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Sakmongkol ak 47

Tuesday 15 June 2010

10MP: A plan of the rich, by the rich and for the rich?-1


What's the mean monthly income of the various races in Malaysia? They are as follows:-
  • M: RM 3,400.
  • C: RM 11,000.
  • I: RM 9,000,
Malays earn RM3, 400, Chinese RM 11,000 and Indians RM9, 000. The 10MP should be addressing the question of how do I raise the mean monthly income of the Malays from RM 3,400 to RM 7,000 in 5 years. That, to the Malays is more meaningful than raising the PCI from RM 20,000 to RM 43,000. That doesn't mean a thing to the average Malayman, Chinaman and Indiaman. In 2009, Malaysia PCI was USD6700.
How do you do that for the Malays? Let's discuss this basic idea. You know the cultural setting of the Malays right. Compare the analogy of the Chinese and Malay crab sellers. The Chinaman places all the crabs in a closed basket. The Malayman places his in an open basket. Why the difference you ask? Because if the Chinaman places his crabs in an open basket, they will all escape. The crabs belonging to the Malayman will never escape. You are wondering in surprise.
This is how it is. You see, the Chinaman crabs will help each other to escape. When one crab is on top, the one below it will push it along so that it gets over the top. So on and so forth. To prevent escape, the china man must close his basket. The Malayman doesn't have to worry about this. That's because, if one crab attempts to climb out, the one below it will pull it down.
My architect friend has a more sinister story. He says, if a Malayman goes to hell, he will never come out. That's because, if he qualifies to get out, the other Malaymen will pull him back in.
So how will PM Najib address this Malay issue? How will  he raise the Malay income from RM 3k to RM 6k. Not much. Not a big target. See whether he can achieve this. Then let's talk about the 10MP.
We want to double this to USD15, 000 in 10 years time on the back of (a) 6% annual growth (b) increase FDI (c) exports etc. ( d) double digit growth of private investments. Who are the privateers? (e) human capital growth- talented people are given the resources to build capacity. Who's talking about this human capital? It must be spoken by people with credibility. The ketua UMNO cawangan with an SRP qualification is allowed to head the PIBG which extols the value of quality education
Where will the sources of growth be? In real economy though building productive capacity of his nation or though some financial magic show?
What do you make of the 10MP then? I was thinking of the American government. A government of the people, by the people and for the people. My thought on the 10MP is the plan of the rich, by the rich and for the rich.
Hence you have:-
Over RM 60,000,000,000 worth of projects for the same old guys- the Gamudas and MMC, the syed mokhtars, the Vincent Tans etc.
RM 35,000,000,000 for the greater Kuala Lumpur project to do what? I was telling a friend yesterday maybe the Gamuda guys are thinking of erecting a dome over the whole of Kuala Lumpur and aircond the whole place or create an artificial snow churning machine over the whole of KL. Our home- grown temperate botanical gardens to free us from this sweltering heat.
Was this given through the much touted Swiss method? It must be a Swiss blade that cuts all ways. The sports betting license which yields the holder of RM 1,000,000,000 a day? RM 5,000,000,000 for development of Sungai Besi airbase.
60,000,000,000 from 230,000,000,000 is a hefty proportion allotted to the private buccaneers. RM 35,000,000,000 is more than the budget going to the Ministry of Works who are carrying projects for the people.

This Plan is sounding more like a conspiracy of rich people!


Anonymous,  15 June 2010 at 18:26  

Dato' lately you looked and appeared more and more frustrated.

To us, Chinamen, it is normal lah. Business as usual. Nothing has changed.

Really who cares. No one can do anything.

Chinamen will go on their usual businesses. Less complaint the better otherwise Ibrahim Ali will starting using them as scapegoats.

Its the Malays who have to open their eyes and do something. They have the most at stake. Like you said the average income amongh the Malays is the lowest. Rich very rich poor very poor.

If only it is true,  15 June 2010 at 18:58  

Average monthly income?
M: RM 3,400.
C: RM 11,000.
I: RM 9,000,

Where on earth you got your figure?

