah- keep our dignity. Don't start shouting Bumis are ready to compete. And those ultra Malays- get a hold of yourselves, look carefully at the list above. Keep the krises in their sarongs.


Anonymous,  28 April 2009 at 09:35  

Dato Sak, fire in the belly ye?

U r slowly been termed a turn-coat among the putera-Malays. That’s for sure been done behind yr back right now.

The only good thing is; none of them got the intelligence to argue yr points otherwise, so one-liners & anon shall they remain.

I’ve been a silent reader of yr blogs since the beginning. It only angers me to write now when I come to know that bolihland has lost another prodigy son to the matsalleh.

Competition? My foot!

That said person is the top among the few equals in LHC conjectures. There r NO other here to compete & yet he chooses to come back! Rather than wilt in the silence & contribute nothing due to all sorts of racial glass ceiling here, over there the call to serve the humanity is too big a challenge to skid.

So the lost of M’sia will be a small gain to humanity.

Some of those thick in the head putera Malay will always shout about the number. Example - why should 60% only getting 30%?

That reminds me about the story of 60Mil sheep vis-à-vis 3Mil people in NZ. That 60M gets nothing & yet contributes almost 80% of the GDP. Worst they got slaughtered to do that!

So, number is might? At least those sheep contributes something, without take-&-take, ask-&-ask. Wondering whether they will ask for goal-post shifting if they care?


Anonymous,  28 April 2009 at 09:38  

Bumi the driver? no lah datok, only after the indian dont want

But still got hope, empty space at the end on the road for nasi lemak stall.

Anonymous,  28 April 2009 at 10:05  

cant help urself mentioning mukriz again huh? huhuhu So what is the solution? bumi kena jadi drivers only ke? How to paksa them to become big bosses?

Anonymous,  28 April 2009 at 10:47  


dah ada wabak selesema babi yg disebar melalui manusia pun masih nak keluarkan cakap pasal ladang babi lagi ke?

Aku pelik la dgn malaysia ni, semalam aku dengar berita, habaq, tunggu arahan aja, adala satu badan ni nak cucukkan vaksin ke babi.

Patutnya dah wabak takut nak makan. Ni lagi nak makan, pastu habis kita semua kene virus selsema babi amacam? Tok sak pun tak dapat nak tulih kat blog lagi.

Lagi satu aku perasan tok sak suka nak berbeza pendapat dengan Mukriz dan orang tua nya. Kalau tak silap aku tok sak ni sukakan NEP di abolished. Skrg bunyinya macam sokong pulak ada 30% (tapi aku 30% tak cukup patut tambah lagi), cuma tambahan tok sak pergi plak ke badan2 social service.

Aku rasa tok sak ni suka cari pasal dan kasi gaduh melayu sama non-melayu aja. Satu-satu la deyy..
Inikah perangai ahli2 UMNO? Kau masih UMNO lagi ke tok sak?

walla 28 April 2009 at 10:57  

One of the things the malays can do is to form one-stop JVs. Say m1 prints cards and stationery, m2 runs a company secretarial service, m3 can offer courier services, m4 sells office equipment, m5 is in advertising, m6 runs a recruitment agency, m7 provides local coordination services, and so on.

To the incoming investor, each may look small. But if they are combined as m1 to m(n) to be one jv company, then marketing of support services to the new inbound company may be easier.

Also, one must be speedy. In manufacturing, Mida regularly prints out list of approved projects. What is needed is that for the services sector, who is coming in to set up new office should also be known. Then the JV people can quickly contact the investor and offer the combined services even before they arrive.

The end vision for the local JV support service provider is not just to support the new inflow investment but to build its capability to venture overseas. If done well, the support services should win the trust and confidence of the investor who probably has a network of other offices overseas. Their friends may also have openings depending on what is needed.

The JV model needn't be locked into fixed set of services but can be modified to jv1, jv2, jv3 and so on. JV2 for instance can be local jv1 combined with a GLC and a foreign partner to venture into bigger jobs in other countries so that what starts as a local jv becomes an overseas jv.

What are important are things like presentation skills, what the first jv must stand for, keeping prices attractive by not loading representation costs on local jv partners, and excellent dependable service with customer foresight initiative. Since it's all about services, make everything look professional including the JV brochure.

This is just one small ideas; others will have many more.

