5/3/11 MAKING OUR ECONOMIC MODEL PUBLIC..

If one follows the birth of Tabung Haji, definitely one would come across a 'funny' thought of Ungku Aziz, the well known Vice Chancellor of the Malaysian oldest University ie the University of Malaya. In his early young days, as among the first Malay Economic Lecturers, Aziz was very concerned of the poverty and non-business minded of the Malays. In those days, the rural Malays, their wish were to save money for their Hajj, an Islamic spiritual pilgrimage to Mecca, as ordered, at least once in their lifetime. Nonetheless they usually kept their money in all over the places, at home: in the pillow case, underneath the mattress, in between their piles of clothes in the closet, etc that sometimes could made them forget where exactly they had placed their money. Their money basically earn nothing extra.


(2) Later, Tun Abdul Razak established the National Trust Fund (ASN) which not only would enable the Malays and all other natives to keep their money safely in the custodian of the ASN, but most important the money could be used to be invested in a more earning ventures. ASN in fact emulate the success of Tabung Haji to invest into beyond syariah allowable ventures and give better returns, so far at least at 7 percents annually. Since it establishment, ASN had expanded into various other Trust Fund (ASB, ASW, ASP, etc) which come under the central management of the Permodalan Nasional Berhad (PNB).

(3) Today, since a couple of years back, Najib Razak, despite at limited quantum, had opened up the ASN to all the Malaysian through the Amanah Saham Wawasan (ASW). I believe in any new subscription of ASW, about 30 percent are allocated to the non-natives.

(4) Accordingly, if one follows the progression of the World Economic Model, one would realised that our Economy had shifted from the so called Free-For-All; Leisure Faire Economic Model at the early time of our existence to the more Capitalist Model that now is badly haunting and robbing us. During those abundant resources, any humankind is free to earn anything. Their limit was strictly of individual effort and determination. There was an absolute freedom. Nonetheless, it slowly progressed into Territorials-Economy once the clans and groups of human being began to emerge and getting much organized.

(5) In the era of the strong colonization especially among the White, in the 15th century, the natives in Asia, Africa, South America, and North America were greatly monopolised into sugar, coconut, cassava, wheat, cattle, etc ranches. Large track of land were turned into ocean of commodities development under the controlled of the colonial masters. The natives were either merely treated as labourers or slaves. Even in Europe the same happened especially among the weaker nations especially in Central and Eastern Europe. The colonial master sort of imposing the Total Capitalism onto their subjects.

(7) This Colonised-Capitalist Economy then being replaced by the Nationalization of the Economy through the Independent Movement of the 1950-1960s. The Nationalised Economy either emerged as Totally Protected Economy or Semi-substitute Economy. The idea of Socialist and even Communist was the clear version of such new Systems as opposed to the Western-style Economic Model. In fact if one follows the emergence of the Capitalist Economy, the birth was way before the emergence of the Western Power. The Idea was mooted and being practiced by the Jews long before the existence of the Western Civilization.

(8) Malaysia, in our early days, since Independent, our Economic Model is considered a Mixed Economy. In the 1960-80s, despite being and Independent State, we still kept those British controlled large-based investment on our soil. To name a few, most of our plantations, tin mining areas, large trading companies, etc were still left in the hand of our colonial controlled. The business of the immigrants were also allowed to expand. The natives were left to enjoy their subsistence economy, which due to their complacent nature, had threaten their own existence in their own State. Nonetheless, in view of our (Malays) strong association with the west and being a dominant Muslim citizen, socialist and communist ideologies were unaccepted. We adopt the much democratic and capitalist-based economic system. As a nation, our economy seem to be of a Mixed Model, but if stratified closely, definitely we could see, the native were left drowning far behind the Free Market Model.

(9) Thus realizing the danger of polarised economy, the backwardness of his people, slowly later, Tun Abdul Razak began to test on other complimenting ventures especially through the establishment of Petronas, MARA, FELDA, FELCRA, SEDC and all those various Regional Development Authority (RDAs) such as MUDA, KEMUBU, MADA, KADA, KEJORA, Ketengah, etc, he began to make an in-road into the Malaysian Style of Nation Building. Abdul Razak avoided the popular nationalization strategy as adopted by many newly Independent States. His strategy was much acceptable and without endangering the share of the others which had more being established. I would say, Abdul Razak complied to the constitutional nationalization.