Ariff Sabri 15 June 2010 at 19:07  

if only it is true,

one of you anons wrote in. you have better figures or worse?

walla 15 June 2010 at 20:40  

Pada tahun 2007, pendapatan isi rumah purata kaum Bumiputera meningkat sebanyak 5.2 peratus setahun kepada RM3,156 sebulan, manakala isi rumah kaum Cina meningkat pada kadar 3.0 peratus setahun kepada RM4,853 dan isi rumah
India pada kadar 3.2 peratus kepada RM3,799.

(page 19: )


Anonymous,  15 June 2010 at 21:27  

Can you believe any data provided by the govt?Even on subsidies MOF & Mr Jala got grossly divergent numbers..and in true BN spirit Prof Koh says both are right.

So,lets just surmise ur anon and Mr Walla's numbers are both correct BUT lets accept the higher one i.e by anon (i.e, in the spirit of Mr Jala)..and work from that base to do aome social (subsidy) reengineering.

And Dato's conclusion that the budget is for the rich is not correct.Whatever wealth the rich further acquires will be added to the total wealth of the nation.This number will be divided fairly..we are in that denominator get the average.We may not hv access to the money but as an average we will be wealthier too.

My indo friends whose GDP per capita is much lower then me holidays in Paris and drives a Ferrari but..I can always console myself..he's actually on average poorer then me.

Mr Jala says Indonesia have much lower subsidies yet their electricity,tolls,car prices is much lower then me?Perplexing indeed.

Unknown 15 June 2010 at 22:59  

Salam Dato',
The following figures from EPU (9MP, 2005) are still hauntingly uncomfortable:
Employment by ethnic group (Table 16.4, pg. 334).
Senior Officials & Mgrs in Private Sector:
Bumi = 38%
Chinese = 55%
Indians = 7%

% of CEO's in Private Sector:
Bumi = 20%
Chinese = 70.4%

I wonder how these figures will look like after 10MP?

Anonymous,  15 June 2010 at 23:03  

15 June 2010 21:27

Don't try to be smart please.You are very stupid indeed and nobody is laughing.

Dato is trying to get across a very crucial point about the rich robbing the poor.Its not a laughing matter unless you want your grand daughter to be a maid in Jakarta.

We have to mobilise our collective forces to fight the great injustice and bad intents of this government.We have to fortify our spiritual strengths and self belief to fight this menace.

Let the voice of the great unwashed to be heard loud and clear.I stand firmly behind Dato Sak..the man who will bring our beloved Malaysia into a new era of justice and prosperity for all.

As a first step.I am boycotting Smart Tunnel,LDP,Kesas..anything to do with Gamuda

Anonymous,  15 June 2010 at 23:50  

their postulate are:- it creates jobs, it stimulate the industry and market, it upgrades our lifestyles, it spurs our economy, it generate incomes and education opportunities, etc etc, blah blah blah.

but does nothing for the average and below average people including businesses and one have to be declared eligible first and really beg for the allocations. so the people are literally beggars who have to make contributions.......

Anonymous,  15 June 2010 at 23:50  

Middle Class Malays has increased significantly and these can be seen in the cars they own. My neighbor who lives in a double storey terrace house has 1 Land Rover TDI, 1 BMW Z5 and 1 Jag ! And if you have been observant you will notice this class of Malays shun buying 'national cars' and prefer continental brands. BTW I stay in Shah Alam.

dua sen,  16 June 2010 at 01:25  


I wish to requote you, "statistics is like a bikini".

The average income which is published , is "like a bikini".

Why ? Because there are 10.5m workers and only 1.5m pay income tax ie those earning at least RM3,000.

You can't use the imported butter eaten by the rich to apply on the lower income bread, can you ?

How much does a postman earn ? RM700 ! But I fully agree with you that using PCI is the biggest BS. In statistics, we need to throw out the extreme data ie the top and bottom. Then, the analysis is more meaning. At the end of the day, STATISTICS IS LIKE A BIKINI ! ;-D

Anonymous,  16 June 2010 at 01:25  


Dato, thats sure a lot of zero's

I wonder those people get the meaning of your article

Entah la Dato .. Jibby lately pon flip flop lebey kurang paklah.

Muka pon dah start cuak asyik kena tekan sama berahi ali.

Mana tak indebt sama itu vincent - sapa suruh entice banyak wang sama itu perak-de-coup. tadak balaja itu matematik kah

Ya Allah! Selamatkan lah Tanah Melayu dan Orang-Orang Malaysians.

