We are NO. 51 in economic freedom 2008

In April last year, I have posted the index for economic freedom 2007 in my blog, tracked by The Wall Street Journal and The Heritage Foundation, Washington’s preeminent think tank. Malaysia was ranked NO. 48 in economic freedom in 2007.

How about this year? For 2008,  we are ranked NO. 51 in economic freedom. In the company of Uganda (No. 52), Costa Rica (No.49). So do not laugh at countries of Africa and Central America. We are already in their company, and if we dont buck up, we may be like the African and Central AMerican countries in no time. NO joking matter!!

The top 8 places are occupied by : Hong Kong (No.1), Singapore, Ireland, Australia, USA, New Zealand, Canada, Chile . (ask yourself why are these countries always ranked top? ).The full list can be viewed here .

The Heritage Foundation, in its FAQ, explained why economic freedom is important: “

“Studies in previous editions of the Index confirm the tangible benefits of living in freer societies. Not only is a higher level of economic freedom clearly associated with a higher level of per capita gross domestic product (GDP), but GDP growth rates also increase as a country’s economic freedom score improves. “   

Suppose you are a foreign investor with billion to invest. What is your priority for investing? You want to earn money, but you want to earn money in an environment that gives you the most freedom with your money. You must be able to have a say in how your company is going to be run, the cost of labour must not be too high, the people in the country of your investment must be efficient and have good productivity so that the best returns can be earned. You want to have a impartial  judiciary to guard your rights..meaning your money. You want to have a clean government so that you do not pay extra under the table, as corruption adds costs and time to doing business.

This index of economic freedom, which measures 10 factors, takes all these into account. For the full report on Malaysia, read here.

Malaysia fails miserably under the category : Investment freedom. We get only 40% mark for this category (40% is Fail in most countries, but according to Malaysian marking system, 40% is considered pass, any wonder why we are low down now?).

This is what the report said about this category:

Investment Freedom - 40%

Rules have been eased, but foreign investors still face such restrictions as limited voting shares, prior approval, and mandatory hiring of ethnic Malays. Investment is banned in the news media, lotteries, or security paper. Foreigners may own 100 percent of certain kinds of new companies, but most existing corporate equity requires that a 30 percent stake be Malay-owned, and foreign ownership is capped in most sectors. Certain kinds of investment are screened, though commercial operations can begin before approval. Residents and non-residents may hold foreign exchange accounts, subject in many cases to government approval. Nearly all capital transactions are prohibited, are subject to restrictions, or require government approval.

If you read the report carefully, it is because of the restriction placed… everything needs government approval, and that means red tapes, and possible avenue for corruption.

We get 50% for corruption. This is what the report said:

Freedom from Corruption - 50%

Corruption is perceived as present. Malaysia ranks 44th out of 163 countries in Transparency International’s Corruption Perceptions Index for 2006. Bribery is a criminal act, but perceptions of widespread corruption and “crony capitalism” persist.

 

Any wonder why the economy is half dead, progressing miserably at 5 % growth , which, if you take into account the actual inflation rate ( maybe as high as 4-5% while the official figure is only 3%), means that the economy is not growing at all.

The report also measures the net inflow of FDI.  Malaysia’s FDI is stated as $996 million whereas, the same report put Singapore net FDI as $14.6 billion. Even Thailand, has $3.4 billion of net FDI. Even Indonesia has 2.2 billion worth of FDI. What happened , MITI?

If we do not buck up fast, we will be overtaken by Thailand, that is for sure. But do not be surprised that African countries may overtake us… Uganda is just one rank below us.

 

