Friday, September 13, 2013

Bumiputra Development Agenda: Apa Najib Patut Buat?

Giler semangat PM kita...siap tweet


Well hope you've figured it out what are the underlying problems and how best to undertake precise intervention to achieve the objective...

Have you Sir?

Anyway before we could go into his possible policy options, we need to know how he has performed don't we folks....

I started looking...

Dropped by at Annie's (here) and saw this piece of news...

 KUALA LUMPUR: THE Bumiputera economic agenda must focus on high growth, equity and inclusiveness to ensure a fair distribution of wealth and stem a growing gap between the rich and the poor. Former deputy finance minister Datuk Abdul Ghani Othman said any new measures to further the agenda must be aimed towards helping the bottom 40 per cent of income earners, the majority of whom were Bumiputeras. "This includes not only Malays, but also the Bumiputeras in Sabah and Sarawak, many of whom still languish below the poverty line," he said yesterday.
Ghani, who is also former Johor menteri besar and Universiti Malaya Economics dean, was speaking ahead of Saturday's announcement by Prime Minister Datuk Seri Najib Razak on several new initiatives to boost Bumiputera involvement in development. Ghani said Malaysia had enjoyed high economic growth, a fast reduction in poverty and a fairer distribution of wealth between different communities in the 1970s and 1980s under the New Economic Policy (NEP), launched in 1971. However, he said, new studies revealed that Bumiputera equity growth had stagnated in the years following the NEP's end in 1990, partly as a result of economic crises, external market forces and a reduced political will to push the Bumiputera agenda.
"Even though there were still many policies designed to help Bumiputeras, there was no concerted effort to ensure those in the lowest income brackets could enjoy the benefits of economic growth, which was at the time being driven by the National Development Plan. "The Economic crises in the 1990s, such as the 1997 Asian financial crisis, did not help either."
Ghani said the proposed measures were timely but warned that any delay in pushing forward the efforts would have consequences. Any new initiatives, he said, should focus on raising income, developing human capital, improving employment opportunities, and expanding both physical and financial asset ownership.
"The numbers are quite bad. We know that those in the bottom 40 per cent cannot even afford to buy houses, and that there is a growing wealth gap not only between different communities, but also between rich and poor Bumiputeras. "This is why we must focus on a strategy of inclusive development, where the Bumiputera agenda can be included in the effort to help the poorest among us."
Ghani dismissed criticisms that affirmative action policies, such as NEP, would stifle growth, saying that such action was needed to ensure fairness and uphold social justice. He said international experts now rejected the theory that economic development was best left to market forces, without government intervention. "The United States, for example, is now dealing with large wealth and income gaps as a result of the small government, market-driven policies of the Reagan years in the 1980s.
"When we talk about affirmative action, we are talking not just about growth but equitable growth. "The numbers prove it. Almost every Malaysian benefited from the NEP, and we have to be proud of what we achieved in less than 30 years."

Very interesting suggestions there...

Inclusive Development....

Gua fan siot!

Wrote about it in Kasut Atas Kepala (here) and Cinatocrasy (here)

Remember the Opportunity Curve folks?

the opportunity curve: the higher the curve, the greater the social opportunity function.Thus growth will be inclusive if it shifts the opportunity curve upward at all points. If the entire opportunity curve shifts upward, this implies that everyone in society—including the poor—is enjoying an increase in opportunities, and hence we may call such a growth process as inclusive. 

Let's bring back some charts...shall we

Kita start with this one 1st


 Quite self explanatory kut, orang kaya will always have greater opportunity daripada lahir lagi, if not ape cita maksud born with a silver spoon...
The NEP had 2 major objectives:  "to  reduce  and  eventually eradicate  poverty,"  and  second,  to "accelerate  the  process  of restructuring Malaysian  society to correct economic imbalance,  so as to reduce  and eventually  eliminate the identification  of race with economic  function" : Source Gov of Malaysia Second Malaysia Plan



Kalau dia jalan betul the whole curve naik atas...for everyone....