Anonymous,  16 June 2010 at 02:08  

Average monthly income
M: RM 3,400.
C: RM 11,000.
I: RM 9,000

I am the Anon who posted those figures, Dato.

Where the hell did i get the figures, Anon of 15 June 2010 18:58 asked?

Well firstly, unlike most, I dont subscribe to the low culture of the serfs who have to accept whatever the bastard earls say, as gospel truths.

So when Jala says RM 10 bil or RM 20 bil or RM 70 bil whatever - those malaysian serfs allow themselves to have such cow shits shoved down their throat. Yuuuck.

What DOSM (Dept of Stats, M'sia)tell us about mean household incomes - I outrightly reject.

Does Jala have to explain his numbers.

Oh no! he is the Gomen - borrowing Wenger's term - so he doesnt have to explain.

Does DOSM have to explain their numbers?

Well okay, neither do I then.

The Malays' mean income figure of "RM3,400" however is DOSM's. Coz you can bet yr tainted RM millions that bloody DOSM won't doctor that number except to over-state it.

Use yr brain (if you have a functional one ie.), do some simple arithmetics then make yr judgement.... and make some numbers too like i did.

But let me tell you one more thing. Jala is dishonest !

Apart from the fuel subsidy, there wasn't even the slightest mention of other subsidies, incentives, assistance given to the Industry which runs into the tens of RM billions.

Not the slightest mention!

Like Dato said, "This Plan (10MP and Pemandu's plan, i presumed)is sounding more like a conspiracy of rich people!"

Dato, in the States, when you oppose policies which benefits the rich only, they'll brand you as communists, or maybe even as terrorists.

Here in Malaysia, they'll call you racists, UMNO something, bla bla., bla.

I'm seeing the pattern.
Anti RICH policy = Anti Chinese = Racist = Ibrahim Ali's supporter

Haha...what a joke.

Anonymous,  16 June 2010 at 02:48  

Walla, I know you're quoting those incomes numbers from some UMNO-government data source.

You've always sounded like an objective and sensible person judging by most of yr views here.

Do you really.. really believe those numbers?

Tell me..wished i could look you in the eye and hear yr answer.

Do you honestly, "cross yr heart and hope to die" believe those numbers?

Speak with yr heart, and be consistent with yr usual intelligent self....

The Anon

Eyes Wide Open 16 June 2010 at 02:52  

wow dato'...this particular chinaman would love to be in the RM11K monthly income bracket, as would most of my friends I believe!!

walla 16 June 2010 at 10:46  


6. i sense (with my heart) a lot of people are unhappy these past few days.

Because they are seeing for themselves how the Umno-led government has come undone in everything.

They have also felt cheated all these years. They know the government knows, yet they see Umno not responding by changing. In fact, it has gotten worse.

You know what i am trying to say.....cost overrun of one hundred percent on a Duta household; new parliament, another new something in Putrajaya, eight billion to build armored cars under UN (read US-UK) auspices so that we can go fight fellow mujahideens who are only armed with peashooters (are we nuts?!), buying overpriced submarines without maintenance, money laundering in Sabah, haram funding of vote-buying, end of our oil era, specter of runaway inflation, privatization programs that repeats the privatization pogroms of yesteryear.

The value-system has become unraveled. Umno is flailing in the water to stay afloat. That's the only explanation for all the contradictions.

And the conclusion is that it realizes it doesn't have the (a)guts, and (b)time to make the change.

So it doesn't make the change. Instead it goes for the final round of plunder and squander.

7. And it does it while letting Malay ultras go around punching councillors, and making the Chinese their punching bags all over again.

8. But that will have a lasting negative effect. It will create a second system in our country. Our communities will start to shun one another again.

Who lose out the most in the end?

9. The government wastes so much money but it says it cannot afford scholarships. So we will lose more brains. Again, already a contradiction before the 10MP has even started.

With so many contradictions and challenges, there is hardly any way we can achieve a high-income economy.

10. in the next days, i will try to figure out what can be done for our poor Malays.


walla 16 June 2010 at 10:46  

anon 02.348,

1. the differences in values between the RM data provided by (anon 2.08, EPU) are:

malays 3,400, 3,156
chinese 11,000, 4,853
indians 9,000, 3,799

From this, we see the big gaps in value for the chinese and indian groups.

