Ads2

Friday 11 June 2010

Naked NEP - Business Opportunity

Here's another way how the NEP has been killing the very people they are suppose to help. It happens all the time, but I will only write about one scenerio. Again, I have nothing against Malay rights, or helping the poor. However, I would like to see proper help being given, not giving them the crumbs of corruption.

Typical scenerio in a PLUS highway rest area. There will be about 10 stalls, more or less. Sometimes a lot more. Let's say 10. Of the 10 or 20 stalls, you will notice that most of the stalls are Malays, save for maybe 2 for Chinese and 1 for Indians. On the surface, it is government policy to help the Malays. But at an economic level, it is a disaster.

Why? First point - no pork. Everything must be halal. That's OK, but it means that most Chinese will stay away from the rest areas. So, who's left to visit them? Malays, of course. They are the majority and it is halal. Now that we have established that the market is a Malay market, think about it. Let's say there are 1000 visitors a day.

These 1000 visitors have 7 stalls to choose from. Say they don't like the Indian or the Chinese shops - just for the sake of argument - and this may not be a fact. I am not saying it is a fact. But just say, 1000 visitors for 7 stalls. That works out to be about 140 visitors a day. Not alot. (Note - I really doubt is some of them have 50 customers). The rest areas are pretty close to each other too!

Now, compare it to a situation of only 2 Malay stalls - halal, and 8 non-halal Chinese shops. All of a sudden, there are 500 visitors per stall. That's four times more business. My point is, the government looks popular by helping many Malays by giving them licenses to business. But no one worked out the supply. Instead, they are given stiff competition, and so many stalls have hardly any business. Instead of having 2 rich Malays and the rest poor, now, they virtually bankrupt ever Malay.

Do not believe me? Take a look. Go to a rest area. They all sell about the same stuff. Go to a Pasar Tani (those government ones). They all sell about the same stuff. If I am a business owner there, I will complain. Why do you issue only licenses to Malay? If they issue it to a Chinese, it will never compete with a Malay business - Chinese food is typically not halal.

Silly isn't it? But why does the government do this? Easy. They are smart. 7 Malay votes for UMNO is better than 2 Malay votes. Ever since things this way?

No comments: