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Economics Politics & government Society

[2859] Manifesto promises I would like to see made

There were a lot of talks about the budget recently. About those by the opposition and by the government.

The opposition may have to improve on its budget quality especially on the assumptions made, but I believe the annual tabling of such alternative is healthy and is a positive development in our increasingly flawed democracy. Why? Because it provides a clearer picture of a different near future, regardless whether we agree with it or not. Imagining an alternative (or a utopia even) is always important so that we do not fall into the trap of Doctor Pangloss, or unnecessarily resigning to a bad outcome.

But a budget is just a budget however important it is. It is merely a short-term roadmap towards whatever goals we want to achieve. A better document offering a clearer alternative would be a goal-setting manifesto.

Below is a partial list of matters I would like to see in the manifesto. Some of them are general and others are specific.

I have not costed it, but whenever costing is relevant, I think it is doable. In truth, a lot of crazy ideas are economically feasible and mine, I do not think they are crazy. And some of them may already exist, or in the process to coming to reality. Some admittedly are fluffy.

Let just say it is a non-comprehensive wishlist for further discussion.

Election matters

  1. Introduce proportional representation to address gerrymandering and malappropriation in Malaysia. Having a PR system in place of first pass the post would help make our electoral system fairer and so, instil more confidence into our democratic system. It would also be more robust against possible cheating.
  2. State funding for all individual contesting for public offices. This hopefully would make money less important in an election. To avoid abuse, candidates failing to get a certain percentage of votes would be required refund the state. Candidates will be allowed to receive contributions from private citizens.
  3. Mandatory reporting for all contributions received by all candidates. Limits to be applied on parties and individuals. Contributions will be taxed above a certain limit.
  4. A complete ban on private corporations and government bodies from making contributions to any political parties. This includes no program with any political parties. In Malaysia, government bodies especially have serious conflict of interest and this ban would help reduce corruption.
  5. Ban political parties from running or owning for-profit entities.
  6. Automatic registration for all Malaysians age 18 and above. We should not put up barriers to voting.
  7. Yes, reduce voting age to 18.
  8. Reinstate local elections, starting with cities with population more than half a million. This should help make local authorities more responsive to the local population instead of to Putrajaya.

Parliament

  1. Election of Senators.
  2. Create a smaller Senate by limiting federal appointees to no more than total state senators. Federal Territories’ representatives be reduced to 3. Representatives for Sabah and Sarawak be increased to 3 each. This will create stronger check-and-balance in the Parliament and return power to the states.
  3. Reserve special seats for the Speaker of the House and the Senate, and have them elected. The Speaker must renounce membership with any political party. This is to ensure fairness in the Parliament.
  4. Greater funding for all MPs for area servicing and hiring of research assistants.
  5. Parliament to remain in Kuala Lumpur.

Government

  1. Ten-year term limits for the positions of prime minister and chief ministers. The years are cumulative. This is to encourage new talents to enter politics and the government. Also, to avoid having a long-term authoritarian as a leader.
  2. Enforce retirement age on all civil servants. No contract extension.
  3. Public declaration of assets and income for all public office holders, and as well selected civil servants.
  4. Encourage diversity in the civil service. Malaysia is a diverse country and our civil service should reflect our demography.
  5. Total function separation between the prime minister and the finance minister at the federal and the state levels. This is to address conflict of interest.
  6. No minister will be allowed to hold more than one portfolio.
  7. Decentralize powers of the Prime Minister’s Department through closure of several agencies or relocation of agencies to other authorities.
  8. Separate the office of the AG between government’s legal advisor and the public prosecutor. This will also include separating the AG from appointment/promotion of judges.
  9. Downsize the size of the Cabinet. The decentralization of power of the PM Department would also mean fewer ministers without definite portfolios.
  10. Limit federal funding to regional development authorities designed to circumvent state governments. States to have strong representation in the relevant regional development authorities.
  11. Total separation between the government and Pemandu’s overseas business. The entity will not be allowed to use Pemandu’s name, or government resources. Private enterprises should not use government name or resources for private gains.