The growth is then inclusive..




Hah kat sini lu tengok our core problems in the actual execution...

Lets say on the extreme right, the usage of Discriminative Chinese social capital against the Malays (here).

I bet some of you Ahbengs out there is saying...Wooo mana ada..

Yeah rite...

Give you some examples...bukan dengar cita kawan gua punya level la Beng


  • Snodgrass [1980] : companies headed by the Chinese normally would not employ Malays
  • Faaland, Parkinson & Saniman [2003] : Bumiputera income levels are 32% lower than for Chinese, after controlling for differences in education, experience, industry, and occupation 
  • CMI [2005] : the non-Chinese are prevented from entering the private labour market, and those who participated in it are being discriminated against [denied advancement and lower wages or earnings]
  • Milanovic [2006] : unexplained premium of about 20%-40% on wages and earnings for the Chinese, despite having similar characteristics as the Bumiputera
  • Muhammed [2010] : pro-Chinese bias against the Bumiputera  
  • Lee & Muhammed [2012] : race matters more than qualifications, advertisement penalty
Source from Lee & Muhammed (here) Degrees of Discrimination: Race and Graduate Hiring in Malaysia


Cuba lu kira sudah berapa tahun punya observation...

Sudah 32 tahun paling kapchai....I bet you before it was fucking worst....



Tak percaya kasi tengok kita punya Incomes shall we...

Source EPU here

Ada nampak?

Tara nampak?

Kasi tengok bawah punya chart...


Bro HishamH wrote a lovely post to illustrate the problem....and folks he is worried with all the developments in the data....cantik punya Affirmative Action by The Chinese For the Chinese...giler racist doe
These are all troubling developments. I continue to be flummoxed attempting to explain these movements and trends in incomes across time as no single factor appears to be responsible, or at least in a way that is amenable to statistical testing. There’s certainly more than a few candidates for causality, as a read of the comments section of my previous postshows (the comments are well worth your time reading). But at this stage, they continue to be no more than hypotheses. This is a terribly important question to answer – not knowing the manner and direction of causality means policy making based on supposition and not on evidence. And if you can’t quantify what you’re doing, there’s no objective yardstick for measuring success or failure. (here)

You wanna know what is more troubling to me.....


Sebelum nak boleh jawap Apa Najib Boleh Buat...kena tau Apa Najib Sudah Buat???

Macam macam la kut...

But the outcome is utterly disappointing....

His term saw the wipe out of the gains Bumi made for more than 10 Years....

We should all ask why?

He should be able to answer to us...

Or at least to these people



So sekarang ape cerita terhegeh hegeh nak kecoh pasal Bumi Agenda??

Berapa tahun dah kita semua dok dengar "Market Friendly Affirmative Action"

Gua dari dulu cakap kepala hotak hang....Affirmative Action is market intervention...

The challenge is how to intervene precisely....

For instance ...on the income gaps....

Sorry ya Bengs...gua otak programmed to fuck u all till kingdom come...

You all must be aware of the Dong Zhong kurang ajar acah nak masuk court over the increase in Bahasa hours....

KUALA LUMPUR (Sept 2, 2013): Dong Zong (United Chinese School Committees Association) and some Chinese groups may take legal action against the Education Ministry should the final draft of the National Education Blueprint 2013-2025 remain detrimental to Chinese education. The final draft of the blueprint is scheduled to be released on Sept 6, but Dong Zong president Yap Sin Tian was not optimistic about what was in store for Chinese primary schools, Sin Chew Daily reported today. Speaking to the press after exchanging views with Chinese groups on the Dong Zong-led anti-National Education Blueprint 2013-2025 signature campaign in Kajang on Sunday, Yap said the representatives to the dialogue session proposed two possible actions should the final version of the blueprint prove to be unfavourable to Chinese schools. "One option is to sue the government," he said, adding that the other was to protest, including holding a mammoth peaceful rally. Dong Zong opposes the blueprint, seeing it as a step to realise the government's ultimate objective of implementing the monolingual education policy. The education movement objects to the plan to increase the teaching hours of Bahasa Malaysia for years 4, 5 and 6 to 270 minutes a week from 180 minutes (here)
Apakata kita semua Bumiputra counter sue cakap kata lu punya sekolah tak layak pun nak dapat bantuan kerajaan...