PGRM wants ISA review

Taken from Malaysiakini: Gerakan seeks parliament committee on ISA

May 23, 08 3:18pm

Gerakan today urged the government to set up a parliamentary select committee to look into the review of the Internal Security Act, a proposal which was mooted by the government yesterday.Hoping that the ISA review would eventually lead to some significant changes in the colonial-era security law, Gerakan’s acting president Dr Koh Tsu Koon said that the parliamentary committee can play a role in identifying the changes.“This select committee consisting of members of Parliament from both the government and opposition benches can examine in depth various aspects of the Act and achieve some common ground before tabling for open debate in Parliament,” he said in a statement today. He added that the proposed review of ISA should make it to be in compliance with basic principles of human rights. “There should be enough safeguard against various possible and actual infringements on basic human rights. “The review should also provide more specific definitions and listing of offences which relate to genuine threat to national security, including terrorism,” he added. The former Penang chief minister said that with clear criteria and enough safeguards, the ISA “will less likely be subject to abuse and the perception that it has been used for political purposes to silence dissenters”. PM was quite receptive Yesterday the de facto law minister Mohd Zaid Ibrahim told Parliament that the government would review the law which allows for indefinite detention without trial. He said that the review – to be undertaken by a study involving Zaid, Home Minister Syed Hamid Albar and Attorney-General Abdul Gani Patail – will “enhance and update provisions” in it. “However, as a government that is sensitive towards the public’s demand, it is open to enhancing and updating provisions under the ISA as well as other laws,” he told Parliament. “Preventive detention is actually still needed in this country. However, there is the possibility of reviewing the Act in future,” Zaid said, without giving a timeframe of when the review will take place. Responding today, Koh said that Gerakan was one of several parties which have been calling for review or even repeal of the ISA since the 80s. He also revealed that he has been pursuing Prime Minister Abdullah Ahmad Badawi since April on the need for ISA review. “The prime minister was quite receptive,” he said. Release all ISA detainees Koh also pointed to another parliamentary select committee which was formed in the 80s to look into changes to be made to the Dangerous Drugs Act which also provided preventive detention without trial, just like the ISA. He said that committee, of which he was a member, was able to come up with some specific provisions to provide for safeguard and the bill was passed in Parliament. “That committee which comprised opposition members such as Lee Lam Thye was given a very good insight into the various aspects relating to drug trafficking and preventive detention, including difficulties with respect to evidences and witnesses,” he said. Koh also revealed that in January and February, and again in early April and May this year, he had appealed to Abdullah for the review and release of existing ISA detainees on health, humanitarian and other valid grounds, including the Hindraf 5. Last week, the Federal Court refused to release five ethnic Indian activists – dubbed the Hindraf 5 – who were fighting for their freedom after being detained under the Act. The five, including a newly sworn-in state lawmaker, were detained in December after enraging the government a month earlier by mounting a mass rally alleging discrimination against minority ethnic Indians.

 

Race politics and brain drain

 The most important asset of a country is not its natural resources, but rather human resources. This is especially true in a knowledge based economy, which of course will be the trend in future if not already the trend in most of the western countries.

My daughter, who is in her final year medicine in Auckland, told me that a team of SIngapore recruitment officers have just visited Auckland and talked to the Malaysian students there, offering job and training prospect for the final year students once they graduate. My daughter also told me that over the last few years, quite a lot of her Malaysian seniors, after graduating from medical courses in NZ, have gone to Singapore to work as house-officers and subsequently stayed back in Singapore for their postgraduate training.

Similar teams are sent to Australia and UK for recruiting Malaysians there to work in Singapore.

ABout a year ago, in one of the articles in Reuters, this was reported:

Malaysia is counting on bright, ambitious people like Tan Chye Ling for its future, to lead it away from manufacturing and into the knowledge age.

But the 32-year-old scientist, a post-graduate in molecular biology, is not counting on Malaysia to look after her future.

“I felt very suppressed in Malaysia,” said Tan, who moved to neighbouring Singapore, the region’s pace-setter for biotech investment, after a decade of study and research in Malaysia.

“I have benefited from the better research environment and salary scheme here. Things are much smoother,” she said by phone from the National University of Singapore where she is studying dust mites and allergies.

Tan estimates that 60 percent of the research teams she works with in Singapore are from Malaysia, despite her country’s efforts over several years to develop a biotech industry.

The Malaysian government unveiled plans last March to spend $553.3 million over five years to boost research, attract foreign investment and build new facilities. But its efforts are wasted unless it can retain more talented people like Tan.

“By the time we have the research environment in place, every other country would have taken a slice of the biotech investment pie,” said Iskandar Mizal, head of the state-run Malaysian Biotech Corporation which oversees the government’s strategy.

There is a serious problem facing Malaysia and that is the problem of Brain Drain. Why are Malaysians overseas not coming back to work?

Well, pay may be part of the reasons but is not the main reason. Singapore recruitment team offered Malaysian students there a salary which is a few times they would expect to get in Malaysia….S$40,000 a yr for houseman after tax ( equivalent to RM86000) which is about 5 times the pay of a houseman in Malaysia.

But, as I say, pay is not the main problem. The living expenses Overseas is high. And for a person working overseas, the loneliness and the stress level is also high. So not everyone opts to work overseas because of pay. Many would not mind to work for lesser pay if they can stay near to their loved ones.

Why do people choose to work overseas, away from their loved ones ?

Malaysia has many state-of-the-arts hospitals and research centres, which may even be the envy of many overseas countries. But hardware alone would not attract these experts to come home. In the medical fields, I have so many friends /classmates working overseas, many in world renowned centres. Why do they do that?

