Ending 'easy' Bumi contracts bold move that could cost Pakatan, say analysts

Chan Kok Leong Chan Kok Leong Updated 7 years ago · Published on 2 Sep 2018 11:00AM · 1 Comments

IT was bold of the government to announce an end to easy contracts for Bumiputera companies, said analysts.

It’s also a move that could erode Malay support for Pakatan Harapan, said International Islamic University lecturer Dr Tunku Mohar Tunku Mohd Mokhtar.

“Umno and PAS will use this to attack PH and shore up Malay support,” he said.

He said such a policy needed to be administered along with other policies that help improve Bumiputera competitiveness.

Universiti Malaya’s Prof Dr Awang Azman Awang Pawi believed that Prime Minister Dr Mahathir Mohamad’s announcement, delivered during a keynote address, was aimed at improving business ethics and a good move.

“He is attempting to avoid the failures of NEP (New Economic Policy), which he championed in the 1980s,” he said.

“And if PH wants to correct previous mistakes, it must make this kind of bold moves that could cause it to lose Malay support later,” said the Malay studies lecturer.

At the third Malay Economic Congress yesterday, Dr Mahathir said the government will terminate the contracts of Bumiputeras who had “sold” or “sub-contracted” the work to third parties. 

Former prime minister Najib Razak had similarly attempted to restructure the Bumiputera economy in 2010 by liberalising certain sectors that were protected.

The proposed policy also aimed at doubling per capita income and shift affirmative action from being race-based to needs-based.

But subsequent protests from Umno’s conservative faction forced Najib to abandon the NEM to return to the NEP.

Tunku Mohar said PH hoped to produce more competitive Malay entrepreneurs.

“It is also trying to wean Malays from over-reliance on government aid. As it is, there are already many agencies to assist Malay entrepreneurs,” he said.

The lack of additional incentives means that the Bumiputera business community will have to make the best of existing facilities.

“But for those who are not yet competitive, they will feel pressured and blame PH for their failure,” said Awang Azman.

Malay economic congresses in 1965 and 1968 gave birth to institutions such as Mara, Bank Bumiputera, and various incentive schemes for the Malay entrepreneur. –  September 2, 2018. 

Sign up or sign in here to comment.

Comments

  • I doubt so. Lots of Malaysian analysts likes to generalise their opinions and just shoot from their mouth without any substantive research. Right now the economy is trying to have a breather and still a long way from recovery. The lanun administration had done severe damges to the country and there are not much of easy job/ contract for Bumiputra companies. Najib liberalisation was done to placate the ignorant Bumiputera and ensure their sighting and radar on his plundering are misalign. There has never been a real genuine effort by Najib in that role and only his cohorts are getting the cakes. The current streamlining and tight validation will only ensure good and serious capable contender will be awarded the contarct. There is no more free for all to take just because you are a bumiputra. This initiative will spur the competitive and spring forth quality Bumiputera entrepreneurs. All the previous free loaders Bumiputera companies from the previous regime are actually none others then Umno cronies who are abosutely zero in business accumen but sustained thru patronage and unscrupolus activities. So please analysts do not speak for the sake of speaking to be notice. Who cares if Umno and PAS were to use this irrelevant concerns to attack PH as the Umno Bumiputera Business communities are a small segment confined to the party and their skill set are only depending on handouts. When nothing trickles in to them they will be stiffled and render useless. The realistic rakyat are looking at a bigger objectives where basic essentials of food, accomodation and good education are available within their economic means enabling them to live peacefully. They are never or least bothered about the parasitic Umno Bumiputera businessmen who are self serving and contributed nothing to enhance the Malay race but excel wonderfully in petty donations in the guise of bangsa and agama. I wish most of the Prof or Economic Analysts goes to the grassroots level for facts finding and research instead of being too quick in their shallow analysis to lay proof of their existence.

    Posted 7 years ago by Lee Lee · Reply