Increasing our Wealth...

Why has the NEP not been able to achieve the main objectives of eradicating poverty and restructuring society so that no race is identified with any particular occupation?

I have no numbers or statistics so this is a “fly by the seat of your pants” write-up.

After 35 years of affirmative action (some say discrimination) Malaysia has produced ten of thousands of middle-class citizens of all races, living in large housing estates and enjoying peace and harmony with most neighbors. These are the silent majority who just want to get on with their lives and to raise happy families.

They are too busy building careers, raising families and wisely investing their savings.

Then there are the marginalised. They did not finish school and have few skills. These unfortunate ones end up in petty crime like selling pirated VCDs, gambling syndicates or working for loan sharks. They graduate into more serious stuff like smuggling people, drug dealing and prostitution rings.

The authorities like the police are the buffer between the two main groups and sometimes they too get involved on the wrong side of the line.

The politicians play off the silent majority’s fears to remain in power. They have been an extremely successful in this respect. Under the guise of the NEP, they created some multi-billionaires but some of these could not weather financial and business crises for they had feet of clay and when the financial tsunami hit them, most of them collapsed.

Some politicians got so close to their business friends that they too became tainted. After 35 years, many believe that the fastest way to immense wealth is to become the leader of the more important parties.

So why has the NEP failed?
The biggest cause of the failure is the crony capitalism whereby perhaps 50 to 100 people were given control of billion ringgit deals without proper controls like transparency and a good tendering procedure.

Because the wealth was not hard earned, some of these did not exercise sound money sense.

There is this basic question. Who will end up richer after 10 years?

The person who earns RM2000 per month and saves RM100 per month in a unit trust?
Or
The person who earns RM10, 000 per month and spends all his money each month?

So how do the wealthy indulge themselves?

There is this great fixation with Conspicuous Consumption.
You name it; they have to have it whether it is a grand palace, imported limousines, a trophy wife or grand overseas holidays.
They spend like there is no tomorrow and their children tend to be low achievers for the cup is overflowing.

Just examine some of those companies that have been enjoying the APs for more than 20 years. Have any developed into something more than making profits from the intrinsic value of that piece of paper?

I think the PM had the right idea the other day when he mentioned that no child would be denied a good education.

I believe we must educate ALL our children to the best of their ability after secondary school and not have so many school dropouts.

So we should move away from that 30% target to be imposed by the government’s actions. They have failed miserably after 35 years and the country cannot afford another session of feeding those with insatiable appetites.

The government should provide the facilities and the environment whereby all citizens have equal opportunity to develop their talents. It should have only minimal interests in business.

We can succeed if there is the willingness to work hard and to work together as a nation. That is the way whereby Malaysia can become a great country.











Photo: No matter how high the tide rises, like a business without a sound basis, it soon falls.