Dr CHen Man Hin: NEP not global friendly

media statement by dr chen man hin, dap life advisor in seremban on 26th June 2007

   

THE NEP IS NOT GLOBAL FRIENDLY AND HAS CAUSED FOREIGN INVESTORS TO AVOID MALAYSIA AS A PLACE FOR INVESTMENT

The NEP has been under attack by many foreign investors

the latest critic was Thierry Rommel, a top envoy from the European Union, who commented that trade relations with malaysia has been hampered by its policy of bumiputraism which is racial and not acceptable by global standards..

what Rommel said was embodied in a 34 page European Commission report titled Malaysia-European Community Strategy Paper for the Period 2007-2013 which stated ‘ ….Crucial policies are an open stance towards FDI, not least in the services sector which needs to be opened up; human capital development , innovation and research capabilities; more competition and less interference of government-enforced Bumiputra–related concerns in the functioning of markets.’

it is not only the European Union that is critical . the US Department of State also stated ” one source of impediments to Malaysia’s economic growth is its complex network of racial preferences to promote the acquisition of economic assets by ethnic Malays (bumiputra). the public aim of these programs is to encourage a more even distribution of wealth among races. despite th stated goal of poverty alleviation, these raced based policies.. in practice wealthy and well-connected bumiputera receive the lion’s share of the benefits.  the resulting economic distortions in the property, labor and stock markets inhibit growth and deter both foreign and domestic investment ….’

the world opinion of NEP is negative and is shown by statistics of  FDI inflows into malaysia and other countries.  UNCTAD figures show that fdi into malaysia have been low for many years. In 2006 fdi to malaysia was US 3.5 billion, by comparison singapore 30 billlion, chinae 75 billion. the figures from UNCTAD indicate foreign investors do not have malaysia on its radar.

UNCTAD ranked malaysia as the 6th largest destination for fdi in 1995; based on final 2005 figures, malaysia now ranks 62nd

all these go to show that the nep is not a global friendly policy. the trading countries of the world, most mportantly usa,and european union have said so in clear distinct terms.

malaysia should welcome the criticisms of friendly world countries, and take measures to correct its policy of nep and bumiputraism

If the NEP is stubbornly implemented, then the DAP hereby warns that the malaysian economy would be affected severely, as in the case of the Proton car saga which did not follow a global strategy, and is now in deep soup, and is seeking  foreign car manufacturers to rescue it.

back in malaysia, there is widespread opposition to the NEP.  within  the country the NEP which was launched in 1970 has been extended  although the 30 per cent target in corporate equity was achieved, many years ago, it is allowed to continue. opposition parties and keadilan are opposed to the NEP and propose that for the poor a new form of affirmative policy could be implemented which would benefit poor. malaysians of all races

dr chen man hin

One Response to “Dr CHen Man Hin: NEP not global friendly”

  1. sampalee Says:

    Dap warn Bn.This must be a joke.What is a warning.Dap must first work with a malay group,before there can secure a position to warn others.As for opinions,none can be denied.Opinion cannot change things if there are no alternative to replace something we dislike.If we dislike B&W TV,but colour TV NOT available[except brochure],then we still have to stick to the former,even we very much prefer the latter.Can dap leader be so ignorent to be AWARE when playing the game of democracy.

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