KUALA LUMPUR: The MCA-organised Chinese Economic Congress in its declaration today called for the gradual removal of the 30% Bumiputera equity despite calls by hardline Malay groups that the race-based affirmative action policy be maintained.
The congress said this was "in line with the promotion of good governance and greater transparency" and that the "gradual removal" of the race-based quota must coincide with the practice of an open tender system to level the playing field.
Bumiputera equity quota has been at the centre of the nation's economic dilemma.
While some believe that the rights are enshrined in the "social contract" and the Federal Constitution, others are of the opinion that the policy is a hindrance to economic growth and encourage corruption. It is also blamed for the Malays' inability to compete commercially.
The congress also echoed MCA president Dr Chua Soi Lek's earlier call for a more inclusive policy pertaining to non-Bumiputera participation in government-linked companies (GLCs).
This is also another sensitive matter to hardline Malay elements in the political mainstream where many feel GLCs are the exclusive rights of the Malays, with minimal participation of other races.
But Chua, who read out the 12-point declaration, said the radical approach was pivotal in realising Prime Minister Najib Tun Razak's all-encompassing 1Malaysia concept.
"The congress urges the government to practise inclusive policies by liberalising the GLCs to include more multi-ethnics boards of directors and workforce within the GLC eco-system and to award contracts to best qualified local companies regardless of their equity composition," read the former health minister.
Balancing act
The demands made by Najib will place him in a difficult decision-making process where he needs to balance out between maintaining the government's core Malay support or risk losing Chinese votes. The Chinese form the country's second biggest electorate.
Chua, in his closing speech, said jokingly that his meeting with Najib at the congress this morning was met with a sigh, where the prime minister hoped that the outcome of the forum will not "put him in more trouble".
"I met him and told him about the demands and he said that I have to understand that with the economy, there are very delicate issues that involve balancing," said Chua.
However, the congress pledged full support and loyalty towards the Najib administration and its reform programmes.
Many of the points raised are similar to the weaknesses identified by the government, which needed immediate attention, such as the need for a comprehensive minimum wage policy and subsidy cuts to reduce the staggering budget deficit.
It also called on the government to increase cash aid for small and medium-enterprises (SMEs), which the congress felt was integral to the NEM's aim of turning Malaysia into a developed nation in 10 years.
Another important point highlighted is the need for a pro-active measure by the Najib administration to strengthen "genuine" Bumiputera-Chinese business partnership by leveraging the strong multi-ethnic diversity and strengths.
FMT
15/08/10
The congress said this was "in line with the promotion of good governance and greater transparency" and that the "gradual removal" of the race-based quota must coincide with the practice of an open tender system to level the playing field.
Bumiputera equity quota has been at the centre of the nation's economic dilemma.
While some believe that the rights are enshrined in the "social contract" and the Federal Constitution, others are of the opinion that the policy is a hindrance to economic growth and encourage corruption. It is also blamed for the Malays' inability to compete commercially.
The congress also echoed MCA president Dr Chua Soi Lek's earlier call for a more inclusive policy pertaining to non-Bumiputera participation in government-linked companies (GLCs).
This is also another sensitive matter to hardline Malay elements in the political mainstream where many feel GLCs are the exclusive rights of the Malays, with minimal participation of other races.
But Chua, who read out the 12-point declaration, said the radical approach was pivotal in realising Prime Minister Najib Tun Razak's all-encompassing 1Malaysia concept.
"The congress urges the government to practise inclusive policies by liberalising the GLCs to include more multi-ethnics boards of directors and workforce within the GLC eco-system and to award contracts to best qualified local companies regardless of their equity composition," read the former health minister.
Balancing act
The demands made by Najib will place him in a difficult decision-making process where he needs to balance out between maintaining the government's core Malay support or risk losing Chinese votes. The Chinese form the country's second biggest electorate.
Chua, in his closing speech, said jokingly that his meeting with Najib at the congress this morning was met with a sigh, where the prime minister hoped that the outcome of the forum will not "put him in more trouble".
"I met him and told him about the demands and he said that I have to understand that with the economy, there are very delicate issues that involve balancing," said Chua.
However, the congress pledged full support and loyalty towards the Najib administration and its reform programmes.
Many of the points raised are similar to the weaknesses identified by the government, which needed immediate attention, such as the need for a comprehensive minimum wage policy and subsidy cuts to reduce the staggering budget deficit.
It also called on the government to increase cash aid for small and medium-enterprises (SMEs), which the congress felt was integral to the NEM's aim of turning Malaysia into a developed nation in 10 years.
Another important point highlighted is the need for a pro-active measure by the Najib administration to strengthen "genuine" Bumiputera-Chinese business partnership by leveraging the strong multi-ethnic diversity and strengths.
FMT
15/08/10
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