For details on the Execution Strategy go here


Simple rite...

Stop the Funding....Let them be....

Lets see how many would be affected shall we.....

Source National Education Blueprint Report Page 28 (here)
96% of Chinese Kids goes to Chinese Schools.....that was 2011

If we do win

Their schools would remain but no longer be funded by the taxpayers....

Lu mau lu punya anak terus jadi Ahbeng living in your ethnic enclaves...go ahead....

Lets say la average family ada satu ekor saja anak...

How much would a monthly fee of these Bilik Semua Mesti AirCond punya sekolah??

300-400 paling kapchai kut...

Sekali arung kita sudah kasi hilang dari poket dia orang....closing the Income Gaps.....

But instead...


Satu Appppeeeeee

Satu Apppeeeeeeeee....

Errr...ingat ini nak pi tengok bola sekolah menengah ke Pakcik?

I actually talked about how best we can find the right intervention method before...for those who would be interested to go deeper please check out this post which talks about Growth Development Framework

In 2004 Rodrick, Hausmann and Valesco introduced the Growth Diagnostic Framework Minus the cacing cacing econometric formulaes in the paper......
what the Framework tries to do is...   It tries to identify the most binding constraints and figure out policy priorities with biggest impact on the basis of second– best thinking.
 say what!...english english....
 It is actually a strategy for figuring out the policy priorities. The strategy is aimed at identifying the most binding constraints on economic activity, and hence the set of policies that, once targeted on these constraints at any point in time, is likely to provide the biggest bang for the reform buck (here)
96% Hit rate tu beb....

Duit satu sen pun tak keluar...

Anyway let us now move to the middle of the Curve...

The Control by EHMG..sorry dalam chart sudah salah acro....malas mau edit post lama..ori entah mana pergi doe..


Chinese Merchants in South East Asia :Chinese merchants in Southeast Asia, JT Land developed a theory of the ethnically homogeneous Chinese middleman group (EHMG) as a club-like arrangement in which Chinese traders within the group cooperated by providing themselves with club goods/local public goods such as contract enforcement, capital and information, in response to an environment lacking basic infrastructure such as legal infrastructure, banking and credit-rating institutions. By cooperating with each other, members of the EHMG were able to enforce contracts,mobilize information and capital, thereby reducing transactions costs, hence outcompeting other ethnic groups to appropriate the role of middleman-entrepreneur. Of the various club goods provided by members of the EHMG, the most important is contract enforcement. Landa developed a theory of the emergence of the EHMG as a club-like institutional arrangement for coping with the problem of contract uncertainty (Landa 1981, reprinted in Landa 1994, Chap. 5). Under conditions of contract uncertainty, Chinese merchants will not randomly enter into transactions with anonymous traders, but will have the incentive to preferentially choose traders whom they trust, hence particularizing exchange relations on the basis of kinship, locality and ethnic ties. This is because embedded in these particularistic exchange relations are shared social norms of behavior (Confucian ethics of reciprocity) which function to constrain traders from breach of contract; any trader who violates the ethics of the group will be punished, including being ostracized from the group. The effects of many individual trader’s discriminatory choice of trading partners is the emergence of an ethnically homogeneous middleman group (EHMG), a club-like arrangement alternative to contract law for economizing on contract enforcement costs in an environment characterized by contract uncertainty. The ethnic boundary of the Chinese middleman group represents the outer limits of a Chinese trader’s discriminatory choice of trading partners because of the Confucian code of ethics which prescribes rules of the game—mutual aid obligations/reciprocity—for members of the same ethnic/dialect group, while not extending mutual aid to outsiders. Constraints on behavior thus exist among members of the Chinese EHMG because of shared rules of the game; members of the Chinese middleman group thus form a moral community. Confucian code of ethics serves as an informal institution, an extralegal institutional arrangement for the enforcement of contracts (here)

Semua cilita lama.....