In fact what applies for services can also apply to manufacturing.

Eyes Wide Open 28 April 2009 at 11:05  

hear hear dato

i'll be honest - i did have a sneaky feeling that the PM wouldn't be committing political suicide by opening up the services sector in a way that would menjejaskan Malay interests. but i was too lazy to do the research into its implications.

thanks for providing the facts and figures. such a pity that your hard-hitting analyses are being derided as deranged rantings of a vengeful, bitter old man by those UMNO-puteras and the wannabes.

Ree,  28 April 2009 at 11:53  

Dato Sak,

Agree these "liberalizations" are nothing to shout about. For example, the high end ICT businesses would have MSC status anyway. No bumi requirement there. The low end ICT business is already too saturated.

Anonymous,  28 April 2009 at 12:05  

at least this liberalisation is a thousand times more real than all those rhetorics being vomited out of the opposition's mouths.

pandai cakap aja tapi kepala kosong.


Anonymous,  28 April 2009 at 13:07  

Anon 10.47
UMNO macam Tok Sak ni tak ikut membabi buta! UMNO macam engkolah yang senang kena selsema nipah virus dan swine flu!!Engko UMNO babi buta dan jenis jilat bontot tau?
Banyak dapat projek dah?? Dah minta jasabaik TDM dan MM sign apa2 projek?
Ingat engko tu UMNO apa hah?
BIADAP punya babi!!

ala 28 April 2009 at 14:02  

Anon 10.47

Sy hairan, kenapa awak TIDAK ADA MALU langsung? This is supposed to be an intellectual forum with positive contributions towards some applicable concensus to shape / build the nation that we want.

Nampaknya awak tak faham langsung orang punya stand, atau apa-apa line of argument in these pages and mind u, Dato' Sak is always consistent, congruent. Suka tak suka his posts set us thinking dan bagi yang 'tak biasa berfikir' jadi 'ter-berfikir'. No wonder awk macam monyet berang kat sini.
Jadi silalah jangan menyemak, dan menghina diri sendiri di forum ini. Kesiannye lah saya pada orang yang saja membuta2kan mata dan hatinya sendiri. Jgn sampai org kata, otak memang di kepala, tapi kepala najis; dah la najis, terbuang pulak tu.

Anonymous,  28 April 2009 at 14:35  

walla, presentation bagus tak jamin apa2. Itu cuma first phase aja.

Next, org nak tengok services. Kalau org dah terkena dengan presentation bagus2..tapi habuk pun tarak. lenkali tak dapat sub-con la nampaknya.

Anonymous,  28 April 2009 at 14:45  

kepala najis mesti kena buang, tapi kalau anon 14:02 rasa sayang nak buang, sebab isi2nya baik lagi, maka bersedialah utk mendapat sakit cancer colon. lu simpan toxic maa

Anonymous,  28 April 2009 at 15:11  

Betul tu, babi dah menular, masih lagi nak kompromi nak jaga hati kaum2 bukan melayu yg suka mentekedarah babi.

Inila dikatakan negara islam, tapi penduduk2 islam tak menghayati Islam. Aku ni tak tinggi belajau ugama, tapi aku ada sikit heran, bila usul2 bina ladang babi cam tahun lepas dibuat oleh seorang islam. Apa hukum nya. Apa kata ulama?

Lagi satu, aku rasa, org2 bukan melayu ni pun tak percaya dan dorang tau org2 PKR ni tengah main bodek, sanggup membogelkan diri utk org lain.

Aku dulu pun banyak kawan bukan melayu. Depa lagi respect pada kita kalau kita betul2 ikut agama islam dan akan trust kita lebih dari jenis2 yg berlakon sandiwara jualkan agama atas nama kompromi.

Depa lagi jaga kita dan akan tolong habaqkan tempat mana yg kita boleh makan dan tak boleh makan bila dia benar2 menjadi kawan baik kita. Aku pernah diberitau, mereka2 non-malay pun tak mau kita menjadi salah dengan agama kita dan mereka pun percaya kita dijalan benar. Tapi sayangnya depa tak masuk islam aja. Liat sikit gamaknya.

Jadi, aku rasa isu2 kompromi halal haram dan pulak tu islam sendiri pulak yg cadang, memang non-malay dengar pun gelak ajalah. Itu pasal lu tengok apa jadi pada PKR.

