Before We Accept Another Round of Madness

Someone once described insanity as “doing the same things over and over and expecting different results.”

After 25 plus years of the NEP regime and failing the objectives in many key areas, some people are clamouring for the policy to be repeated.

One particular objective is 30% share of the equity on the KLSE. As the ongoing scandals on APs develops, it should be noted that many government policies are shrouded in secrecy and as the AP scandals prove, many unsavoury deeds are being carried out under the protection of the Official Secrets Act.

Let us look at some of the secrets that should come under close scrutiny:

1. Lack of open tenders with many turnkey projects being overpriced.
2. No data provided on who received the Bumi quota in IPOs.
3. No data provided on whose children received government and state scholarships.
4. No data on who received long-term government supply contracts.

If we consider the Bumi IPO issue and the preferential shares issue, one of the more notable scandal was that involving MAS shares that were bought back at a steep premium to market rates as the person chosen could not deliver.

I believe that the most effective method to ensure that the 30% objective is achieved is for the government is establish trust agencies like Amanah Saham who will receive ALL the IPO allocations.

Individuals can then buy the unit trusts on the following basis:
Monthly installment plans – minimum RM50 or 10% of basic salary whichever is more.
No withdrawals for at least five years or until the individual attain 40 years whichever is earlier.

It is grossly unfair for any government policy that encourages the people to abuse their privileges.

Back to the insanity scenario. There are many Malaysians who should be treated for psychiatric disorders as we have a severe shortage of doctors qualified to treat such people. Maybe it would be a good parctice to have psychiatric screening before we appoint people to senior posts?


photo: Getting your share of cake, eating it and then demanding more!