Widening Income Gap – No Surprises with the Parasitic NEP

Why should anyone be surprised with the widening income gap between the rich and the poor, especially among the Malays?

The NEP with the stated goal of 30% equity share is the basic reason why the income disparity has widened.

Of course the masses have also gained a little but at a tremendous cost. The little that has been bestowed is the minimum that is required to prevent civil unrest and widespread anarchy. Sure they give us a little subsidy from the generous pockets of PETRONAS but is this company the personal fiefdom of the Prime Minister that the accounts are veiled in secrecy?

Just look at the sick stock market of Asia – the KLSE. In the 80s, any IPO was almost a surefire way to quick gains but today, you have to take your chances and many new companies actually lose money for investors even after a few months.
It seems that the investing public has become wary of the Bumi share allocations that are just there for quick money.

Now why is the 30% equity target so impossible to achieve?
My thinking is that many Bumiputeras are just not interested in this investment as your money is tied up in some papers that are really not exciting when you can rollover your funds faster.

Suppose you are given a special allocation by the AP lady of a million shares in a good company and the price goes up 0.20sen the first day now that’s a cool RM200k of easy money. Now that money can be used to buy a discounted house where you can collect rent.

Or perhaps it’s time to start a second family with the pretty lass from the office.
Now that would be more interesting than a lifeless monthly statement from Bursa Malaysia that gives you no pleasure on a cold night.

Now people can get thousands of APs on a annual basis so it should not be that difficult to get Bumi allocations on a regular basis for Malaysia’s own “get rich quick” program. It helps if you are well connected and being in a political party certainly helps.

Some people also prefer to keep their wealth at home instead of being in the stock market. Of course no one is saying that there is anything wrong with having RM300,000 plus cash and valuables under your bed.

Whether you prefer to sleep with your money or a new wife is entirely your pleasure and the government should not interfere. The government should also not make equity targets that have to be borne by all citizens when so many are simply not interested in the program.

We must have a more transparent wealth indicator than equity ownership.
Graphics: http://newton.nap.edu/readingroom/books/poverty/cover.gif