Some of my classmates and friends did come back as specialists. After working a few years ( many lasted a few months) , most get disillusioned and went off. There is really not much prospect of career advancement. How many can hope to become a professor, even when they are an acknowledged expert in their field? O the other hands , lesser beings are being promoted to professorship for doing much less.

How many of them can have any say about how things are to be run? How many of them can blend into the local team where the work attitude is vastly different from that overseas? 

There is an unwritten rule that even if the person is very good, the head of the team has to be someone from a certain ethnic group who may not even be half as good as him.

In everyday life, some become disillusioned with the corruption, the red tape and tidak apa attitude of the officialdom. For an overseas doctor applying to work home, the application can take up to 6 months to get approved, whereas, SIngapore sends teams overseas to recruit them on the spot, giving them forms to fill and offering them jobs immediately as long as they pass their final examination. See the difference?

It is the sense of being wanted and being appreciated that make these people stay overseas. Back here, they are often made to feel that they are of a lower class; they do not feel wanted and they do not feel appreciated…. That is the main reason.

For those with children , the education system puts them off. Even school children can feel being discriminated, one glaring example is the 2 systems in PreUniversity education.

All these make them pack their bags and off they go again, leaving behind their parents perhaps, siblings, friends they grew up together, favourite food that is often not available overseas. No one likes to be like this; circumstances and a sense of being recognised for their worth make them go away…It is really sad.

Parents spend huge amount of money educating them, but the ones who benefit are the Singaporeans, the Americans,the  Australian, the British and so on. As long as race politics is not done away with, this problem of brain drain will continue and Malaysia will always lack behind the advanced countries, no matter how many twin towers and Putrajayas we build.

Tuan?

I agree with Dato Ong Tee Kiat that the less we harp on the ketuanan Melayu issue, the better it would be for a united Malaysian nation. The only “Tuans” in the true sense of the word, are the Tuankus, Their Royal Highnesses the Sultans. Their position is enshrined in the Federal Constitution, and accepted by all communities.

Every other citizen is of equal status, regardless of race. Otherwise, it would imply that we have first and second class citizens, or worse, masters and servants. This simply will not do.
In fact, recent remarks by some of the Rulers (e.g. Raja Nazrin, the Sultan of Selang
or, etc.) would indicate that the Royalty are indeed commited to national unity, justice and fairness to all races.

As for the position and rights of the Bumiputras, these are again clearly spelt out in the Constitution, and we are not questioning them.

Let us also not forget the Ibans, Kadazandusuns and other indigenous peoples of Malaysia.

Observer.

Gerakan- The Way Forward

After 2 days sitting in the seminar room and being blasted by the very cold air-cond, I came to the conclusion that Gerakan leaders are seriously, sincerely, ready for change.

Leaders are open to suggestions coming from young people like me and the rest of the group. This is indeed the most forward looking brainstorming session that I have ever attended throughout my years as a Gerakan member.

Among us are the top party leadership, very veteran leaders, enthusiastic young leaders, and normal members. We all came together to spend this weekend together, perhaps with diverse views and opinions at the beginning; but leaving the brainstorming session with hopes and challenges that lies ahead. 

‘Communication’ or ‘communication break down’ appeared to be the most commonly debated issue. Grassroots feel that there is a lack of communication between the top leadership and the members. Then I wonder, is this a convenient way out to explain and justify the ‘problems’ faced by the party to a certain extend when we do not know the answer to the problems? 

Bloggers borne like mushrooms after the 308 election. A Malaysian’s Malaysia agenda appeared to be the main agenda for the brainstorming. We all want to strive for a just and equitable society, for all Malaysians. We will again, pick up the basic ideology that was started by our Gerakan forefathers 40 years ago. I hope that all these are not too late today.

I hope that this brainstorming can be put forth to the whole party structure, and to move the party forward together.

Let’s Work! Let’s Gerak!

Peaceful Assembly

The police are to be commended for allowing the recent workers’ day rally to proceed after some negotiation with the organisers. They were even allowed to march some distance in an orderly manner.

It goes to show that with the agreement of law enforcers on the one hand, and protesters on the other, a peaceful, incident-free demonstration can be a reality.

The co-operation of the police ensures that public order and security are not compromised, and traffic flow, uninterrupted. There is no need for water cannon, tear gas, injury and ensuing ugliness.
Of course, the the picketers themselves must reciprocate to police goodwill with appropriate proper behaviour and conduct.