I was looking for data which could reaffirm anon 2.08's numbers - but have not succeeded; perhaps you can share why you think they are more accurate.

This is not to say the EPU's numbers are right.

But we should have facts to debate, no?

2. although i am enthused you have followed my writings closely, so closely in fact as to use my own words, i wouldn't presume to use my heart as a source of national statistics; neither should anyone else, especially when it seems the motivation is to peg the Malays with the Chinese (or Indians for that matter, in the case of rm9K from anon 2.08's) and not to peg the poor Malays with the ultra-rich Malays.

That doesn't mean i don't care for the poor Malays. In fact it's the only reason i still write here.

3. there is another source; a survey was done for Tesco Puchong (i don't have the race backdrop for that area) and the customer profiles have been enumerated:

You should be able to get some insights.

5. And this is for the planners:

'What has also come out is the cost of insurance to average middle-class households. It's very high, especially when they have committed to life, education, health and possibly endowment. It's the private sector way of covering for their future. Considering the inflation trend, the returns will not be very bright for their future but the cost of premiums will still very high to them.

When things cost more, they will have to forgo everywhere else except their insurance payment because they cannot touch or restructure their premium payments, otherwise they will forfeit everything. Insurance is enforced saving without let.

The need to maintain insurance payments will kill possibly half the middle-income group.

Also note that if they default on their payments, not only will they lose everything but the insurance companies will also have cashflow problems from not having enough funds to invest in the bourse.

Which means the stock market will depress. And that's another threat to the private investment strategy of the NEM/10MP.'

Anonymous,  16 June 2010 at 11:03  


Can you help to convince ASNB/Govt to increase the maximum amount that can be invested in ASB from RM200k to RM500k? That would a lot especially for Malays retirees to face inflation-laden years ahead.

Anonymous,  16 June 2010 at 11:20  

In a data-set not normally distributed like salaries or welath would be statistically better to use Median rather than Average. Sort the data-set from lowest to highest and Median would take the 50-percentile data point to represent the population. Therefore should the data skewed more to the lower side, the value of Median income will be lower or should the data skewed more to the upper side, than the the value is higher.
I believed govt is using average to camouflage the real issue. In a same typical non-normal and skewed distribution, the difference between Average and Median could be more than 34%. Go figure.

Quiet Despair,  16 June 2010 at 11:51  

I shed tears when I read that my race is in the lowest rung of the income ladder.
Even the Indians' earning power are nearly three times above us.
Dear non-Malay pals, why then so much angst against Affirmative Action.
You guys are having it all.
You want to cut our scholarship quota, throw our DEB tongkat, stop subsidy and the list goes on.
This is not Tanah Melayu, right?
It's 1Malaysia to the hilt.
No wonder Tun M and Tok Him is raving and ranting.
My poor Ayah Ngah Lah in Pahang is suffering in silence that his scrap rubber cant even pay for a kilo of rice.

Anonymous,  16 June 2010 at 12:28  


It's sad but true.

On paper, the 10MP appears to benefit the majority of the poor 'rakyat', regardless of race.

In practice, even before implementation, the rich have already divided the prime cut of the meat.

During implementation, the lean meat was not spared either.

After implementation, the 'rakyat' were left with dry bones to fight over.

walla 16 June 2010 at 12:50  


What you may actually be wanting to say is if not given chance, how to come up?

But the Malays have already been given such a chance for thirty years? What is the result?

The implementation of the DEB is being addressed. What has failed to come out earlier is the statement which only recently was reaffirmed by Najib and co.

Namely, the DEP is retained at thirty percent but its implementation will be loosened to capture more efficiently those Malays who can contribute to the success of enterprises.

Meaning no more cronies get everything which would explain how come there are no 52,000 Malay millionaires despite rm52 Billion changed hands in bumi-held stocks.

Whether the situation will improve or not i am not so confident, looking at cost overruns, closed tenders, simply hentam procurements, unjustified projects, even piratisation-PFI projects... you yourself know who started it all.

If we continue the same method of blaming the non-Malays for all our problems, then it's the end of Malaysia.

