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Speech at DAP Cheras Dinner

by Lim Guan Eng

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(Kuala Lumpur, Friday): Prime Minister Datuk Seri Abdullah Ahmad Badawi’s lofty ideals and grand hopes of a National Mission of excellence will never succeed if government and private procurement policy is not opened up for all. How can the Prime Minister achieve his National Mission of excellence based on merit and competitiveness when 96% of government projects are given to bumi contractors and preference given to bumi companies in the private sector?  

Abdullah had stressed on the importance of human capital, value-adding and knowledge enrichment to achieve an "excellent, glorious and distinctive" nation in the next 50 years. However such ingredients of success are contrary to existing government policies that impede the harnessing of human capital and do not reward those with knowledge, skills or abilities. 

Under the Ninth Malaysian Plan (9MP), RM 46.8 billion had been allocated for basic infrastructure works. Works Minister Datuk Samy Vellu revealed last week that 96% of these projects are given to bumis. The miserable 4% given to non-bumis is far below the 35% non-bumi population in the country and demonstrates how the NEP continues to exclude and divide Malaysians based on race. 

Development Expenditure and Allocation for Infrastructure and Utilities, 2001-2010 (RM million)

Source: Economic Planning Unit

Notes: * Includes village roads 

Similarly in the private sector, preference must be given to bumi companies, as shown by the internal memo on procurement policy on 7 December 2006 issued by the Malaysian Industrial Development Finance Bhd(MIDF). MIDF, listed in Bursa Malaysia with RM 12 billion in assets, requires that such a bumi supplier must have at least 51% bumi in: -

1. equity stake;

2. shareholding that is not associated directly or indirectly with any non-bumis;

3. voting power;

4. members in the Board of Directors, including the Chairman;

5. at the management, professional and supervisory staff.

DAP considers it unfair, unjust and discriminatory that non-bumi contractors can get neither government projects nor private sector jobs. What are non-bumi contractors supposed to survive on? It is sheer hypocrisy and double-standards for Cabinet, when they made the correct decision in disapproving Maybank’s ruling requiring their panel lawyers must be 51% bumi, and yet at the same time Cabinet approves 96% of government projects to bumis.  

Malaysia would never achieve the National Mission of excellence if Abdullah does not end the discriminatory NEP or open up government procurement to the best and most qualified. Abdullah’s refusal to do so has resulted in systematic failure and breakdown of the delivery system as shown by expensive buildings which are defective upon immediate completion. The latest evidence of such defective work and poor delivery were:

1. On April 11, a burst pipe at the Immigration Department headquarters in Putrajaya caused widespread damage and brought daily operations to a halt. Operations resumed at 9am the next day;

2. On April 28, part of the ceiling of a multi-purpose hall at the Entrepreneurial Development and Co-operative Ministry in Putrajaya collapsed, causing a water pipe to drop and burst;

3. On April 30, two parts of a ceiling panel collapsed and there were deep cracks on the walls the new RM 270 million Jalan Duta Court Complex, the second largest complex in the world;

4. The Sultan Mahmud Airport in Terengganu was closed for night landings on two nights on 5 & 6 May 2007 because of a malfunction of the runway navigation lights;

5. On 7  and 9 May 2007 hearings in the same Jalan Duta courts ended early when the air-conditioning malfunctioned and there was a electricity blackout respectively; and

6. The shameful leaking roof in Parliament on April 2005 in the Dewan Rakyat Chambers that disrupted proceedings and in the media center on 9 May 2007 despite the nearly RM 100 million spent on renovation works.

Despite the best intentions of the Prime Minister to improve the maintenance culture, such intentions will not be realized as long as the NEP is continued and   mediocre or worse, unqualified contractors continue to be appointed. Justice and excellence requires that all contractors regardless of race be allowed to do government projects or apply for private sector work not only to ensure such problems not recur but also maintain the highest standards and performance.