It could have been achieved during the Bersih and Hindraf demonstrations in the past.
A thriving democracy includes the right to peaceful assembly.

Observer.

One step forward, three steps back !

One would have thought that for a party that has lost 5+1 States and the popular votes in Peninsular Malaysia, there would be much soul searching and perhaps adoption of much needed reform and new strategy to win back the trust of the people.

I was hopeful when the PM announced that judicial reform would be undertaken. I was hopeful when PM announced the formation of an Independent body for fighting corruption, the MCAC, in the mould of the ICAC of Hong Kong. I was hopeful when suddenly  many pro BN politicians started to blog, thinking that  perhaps more freedom of expression would be allowed.

Alas!! My hope was dashed when the Sedition Act was used to charge well known blogger RPK.

Sedition Act is an archaic law  enacted by the British in 1948. The situation then and now is totally different, and this law should have been repealed long ago. It is like using a 1948 car in the formula one race of today, totally out-of -date.  

According to Wikipedia, the act criminalises speech with “seditious tendency”, including that which would “bring into hatred or contempt or to excite disaffection against” the government or engender “feelings of ill-will and hostility between different races” .

Is RPK’s writings seditious? I would not want to go into the debate or the merits of the case as the case is before the court now.

But if anyone feels slighted by RPK’s writing, or for that matter, if anyone feels slighted or defamed by any writings of any blogger, there is such a thing called civil law and civil court. The person feeling slighted or defamed could sue in a civil court for libel and defamation, if necessary for hundreds of thousands, if necessary for millions.

It is just like the ISA, another archaic piece. If you feel someone is undertaking activities that may lead to security of the nation being threatened, by all means charged him in open court. So just like ISA, Sedition ACt is out of date and both should have been repealed long ago.

Lee Kuan Yew sued for libel and won many times agianst those who slighted him in either speeches or writings. I do not remember him using the state machinary to charge someone who has alleged defamed him. He has used ISA for security reasons, but not the Sedition ACt for personal vendetta.

I have a feeling of ‘deja vu’; it is like 2004, when we were promised so many things but none came about after 4 years. Is this a repeat of things? Will we ever see the lights of a Judicial Commission or a MCAC, despite the promise? Will it be like the IPCMC? I hope not.

But what RPK case has shown is that, we are taking one step forward , three steps back.

 

See the logic, Dear Minister ?

I was shocked reading this piece of news in NST this morning

“In a move to stop Malaysian women being duped into carrying drugs for international syndicates, the Foreign Ministry has proposed that all women travelling out of the country alone be required to have a letter from parents or employers. “

Foreign Minister Datuk Seri Dr Rais Yatim said the letter would be a declaration which stated clearly the reason the woman was travelling.

from NST: There are 119 Malaysian women in prisons worldwide for drug offences; the majority are aged between 21 and 27 duped into becoming ‘mules’; and so far this year, 29 have been detained or imprisoned

 

There is another piece of news in the same paper:

Regressive. Unfair. Biased.

These were some of the words used to describe the proposal by the Foreign Ministry that women leaving the country alone be required to have declarations from parents or employers stating the reason for their travels.

Minister Datuk Seri Dr Rais Yatim said yesterday he had submitted a proposal to the cabinet.

The proposal drew flak from non-governmental and women’s organisations, with their representatives making clear their outrage.

National Council for Women’s Organisations Malaysia (NCWO) deputy president Faridah Khalid called the proposal “backward and unfair”.

“This is an infringement of our rights,” she said.

 

The first thing that comes to my mind is that this is gross discrimination against women, which forms more than half the population.

It is like amputating the whole leg for a small boil on the tip of the toe. There is no logic.

I don’t like to be rude, but is it not akin to asking the police to castrate all males just because of a few rape cases?

The English will say, never use a sledgehammer to kill a fly.

How many women travelling overseas are involved in vice? Most would be legitimate travellers.

This is how someone who is brought up with a biased view against women would do. And I am supprised that this comes from an experienced Minister.

Socially, this is not acceptable, when the whole world, with the exception of some countries, is now going towards equality of the sexes.

Politically, this is a disaster. He should know that there would be an uproar from women groups.

Why has UMNO people not learned from the lesson of March 8?

Policies should be people orientated and should not be an encumbrance to people. The people are your boss, Dear Minister. Always look from the angle of the people, not from the top of the ivory tower where the view tends to be narrow and clouded by clouds.

If  government ministers keep going like this, sooner or later, there will be so much red tapes, you have to have a police permit to go out after midnight, because the minister in charge will argue that most crime is committed at night.

See the logic, Dear Minister?