CRONIES are bad for the economy and create inequality through monopolies, Amanah strategy director and former Kuala Selangor MP Dzulkefly Ahmad told a forum in Kuala Lumpur today.

“One of the main mechanism (that creates) inequality is crony capitalism or cronyism,” said Dzulkefly at an economic forum organised by the Islamic Renaissance Front in Concorde Hotel.

He said cronies, part of the rentier class, do not provide genuine services, goods nor add value to the economy.

Malaysia’s ruling coalition, Barisan Nasional (BN), has long been criticised for practising cronyism, nepotism and patronage politics to stay in power.

Amanah is one of the four component parties in Pakatan Harapan that seeks to topple BN in the 14th general election that must be called by August.

Opposition politicians and independent academics have repeatedly slammed BN for allowing individuals close to the coalition to privatise and profit from monopolising important industries, including water, food and energy.

In 2010, Prime Minister Najib Razak introduced the New Economic Model, which sought to replace the controversial New Economic Policy and weed out the rentier class.

However, the plan fizzled out as Najib became embroiled in the 1Malaysia Development Bhd scandal.

Since BN lost the popular vote to the now defunct opposition bloc Pakatan Rakyat in 2013, its dominant party Umno had also sought to consolidate support among its hard core supporters, including the rentier class. – February 25, 2018.