Malas gua nak recycle macam setengah blogger boleh jadi macam Sulat Kaba Lama... memekik benda sama day in day out..

Pendek cerita...

To break the control ...

Kita kan ada Competition Commission who is tasked to monitor...



hari tu kecoh kasi fine Air Asia and MAS 10 juta....

Cuba lu pergi tengok the EHMG activities.....tu lagi mental

Beratus tahun punya perangai...bukan kat Malaysia aja.....Mat Salleh pun kena sauQ

An important question concerns the global competitiveness of ethnic Chinese business firms from Southeast Asia and the international transferability of their competitive advantage derived from their embeddedness in ‘home’ country institutions. This section proposes that the competitive advantage of Chinese business firms from Southeast Asia is embedded in their capabilities in network formation and exploitation. These capabilities, in turn, are both culturally and economically determined.Culturally, Chinese business traditionally relies on business networks to facilitate transactions and circumvent host country discrimination. Weidenbaum and Hughes (1996: 59) note that ‘as a group, the overseas Chinese family firms have become the pacing element in the economies of Southeast Asia, and they are likely to continue in that role. Western firms will be forced in the years ahead to learn far more about the culture underlying the conduct of the bamboo network enterprises that may eventually become their competitors or partners —or both’. This networking capability historically underscores the competitiveness of Chinese business firms vis-a`-vis western firms in China. As observed by Hamilton (1996a: 18), ‘[a]mong Chinese businesspeople, competition and guanxi organization go hand-in-hand, and I believe this is the reason that Westerners, with their corporate forms of organization that separate one firm from another, one entrepreneur from another, have historically been unable to compete head-to-head with the Chinese’
Source The Internationalization of Ethnic Chinese Business Firms from Southeast Asia:Strategies, Processes and Competitive Advantage go here

Ada brani semua?

Sekarang kita tunggu apa Najib mau buat hari Sabtu nanti....

Betul dah buat Comprehensive Discussion with Stake Holders ka?

Ni kan Comprehensive Policy ni Pakcik...

Dah tau apa jalan apa tak jalan ke...ape benda nak kena improve.. ape benda baru kena introduce  etc?

Dalam kecoh kecoh ni semua satu benda gua pernah mintak dah lama giller.....


I would also like to take this opportunity to Call for A Royal Review of the Implementation of the Article 153 and the Corresponding affirmative actions of the NEP & NDP. 
The Agong needs to know how he has discharged his function...don't you think 
Were the policies successful? What were the key challenges to implement them? How can we fix it?  (SatD 25th Aug 2010 : Satu Lima Tiga: A Tribute to Justice Hamid (here)

What ever he plans to say on Saturday.....Majlis Raja Raja should ask for an annual performance report that can be publicly available for view....

Semua orang mesti tahu apa sudah jadi....macam mana lu perform...

Baru betul beb....

Ni benda benda merepek nak buat Royal Commission...

Cina terjun bunuh diri pun Royal Commission....gua tak boleh belah.....berapa duit habis itu Royal Commission....ada hasil?


Yang satu benda lagi gua tak paham...

Is he doing this to please the Bumis or for modal to kencing 156,000 Badigols to choose him as party President?

Will he be able to sustain it till the UMNO GA?

What will his speech on that day be?

That I have come up with a Comprehensive Plan for Bumiputra after I wiped out whatever was gained for 10 years?


Is that PMO action plan?

Why don't he just focus on the 156,000 Badigols...

Use this instead.....please click kalu bijik mata sudah barai


gua budget depa semua musti suka boleh jadi President Seumur Hidup tak payah bertanding dude



Minds are like parachutes; they work best when open. -Lord Thomas Dewer