Investment Initiatives & Kautim Initiatives

INVESTMENT promotion policies by non-Barisan Nasional (BN) state governments must not run against federal government rules and laws or policies which are adopted at federal level, International Trade and Industry Minister Tan Sri Muhyiddin Yassin warned yesterday.

"I have directed Miti Secretary-General to inform the state government officials that these initiatives should be parallel in policy guidelines," he said

Muhyiddin said the federal government will continue to support the five non-Barisan Nasional state governments as long as they adhere to a pro-business policy requirement as practiced by BN government.

"We have informed foreign investors that there is no change in investment policies."

"If these states want to outdo the other BN states like Johor or Pahang with better incentives to attract investments, well and good. We hope to see healthy competition with the purpose of bringing business and investments to the country," he added.

Muhyiddin warned, however, that moves by any of these states to have "upmanship" investor-friendly policies to outdo the federal government will hurt Malaysia.

For example, any decision to open up the government procurement policy, with tenders opened to foreigners to come in, will only send the wrong signals since it is one of the contentious issues under the ongoing free trade agreement.

Source: Non-Barisan states warned over investment policies

The warning issued by the ministry of trade clearly brings to light two main challenges: firstly, the BN government is seen to suffer from a phobia for the probable fact that the PR States may be able to draw more investors than the other BN controlled states on the assumption that PR States officials may be more business friendly and the PR State govt may change or modify its state business policies which makes them more business friendly, less red-tapes, better and far efficient and effective management and having visionary political leadership; secondly, it would most likely cost less for investors as PR promised to be open, transparent and with zero under-table and over-the-table cost. Investors may discover that they do not need special political connections, need not give bonus shares, and need not pay upfront special contributions, fees, subscriptions which are usually part and parcel of the culture and tradition.

Observing the statement made, investors may still have to pass through various channels before they could get the necessary approvals; and they would still need to prepare some grease and oil the system at the federal level which include the journey through Mititi, Mimmi, Missi and Muyinini.

The only consolation is that the upfront down-payment, subscriptions, commissions, fees, contributions and all other ancillaries may be lesser amount as they may not need to subscribe and pay for State gatekeepers.

In conclusion, Kautim and Kopi are still necessary; it's part and parcel of the culture and tradition; it's in the NEP bloodstream and the ideological system and the little napoleons cannot survive without it due to the high cost of living long established.