Government should seriously address the concerns about poor transparency, labour standards and human rights which prompted the  Calpers withdrawal instead of seeming to derive  perverse pleasure from such unexpected international attention


Media Statement
by Lim Kit Siang

(Penang,  Sunday):  The Government should seriously address the concerns about poor transparency, labour standards and human rights which prompted the withdrawal of California Public Employees’  Retirement System (Calpers), the largest United States pension fund, from Malaysia and three other Southeast Asian countries instead of seeming to derive perverse pleasure from such unexpected international attention.  

The National  Economic Action Council executive director, Datuk Mustapha Mohamed, for instance, reacted by criticising Calpers for “lack of insight into the region’s potential” - which is as good as telling  Calpers that “the loss is yours and not mine”!  

With such an attitude, why should Malaysia be sending delegation after delegation overseas to attract foreign investments as we might just as well sit tight in the country to wait and see who are stupid enough not to recognise Malaysia’s investment potential and to invest  in the country. 

There can be no reason for such government complacency over the Calpers withdrawal, especially with the recent spate of adverse international media reports about al Qaeda links, networks and operatives in Malaysia and  the inclement international economic environment as reflected by  the 55% drop in American  investments in Malaysia last year, which slumped to RM3.31 billion from RM7.49 billion the previous year, and the competition from China for foreign direct investments. 

Although Calpers does not have substantial investments in Malaysia, with only an estimated US$100 to US$300 million in the Kuala Lumpur stock market,  the move could have long-term implications in discouraging other big pension funds from investing in Malaysia as a result of the Calpers blacklist.  

However, Malaysians should presently be more concerned about the government’s unrealistic and unprofessional reaction  to the Calpers withdrawal than to   Calpers decision itself, and the government should demonstrate that it is able  to seriously address the concerns of Calpers,  which looks beyond traditional economic factors and considers basic democratic principles.  

(24/2/2002)


*Lim Kit Siang - DAP National Chairman