Reasons that 30% Equity Target Remains So Elusive.

There is more talk of the NEP or similar program having to be extended as the Bumiputeras have not yet been able to achieve the 30% target for equities even after 35 years of government hand-outs the value of which no one has even bothered to tally up.

If we assume that RM5 billion is the average cost of the NEP in RM handouts over the years, the NEP has already cost the nation RM165b as far as monetary values are concerned. If we add 100,000 highly qualified Malaysians who can contribute RM1 million each year to our GDP, that means the economy loses another RM100b each year in terms of lost opportunity as those graduates stayed away from Malaysia and some of these are even medical scholars, paid for by taxpayers’ monies.

Today’s NST provides another reason why that target remains so elusive. Do you keep RM1 million in cash or valuables at home?

A few years ago, there was also another incident of a landslide that unearthed bags full of cash at a senior officer’s house. Apart from the initial report, there was no follow-up on why the officer had so much money in his house.

The most famous incident thus far was the former MB of Selangor who was arrested in Australia for not declaring he was carrying monies in excess of the permissible amount.

Policies like the NEP do nothing to increase the long-term competitiveness of the nation if people just use the benefits to live a life of luxury and such policies will not succeed even after another 100 years.

If you are a taxpayer, you should know that the NEP is mainly to benefit only a few ala Metramac. Do speak or write to your MP if you think policies like NEP have been abused and should be discontinued. It should be replaced by a needs based policy.

Of course if you are a crony, you will only say, “NEP Forever! Please pass the caviar.”

photo: http://www.911caviar.com/images/recipes/Egg-Parfait-Caviar.jpg