This time they will not suffer fools. They will do their own thing. The country will have two systems. Then the Malays, and i am only concerned about the poor Malays, will be used by the elite Malays to maintain power to practice unequal distribution of wealth, and private investments will disappear.

Then the rich Malays will be very rich because they have salted away everything. The poor Malays will remain poor, and joined by the ranks of many non-Malays of the new generations, who will find this country's economy so leaked and sleepy they will have no reason to stay on.

This country will hollow out and everybody who matters will lose out.

How do you think we have a debt of rm300 billion came about? The nonMalays don't owe the government. If anything, they pay taxes to keep the government afloat. And the government has not been spending anything much for them.

So who has the government been spending money on that has caused such a big debt which if not cleared can make the country bankrupt before poor Ayah Ngah Lah's latex runs its last drop?

To repeat myself, where has all the money gone?

And about the Indians, do you think the ten thousand with their Maika shares are happy today? How many of them are not rubber tappers?

Even when we have problems, we must see the actual causes and roots of how those problems have come about, not grab the easiest and cheapest reason to blame others for what we have let happen all these stupid cockeyed years.

If we don't, the problem remains, gets bigger, and creates bad feelings. No society can work in a pool of bad feelings. Think how it will be if you have a tiff with your next door neighbor, even of the same race.

Back to more productive thoughts.

How the hell did our cooperatives movement collapse?

It's a simple model to help the poor. Buy in bulk and sell at near wholesale price to members, add on a small management fee.

So if the management fee is no bigger than the subsidy removed, we should be able to use the cooperatives model to make sure the poor, including our Malays, can still afford basic items, no?

With efficient management, the fee can even be reduced.

It's all about corruption, no?

I hope someone smarter than me can think about how to resuscitate the cooperatives model and so help the poor, especially the Malays, retain some means to afford in the next years.

I know what it is to lose dignity.

walla 16 June 2010 at 12:50  

'You want to cut our scholarship quota, throw our DEB tongkat, stop subsidy and the list goes on.' (Quiet Despair 11.51).

I don't think that's a fair statement:

- cut scholarship quota

The issue is not about giving less to needy Malays; it is about giving more to qualified non-Malays.

The problem before us is when more is given to needy Malays by taking away what should have been given to qualified non-Malays, the following has happened:

(a) the standards drop;
(b) the brains leave;
(c) there is angst in society;
(d) which creates division.

So the country loses brains, innovation, productivity and cooperation.

A simple solution to this scholarship quota is for the gomen to save up to give more. Since it has been spending like a wild animal on nonsense, you should be going after the waste rather than blaming the non-Malays, no?

- throw out our DEB tongkat

The issue is not about the DEB. It had good intentions. But its implementation has been hijacked to enrich some Malays over everyone else, including non-Malays who could have contributed more to the country so that Malays can also benefit from more taxes that can be used to help them up in other social programs.

Because of this inequitable implementation, a pall of injustice hangs over everything - from private investments to employment.

Since private investments are to be the key in the next five years, therefore if the DEB continues to be abused, the 10MP and everything in it will not be well-received by the private investors.

To a large extent, they are from overseas. If they see problems, they walk away.

When they walk away, also gone the immediate marketing channels. We will have to spend more to try to gain market entry to sell. And we will be selling simple goods because we have not innovated. And simple goods are not what other emerging competitors are doing. They have already gone ahead of us.

- stop subsidy

Subsidies were given to stop inflation. The problem with subsidies is like taking too much antibiotics. The virus gets used to the primed immune system and changes its attack. Then the body will have to keep on taking more and more antibiotics until one day the virus wins and we die.

Secondly, subsidies problem is one of leakage. It's at the borders. We lose too much paying for smugglers and foreigners to enjoy our subsidized goods.

The solution is to strengthen our control of goods transited but the better solution is to strengthen the body by helping all have more chances to make more money.

- and the list goes on.

Like what?

It's very easy to confuse the problems of the Malays, and the poor of the non-Malays, and say that anything which tries to change the status quo must be a threat posed by the non-Malays on the Malays.

If any complaint is made on 'affirmative policies and actions', it is because (a) they have been hijacked by Malays, and abused on Malays, and (b) the global market doesn't like anything that imposes non-productive conditions.

