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Politics & government Society

[2953] In Kampung Baru issue, PH supporters need to develop greater capacity for empathy

The expected eviction of some Kampung Baru residents by a private company during the administration of a Umno-led government has more than some Pakatan Harapan supporters feeling a little bit smug. Schadenfreude is aplenty. The residents are targets of that smugness.

This is the wrong.

Nevertheless, it is easy to understand the cause of those feelings RM1,000 per square foot offer was made on a willing buyer-willing selling basis, with a cash portion, as part of a plan to redevelop Kampung Baru comprehensively. It was not a perfect plan, but it was a plan. Many residents rejected the offer and many had legitimate reasons to do so.

But many too rejected it because they bought argument brought by Umno and Barisan Nasional’s politicians. Umno, Najib Razak especially, pushed for a ridiculous rate of RM3,000 per square foot deal. Ismail Sabri Yaakob, then leader of the opposition, also had commented on the issue to encourage residents to say no.

Roughly two years after the fall of PH government, Umno is back in power with Ismail sitting in the Prime Minister’s office. And here is where the incongruity happens.

Based on news reports from The Malaysian Insight and Malaysiakini, the private company is offering those whose properties have been taken over RM400 cash per square foot as compensation. This is approximately 3 times lower than the 2021-2022 market rate of RM1,500 per square foot. In addition, each household would be given the option to purchase a newly developed property there at discounted rates.

The numbers might change, but what will not is the sense of betrayal experienced by residents, and observed by third parties. There is no RM3,000 per square foot to be seen. Worse, eviction notice has been served regardless whether a resident agrees with the takeover term.

While it is tempting for PH supporters to hold that grin, and pontificate the residents on chances lost, and the betrayal the residents suffered, that is a self-defeating position to take.

PH needs those very residents’ support to win an election. But the way things are going, those residents will not be encouraged switch their political leanings. And if they are PH supporters in the first place, then the smugness will drive them away.

One has to remember, this is Titiwangsa, a seat PH won in 2018 but lost to political betrayal. That shared experienced of becoming victims of betrayal should enhance our capacity to be sympathetic to each other. But no. We prefer to say, “we told you so” instead.

PH supporters need to develop a larger capacity for empathy. Not just with respect to the Kampung Baru eviction, but also on other national issues. Build bridges instead of widening the chasms.

Again, this is Titiwangsa, a Malay majority seat in Kuala Lumpur. The way things are set up, if you cannot win urban Malays, you likely will not return to Putrajaya. Without empathy, you can wait for 10 years, and still not win federal power.

Categories
Economics Politics & government

[2916] Change must lead to greater political stability

Early on during the Pakatan Harapan government, a majority of market investors were concerned about Malaysia’s policy direction. The magnitude of political change Malaysia experienced in 2018 undoubtedly brought uncertainty. Such uncertainty needed to be addressed. To allay those concerns, the Ministry of Finance then frequently engaged with representatives from various funds invested in Malaysia.

A great deal of these funds were fixed income investors. So, they were concerned with the state of public finance. What will the government’s spending priority be? What will the projected deficit level be? How is tax collection with the GST abolished? How is the health of the banking system? How is the government facing the trade war between China and the US?

Such questions were easy to answer because the storyline was clear and plans were in place. Data was available and progress updates could be shared easily. Close engagement and high transparency level alleviated a great deal uncertainty in the market.

One concern was difficult to handle however. Mahathir had promised to handover power to Anwar Ibrahim. But the transition date was blurry. “When?” they asked.

“When” was an important question. Transition could mean, and likely would mean, policy change. And with it, investment rationale.

However the Ministry answered it, they could not be convinced and some of them were the biggest funds in the world.

Regardless whether they believed the transition plan, they were in the opinion that Malaysia could focus better on the economy if it had addressed its political uncertainty. Specifically, the trade war was once-in-a-lifetime opportunity for Malaysia to move up the value chain and gain from the reorienting global supply chain. Yet to the investors, political transition was distracting Malaysia from the task at hand.

Unfortunately, the level of political uncertainty in the country has worsened since then.

Muhyiddin’s supporters claimed formation of the Perikatan Nasional government would calm the politics down. We now know such claim is patently false. The faintest rumors would cause our collective heart to skip a beat.

It has become so bad that policymaking is grinding to a halt. Measures needed to mitigate the ongoing recession have been weak and late. Meanwhile, unemployment rate is shooting up and it will rise further. The result: we as Malaysians are experiencing more economic pain than necessary.

Not enough has been done. Continued inadequate and untimely government response will have long-term repercussions on the prosperity of the country. Remember, Malaysia has never fully recovered from the Asian Financial Crisis. Our growth since has been slower than before. This current crisis if not handled well would reduce the pace of our growth further.

Malaysia needs political stability to address the recession well. At the rate things are going, Perikatan Nasional is incapable for providing that stability.

Pakatan Harapan sees an opportunity to retake the power it won in 2018. If it succeed, could PH provide the much needed stability?

In order to answer the question confidently in the affirmative, I think PH will need to avoid having to face the transition question all over again. Either let their candidate be the PM until the next election (presumably in 2023), or ideally, do away with the transition plan altogether.

Categories
Economics Politics & government Society

[2895] Lim Teck Ghee is exaggerating, but Pakatan has no choice but to do better

It was a hobby of sort of mine to attend public forums (fora?) a long time ago when I had time to kill. The late 2000s was a period of flourishing of civil society, and there were plenty of forums going on all around KL, from the most mundane to the most seditious.

At one of them, I remember a lawmaker admitting to exaggerating while making political claims, though he claimed not by much. He reasoned such exaggeration was meant to jolt people into action. A dry statement of fact alone would not inspire, with many surrendering to nonchalance on big issues.

I do see many exaggerations out there today. One of them is about how Vietnam is overtaking Malaysia.

Such event is a possibility. After all, history is filled with instances of countries falling from grace. Myanmar was once among the richest colonial economies in Southeast Asia and today, it is far behind multiple other countries that used to do worse. Malaya used to be at par with South Korea in terms of economic wellbeing but now, Malaysia is far behind the East Asian country, though we are doing not so bad.

But reasonable projections based on existing economic growth, population growth and several other factors point towards how Vietnam-overtaking-Malaysia scenario is possible but unlikely. Already having one of the oldest demography in the region – specifically 31 years old versus Malaysia’s 29 – with nominal GDP per capita at a quarter that of Malaysia, it is highly likely Vietnam would take quite some time with great difficulty to converge with Malaysia’s level, much less pass it.

I think Vietnam belongs to the same group as Thailand (and China): countries that will grow old first before they grow rich. The situation in Thailand is far worse: median age is 39 years old with nominal GDP per capita about seven tenths of Malaysia. Both Vietnam and Thailand are handicapped by with a quickly ageing population, leaving them with not much time for hastened growth. This is orthodox growth economics of course. Behind many of the leading growth models, beyond capital accumulation, tech progress and human capital, is population growth. Unfavorable demography usually leads to slower growth.

But again, it is not impossible for Vietnam to overtake Malaysia. Low likelihood, but still possible. There could be one event or two disrupting Malaysia’s and Vietnam’s growth path. It is hard to predict those events from happening compared to growth projection based on current scenario. But this is where exaggeration can help: it brings up fresh possibilities to take us out of our boring model forming our reasonable basis. It spices things up, opening up room for creative scenario planning.

Lim Teck Ghee claimed that Pakatan Harapan was “an unmitigated disaster for reform from whichever aspect or way you look at” at a public forum. He listed down his disappointments to back it up. “Education, governance, race relations, religious relations, the debacles of Icerd, Zakir Naik, the Melayu Dignity Congress and more. The list of political disappointments and failures keeps growing.”

Yes, there have been disappointments and I share them too. But I am never that naïve to believe all changes will take place from Day One, especially given the way Pakatan Harapan achieved the mandate to rule in the last general election. It is inevitable for democratic compromises to take place frequently, no matter how much one wants to stand one’s ground. This is not a technocratic dictatorship. It is a democracy, and increasingly less flawed at that.

But calling Pakatan Harapan as an unmitigated disaster, I would argue strongly, is an exaggeration given the reforms that have been carried out so far.

I can list those reforms. My favorite is the wider implementation of open tender throughout the public sector: democratic compromise has led to even contracts reserved for Bumiputras being given out via open tender and no longer given out directly most of the times. There are exceptions, but I feel many of them can be explained well. Indeed, for a monster organization unused to open tender system, implementation problems were aplenty and starting totally afresh was not always possible. But by and large, there are more and more adoption of open tender, creating a new culture that makes everybody afraid of dishing out direct contracts. Remember, just less than two years ago, nobody in the public sector would bat an eyelid for giving out direct contract. Direct negotiation was the norm.

Other examples of executed reform include fairer broadband internet market, more independent Parliament with all of its new Select Committees, more independent anti-corruption commission, freer press and even in education, the move away from exams towards a more liberal education.

And there are many more coming our way with good progress made: greater transparency in the public sector in the form of the shift towards accrual accounting and the establishment of the Independent Police Complaints and Misconduct Commission (IPCMC) within the 5-year mandate.

Almost none of the reforms that have happened or expected to happen would take place under the previous administration riddled with corruption led by a shockingly and outrageously dishonest leader, trapping the country’s institutions in a sticky thick morass that would scare any institutionalist away. To me, a disaster would have been a complete no-change scenario.

There clearly has been substantial change since May 9 2018. Only a blind man would deny that.

I cannot know his true intention, but from the perspective I have shared, perhaps Lim Teck Ghee’s exaggeration is needed to jolt us out into action. There are disappointments. And that means we have to work harder to overcome all those barriers to change.

Pakatan Harapan voters had high hopes – they still have great hopes – that Pakatan Harapan would achieve great things and completely change Malaysia for the better. Pakatan Harapan is better than Barisan Nasional, but Pakatan has no choice but to do better to match those great expectations.