Government finances

  1. Target 1%-2% deficit of NGDP. Balanced budget unnecessary.
  2. Reduce government guarantees for government-linked companies.
  3. Migrate civil service pension scheme towards defined-contribution plan fully.
  4. Include off-budget spending in government accounts, though no necessarily merged.

Taxes

  1. No GST hike in the next 5 years. Rate to stay at 6%.
  2. No GST refunds for foreigners.
  3. No zero-rated GST for goods bought by corporations.
  4. Rideshare services to pay GST.
  5. No income tax holiday for TRX.
  6. No tax-free treatment for real estate projects.
  7. Income tax holiday to be reserved to selected manufacturing and high-tech services.
  8. Create several new income tax brackets and push the top income tax rate higher.
  9. Close loopholes for corporations with respect to income tax.
  10. Negative-income tax for all Malaysians.
  11. Wealthy NGOs and religious institutions will be taxed, regardless of profit/non-profit status.
  12. Find a way to get global internet companies with operations in Malaysia to pay income tax.
  13. Gift or donation above a certain high threshold to private individuals to be taxed.
  14. Temporarily reduce income tax rate marginally for married working women to encourage labor participation rate as well as address gender pay gap.

Government-linked companies, funds

  1. Complete professionalization of GLCs by banning MPs and retired politicians from heading any government-linked companies or funds.
  2. No bailouts of government-linked companies.
  3. Remove government ownership in Malaysia Airlines.
  4. Reduce government holdings in non-strategic private companies, especially by Khazanah.
  5. GLCs to be closely monitored by Malaysian Competition Commission.
  6. No Arul Kanda in Khazanah or any other GLCs.

Corruption

  1. Independent investigations into 1MDB and all of its related cases.
  2. Ensure fair trials for all 1MDB actors.
  3. Closing down of 1MDB and SRC.
  4. Malaysian Anti-Corruption Commission to be placed under the Parliament to strengthen its independence.

Social services

  1. Basic income of RM200 monthly for Malaysians aged 60 and above. This could be an experiment for a universal basic income scheme.
  2. Baby bonus of RM1,000 for the first two children. This is to address ageing demography in Malaysia.
  3. Citizenship bonus upon birth for all Malaysians, to be invested at PNB funds. Quantum to be decided.
  4. Zero cash handling for BR1M. Government to set up bank accounts for those without one.
  5. BR1M requirements to be tightened but individual payments enlarged.
  6. Central creches to encourage higher labor participation rate, especially among women. Mandatory preschools could double-up as central creches for older young children.
  7. Stronger affirmative actions for Orang Aslis and other non-Malay natives. Government agencies managing Orang Asli affairs to be led by Orang Aslis only.
  8. Ancestral land of Orang Aslis and those belonging to Sabah and Sarawak native communities to be protected fully.
  9. Temporary unemployment benefits, possibly lasting 3-6 months. I think Perkeso can be reformed to manage this. Such benefits also is an automatic stabilizer in the economy, so less need for discretionary fiscal stimulus in times of recession.

Education

  1. Malay remains as the medium of exchange in national schools.
  2. Malay and English remain compulsory.
  3. Offer non-native languages to all students in national schools (this includes major Asean languages: Thai, Khmer, Vietnamese, Tagalog and Burmese).
  4. Reduce the role of religion in national schools to sustain diversity, and limit it to religious classes only.
  5. Moral classes to be reorganized into civic classes open to all students.
  6. Work to strengthen the national school system and make it the first choice for most Malaysians.
  7. Greater autonomy for universities and political freedom from students.
  8. Mandatory preschooling. Free for poor/lower-middle class families.
  9. Mean-tested PTPTN, reserving such funding for poor students only.
  10. Meritocratic process entrance into universities. The process will be tempered with socioeconomic concerns to help create a more equal society. Affirmative action for under-represented communities to be merged with the meritocratic process.
  11. Limit public undergraduate scholarships abroad. More graduate-level scholarships abroad instead.
  12. Mandatory study-abroad for a semester or two for all Malaysian public university students to Asean institutions.
  13. Expand places at public universities.
  14. Automatic partial scholarship for students from poor families attending public universities, in place of PTPTN.

