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Koh Tsu Koon Should Fulfil His Public Mandate Of A “Chief Minister For All With Power” By Demanding That Cabinet Stop Practicing Double-Standards And Direct Hishamuddin Tun Hussein Onn To Apologise For Interfering In The Penang State Administration.


Media Statement

by Lim Guan Eng



(Penang, Saturday): Penang Chief Minister Tan Sri Dr Koh Tsu Koon should fulfill the public mandate won in the 2004 general elections and be a “Chief Minister With Power For All Races” by demanding that Cabinet stop practicing double-standards and direct Education Minister Datuk Hishamuddin Tun Hussein Onn apologise to him for interfering in the Penang state administration. If Deputy Prime Minister Datuk Seri Najib Tun Razak can reprimand Higher Education Deputy Minister Datuk Ong Tee Keat for interfering in the functions of another Ministry, then he should behave fairly and consistently by issuing a similar reprimand against Hishamudin.
 

Ong was reprimanded for interfering with the Education Ministry by pressing for action to be taken on the misappropriaton of development funds for two Chinese primary schools in Muar, Johor. Similarly, Hishamuddin should be reprimanded in attacking Koh for allowing Malays in Penang to be marginalized when he is neither from Penang and is not involved in the Penang state administration.


Najib had tried to explain Cabinet’s failure to reprimand Hishamuddin because government and politics were different. Najib is clearly confused as such distinction between government and politics is both illogical and meaningless, especially in Malaysia when everything is politicized by BN. Najib added that the decision to reprimand Tee Keat was made by Cabinet in the presence of all heads of BN component parties.


MCA President Datuk Ong Ka Ting’s disappointing performance in Cabinet in failing to defend his Tee Keat requires him to explain why he dared not oppose Cabinet for issuing such a reprimand and that Higher Education Minister Datuk Mustapa Mohamad apologise on Tee Keat’s behalf without Tee Keat’s consent The Chinese community strongly feels that Tee Keat did no wrong in pressing for an explanation on the misuse of development funds of Chinese primary schools.
 

Both Tee Keat And Keng Yaik Must Apologise For Failing To Stand Up To UMNO

Ka Ting had said that MCA would not apologise to the government for it had done nothing wrong. If so then MCA should apologise to Tee Keat and the Chinese community for its wrongful and cowardly behaviour in not daring to do its duty in Cabinet.

Similarly Gerakan President Datuk Dr Lim Keng Yaik must also apologize for failing to demand that the Cabinet act consistently by issuing a similar reprimand against Hishamuddin. Clearly 5 MCA and Gerakan Ministers can not deal with one Hishamuddin. What then is the use of having MCA and Gerakan Ministers when they have no powers and dare not stand up to a single UMNO Minister?


UMNO Balik Pulau Youth members even demonstrated with banners against Koh in front of UMNO President and Prime Minister Datuk Seri Abdullah Ahmad Badawi. As the ruling party, UMNO need not hold demonstrations except for protests against Israel and the United States. Is that how UMNO treats Koh? Such personal humiliation of Koh is uncharacteristic of Malay culture of courtesy and fine manners especially when Koh is an invited guest.


These “kurang ajar” actions to their invited guest by UMNO Youth is clearly designed to send a strong message that Koh must capitulate to UMNO’s demands and take the necessary action to help the Penang Malays which they claim are marginalized. The Prime Minister has undermined Koh by directing that Second Finance Minister Tan Sri Nor Mohamed Yakcop liaise with the relevant agencies to uplift Penang Malays when such powers lie with the Chief Minister.


Najib went one step further by demanding that the Deputy Chief Minister’s executive powers be enlarged to have sole authority over Malay issues. This undermines Koh’s claims that he is the Chief Minister for all races. By stripping Koh of his powers, Koh is slowly becoming a puppet Chief Minister without power.

 

Why Are UMNO Millionaires Distracting Attention From Poor Malays In Sabah & Terengganu Who Are Even More Marginalized?

Is it true that Malays are marginalized in Penang? Has UMNO leaders forgotten that there are poorer Malays who are not millionaires like them and even more marginalized in the poorest states of Sabah, Kelantan, Terengganu Kedah and Perlis. Penang has the lowest poverty rate in the country at 0.3%.

By focusing only on Penang, UMNO is trying to distract attention from their failure to prevent Malays from being marginalized in the poorest states with the highest poverty rate of Sabah(23%), Kelantan (10.6%), Terengganu(15.4%), Kedah (7%) and Perlis (6.3%). UMNO leaders must be naïve to think that Malaysians, including Malays, are so gullible as to believe that Malays are marginalized in Penang but not in other states.

For millionaire UMNO Malay leaders to complain that Malays are marginalised in Penang is hypocritical and discriminatory when they ignore non-Malays who are marginalised not just in Penang but also (together with other non-Penang Malays) throughout Malaysia. Not every Indians and Chinese whether in or outside Penang are millionaires? Poor people come from all races.

The United Nations Human Development Report consistently list Malaysians as suffering the worst income inequality between the rich and poor in South-East Asia. This is conceded by the Ninth Malaysian Plan (9MP) which showed the share of income of the bottom 40% of the population declined from 14.5% in 1990 to 13.5% in 2004 whilst the share of the top 20% of the population increased from 50% in 1990 to 51.2% in 2004.

All Malaysians Face Marginalization

The income inequality, measured by the Gini coefficient, within the Chinese community worsened in the period 1999 to 2004 from 0.434 to 0.446 whilst for Indians from 0.413 to 0.425. The income inequality amongst bumis was even worse from 0.433 in 1999 to 0.452 in 2004. Marginalisation of Malaysians generally can be seen with the 9MP showing the Gini Coefficient nationally worsening from 0.452 in 1999 to 0.462 in 2004.

