Off The EDGE - Tan Sri Khalid Ibrahim's Interview

If there were more able people like Tan Sri Khalid Ibrahim in the Opposition, the current Government would have very good reason to worry.

Tan Sri Khalid Ibrahim is currently, the Treasurer for the Anwar Ibrahim-led Parti Keadilan Rakyat.

His recent interview in the December edition of the magazine "Off The EDGE" explored his thoughts on many issues economic and political, with some very strong views on UMNO and the perversion of the NEP, by its implementors.


For those not in the know, Tan Sri Khalid Ibrahim was one of the most illustrious and prominent Malaysian corporate figures in the Malaysia. He led the infamous "dawn raid" the London Stock Exchange on Guthrie in 1981 winning 51% of the company for Permodalan Nasional Berhad (PNB) in less than 2 hours after the bourse had opened for business.

He once served in PNB under the disciplined and stoic Tun Ismail Ali - arguably, one of the few prominent Malays with fearless integrity, that the country has ever seen.

He was at one time the CEO of PNB and Guthrie and is also a minority shareholder in Guthrie. He was responsible for administering arguably, some of the the most successful corporate equity distribution and investment programs for Bumiputra individuals, namely Amanah Saham Nasional (ASN) and Amanah Saham Bumiputra (ASB).

As part of PNB, he was a key part in the implementation of the objectives of the NEP, under the Barisan Government - for at least, 20+ years.

Therefore, it came as a great surprise to many when Tan Sri Khalid joined Keadilan and spoke frankly against what he perceived as the distortion of the objectives of the NEP, by the leading party in the Barisan coalition, UMNO. He has even called for a scrapping of the NEP and to be replaced by an entirely new socio-economic restructuring program (perhaps, Keadilan's not-very-widely publicized and proposed New Economic Agenda)

But because historically, he is who he is (and even if you don't think our Opposition is a viable one, like I do) - his views deserve the attention of all Malaysians who are concerned about where this country is heading.

I would recommend that everyone get a copy of "Off The EDGE" from your local big bookstore but for the benefit of all Mimpi Pari readers - I shall reproduce some extracts of his interview with "Off The EDGE" below.


************************************************

On the NEP:

"What I don't accept is the way NEP was vulgarised in terms of implementation. At the end of the day, I was a player for 30 years and having looked at the end-result of it, the NEP pleases some,. but so many feel so strongly against it.

Let me explain. There are Malays that have benefited from the NEP, but there are a lot of Malays that have been sacrificed by it.

What has happened is, not only have the [bumiputra] figures for [equity participation] declined, the size of disparity between Malays is also high. This means that the idea of positive discrimination to redress imbalances is out, as you have to create other excuses for its continuance".


And in another part, he continues:

"What I am saying is that the NEP has not achieved what it has set out to do, and has instead segmented society. The problem with the NEP in regards to UMNO, is that it is utilized for the existence of the political party.

That is the worst - the wealth of the nation and its future is controlled is by 3,000-4,000 people who decide to select or not select their people, and this is funded through the advantages connected with the NEP. That is what this squabble is all about".


And in another part he continues:

"For example, 7-8 years ago, the Government operating budget was only RM50 billion. A few months ago, when PM Abdullah came out with the budget of 2007, this has been increased to RM112 billion. Every year it grows by 15% and if its utilization is not being checked, you will get wastage, which is then translated into the NEP.

It doesn't even help the NEP - the nation just gets more and more in debt."



And Tan Sri Khalid goes even further:

"We cannot go on lke this. All the economic arguments and financial arguments have never been discussed in the political arena.

I can show you why I don't want the NEP - because the leakages and the abuse of it is so huge that future generations will not benefit. If we could use it properly, then of course, we'd be better off.

The NEP was not intended for individuals or [political] parties; it was basically to say the Malays - the majority of Malays - were not in the mainstream of the economy of the nation, and therefore, we need to do something to rectify this.

It talks about masses and not UMNO Bahagian - it was never the intention to be that".



And on Tun Mahathir and the current spat with the current Prime Minister:

"But unfortunately, Tun Mahathir, despite being a very intelligent man, totally didn't understand the Malay culture. That's why he failed.

And while he wrote books about the Malay dilemma and might be writing another book on a double Malay dilemma or something like that, he didn't understand,.....The Malays, culturally, less than 20% are called the principled ones.

The Malay is basically a "post-supporter". And what is meant by "post-supporter"?

Malays only support the winner - if you are the winner, you will get the support".



And he continues:

"It's very traditional since the Malay hardly ever rebels. If the Sultan is killed by his brother and the brother becomes the sultan, the scene of the killing is not relevant - they will support the new Sultan".



And he makes an interesting point here, to ponder:

"That's ahy we have a lot of work to do for change. Malays might not be your supporters, but they can vote for you. In 1999, they might not have been members of Keadilan, but they were willing to give you their vote.

The vote is not relevant to the Malays. But support? [You get it] when you win.

It's a totally different approach and Mahathir didn't understand that, and still doesn't,...."


***************************************

Parti Keadilan Rakyat or Keadilan will never become the Government (or even a State Government anywhere), at least not in the next 30-50 years, I think.

On an ideology level - what they're trying to convey is far more complicated than PAS's "Islamic state" ideology and perhaps, far less acceptable to many Malays currently, too.