Health

  1. No raising of patent protection period.
  2. Increase access to generics.

Homes

  1. Limit ownership of residential properties by foreigners.
  2. Additional ad valorem tax on foreign-owned residential properties.
  3. No expiry on real property tax gains on foreigners.
  4. RPGT on Malaysians to be lengthened to 10 years.
  5. Tax relief for residential rental payments for Malaysians earning below a certain threshold and landlord up to a certain threshold. This will be combined with the negative-income tax structure.
  6. Stronger protection for renters.
  7. High-quality affordable public housing for rents in cities and its suburbs especially for the young. This is to encourage the young to remain in the cities. Having the young in will keep the cities lively.

Islam

  1. No raising of punishment for Islamic laws violations.
  2. Conversion of minors requires approval by both parents.
  3. Reduce conflict between civil and shariah courts by defining the division of powers more clearly.
  4. Reduce barriers to marriage. Make marriage classes optional.
  5. Reduce religious authority’s ability to spy and conduct raids.
  6. Remove religious identification on the national identity card.

Discrimination

  1. Institute a law to address discrimination in the private sector with a focus on race, religion, political belief and gender.
  2. Minimum mandatory 30 days paternity leave to address gender pay gap and change societal expectations on gender.

National service

  1. Reorganize into a voluntary 1-year military service, with possible merger with the Wataniah regiment.
  2. Strip party politics from the program.

The press

  1. RTM to be made more independent and remodelled after the BBC.
  2. No licensing of blogs.
  3. A media ombudsman to handle public complaints against the press.
  4. Pass Freedom of Information Act.
  5. Reform Official Secret Act to reduce abuse.

Civil liberties

  1. Limit the police’s ability to restrict peaceful assemblies.
  2. Address discrimination against religious minority.
  3. Sosma to be limited towards terror activities only.
  4. Sedition Act to be scaled down.
  5. Tighter requirements for book banning.
  6. Stronger privacy and data protections law and enforcement.

Environment

  1. Limit reclamation projects in Johor, Malacca and Penang. Stronger national requirement for reclamation proposal.
  2. Reduce fragmentation of jungle, especially in Peninsular Malaysia. Possible jungle crossings over highways and roads.
  3. National park status for Belum-Temengor.
  4. No logging within a certain distance from river banks.
  5. No development within a certain distance from the beach.
  6. Stop new hill development above a certain height.
  7. Arm wildlife officers/enforcers and increase punishment for wildlife violations.
  8. Yearly federal payments to states for maintenance of primary jungle coverage. Part of the payments to be reserved for replanting purposes to negate previous jungle loss. Audit to be made twice a year on jungle coverage.
  9. Reduce logging permits and raise the cost of the permits.
  10. Introduce carbon tax.
  11. Total ban on sand exports.
  12. Rehabilitation funds for land ravaged by illegal bauxite mining in Pahang.
  13. Limit dams construction.
  14. Work with Singapore to open up water flow under the Causeway.
  15. Reduce greenhouse gas emissions.
  16. Raise fuel efficiency of vehicles.

