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Friday 11 June 2010

Naked NEP - 30% quota

Apparently Ibrahim Ali is very happy. He is the champion of Malays. Again, I am all for Malay rights and helping the poor. I am dead against corruption and murdering this country.

Ibrahim is happy that the 10th Malaysian Plan, MP10, has required the 30% Bumiputera equity in corporates to stay. More on why he is happy later. First, why has this quota system killed the country? The answer is simple - the world is now flat. With internet and air travel, borders mean nothing.

Fact: Indonesian Palm Oil companies have listed in the Singapore stock exchange, despite the fact that the Malaysian Palm Oil Exchange is more mature and has big players in it. Also despite the fact that Indonesians are "serumpun" and also an Islamic country.

Fact: Malaysians are now nett investors. In otherwords, Malaysians invest more overseas than we receive foriegn investors.

So, quota does drive away domestic and international investors. Surely, we all know that. But why is Ibrahim happy? How can he be happy given this situation, purely fictional - but you get the idea. Without quota, we may have RM 10 billion of investment, and Bumiputra may own only 10% of it - which works out to be RM 1 billion. With quota, investment drops to RM 1 billion and 30% of it is only RM 0.3 billion. I do not think this is far fetched - considering we have nett capital outflow. In other words, we have no NEW (nett) investments. It is more like 30% of RM 0.

But why is he sitll happy? Ahhhh..... the reason is, he is patriotic. UMNO is patriotic. Especially to the first DYMM of Malaysia (rather it was Malaya back then). It is not only RM 1 billion or RM 0.3billion. It is a matter of, "WHO's pocket it is in". RM 0.1 billion in my pocket is better than RM 1 billion in every Malaysian's pockets. But how, I hear you ask.

More rules means more procedures. More procedures mean more approvals. And more approval means? So, do you know the answer or not? Pass or fail? Hehehe. I leave it to your imagination.

2 comments:

ken said...

dude.. your blog is hilarious! you should have your own talkshow... but alas.. this is bolehland. love your commentary on local politics, and your FRs are quite entertaining too. close to 2am but cant seem to stop reading it.

Hamsap Goldfish said...

Thanks mate. I really should update my blog more often... but work is not permitting me to do that.