by Koon Yew Yin
Aliran Monthly Vol 25 (2005): Issue 7

	I was especially disturbed by the Youth president Hishamuddin raising his keris to symbolise UMNO Youth’s role in championing the Malay race. Koon Yew Yin

As a loyal Malaysian, I feel threatened to see several powerful politicians clenching their fists demanding their bumiputera rights at the 56th UMNO General Assembly. I was especially disturbed by the Youth president Hishamuddin raising his keris to symbolise UMNO Youth’s role in championing the Malay race. Drawing out the keris or sword indicates a life-threatening situation.

They all urged the Government to continue with the New Economic Policy (NEP) as part of the national development policy so that the Malays will be empowered and not be sidelined by 2020. They argued that the ‘Growth by Distribution’ strategy as outlined by the NEP should be pursued to ensure that the targeted 30 per cent bumiputera share of corporate equity ownership is met. And they all said that they should not hide and feel ashamed about getting these advantages.

What happened?

Where are the goodies given out to the Malays by the government in the last 20 years?

Soon after the 56th UMNO General Assembly, I saw the television interview of Chua Jui Meng and Khairy Jamaluddin, the deputy UMNO Youth President. I was shocked to learn that the Malays had close to 20 per cent equity 20 years ago and now they still have only around 20 per cent share of corporate equity ownership. How could this be? In the last 20 years, the government did not stop giving out goodies to the Malays. Where are the goodies? I think they did not consider the following:

• FELDA plantations, which form the largest palm oil plantation in the world; almost all the settlers are Malays.



• Eight out of ten anchor banks are Malay controlled.



• Most of the large listed companies like Sime Darby, Guthrie and Golden Hope are Malay controlled.



• Almost all APs are given to the Malays and they control almost the entire automobile sector.



• Khazanah’s shares in government-linked companies. Are these shares held on behalf of the Malays? This should be clarified.

If all the above were taken into consideration, I think the Malays have more than the 30 per cent they asked for. Are they satisfied with the 30 per cent?

Where are the Bumiputera contractors?

All these strong statements demanding more and more handouts can be very disheartening to the minority groups. A few months ago, many people were shocked to read that one of the country’s top students with 13 As could not get a scholarship until the MCA appealed on his behalf. If various political leaders do not exercise restraint, such posturing at the UMNO general assembly could upset the racial situation.

The government’s policy has failed miserably in producing good bumiputera contractors. I am aware that this statement criticising the government’s policy can put me into serious trouble but I am merely pointing out the current realities which the nation must face in order to seek new solutions. As I was one of the founders of IJM Corp Bhd. and served as Secretary General of the Master Builders Association Malaysia for nine years, I indeed know what I am saying about the contracting business.

As you know, our country has hundreds of high-rise buildings and thousands of kilometres of highways. Can you point out a bumiputera contractor who has won a building or highway contract through the open competitive tender system? It is hard to believe that, since Independence 48 years ago, in spite of the government’s earnest efforts, it could not produce even a few good bumiputera contractors. It seems that it is easier to produce many surgeons than to produce some efficient contractors.

Billions wasted

A few months ago the newspapers highlighted bumiputera contractor DRB- HICOM’s financial difficulties in undertaking the government’s RM 2.54 billion Rawang- Ipoh railway project. After five years, they could not proceed any further unless the Government gave them another RM 700 million. All taxpayers would like to know the Government’s decision on this claim. At that time, I thought that it was so ridiculous to give out such a large contract to anyone without open tender.

More recently, I was shocked to read in the newspapers that Public Accounts Committee Chairperson Shahrir Samad has pointed out some irregularities and mismanagement in the RM 24.3 billion contract to build about two dozen offshore patrol vessels.

This gigantic contract, the largest in Malaysian history, was given in 1998 without open tender to PSCI, a bumiputera-controlled company. After seven years, the contractor has not made one vessel that is up to standard. God only knows when this contract can be completed and whether the contractor will ask for several more billion ringgit to produce all the required vessels.

All taxpayers would like to know how many billions or millions have been wasted. In fact, Lim Kit Siang has requested this issue to be discussed in Parliament. I hope the Government will discuss this openly and realise its mistake in giving out juicy contracts to anyone without the necessary experience and without going through the open tender system. At this rate of wasting money, soon our economy will be ruined.

Simply giving out contracts involving very large sums of money without open tender, in a transparent manner, dramatically increases the likelihood of corruption. That is why Transparency International has placed Malaysia in 39th position and Singapore in 5th position in its 2004 Corruption Perceptions Index. You cannot imagine Singapore giving out any contract without open tender. It is unthinkable.

About 5000 years ago, Confucius had these classical sayings: ‘It is stupid to ask someone who does not know the difference between the head and the tail of a boat to make you a boat,’ and ‘It is stupid to lead a cow up a tree.’

The significance of these sayings is that the government should not give any big contract to anybody who has no experience and little capacity to perform. All the extra money given out without much accountability will only make the bumiputras even more inefficient and they will not be able to win any large contract through open tender in the real world.

If, up till now, the government cannot produce some competent bumiputera contractors, it surely realise that its method of giving out juicy contracts without open tender has failed to produce the desired result. It should not continue to waste anymore money. It is wiser to use the money more effectively on some other projects.

Aggressive talk

Having read all the UMNO leaders’ speeches, I observed the following:

• Fortunately, our PM did not draw his keris. Instead, he had some reassuring words. He said that the nation had to come first and not the contractors. He also said that he would fight corruption as long as he lives.



• Unfortunately, no one proposed how to consolidate and to develop what they already have and to try to walk without wheelchairs and crutches.



• Regrettably, no one dared to suggest that they should emulate Chinese Malaysians, who have succeeded despite the NEP. They have learned to run without crutches.



• Disappointingly, there was no expression of appreciation for the minority group’s contribution in improving the country’s economy. As all management books say, a kind word of appreciation can motivate people to perform better.

The UMNO youth leaders were too aggressive; they did not consider the feelings of the other races. Can you imagine what their reaction would be if the Chinese had acted similarly in the MCA assembly?

Aliran Monthly, Vol 25 No 5 containing my article ‘Why are there so few successful bumiputera contractors? How to produce more’ should be interesting to all politicians and all those who are involved in the construction industry. I sincerely hope that some level-headed and sensible politicians will read these articles and urge the Government to do the right thing.

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Koon Yew Yin, a Chartered Civil Engineer, was one of the founders of the three larger listed construction companies in Malaysia. He was a former member of the Board of Engineers, Malaysia for six years. As a member of the SIRIM Board, he was responsible for writing the Malaysian Standard Specifications for Cement and Concrete. He was also the Secretary General of the Master Builders Association, Malaysia for nine years.

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