Public transport and transport infrastructure

  1. Cashless payments to be opened for others and not limited to TnG at all train stations, buses as well as highways.
  2. TnG will be forced to provide no-fee reloading access points at all train stations, or contract will not be renewed/early termination if possible.
  3. Inquiry to be conducted on why TnG was chosen over RapidKL’s native cashless payments method, and why MRT is unable to process RapidKL’s native cashless payment method.
  4. Reassess the need for MRT3 due to low ridership for MRT1. MRT2 to continue as planned.
  5. HSR to continue as planned with open tender. Reduce the number of stops.
  6. JB-Woodlands rail link to be constructed.
  7. No tunnel for Penang.
  8. Federal support for trams in George Town.
  9. Cancel the ECRL but build a Kuantan-KL double-tracking electrified line. Upgrade the existing East Coast line, with at least electrification.
  10. Continue with the Pan-Borneo Highway.
  11. Mavcom to be funded directly by the government instead of revenue from airport/passenger taxes to avoid the Commission’s conflict of interest as a regulator and a taxing authority.
  12. Daily float of retail petrol.
  13. Tax vehicle fuel. Proceeds will be used to subsidize public transport.
  14. Renegotiate highway contracts to limit toll hikes as well as possible compensation to contractors.
  15. Mandatory deregistration of vehicles after 15-20 years on the road.
  16. Much, much higher road tax and excise duties on luxury vehicles.
  17. No new port in Malacca.
  18. Construct the Labuan-Sabah bridge.

Monarchy and state rulers

  1. Head of states are banned from participating in business. Existing holdings to be divested and placed in trust fund managed by the state for rulers’ welfare.
  2. Title awards by all states and by the federal government to be significantly limited.

Immigration and border control

  1. Abolition of road charges but maintain VEP. VEP to be expanded to all entry points.
  2. Work towards visa-free status for all Asean citizens.
  3. No airport tax equalization or hike.
  4. Work towards the lifting of curfew in eastern Sabah.

Security and defense

  1. Cut any role in the Yemen war.
  2. No unilateral declaration of curfew by the PM under the NSC Act. The government must compensate any loss of property by innocent victims.
  3. Establis IPCMC.
  4. Establish Asean security forces.
  5. Upgrade facilities in the Spratlys.

Asean

  1. Strengthen Asean roles in the region.
  2. Work towards to a common Asean position on the South China Sea.
  3. Work towards an Asia-Pacific free trade area.
  4. Work towards the establishment of an Asean parliament, with representatives elected by Asean citizens.
  5. Create Asean scholarships for non-Malaysian Asean citizens at Malaysian universities to encourage integration between Asean countries.
  6. Resolve border dispute with Asean neighbors.
  7. Accession of Timor Leste into Asean as a full member by 2025.

Internet and communication

  1. Enforce net neutrality. Internet service providers are not allowed to bundle connection services with other services.
  2. MCMC to focus on service quality and technology adoption. No power to censor the internet unilaterally without consultation with other authorities like Suhakam and the courts.
  3. Work to diminish Telekom Malaysia’s monopoly as an ISP with a view to cut down on internet access cost.

Kuala Lumpur

  1. Less power for Minister for Federal Territories. Federal government’s decision must be approved by an elected mayor.
  2. No new development for Bukit Gasing and Bukit Nanas.
  3. Stronger actions against indiscriminate parking. Malls and hotels will be held responsible for illegal parkers outside of its compound to force drivers and property/business owners be more responsible towards their surroundings.
  4. More working pedestrian lights and on-grade crossings.
  5. Open the relevant KL train stations for free crossing by pedestrians.
  6. Wider use of Balisha beacons instead of crossing lights for non-major roads.
  7. Enforce pedestrian-first rules versus road vehicles.
  8. More pedestrian crossings, and stronger enforcement/punishment against vehicles for not stopping at crossings.
  9. Introduction of congestion charges. Income set for public transport funding.
  10. Limit the city hall’s ability to close access to  Dataran Merdeka or any public space except for emergency purposes.
  11. Maintain green space, and increase large tree counts in the city.

Foreign labor

  1. Hiring of foreign labor to be simplified to cut off the middle men and corruption.
  2. Reduce human rights abuse faced by foreign workers.
  3. Set up mandatory savings(EPF?) for foreign workers in Malaysia to equalize hiring costs between Malaysians and foreign workers. Withdrawal allowed upon return to home country only or emergencies.
  4. Clear attainable pathway to citizenship for foreigners, with minimum 10 years residency, no criminal records, Malay language proficiency as some of of them prerequisites. May have to set a yearly quota for socioeconomic and political factors.

