Friday, March 26, 2010

malaysiakini and the NEM.....NEP with a NICE VARNISH?

There is a lot of talk now about the NEM - the magic formula that is going to help Malaysia achieve Vision2020 in double-quick time.
I say magical as the NEP even after 30plus years has only managed to scratch the surface as most of the pie was skimmed off for cronies and their families. Of course politicians too took more than their fair share and some of them have become modern day warlords.
This is what I wrote in Malaysia Today in an article that sought to explain that the NEP targets have not been achieved.

One of the big problems about such statistics is that it does not really analyse where the wealth has gone.
Such percentages only refer to the balance sheet items and not the cash flow.
To put matters in a form that is easier to understand, the proper analysis should be made so everyone can understand better how wealth is created.
I am sure many have read stories of how the real wealth creators can lose their fortune and yet within 5 to 10 years can amass far greater wealth.
Take the typical BN crony handout carpetbagger - he gets a lop-sided crony contract that bestows millions and even before the contract ink has dried, he has ordered his BMWs, his RM10mil mansion, possibly a helicopter and of course that trophy wife. After the contract funds are gone, he has learned very little business skills, just an appetite that has become greedier.
Compare this with the small shop selling chicken rice or whatever - they work hard and save a lot for their children's education. After 20 years, the children has gone overseas for studies and the family has been able to buy a few houses.
That is why NEP targets are so misleading and should not be accepted anymore as even after 25 years those cronies are only asking :
"Give ME some MORE!"

Given the rot in the entire system and using the analogy of a computer system:
The hard disc is so corrupted it will take forever to debug the system.
Better to throw away the hard disc by voting in a new government with a clean sheet.

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