(10) If one cares to study carefully, Abdul Rahman Putera, Abdul Razak Husein, and Husein Onn, all of them were legal-disciplined personalities. Thus with such a back ground, they were legal-constitutional abide leaders. Thus, their attitude was not to antagonised the colonial power, but rather taking a safer route of the National Economic Modelling through, the strategy of Complementing Economic approach. A Mixed Economic System were adopted and pursued.

(11) A turn around came into place during the era of Mahathir Mohammed. Mahathir Mohammed, being a medical person, whom sees time as an essence, the chronic poverty-backward disease of his people: the Malays, must be fast dissected, where necessary some parts may need to be amputate. He hads to be bold. He has to be brave. He just want the disease to be cured fast. Despite huge investment had been channeled to shift the Malays-Native economic structure, but real success still snail-progressed, thus he embarked into a much Corporatised approach. His corporatization approach was not really a free market paradigm, but rather 'bucking on efficient bumis management style'. I would say, Mahathir made a forced through to change the Malays mentality: of being timid, of being 'Tak Apa', of being slow, of being 'lazy', etc

(12) Basically, Mahathir didn't let go those public institutions such as DCA, LLN, Port Authorities, Telecom, Post, Agro-bank, etc into the pure 'private hand' but he trusted those into the hands of some bumis whom he could controlled. Basically he 'privatised' all these key public institutions into the hands of his 'trusted and able controlled bumis'. This was why later, he being accused as the 'great cronyism person'. But one thing for sure, I believe, Mahathir, he was and is shrewd to get the Malays to their feet!

(13) Today, the national socio-economic scenarios had really changed. We need real critical and analytical minds. We can't just criticised others idea and wisdom without offering what that smarter ideas or even philosophy that we think right. Criticising is easy, putting our own brilliant ideas, definitely would take a hard job. Therefore, we would hear more 'Coffee Talk and or even Empty Banging Drum' rather silent-dedicated workers.

(14) As I have said, even in the earlier article (What it take to be a leader), today
scenario had changed. Our grandfathers' lands in the Kampung are now no more in multi of acres. All those lands now had been fragmented into small lots to be shared among all their descendants. The lots are now more suitable to build 'just a home: sekangkang kera', nothing more. Earning an agriculture income from this type of land is no more an option.

(15) Equally important, our educational and urbanization process are very efficient. We had able to give the needed education to our people. Rural folks who are now much literate had chosen to migrate to gain a better living standard and style in the towns. Working in the rural areas, under the hot sun, under the cool rain, in the odd hours; sweating and smelly are no more our youngsters choice. Their understanding to sacrifice for a nation is no more their interest. Their struggle is mostly if not merely for oneself!

(16) Today population, they just want to have a home, a car to move around, nice places to entertain themselves and later having simple easy family. A very basic sort of 'individualistic' needs. All other social needs, they would prefer those to be taken care by the Government. To them, since they had paid the Income Tax, so, they should not be further bothered with all those social issues.

(17) It is not surprising to see today youngsters or even middle age generation don't even bother to take care of their own parents, worst their grandparents. Even, equally bad, they never bother about their relatives or neighbours plight of hardship and disadvantages. All because they believe, those are not their responsibilities and not their concern. We are becoming truly 'individualistic'.

(18) I don't want to drag readers to dwell on such 'bukan (?) salah ibu mengandung isu', but let us go back to the idea of Making Our Economic Model Public.

(19) What I want to urge and explore here is, that our economic model must be made public. The term made public, doesn't mean I'm calling the economic document to be a public document, but, I want to explore and urge so that our economy is driven into the hands and would really benefiting the general citizen of the State. Followings are premises that we must noted seriously:

(i) Our current younger and future generation, they just want a growing income. They want good income to enable them to enjoy their time at the Starbuck or any other nice hanging around outlets. Najib termed this desire as a High Income target nation building. Thus, the income of the Country and the people must grow fast and high. But, always the caveat is our resources are limited or depleting, of which I don't believe so. The limiting is not the resources, but our 'lazy mind'. We had not 'forced' ourselves to be much innovative and creative. We had been using most of Allah gift, our mind; not to think and do good, but most to think and do bad!