Miscellaneous

  1. Stronger anti-trust body, focusing on the food, vehicles, properties, construction material, banking, internet, medicine, payments and GLCs.
  2. Stronger commitment to open tender. No direct award above a certain threshold.
  3. Bigger equalization funds for Sabah and Sarawak.
  4. The government to release all public data on the internet in machine-friendly format.
  5. Abolish the death sentence.
  6. Limit outrider count for government officials and rulers. No outriders for private citizens. Outriders cannot be hired.
  7. No duration increase in patent/copyright protection.
  8. Jos soli citizenship.

I will add more if I have the time.

Categories
Politics & government Society

[2856] The police should release arrested Rohingya protesters

The Rohingyas in Kuala Lumpur had a small public protest at Ampang Park today. The Rohingyas were protesting against the latest rounds of atrocity committed against their community in Myamnar.

The Malaysian police broke up the demonstration and arrested quite a number of the participants.[1] The police should release them.

It is disheartening to see the treatment the Rohingya protesters received from the Malaysian police. The police should have been lenient with them, and allowed the demonstrators to disperse peacefully without arrests.

They are treated badly in their own country. Raped and murdered. Home burned. We do not need to be as harsh as we have been on them.

In December, Prime Minister Najib Razak held a political rally supporting the Rohingya minority, together with his Umno and Pas friends. The arrests show the insincerity of this government, using the Rohingyas cynically for election brownie points. The government can prove that is untrue by releasing the protesters without pressing charges.

Mohd Hafiz Noor Shams. Some rights reservedMohd Hafiz Noor Shams. Some rights reservedMohd Hafiz Noor Shams. Some rights reserved

[1] KUALA LUMPUR:Hundreds of ethnic Rohingya   to the Malaysian capital of Kuala Lumpur on Wednesday (Aug 30) demanding an end to the bloodshed in Rakhine.

[…]

More than a hundred protesters were arrested by police for assembling illegally and obstructing traffic at midday in downtown KL. Another 20 protesters were arrested for alleged immigration offences. [Rohingyas protest in KL over unrest in Myanmar. Channel NewsAsia. August 30 2017]

Categories
Politics & government Society

[2847] We care because we are capable of empathy

It’s a big, big interconnected world out there. And that interconnectedness, ironically, makes the world smaller is a non-physical sense. Economically, socially and politically. Our lives are no longer affected purely by domestic matters. To some, the foreign affairs segment in the newspapers is an abstraction but for some others, the lines demarcating domestic and foreign concerns are blurry.

These remain the days of globalization still, however the Trumps, the Le Pens, the Farages and all those who long for a smaller world are trying to rewind the clock. They may yet be successful but for now they have a lot to undo. In the meantime, many have multiple homes and multiple affiliations with friends traversing national boundaries, opposing such undoing and rewinding.

For Malaysians, the war in Ukraine so far away across the Asian continent painfully proves the fact foreign affairs are home affairs too. Many Malaysians could not find the country on the map, but it still has an impact on the Malaysian psyche. And Malaysians did care for development in Bosnia during the Balkan War and in Kosovo. They do care about the conflicts in Palestine, in Syria and in Iraq. And to take a trivial example, there are Malaysians who care about the fate of foreign, English Premier League teams, despite not being English themselves.

The refugee crisis in Myanmar is also a Malaysian concern, because these oppressed men, women and children are coming to or passing by Malaysia. Whether we like it or not, we have to act in one way or another. Pretending the imaginary lines on a 2-dimensional map as an impregnable wall ensuring that is not our problem will not help by one bit. And to turn back the boats is not just an illiberal policy, it is heartless.

In the several years after the 9/11 attack, I became a victim of profiling at US airports, just because of my nationality and my Arab-sounding name. Security personnel would put me under extra security measures and screening. That discouraged me from leaving the US for home for the next four years for fear I would face immigration troubles upon reentry at the airports. I knew of other international students who needed to report to the Homeland Security office regularly, and I feared being subjected to the same requirement as an entry condition.

