Sunday, August 15, 2010

The Chinese Are Doing Fine With NEP

A successful Chinese Malaysian entrepreneur developer claimed that the Chinese Malaysians are doing 'much better' with NEP (New Economic Policy of Malaysia which discriminates against the non native population in favour of the native Malays). Implied in his message is that the Chinese should not be demanding more from the majority Malay race. He quoted statistics showing that eight out of ten richest Malaysians are Chinese, and the majority of the small business people are also Chinese. One such successful 'Chinaman' even bought a house from this developer and spent a further RM40 million on improvement. All these prove that the Chinese are doing better under the NEP. He said it in response to recent Chinese demand for the much abused NEP to be abolished.

The businessman's statement lacks credibility, and is also wide off the mark.

Coming from the mouth of someone who is already successful in making use of the current warped system, it could be understandable that he prefers not to rock the boat. This reminds me of a time during the mid eighties, when Asians began to migrate in large numbers to Australia. This caused sections of the Australian community to resent the changing demography and a hot debate about whether or not Asians should be accepted in Australia broke out in the newspapers. The debate raged for weeks. I followed with keen interest every argument presented by both sides of the divide. One piece from an Asian Australian caught my attention. He too was against Asian immigration, he felt that Australia was better off if it remained European in character.

I was quite bemused with the writer's shallow argument. And so I decided to respond by writing to the editor. I simply quoted the Asian's writing and said this: "Can I suggest that the writer who supports a ban in Asian migration demonstrate his real support for his view by leaving Australia voluntarily?"

The editor gladly published my reply. I remember it was placed as the top piece of the day under the Asian Immigration debate section.

Yes. Such is the hypocrisy of people who are comfortable with a wrong policy simply because it has benefited them.

Coming back to the Chinese developer entrepreneur's argument on why the Chinese should not demand more. I say this argument is utterly flawed.

By asking for the NEP to be abolished, the Chinese are not demanding for more share of the economy. They are demanding for fair treatment, which isn't the same as asking for more share of the economic pie. They want the government policies to be fair, transparent, free of corruption, accountable spending, raise the education standard, freedom of religion, equality for all people, rule of law and a just judiciary. In short, the Chinese want a functioning democracy. The same Chinese people would still demand the same of their government if they were in a 100% Chinese country and thus have 100% ownership of the economy.

If having a functioning democracy means the Chinese as a group gets less than the current share in Malaysia's wealth, so be it. Why would the Chinese accept a lesser proportion of nation's wealth? Because having a functioning government system means that every citizen gets treated fairly. There can be no complaint of unfairness. And if you are treated fairly, you are likely to be more motivated to work harder for your community and your country. If there were transparency of government then you can take or plan actions which you know will lead to a predictable outcome. If there were no corruption, the people's tax money can be spent productively to improve public health care, education and infrastructure. If there were rule of law, the Malaysian public would feel less vulnerable, knowing that the laws are on the side of those who are right. And if the judicial system were fair, the people and the investors can take comfort that their rights will be properly protected. As a result, Malaysia is likely to be more prosperous economically and intellectually, which means every citizen actually gets richer. A smaller percentage of a bigger cake means more than a bigger percentage of a shrinking cake. Malaysia can and indeed will be more prosperous, just like its better governed southern neighbour Singapore.

In short, if Malaysia can be a proudly run democracy, the Chinese can truly be richer even if their share of the economy is smaller in percentage.

I suspect, in a truly democratically governed country, the richest few may be hit harder. There is no more short cuts and know-whos to build more and quicker wealth. A caring democratic government may also and indeed should protect the working class more. Needless to say, at the expense of the richest class.

No, the Chinese Malaysians do not want more share of Malaysia's wealth. They want, and are entitled to, a fairer treatment by their government.

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