If the Malays asking for DEB can show they are productive and can contribute to the enterprise, then any investor must be crazy not to consider them as viable contributors to the success of the enterprise, especially when success can lead to more profits for all, including the contributing Malays.


Anonymous,  16 June 2010 at 13:51  


Well said & tabik spring!

The unfortunate thing is the situation will continue going the past NEP way in the near term.

The saddest part is 98% of the Malay M'sians - kampong/urban, lowly educated/highly educated - r too indoctrinated by the past 30+ yrs of tongkat/rhetoric to care. Most properly think only about the after-life & let current good time be damned, better take as much as possible now!

The bug only stop when the country goes bankrupt or as the extreme green headband (as described in Windup girl) took over. Either way M'sia is done with!


Anonymous,  16 June 2010 at 14:39  

There are 3.87 million Bumi households. If we use the DOSM's mean monthly household income figure for the Bumis : RM 3,412 (2008) then total household income for the Bumi is RM13,195,711,628 per month - which is equivalent to RM 158,348,539,535 per year.

Private Consumption or Expenditure in the National Accounts [which we shall be basing our calculations on, is in fact household expenditures plus expenditures of non-profit organistions (like NGOs) which is small and insignificant] and for the year 2008 Private Expenditure is RM 334,147,000,000.

Even at this stage we see the glaring disparity! The gross total household income per year of Bumi is NOT EVEN HALF of the total private expenditure, only 47%.

There are lot more bumi households than there are non-bumi households. And a lot more bumi population as bumi households tend to be bigger.

Carrying on, lets assume - to be conservative - on the average the Bumis do have the capacity to save, invest, etc up to about 20% of their income (doubtful and does not really show, as can be seen in the under-subscription of the recent Amanah Saham funds launched for bumis; whereas the fund for the non-bumis snapped up within days).

Bumis in general are more likely to be increasingly indebted and impoverished due to their ‘hand-to-mouth’ level of income and teeny disposable income amount.

Any trauma in life (breadwinner falls sick or involved in accident, even kereta rosak) will cause severe financial crisis that may be irreparable!

Based on above ‘saving assumptions’ means bumi spend only abt 80% of their gross household income RM 158.348 billion x 80% equals to RM 126.679 billion.

But from the National Accounts, the total Private Expenditure is RM 334.147 billion. Therefore, The expenditure of the non-bumis is RM 334.147 - RM 126.679 = RM 207.468 billion.

Assuming also the non-bumi save or invest 30% of their income (most likely more! but for lack of data we shall assume that coz the national average savings abt 30%) their gross household income is RM 207.468 billion x 1.3, right? So that ‘s RM 269.709 billion.

There are 1,959,535 non-bumi households in 2008.

Therefore average yearly income for non-bumi equals RM 269.709 billion divide by 1,959,535 households, right?

That amounts to RM 137,639 per year .

Equivalent to RM 11,470 per month – non-bumi average monthly household income.

We can borrow the DOSM ratio of Chinese/Indian incomes to get the respective incomes of Chinese and Indians separately.

Private expenditures of the National Accounts I supposed are obtained from surveys of final consumptions at various retail establishments (that DOSM may have got it about right maybe) but that way the final consumption numbers will also capture the wealth expended from the underground economy also.

Refer to OECD’s Estimating Household Final Consumption Expenditure Quarterly - for more info.

I stand to be corrected. So please, please correct me. Some assumptions may be inaccurate, but hey this is partly economics and more common sense, even Krugman has not settled his differences with fellow economists on fiscal policy issues since decades.

Anonymous,  16 June 2010 at 14:54  


Nice to observe yr empathy..and fair anlysis.

But it's important for the Malays to know the present state of affairs first.

1. the real income numbers need to be established.
2. the subsidies - who really gets what

Then we will know better what to do, don't you think so?

Anon 007

Quiet Despair,  16 June 2010 at 16:42  


Your lengthy comments are duly noted.
Some I agree, some I dont.
But we will save the discourse for another day.
But given the scenario of the everyday Malays, there must still be Affirmative Action.
We are supportive of meritocracy if all factors are equal. Unfotunately, all conditions are never equal.
To pursue meritocracy while oblivious of the social economic differential is injustice, irrespctive of what the affected ethnic groups are.

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