And so, I spent my entire time as a student in Michigan travelling throughout the US, reaching New York, DC, Miami, San Francisco, St Louis, Chicago, Sioux Falls and more. I remember how it felt like to drive the car through the Great Plains from the Great Lakes, or how peaceful it was staring into the night sky from the bottom of the Tuolumne Canyon just north of Yosemite in California. I learned to love America for the wonders it brought to my young mind.

Indeed, my political beliefs to a large degree were shaped in the US. However flawed the US is with all of its hypocrisies, it is still the greatest liberal democracy that the world has. It is the Athens, the Rome, the Baghdad, the Cordoba and the Delhi of our time. Just because of that, I looked up to it. Because of this and because I spent a significant portion of my early adult life there, if I had a second home, the US would be it.

When Trump and his followers do what they do, and among others equating the US to Russia, I feel that is an undoing of what the United States of America is supposed to be in my eyes, a foreigner, who looks kindly to the east across the Pacific. Trump is killing the US that I know, and by that, threatening the idea of liberal democracy all around the world (even in Malaysia where our democracy is becoming increasingly flawed and more authoritarian). That makes me angry.

The Trump’s ban, now challenged in the courts, adds further to the anger. My alma mater, the University of Michigan, is celebrating its 200th anniversary this year. And I am entertaining thoughts of returning to Ann Arbor to catch the festivities and walk down the memory lane. Trump’s ban, could potentially affect me. I still remember my experiences at various US airports during the Bush era. I thoroughly dislike the discrimination and I do not wish on others what I went through.

So, I do care for things that if happening in the US. The world is interconnected enough that I have real attachments to the US. Needless to say, I have friends in the US too.

But one does not need to have personal ties to the US to be worried about development in the US. It is just like how some of us are concerned about the oppression in Xinjiang, or in Iran, or in Egypt, or in the Philippines or anywhere else without the need to have any personal connection.

Even if we cannot think of ways which a reclusive, protectionist US could affect Malaysia — it will by the way: HSBC economists think Malaysia will be one of the top four economies to be worst affected by a protectionist US — we can still care because we have empathy for other human beings. Injustice or discrimination anywhere is still wrong and we can take a position on the matter. We can make personal judging based on our values. We have enough room for empathy those near and far beyond our shores.

Because of our capacity of empathy and because of the interconnectedness of the world we live in, it is outrageous to think we have to choose between caring US-based or Malaysia-based issues. Both are causes for concerns. I care for the deplorable things happening in the US, and at the same time, I care about the 1MDB corruption scandal, or the blockade in Kelantan, along with other injustices in the Malaysian society I am living in.

Indeed, it is a false dichotomy having to choose the US or Malaysia. There is no reason why a Malaysian needs to choose between the two. We can be concerned for both, and more.

More importantly, there are liberal values and among them are that we all are created equal and all should have the same fundamental rights. This applies all around the world, not just in and around your small neighborhood.

In time when anti-liberal populists are turning national policies inward, it will be most disappointing to have liberals retreating to a small-world cocoon as well. Such inward retreat would be a betrayal of liberal belief, that liberal values are universal in nature and not provincial. We fight racism, discrimination and everything bad out there by staying true to our liberal values, not by abandoning it.

Categories
Economics Politics & government

[2844] Evolution of corporate ownership in Malaysia

Terence Gomez is embarking on a massive project investigating quantitatively the influence of government-linked companies in the Malaysian economy. The dominance of government in business and in the economy is no mystery. What is special here is that he is analyzing the numbers more comprehensively than many had done before. He is currently focusing his research at the federal level but if I remember correctly, he plans to delve into state level bodies, looking into bodies like Kumpulan Perangsang Selangor, which are much less known than those like Khazanah Nasional.

Together with Jomo Kwame Sundaram, Gomez in 1997 wrote the go-to book — Malaysia’s Political Economy: Politics, Patronage and Profits — exploring the ownership of corporate Malaysia in the 1990s and its links to politics, namely Umno. To understand political financing during the Mahathir era, this is the book to read.

