Ex-Sabah Chief Minister (CM) Datuk Osu Sukam RM 7.1 Million Gambling Debt Highlights  Malaysia’s Huge Gap Between The Rich And Poor And The Worst Income Disparity In South-East Asia.

Speech at Kluang " Restore The Third Vote" Dinner
by Lim Guan Eng  

(Kluang, Saturday): Former Sabah CM Datuk Osu Sukam RM 7.1 million gambling debt highlights Malaysia’s huge gap between the rich and poor and the worst income disparity in South-East Asia. Datuk Osu who is presently the UMNO Papar Division Chairman, incurred the RM 7.1 million debt while gambling in the Ritz Hotel Casino. He had written the cheque for 1.5 million pounds or RM 7.1 million on 9.9.2002 but the cheque “bounced” resulting in legal action by the casino to recover the gambling debt.

Even though the gambling debt was incurred after Datuk Osu was no longer Sabah Chief Minister, the government must clarify whether there were other gambling debts and any explained sources of wealth and income accumulated when he was Chief Minister. Public interest demands these questions be answered so that the public is certain that Datuk Osu’s gambling habit did not influence decisions made by him in the discharge of his duties as CM.

The ACA must investigate this matter to ensure that decisions taken when Osu as Chief Minister as not impartial, responsible or in the best interests of the public. The Prime Minister is correct to say that Datuk Osu has failed as a leader but he has also brought shame to BN and the country.

Such expensive gambling habits shows the different lifestyles of rich UMNO politicians in contrast to the poor people that UMNO and BN claims to represent and fight for. Recently TV3 highlighted how a poor family in Kuching had to eat snails to survive poverty and yet Datuk Osu can afford to gamble away millions of ringgit rolling the dice in luxurious casinos.

This is the type of BN development that enables the rich to be so rich as to gamble away millions in a single night whilst the poor are so poor as to eat snails to survive. **In the report by the latest United Nations Human Development (UNHDP) Report 2004, Malaysia has the worst income disparity between the rich and poor in South East Asia, higher than Philippines, Thailand, Singapore, Vietnam and Indonesia.

The UNHDP Report 2004 shows the richest 10% in Malaysia controls 38.4% of our economic income as compared to our poorest 10% controlling only 1.7%. This compares unfavourably with Singapore’s richest 10% controlling 32.8% of economic income as compared to its poorest 10% controlling 1.9% of economic income. We can be proud of reducing absolute poverty levels but we should equally be ashamed that Malaysians have the most unfair distribution of wealth in South-East Asia(see table below).

Such unequal and unfair distribution of wealth is caused by BN’s pro-rich economic focus of producing more bumiputra millionaires instead of  creating wealth that can be enjoyed by all Malaysians. This policy failure is morally wrong as highlighted  UMNO Vice-President and Melaka Chief Minister Datuk Seri Mohd Ali Rustam in the Melaka State Assembly on 26 October 2004.

The Melaka Chief Minister proudly measured the success of his economic management in the state from 1999 with 10 bumi millionaires created by him which was preferable to creating 100 middle-class bumis with RM 100,000/-. When DAP Melaka Assembly State Opposition Leader Betty Chew asked whether it is better to have 1,000 Malaysians with RM 10,000 instead of only 10 persons sharing RM 10 million, the Melaka Chief Minister preferred the 10 millionaires to the 10,000 ordinary Malaysians.

It is morally wrong to help create the few who are rich at the expense of the many who are poor. This is the integral difference between DAP and BN social and economic policies- BN is interested in creating more millionaires whereas DAP focuses on creating wealth for everyone, especially the poor.

The success of BN’s economic policy of creating millionaires can be seen when the richest 10% of the population is 22.1 times richer than the poorest 10%. Prime Minister Datuk Seri Abdullah Ahmad Badawi should prove his commitment towards economic justice by creating and distributing wealth for all

The generous terms given to Projek Lebuhraya Utara Selatan allowing it to increase the already high toll rates by 10% every three years apart from the hundreds of million of ringgit of compensation received is one example of crony capitalism. PLUS  made RM 760 million in 2004 before the toll increase and will add an extra RM 154 million from the 10% toll hike to record a RM 937 million profit in 2005.  Despite such huge profits not one cent goes to Malaysian taxpayers as PLUS is exempted from the 28% corporate income tax. Additionally, interest payments is waived for PLUS RM 1.65 billion loan from the Malaysian government

One company’s interests is more important than the welfare of 25 million Malaysians. Economic wealth should be distributed to all deserving Malaysians who work hard and not to produce the few millionaires, whether bumi or non-bumis, who are beneficiaries of crony capitalism. Clearly the UNHDP 2004 Report validates DAP’s fears that under the BN’s crony capitalism, in relative terms the rich has become richer.

UNITED NATIONS HUMAN DEVELOPMENT REPORT 2004

(proportion of the economy controlled by population economic strata)

HDI Rank                     Poorest             Poorest            Richest             Richest             Richest 10% To

59.   Malaysia               1.7                    4.4                    54.3                  38.4                  22.1

83.   Philippines             2.2                    5.4                    52.3                  36.3                  16.5

76.   Thailand                2.5                    6.1                    50.0                  33.8                  13.4

25.   Singapore              1.9                    5.0                    49.0                  32.8                  17.7

112.  Vietnam               3.6                    8.0                    44.5                  29.9                  8.4

111.  Indonesia              3.6                    8.4                    43.3                  28.5                  7.8

(09/07/2005)