How come UMNO does not talk of reducing the widening income disparity between rich Malay millionaires like him and poor Malays but continue to hit out at Chinese as if there are no poor Chinese and all Chinese are millionaires like him? If UMNO is sincere about helping poor Malays and Malaysians who are marginalized he should be asking the government to abolish the 5% bumi housing discounts given to million ringgit homes (as if Malay millionaires like him need a discount) and distribute Petronas RM 70 billion ringgit profits to the people.

Distribute Petronas Oil Earnings To All

What the poor and marginalized Malaysians need now is increase in disposable income to deal with rising inflation and living costs, whether in the form of pay rise or government grants, which the 2007 Budget has miserably failed to provide. Since Petronas was formed in 1974, its earnings have exceeded RM 500 billion as compared to Singapore which does not have a drop of oil. If a non-oil exporter like Singapore can give S$2.6 billion (RM 6 billion) cash under the 2006 Budget to all Singaporeans, especially the poor, why can’t the Malaysian government do so when Petronas has earned nearly RM 500 billion. Oil importer Singapore has given $10.675 billion  (RM 24 billion) directly to its people since 2000 as compared to Petronas which has not given a single cent.

This year its pre-tax profits hitting RM70.2 billion jumped 21 per cent compared to RM58 billion in the previous financial year ending 31 March 2006. Net profit rose to RM43.6 billion from RM35.6 billion. To get an idea of Petronas' size, the net profit of Malaysia's largest listed company, Malayan Banking, was just RM2.5 billion. This year alone, the oil company has paid the government a total of RM41.7 billion - equivalent to what it would take to build 23 Kuala Lumpur City Centre (KLCC) complexes, including the Petronas Twin Towers.

Instead of taxing Petronas, DAP suggests that the pre-tax profits be distributed to every Malaysian to a maximum of RM 2,000 each with the remainder given to Petronas for capital investment purposes. If an oil importer Singapore can give tens of billions to its citizens why can’t an oil exporter like Malaysia do so.

Is UMNO Afraid Of Answering The Question Who Amongst The Malays Own 45% Or RM 325 Billion Of The RM 715 Billion Market Capitalization of Bursa Malaysia?

Deputy UMNO Youth President Khairy Jamaluddin talks of the failure of the New Economic Policy(NEP) to fulfill its objective of 30% bumi equity compared with the 18.9% in 2004 and that the Ninth Malaysian Plan(9MP) is the final chance to achieve it. This is untrue because the 18.9% bumi equity is based on par value of share capital of limited companies. The 9MP claims that in 2004, the Chinese owns 39%, Indians 1.2%, nominee companies 8%, others 0.4% and foreigners 32.5%.

Par value of share capital is a false reflection of the real or true worth of the company. A more accurate assessment, though not the most comprehensive and objective test, would be to take the market value of bumi equity of all listed companies in Bursa Malaysia (BM). As a millionaire from his previous RM 9.2 million shareholdings in ECM-Libra, which he has since sold, Khairy should know that his worth is not based on par value but market value.

In February 2006, Professor Dr Lim Teck Ghee of the Centre for Public Policy Studies(CPPS), submitted a report that showed as at 30 September 2005, bumi ownership of shares in BM amounted to 45% or RM 325.08 billion  out of the market capitalization of RM 715 billion. 

Are UMNO and Khairy afraid of answering the question who amongst the Malays own the 45% or RM 325 billion out of the total RM 715 billion market capitalization of Bursa Malaysia? Malaysians, especially Malays who do not possess millions of shares or imported vehicles APs, should focus on the important question who the rich Malays are who have benefited. And not be distracted by false lies of such rich or millionaire UMNO leaders who do not wish to answer this question and try to distract attention with lies that the 30% bumi equity of the NEP has not been achieved.

How Many Malays Are As Rich As Khairy, Roslan & Effendi?

How many poor Malays or Malaysians can afford to buy RM 9.2 million worth of shares like Khariy or spend RM 3.5 million on a wedding by Datuk Roslan Hashim. Malacca-born businessman Roslan said his wedding gifts to his bride included RM444,444.44 in cash and a further RM22,222.22 in dowry. Other gifts include a BMW 320i worth RM250,000, a RM150,000 jewellery set, a diamond ring worth RM20,000, a RM25,000 Rolex watch and other designer items.

Or other rich Malays who have benefited from the NEP such as Minister in the Prime Minister’s Department Datuk Seri Effendi Norwawi. In court documents on the divorce settlement with his former wife Zariah Hashim @ Farida Effendi revealed that he had generously given her assets worth more than RM20 million, exclusive use of two houses in Kuala Lumpur and Kuching worth RM10 million and RM2.5 million, respectively. Since the divorce, Effendi claimed that he provided monetary assistance amounting to almost RM1 million, costs of maintaining the house, maids, drivers, security and cash.

Just as the 2007 Budget has not benefited lower-income groups, we should adopt the correct macroeconomic policy and discard nationally divisive and outdated policies of quotas and subsidies. Such racial policies like the NEP must be replaced by those which forges national unity and encourages competition, value creation and meritocracy. Malaysian must abandon the racial premise of the NEP and its false pursuit of 30% bumi equity to pursue the real UMNO Malay owners who possess the 45% market capitalization of Bursa Malaysia.

However such rational arguments would be useless against the bullying aggression of UMNO leaders who thinks that such tactics can force Koh to surrender and capitulate. Koh must not back down but prove that he is the Chief Minister with power by asserting his personal authority and control over government agencies in Penang. Failure to do so would not only be his personal failure in his first test as future Gerakan President but also a betrayal of the overwhelming mandate given to him in the 2004 general elections by Penang voters.

(16/09/2006)


* Lim Guan Eng,  Secretary-General of DAP

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