The scale of Gomez’s latest project on ownership is larger than anything available before. There have been work done on corporate ownership in Malaysia after his 1997 book but they provided only partial view of the whole story while nibbling at the edge.

Gomez in his lecture, which I attended at the University of Malaya earlier this year (and later at an event organized by the Institute for Democracy and Economic Affairs; Ideas is funding of the project) made the connection between previous ownership literature and showed how the majority ownership changed from the 1950s to the 2010s, the present time.

He is continuing the work pioneered by James Puthucheary, who back in the 1950s went through official colonial and Malayan documents to understand who owned what in the economy. Through that, he corrected the idea that the Chinese had controlled the economy when in fact it were the Europeans. Gomez mentioned Lim Mui Hui’s work as the other important literature in the 1970s tracing capital ownership in the Malayan-Malaysian economy in the early days of the New Economic Policy period.

Gomez in his lecture showed just as Puthucheary demonstrated decades ago that the British and other European bodies controlled the majority of the top Malayan companies in the 1950s. This changed in the 1960s and the 1970s when Chinese tycoons rose up in the list. By the 1980s and the 1990s, due to the implementation of the New Economic Policy and Mahathir’s industrialization drive, the list was dominated by Malay industrialists. The ownership list was also more diverse than it ever was, with Genting, Berjaya and YTL were among the biggest then.

But in the aftermath of the Asian Financial Crisis, something fundamental happened. Most of top Malaysian companies were owned by the government and no longer belonged to private individuals or groups. There were bailed out or acquired by the government through the Government-Linked Investment Companies. Gomez listed the usual seven: the Employees Provident Fund, Kumpulan Wang Persaraan, Permodalan Nasional, Lembaga Tabung Haji, the Armed Forces Fund, Khanazah Nasional and the Ministry of Finance Incorporated. Many of the Malay industrialist companies like UEM were now owned by the government.

Not all of those seven government-linked investment companies are the same. The EPF, for instance, is not strictly a government company, in the same Khazanah is. But nevertheless, the EPF does have an extremely strong presence in the Malaysian economy, in both the equity and the debt markets.

In a different talk of a more casual style, historian Khoo Kay Kim claimed the Germans controlled the Malayan economy before the First World War. Their influence diminished after their lost the war and was replaced by the Japanese during the interwar period. I have not read a proper document to ascertain the claim but I have read from various sources that Japanese companies were active in Malaya prior to the Second World War.

Gomez’s work has implications beyond economics. Control over of these government-linked corporations and entities enables political control and enhances political power, just has the Umno’s ties to various the 1980s-1990s Malay industrialists had kept the party’s machinery going. But unlike then, when those funds were private money from private companies (public companies privatized), the government today does enforce spending or procurement requirement to benefit certain parties. While Gomez did not cover 1MDB, the 1MDB corruption scandal, provides the starkest example of public resources being used directly and illegally to finance Umno’s (and even its president’s personal) requirement. The connection is starker and more corrupt now than ever before.

The evolution of corporate ownership in Malaysia simply does not inspire confidence, and the completion of Gomez’s work will truly show how big the beast has become.

Categories
Photography Politics & government

[2843] Comrade Takashimaya

I love this kind of contrast.

Within Southeast Asia, it is at its starkest in Vietnam.

I have been to Laos with its own nominally communist government. The hammer and the sickle would adorn lamp posts and facades in Vientianne and Luang Prabang, reminding tourists and locals alike the insecurity of those in power. But deep in the Mekong heartland, commercialization is still at its infancy, rugged and all. There are contrasts, but not like how it is in Vietnam, where consumerism is embraced wholeheartedly decades after American troops were chased out, sparking Malaysia’s first refugee crisis.

Malaysia received those Vietnamese refugees about 30-40 years ago, unwillingly. They are grateful to us, it seems, regardless of our intention.

Not much has changed today as Malaysia experiences its third refugee crisis, the second, I think, being the one caused by the civil war in southern Philippines. This time around, the new refugees from Myanmar are just a political football game to be played by the corrupt.