NEP in Crisis

Musa: Brief Umno on why it has to give up NEP

Musa Hitam wants Umno to have a special briefing to explain to its members why it was time to give up the New Economic Policy (NEP) for the success of the Iskandar Development Region (IDR). He said that there were already hundreds of Malays who had the capability to do business and on merit. Musa said, he realised that there was a need to have a change in mindset to draw investors to the country. In the last few decades of the NEP, the country used to have an Ali Baba way of doing business where Ali would give his name and Baba would do all the work. “As time went on, Ali and Baba became equal and Ali was able to deliver as much as Baba. Now, there are even Alis who are using the Babas not as sleeping partners but as equals,” he quipped. Musa also said that foreign investors who came to the country were not interested in the NEP, cronyism or nepotism as their primary focus was on making money. He suggested that instead of imposing conditional approvals, a more palatable method would be to provide potential foreign and local investors with a list of Malay entrepreneurs who were capable of doing business and leaving it the investors to decide. “The IDR is an opportunity to demonstrate that we have arrived and we are able to do this,” Musa said.

Ghani and Shahrir back move to drop Bumi quotas

Johor MB Abdul Ghani Othman said he agreed with the move to exempt IDR from policies that favour the bumiputras in a bid to attract investors. “IDR is a very defined area and there is enough bumiputra strength to participate in the development despite the FIC rules being relaxed completely,” Ghani said.

Johor Baru MP Datuk Shahrir Samad said the public should not be alarmed with the move. "People have the impression that everything requires a racial quota. It’s not exactly something new,” he said. “There are precedents. MSC-status companies are not required to have a racial quota.”

However, PM Pak Lah has this to say:

Ghani had always been against any move that intrude the NEP. Why did he want the rule to be relaxed? Was there a motive? Would it be an initial step to lure foreign investors in with their monies and then later cry foul? Would foreign investors believe us and can be confident that our rules have integrity and would not change in later days? If history is a guide, then history is bound to repeat itself.

It seems that when we need others badly, we would lower our criteria but when the need is fulfilled, then the criteria may revert to the old song sung blue.