Jadi, sapa2 yg senada jangan ingat nak jadi Hang jebat ke haper. Sila belajar dari cerita hang jebat.

Anonymous,  28 April 2009 at 15:39  

i dont get it.

najib said “As far as the Government is concerned, meritocracy does not mean equality that is awarded blindly. It means placing something at its rightful place. A child from an unpoverished family, whether from the city or a rural area, irrespective his ethic background, but has potential, also has the right to be assisted by the Government compared with his peers from well-to-do families who obviously have better education opportunities,” he said. Najib however reminded everyone that while a fair playing field could be provided to all, the outcome depended highly on one’s desire, needs and desire to succeed in life."

is that equality in outcome or equality in opportunity? if nep says that impoverished child can get unfair advantage of opportunity just to get equal outcome with the well to do rich kids, then is that equal in outcome or what?? aiihh.. pening!


Anonymous,  28 April 2009 at 15:51  

Anomie? Your foot? gwlnet?

You should be careful when you want to comment in a blog owned by a Malay and frequented by Malays.

The chap who spoke for 60% getting 30% sounds like a Malay. You opposing it, bolehland etc sound like a non-Malay.

Be sensitive about others' feelings. Don't try to relate sheep in NZ with 60% Malays in Malaysia. They'll eat you up if they get hold of you. But they'll probably won't if they know you bring the current swine flu.

You talk about others remaining anonymous. But you also hide behind anonimity.

So, try to be civil and be sensitive in your comments, ha.

Anonymous,  28 April 2009 at 16:23  

walla...u try to think of all these ideas..bagus lah but orang kat sini bukan interested buat bisnis or think of real ideas>>they just want to walllop..

secondly..itu type of service udah di monopolised by Symphony,the big 4..etc etc..where got chance for kucing kurap?

walla 28 April 2009 at 17:23  

you're right, anon 16.23.

i'm going to give up here now.


Anonymous,  28 April 2009 at 17:50  

Now its 1Malaysia for the government...the civil servants,GLCs,politicians can then legitimise their preference for non BMis and foreign firms...
And the Non Bumi controlled/owned firms can continue with their current practise..

Walla,we're too kucing kurap to worry..its the New World order of KPIs...just be happy with 3 meals a day and hope by the time our grandchildren goes to college..masih ada quota 10% untuk orang miskin to get education.

Anonymous,  28 April 2009 at 18:29  

And our good DS Najib have just got this brilliant idea of seeding GLC guys into government service and vice versa...

Very soon all the KSUs will be earning millions..just like the CEOs in GLCs.That will be a big boost to the economy.

And why is DS Najib so enamored by the GLCs?It has been nothing but cost over runs,non existent projects,overpriced acquisitions,crippling internet speeds cos that their best endeavor,the imaginary Penang Second Bridge,the more than a year delays in IJN , Bakun and Penang First Bridge,substandard PLUS hiway expansion...the list just goes on.

And,is the Rm 10 billion still ok or has it been disbursed to prop up the bad decisions of merging plantation companies,demerging telekoms,confusing tenaga,waiting for the world's best airlines..

DS Najib..we are in big big mess..pls do not believe the KPIs..pls do not trust the financial engineering.

Good business is about on the ground performance,enhancing market share and building resources.

Pls do not cross fertilise two bad seeds in the hope to get a bountiful harvest.It will only end up in ballooning the RM 41B to RM 70 B...mark my words.

Anonymous,  28 April 2009 at 18:32  

We might soon get more Non Bumis to head the government services...
If they're the best ..we have to get them.

Remember..Eric Chia the great businessman was brought in to save Perwaja.Lets use the same recipe for our civil service.

Ariff Sabri 28 April 2009 at 19:01  

see what i mean,

those juicy business segments have all be walloped! For instance Symphony has sapued everything which walla proposed.
why dont we open up these sgements for free competition. isnt symphony headed by one Azman... ex Danamodal/Danaharta?

Anonymous,  28 April 2009 at 19:16  

its all open business..everyone can get in>>just got to be better,more efficient..cheaper or know more people

Anonymous,  28 April 2009 at 19:18  

oh yes ..forgot to mention>>possibly they got their start from some nice fat juicy government contracts>>maybe...and henceforth grew the business.

now its pretty open..but they are not under privileged as the walla JV

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