At best, Keadilan will play a more prominent role in moving Malaysian politics from a blinkered race-based perspective to a more class and issues-based perspective - which would not be a bad thing.

If it could educate Malaysians to be more circumspect and proactive in holding the current Government (and the major political parties like UMNO) accountable for its deeds (and misdeeds) - that would be an achievement in itself for Keadilan.


I don't necessarily agree on Tan Sri Khalid's premise that the Malays are "post-supporters", though - even though it may be a more accurate reflection of UMNO members. And even if one accepts this premise - I'm sure that the Malays are not the only ones guilty of this behaviour.

I would instead premise the voting and political support pattern of Malaysians generally, as a risk-averse "better the devil you know, than the devil you don't". They may silently agree and support the cause of the Opposition - but the majority will never throw their vote in, for the Opposition.

Regardless of the moral rot festering within UMNO and Barisan Nasional parties - the majority of Malaysians are familiar that the economic and political stability formula has somewhat worked, over the last 30+ years or so.

And the longer the formula works - the stronger the inertia against change.

Hence, this leads to astoundingly big majorities in Parliament for the governing Barisan coalition - the likes of which are not seen in other parts of the world and for that long a duration. It's probably a world record of sorts.

Of course, you have your major exceptions to the rule - like in Pas-led Kelantan, which is almost a country on its own. Or when the UMNO people turn on their own chief, as they did in Terengganu in the 1999 elections. Or in some Malay heartlands up north, where the "Islamic state" ideology still has appeal.

The conclusion that Anwar Ibrahim reached when he joined UMNO in the early 1980's was and is still correct - political change in Malaysia can only be effectively engineered from the inside of Barisan Nasional. And at the apex of this give-and-take system, is UMNO.

But it has also been proven by a succession of idealistic youth leaders who have tried, that all who join UMNO to "change it from the inside" - will eventually be tainted or become silent accomplices to the moral rot and corruption that goes within.

Some have become even bigger "monsters" than the people they once aspired to rid of. In UMNO, grassroots realpolitik seems to justify all measures - even ones that are corrupt and corrosive to the people and the nation.

So, given the above - where does that leave Malaysia? What is the prospect for positive change, then?


My take on it is this - economic and political change can only come from within Barisan Nasional - but it can only come with much constant pressure from the leadership of UMNO, combined with support from the outside of UMNO - be it from the Barisan component parties (like Gerakan, MCA, MIC, etc) or the masses themselves.

Component parties must be allowed (even encouraged) to disagree on issues - so that weaknesses and corruption, may be exposed and addressed. Taking a collective stand that hides the extent of the rot, only compromises all Malaysians, in the long run.


For the country to improve - the "dark sides" and negative culture within UMNO must be contained and weakened.

The leadership of UMNO must be willing to take the right steps and not take the easy way out - even if it means losing more seats in Parliament and having a stronger Opposition voice, at both state and federal level.

It is better for Malaysia to have a 70% Barisan majority in Parliament than to have an overwhelming 90% majority and yet, leading a party that has to be bribed at all levels, to retain their support - hence, incurring public expenditure and wastage in the millions (or possibly, billions) on feeding career political "mercenaries" and sycophants.

It is also important that the public's understanding of current political issues be heightened, so that they can look at each issue on its own - without taking a pre-determined stance of "pro-Government" or "anti-Government" in their minds or a blinkered race-based "you-can't-question-this- as-this-invades-my-turf" attitude.

We must move away from a race-based perspective to Malaysian politics to an issues-based ones.

We must vote with our heads and on a strict evaluation of the performance of the Government and our elected representatives - and not based on racial or religious sentiments or even the fear of voting for the the unknown quantity.

Malaysians have to be taught that it is an essential part of good citizenship, that their leaders be questioned and held accountable, on the usage of taxpayer's monies and that we don't shut both eyes when it comes to economic, financial and political abuse, of any kind by the Government.

Every Malaysian born is entitled to their space in this country - but they only deserve it, when they stand up and speak up politely and rationally, in defence of that birthright. No democratically-elected Government in the world, can dictate over a populace that is non-submissive.

You want to see real change? Start with getting the masses (especially the young) to think and act on it - it's much more effective than trying to get politicians and political parties to change, from the inside.

Teach them to understand history, to question prejudice and to assess Malaysia's place and survivability in today's world.

You will see the pay-off within one generation, I promise you.

And on issues of national unity - this is what I always say to people - the Government does not constrain you (or your children) from mixing with the other races. That's a personal choice and not the dictates of any Government. If it's not done - look in the mirror and ask what you've done to improve the situation, on a people-to-people level.

Sometimes, you have to recognize the areas where having the correct attitudes are far more effective, than any national policy that can be legislated. Don't become a feeble people that looks to the Government, for everything.

*************************************


But if UMNO and Barisan insists on doing whatever it takes (and channelling all forms of economic patronage) to win all seats in an election - then, there is hardly any hope left for Malaysia.

We will continue to be "led" and simultaneously robbed, by 3,000 - 4,000 people in a political party - who will claim to do it on the basis of protecting the interests of their own kind.

And there will come a point when our luck (and natural resources) will run out and will not be able to economically compensate, for the political excesses of our leaders. And by then, Malaysia will regress - perhaps, permanently.

What then, will we say to our children - when we can only leave them, a country that is in ruin?

I hope we never have to come that point.