Forward    Feedback    

MCA’s Failure To Move A Resolution To Abolish The 30% Bumi Equity Requirement Is A Failure Of Ong Ka Ting’s Honest Politics And Breach Of Promise To Express The Wishes And Defend The Interests Of The Chinese Community.

Press Statement

by Lim Guan Eng

(Petaling Jaya, Sunday): MCA’s failure to move a resolution at its General Assembly urging a removal of the 30% bumi requirement is a failure of Ong Ka Ting’s honest politics and breach of promise to express the wishes and defend the interests of the Chinese community. What is the use of MCA leaders such as MCA Vice-President Datuk Lim Siang Chai condemning Minister of International Trade And Industry Datuk Sri Rafidah Aziz only in the Chinese press but not in the Malay or English press? Rafidah knows that MCA is not serious about opposing her comments that the 30% bumi equity requirement has not curbed foreign (FDI) when they dare not condemn her in Cabinet or in Parliament. How then can Ong talk about honest politics or fulfil his pledge to defend the interests of the Chinese community?

As compared to other past MCA Presidents, Ong is very smart in that he sings different tunes to different language media. That is why he has decided to speak only to the Chinese press alone without the English or Malay press for fear of offending UMNO. However such ‘sandiwara” politics will not deceive the Chinese community. Ong must be naïve to think that the Chinese voters are so gullible that he has achieved results when he dare not even send in memorandum of the unhappiness of the Chinese Economic Consultative Council(CECC) towards the Ninth Malaysian Plan((9MP) when meeting the Prime Minister Datuk Seri Abdullah Ahmad Badawi on 6 August 2006.

The 30% Bumi Equity May Not Have Curbed The Flow Of Foreign Direct Investment(FDI) But It Has Failed To Accelerate Economic Growth To Fully Developed Status As Compared To South Korea That Was Worse Off Than Malaysia 40 Years Ago.

Rafidah claimed that the FDI under the 2nd Industrial Masterplan of RM 270 billion exceeded its target of RM 260 billion. The 30% bumi equity may have not have curbed the flow of FDIs but it has failed to accelerate economic growth to fully developed status as compared to South Korea. From a situation where Malaysia was almost thrice more prosperous than Korea in 1966, Korea is now more than 3 times more prosperous than Malaysia.

In 1966 annual per capita Gross Domestic Product(GDP) was less than US$ 130 as compared to Malaysia’s US$350. By 2005 according to the International Monetary Fund., GDP per capita in Korea had far exceeded Malaysia at US$16,421 as compared to Malaysia’s US$5,040.


The New Economic Policy(NEP) and the 30% bumi equity requirement are the principal reasons why Malaysia performed worse than South Korea. Instead of promoting transparency, we promote corruption. Instead of merit, we have quotas. Instead of technical “know-how” we have political “know-who”. Lack of competitiveness, inefficiency and poor productivity is the price we pay for the government’s continued reliance on the NEP.


Malaysia hopes to attract some RM2,894 billion in investment - both private and public - during the 15-year period to 2020. But do these investments benefit the country when we do not even have sufficient workers until we have to import them from foreign countries?

The government such be encouraging capital intensive and high-value investments centred on knowledge and ICT, not on labour intensive investment. Such dependence on foreign workers is unhealthy and as of December last year, there were 1.8 million foreign workers of which 32 percent were in the manufacturing sector and 8.8 percent in the services sector.


Malaysia should learn from South Korea and Taiwan whose commitment towards excellence and cost competitiveness has created world-class companies like ACER, Hyndai and Samsung. Hyundai and Posco Steel Corp of South Korea has succeeded where Proton and the corrupt-ridden Perwaja has failed.  MCA should be pointing out to Rafidah the contradiction of seeking global competitiveness and promoting a quota policy in Cabinet instead of only playing the gallery to the Chinese press.



* Lim Guan Eng,  Secretary-General of DAP

Your e-mail:

Your name: 

Your friend's e-mail: 

Your friend's name: