Dennis Ignatius: More on the Bumiputra Economic Congress

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Gone the reformers

One clear message that emanated from the recently concluded Bumiputera Economic Congress is that Prime Minister Anwar Ibrahim has now turned his back on reformasi. The reformer, if he ever existed, is now well and truly gone.

He once eloquently championed “Ketuanan Rakyat” but now it’s all about Ketuanan Melayu. He once spoke of a more inclusive nation, a nation that is just and fair to all its citizens; now he defends that status quo and prioritises the so-called ‘social contract’ that is so loved by UMNO politicians. He has also shot down calls to reform our monoracial civil service. It looks like he has gone back to his UMNO roots.

Even more disconcerting, is the way Anwar is allowing UMNO to exploit a number of racial and religious issues for political gain. Back in December 2022, UMNO President Zahid Hamidi intimated that he had learned from his mistakes and was ready to work together with Pakatan Harapan to build a more tolerant and inclusive nation. But inclusivity doesn’t apparently win votes; so it’s back to the old race and religion narratives.

And while the debates on contentious issues rages on and passions are inflamed, Anwar himself remains largely silent, even indecisive. He seems unwilling to confront the hotheads within his own coalition for fear of upsetting them. No surprise then that UMNO is now driving the government’s political agenda. At the Bumiputera Economic Congress, UMNO clearly overshadowed PKR and other coalition partners.

Many of those who fought long and hard for Anwar when he was in the political wilderness will no doubt feel used and betrayed. He spoke to their hopes, he played on their fears, he promised them a more just nation; in retrospect, it was pure chicanery.  As I have written elsewhere, under Anwar, UMNO’s Ketuanan Melayuism has finally triumphed.

All hope of ending decades of discrimination and marginalization is gone along with any hope for a more just economic system that would help all struggling Malaysians.

Gone too are the other reformers in PKR and DAP. Many within the DAP and PKR are sullen and dismayed at Anwar’s betrayal of the common ideals they once fought for but silence is the price of power; a price their leaders are all too willing to pay.

The DAP in particular has been a huge disappointment. After only a few years in power, they have abandoned all the great ideals that once animated their party. Now they are all about currying favour with UMNO. The more UMNO hits out at them, the more subservient they become. They pretend that they are still fighting for a “Malaysian Malaysia”, that they are still committed to a secular state but their silence in the face of policies that run counter to their professed ideals says it all.

Their wimpishness was on full display at the Bumiputera Economic Congress too where they stood on the sidelines talking about things like the green economy, US-China rivalry and pleading for win-win solutions while UMNO pushed ahead with plans to further marginalize non-Bumiputeras. The people of Malaysia gave them 40 seats in GE15 – making them the second largest bloc in parliament – but what have they done with it?

The Bumiputera Economic Congress was a golden opportunity to break away from failed narratives and failed policies and take the nation along a different path – the path that Anwar himself had outlined when he was in the Opposition. Instead, whether out of conviction or convenience, he chose to throw his weight behind UMNO, the very party that once brought Malaysia to the brink of catastrophe.

As well, at a time when Anwar most needed to restore confidence amongst non-Bumiputeras that they have a future here, that they will be treated fairly after more than half a century of being disproportionately impacted by affirmative action, he abandoned them.

Anyone notice that we don’t hear that inane refrain about giving Anwar the time and space he needs to get the job done anymore?

Empowered to plunder?

All told the NEP has now spanned some 12 Malaysia Plans, 53 national budgets and 9 prime ministers. At the same time, hundreds of federal and state agencies and government-funded companies have been set up in pursuit of the Bumiputera agenda. It is estimated that more than RM3 trillion has already been spent on Bumiputera empowerment.

Despite all of that, the claim is made that Bumiputeras still lag behind and still need preferential treatment. The question why – despite the huge sums expended and the myriad of agencies devoted to this singular cause – the programme has not accomplished its goals is rarely asked.

Discussions on Bumiputera empowerment almost always centre around the need for yet more funds, privileges, more agencies and yet more time to get the job done. It’s a never-ending, ever-expanding black hole.

Since the NEP began, there have been hundreds of financial scandals; billions have been lost or stolen. Almost every agency has run into difficulty because of corruption, abuse of power or plain incompetence. Just read the Auditor-General’s annual reports.

Daim Zainuddin, the former Chairman of the Council of Eminent Persons (now charged with failing to declare his assets) described it as “the shameless robbing of the very institutions that were established to help and uplift our rakyat. The pillage of trust bodies like FELDA, LTAT, Tabung Haji, and KWAP were astounding and heart-breaking.” He also warned that there were dozens of mini-1MDBs waiting to be uncovered.

More recently, former law minister Zaid Ibrahim highlighted two examples of the utter folly of some of these Bumiputera assistance programmes. According to Zaid, since 1970, the government has spent close to RM80 billion to help the Bumiputera fishing industry improve both productivity and living standards. Yet today, he noted, that our 110,000 fishermen are among the poorest segment of our society.

Billions are also allocated each year for various subsidies and incentives to rice farmers. Again, it has not resulted in proportionately higher yields or living standards for rice farmers. Indeed, the 2022 Auditor General’s report found that almost a quarter of the 77,275 rice farmers have an average income below RM600 while the majority earned between RM600 and RM1,499.[3]

How is it that so much money allocated to relatively so few recipients has made so little difference? Where did all the money go to? How much of it actually went to the farmers and fishermen? Again, no answers.

Every time there’s a scandal and billions are lost, the government rushes in to bail out failing companies with public funds. Billions have been spent bailing out Proton, Malaysia Airlines, Tabung Haji, FELDA and LTAT to name a few. Make no mistake, such bailouts mean less money for health care, infrastructure, education, etc. And it is the people who end up paying for the profligacy, indolence and corruption of some of the elites who mismanage these corporations and agencies in the name of the Bumiputeras.

What’s worse, no one is ever held accountable; those who have failed in their responsibilities are just reassigned to other parts of the Bumiputera economy; some go on to become cabinet ministers again. Just look at the Littoral Combat Ships (LCS) scandal. Possibly as much as RM6 billion was misappropriated in what Anwar himself (then in the Opposition) called an act of “massive corruption.” No one has thus far been convicted or held responsible for the fiasco. To save the project the government pumped in yet more billions for even fewer ships.

The whole construct looks more and more like a state-sponsored criminal enterprise in which politicians and their cronies plunder the nation in the name of affirmative action and then bail out the companies they have robbed or mismanaged with further public funds. As Salleh Said Keruak dryly noted, there may be only a few wealthy Malay businessmen but there are plenty of wealthy Malay politicians.

How long are we going to have to carry the burden of these corrupt, indolent and privileged rent-seekers? How long are we going to keep subsidizing them in the name of affirmative action? Where does it say we are supposed to accept such thievery in the name of Bumiputera empowerment?

No one will begrudge assistance to those who need help, but it is both criminal and intolerable that privileged elites keep grabbing more and more for themselves at the expense of the rest of us. Enough is enough! – Dennis Ignatius


Earlier report:

Mar 21, Dennis Ignatius on the Bumiputra Economic Congress 2024