(ii) There would be time, when only about five percent of our people who will be concern about others. Time will come, only five percent of us will care and be caring to others plights and disadvantages. The rest 95 percent, I would say will mostly care about themselves. The fate of the country, the fate of the nation, the fate of the disadvantages would one day be the concerned, only of the five percent of us. This Hypothesis, I would say, is fine, it is a fact that we must be prepared. We must be prepared. If we are not, disaster would soon be knocking on our doors. What is currently happening in the Arab world should make us think and act fast. Islam takes the concern on the Ummah welfare, as Fardhu Kifayah, a duty of at least a small group for the good of the majority. Why so, well just remember, the best position in heaven is not free for all, but for the few who know and honor their responsibilities. Thus it is a waste of time to expect the majority of our people to be serious or action oriented-concern of their future fate. Most would seem to be concern, but their concern would probably a mere lips service or 'feel good statement'.

(iii) Keeping most profiting enterprises in the majority control (anything more then 30 percent) of the 'capitalist' is considered not healthy. Today easily we could see, most money making companies are in the hand of the fews. Thus, that make our Pareto Equation never reaching the ideal. There is always the top five percent taking the 70 percent of the national wealth. Is the idea of having the key investor owning not more than 30 percent of an enterprise a bad idea? If it is bad, what then are the worries? Is it about efficiency? I believe if we could think openly, I don't see efficiency is the issue. Is not greed is coming into play? It is alright to have some greed, a greed to make us earn more, to work more, and to be more efficient. But we can't have greed that make us a looser in the long run.

(iv) Current Economic Models be it pure Capitalist, Free Market, Socialist, and Communist are in the verge of collapse. The intend to practice Islamic Economic System on the hind side is merely a rhetoric, that is what is happening in Iran and even in Kelantan, the close at home. I haven't seen any, the so called Islamic State that had really practice the so called Islamic Economic Model. I dare even the Saudi to take up this seriously as long as most of their oil and petro-dollar are still under the controlled of the American. Even the Model itself had never been well defined. I hardly see, even a thorough write up even on how Muhammad had implemented the so called Islamic State of Medina. We lack such a reference.

(v) A direct attack on the Capitalist System would bring us into direct confrontation with the West. It is not really the West that matter, it is the brilliant Jews that we are going to face. They are brilliant and shrewd that could easily blinded the White-West into their favor. Thus, the development of any New Economic Model must not bring direct war with the Capitalist System that had made the Jews survived and sustained all sort of threats. Being a Muslim Malays, Allah remind us to avoid the Jews, but unfortunately, the Arab leaders, despite their well verse of the Quranic language (Arabic), they easily lured into the Jewish trap by the American and the West-White!

(20) Malaysia, probably by Allah blessing and or designed, we are fortunate to be moderate in most of our deed. We struggled to win our Independent through the wisdom of the mind rather the bloodshed. We inherited the colonial economic system with slow-smooth modification. We slowly modelled our intended Islamic Economic System on trial basis rather rhetoric claims especially with the establishment of Tabung Haji, Islamic Bank, and Baitul Mal.

(21) As I earlier said, the economic brainchild of Tun Abdul Razak and Mahathir Mohammed if combined systematically, the so called New Economic Model of Najib could then be modelled to be much public oriented. As an economist, I would believe Najib could now see how he would be able to mold, his call: Rakyat didahulukan, pencapaian diutamakan into what I termed as Public Oriented Economic Model.

(22) What it take might not be easy, but it would definitely place the People, the Nation upfront of the individual capitalist. Nonetheless, it doesn't at all mean depriving the capitalist. What we should be concern is a peaceful and prosperous state where investment and the overall lifelihood of the populance are sustained (growing).

(23) Let all of us work to make every Malaysian has good stake in the PNB. Same goes with Tabung Haji, the KWSP (EPF), Pension Fund, Socso, and all sorts of public funds. Let these entities later progressively, own larger equity in much profiting private entities either own by local or even foreign interests.

(24) Accordingly, our enforcement institution especially the bank Negara, ROC, ROS, and SC be properly equiped with highly talented, dedicated and honest management groups. There must be a system to really monitor and evaluate the good governance of all the public and private entities where the Rakyat would have good stake. Is this a merely hypothesis or theory. I would say, I'm pretty confident it will work, and my notion is based on the Cooperative Societies of the Japanese, Korean, and German. The Grameen Bank of the Bangladesh if could be remodelled would also gives the same result. I believe Ungku Aziz, through his Angkasa had this intend but probably lacking of determination, and politicking problem, his dream eroded over time.

(25) I strtongly believe, if this idea could be strategically think, planned and executed, I would believe, Malaysia would be a Nation that truly able to make its economic system public. It would be the most morale bound and democratic system where the majority and minority interests are well nurtured and safeguard.

MyStore, Terasi, Simunjan
13 March., 2011