Categories
Politics & government

[2874] The true test of this Pakatan Harapan government

Critics rushed to assign the new Pakatan Harapan government grades for its 100-day performance. MCA had the cheek to give the government a D grade. Others gave a B. If Pakatan Harapan had its own Pemandu, I am certain grade A+++ would have been announced in a pompous self-congratulatory parade.

I am unsure what grade I would give the government because of the subjective nature of the whole business. One could make it more objective by having a sheet tallying the weighted score, but I just won’t do that. Looking at my desk, I have many other things to do.

As I take a breather, all I can say is that I have my share of disappointment. Government action with respect to the recent child marriage case has been so underwhelming that I feel it is best for me not to think of it. Meanwhile, the official attitude taken against the LGBT community is not something I could defend. There are other problematic decisions, but all that points to the fact change does not happen overnight. It takes time, especially when it comes to culture.

In a democracy, changing the government alone is not enough. What is required is a change in the attitude of the people. At this moment, we need a leader who can make that happen without worrying too much about his or her approval ratings. But as I have been told, that is easy for me to say because I do not have to face the voters.

Yet, all those disappointments do not at all make me regret for doing what I did on May 9. In the days after it became clear there would be a Pakatan Harapan government, I think I understood early on how difficult it would be for change to happen and disappointment was something to be expected. Larger change needs time to happen.

And at the end of the day, before we rush to judge this government on its 101st day, I think it would be good to remind ourselves that at the very least, this government has a 5-year mandate. I would reserve my judgment until close to the end of that mandate.

This however does not mean the government should be free of criticism. Criticism is important to remind this government what is important, and to me, the most important agenda is the promised institutional reforms that will make sure the likelihood of past abuses repeating itself is low. The rest of the promises are secondary.

If we managed to set our institutions straight, then we would have a great foundation to build on in years to come beyond the 5-year period, regardless whichever side may come to power later. For me, that will be the true test of this Pakatan Harapan government.

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Economics Politics & government Society

[2872] Lasting change needs more work, more time and wider support

We have the right to celebrate May 9. It is after all the first time in Malaysian history change at the very top happened. For years we were only chipping at the edge. Progress felt irrelevant. But now, here it is. Change.

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Yet, not all or even most of the changes Malaysia needs will be instituted quickly. It will take time and work for these changes to happen. There will be residual resistance to change and perhaps using the adjective residual understates the problem at hand. After more than six decades of Perikatan/Barisan Nasional in power – seven decades if you go all the way to the first Malayan general election in 1955 – there is a kind of deep state the new Pakatan Harapan government will need to win over and even fight.

There will be disappointments, and Pakatan supporters and sympathizers will accuse the new government of betrayal and hypocrisy.

But before any of us levels those accusations, we must understand that the government will have to pick their battles. Some will be won. Some will be lost. Pakatan and their supporters will need to be smart in which battles they want to win.

More importantly, before throwing those accusations in the future, we need to understand the long arc of history all of us have to deal with. Malaysia’s deep multifaceted history – with dimensions of race, religion, Peninsula-Borneo, federal-states, urban-rural, national origins, class, gender, etc – is the proper context to judge the new government in the next few years. No action could be judged in isolation.

And the future is just as important as the past in understanding this new Malaysia and the new government.

Our demography and culture are changing at glacial pace. It is slow but the inertia is massive: our society is set to become less diverse in a meaningful way. By 2050 the Bumiputras will form 70% of total population from about 60% in 2014. So would be the Muslims. The Malay population share will rise to 60% from 50% in the same period.

At the same time, we will be an aged society by 2050, from our low median age of 28-29 years old and low dependency ratio.

I fear the two demographic shifts could make our society less open and less progressive in our values. It is not the Malays and the Muslims per se that I fear. It is the increasingly monolithic nature of our society, and hence, the possible intolerance of differences. I fear that future where the Malaysian mind would narrow to a point that leaving is the only reasonable option for too many people.

This is the reason why the 2018 election was the last chance to change in time. The trends are pushing against us, especially against the liberals. It is not simply an election rhetoric. It is a real long-term concern about the fate of Malaysia. This is why I feel spoiling your votes or not voting is unwise: the advocates of the tactics (who wanted some kind of change) are ignorant of history and blind to demographic changes.

It was also the last chance to change because substantive changes that Malaysia needs could not be made by the same side that benefited from the closing of the Malaysian mind. Najib Razak tried it in 2009-2013 and he failed. All his attempts were in the end reduced to mere silo economic targets that stood alone outside of multifaceted Malaysian contexts, making them utterly dissatisfying as a vision. So dissatisfying that we had to go back to the 1990s to move forward.

And substantive change will need more support from Malaysians. While the Pakatan victory is the first step, we have to remember Pakatan won only plurality in popular votes, not majority. Lasting change would require Pakatan to get more Malaysians on board.