WHATDOWEDa

Promote human development first for the present crisis is not solely an economic one. By Ani1 Netto

viduals or companies facing finan­ cial woes.

Salaries of top government mmts­ ters and senior civil sen an~ would be trimmed by 3 -I 0 per cent. though their rat perk were left un­ touched The counu: v.ouJd also try to slash tt ood tmport.

Anwar ah ... led do\\ln the offi­ cial foreca'it growth rate for 1998. which 1s now expected to be 4-5 per cent. much lower than the O\erl) opllmtstic 7 per cent he t long last, the Malaysian Some of the bitter medicine was had announced when tabling the government seems to be long overdue, though we have a Budget tn October. Analysts, snapping into reality and couple of reservations. Still. the howe\ er_ expect at best 2 per cent addressing some of our ·second Budget' was a water-shed grm\ th There could e\ en be a WOC!>, a~ the slide in the economy in the government's handling of the rece ton m 1998. continue~ From a broader stand­ economy: with it dawned the point. however. the measures an­ realisation that the boom decade for In ourre\ iew of his 'fin.( October nounced so far do not go far enough Malaysia was well and truly 0\er. Budget, at a time when the ma.m­ in tackling some of the root causes trearn media was <>till l<>udm: 11. THI'SECOND of the present crisis. v. e had said that lower growth rote' BUDGET' \\ ould not be a bad thin,; \\e s:nd On 5 December. Finance Minister Anwar's package included an then that Anwar's Budget d d nor Anwar Ibrahim announced what per cent cut in federal -.pending. go far enough in tacklin., me or has been called a ~econd Budget. with an immediate 10 per cent ,Ja.,h the structural weali.n e~ the with the benefit of hindsight: basi­ across-the-board. He aJ... o ... tre,,ed Malaysian economy. M re lll()(!er­ cally. a package of desperate mea­ that all mega project-. \\ ould be atc growth ratc.s. we argued. 'OOld sures after the October Budget postponed. The government, he allow us to tackle ~·'me ~ ba- failed to hall the slide in the said. would also protect the integ­ -.ic weaknesses. wh•,h nl) country\ capital and tinancial mar­ rity of banks and finanual in,tilu­ economic but aho ' x: .. kets. tions and would not bail out indi- litical.

Almm Mmllhlv 1997. 17(11) l'agt':? Accountability And Transparency Corporate Rape ~f.CJ~ Bakun HEP : Enough Is hnougb Fomema & Prlvatisation

Ling Hee Ll'Oog Langgar l>erintah 27

Su~e Our Merdeka Stadium 34 Aliran 21st AGM : Rcwlution 38

19 ALIRAN'S HOMEPAGE 30 http://www.malaysia.net/aliran Current Concern.~ 37

lnterview With Oatuk 'ling Pek Khiing 16 l'rfnu:d hy RP Prlntor. Snd. llhd. Sub~cripllon Form 29 611 & 70 JalanAir 1tam Where lias All The Critical Spirit Cone 40

Aliran is a Malay~ian non-governmental organisation listed on th~ roster of the Economic and Soc1al Council of the United Nations. Guid~d hy universal spiritual values. t\liran srrives for gcnuanc unity by promoting Published by Aliran Kesedaran Ncgara (ALIRAN) social justice and human digmty. Membership is open to 12, Jalan Pantal Alizlbrabim. all Malaysian~ alxlve 21 If you nre interested in joining 11900 Pulau PillllnA, \falaysill. (Po:.lal ~ddrrss: Po Box 1M9. Aluao. plea~ contact the Hon Secretary at the addn:s~ 10830 Pulau Pinang. 1\fala)~ia.) shown in this page. ·nol/l'ax : 604-6-115785

ALirwz Mmuflly 1997: 17( //j/•aR<' 3 Aliran welcomes some of the mea­ It would be far better to increase will only lead to higher fees for the sures in Anwar's 'second budget'; rice harvest yields and convert public without a corresponding im­ most of them were in line with what waste land inro fruit and vegetable provement in quality. we have called for over the years. farms. We have to spend more on We have always called for prudence agricultural and fisheries research Savings in government spending in managing the economy and pre­ to boost our output of essential can come from elsewhere. "here serving our resources. We have con­ food. We owe this to future genera­ the 'fat' -and there is plenty of lhat, sistently opposed economically un­ tions of Malaysians. just look al the amount spent on the justifiable mega projects. For lhat, Selangor Mentri Besar's residence we, along with other non-govern­ Aliran also has some reservations - is most obvious, and not from es­ mental organisations, were labelled on the tlat 10 per cent cut in gov­ sential sqcial services. 'anti-development' - wbich we are ernment spending. Spending ones­ not. sential social services should not be The basic flaw in official thinking affected. If anything, it should be on how best to halt the economic We just knew that the country could raised as the lower-income group slide is lhat the government insists not go on spending beyond its is going to be hardest hit by the eco­ on looking at the problem solely means indefinitely. That was plain nomic slowdown, the full impact of as an economic one. It is not. There common sense, which, sadly, was which we will only feel in the next are social, political and moral roots not so common in those euphoric few months. to the woes we arc facing today. 'boom-boom' days when the economy wac; flooded with foreign TRY SOMETHING capital seeking quick profits. Today, DIFFERENT we are saddled with a current ac­ Here are some concrete meac;ures count deficit of about RM13 billion, lhal would imrnediatel> tmprove more than 5 per cent of gross na­ sentiment in the Kuala Lumpur tional product. Stock Exchange and the ring!!it, while boosting overall confidence We have always urged the govern­ in the econom). They may :.eem a ment not to w~'te taxpayers' money little unorlhodox. but" ith the gov­ on uncontrolled spending and ernment seem10gly at a loss for stressed the importance of public fresh ideas.\\ e have nothing to lose accountability. We have often by tf) mg somelhing different. called on the government to boost food production for economic and Indeed. investors· confidence and strategic reasons. business sentiment arc now going to be crucial as negative news from Anwttr"s .\()/ution to our woes ronfined to Asking everyone to grow greens economic.f one nation has a knock-on effect on in their backyards is a symbolic neighbouring countries. How can gesture to stress how important it Already, government spending on we improve confidence in Malay­ is to be self-sufficient in food. health care and education is way too sia as a vibrant, dynamic. civil so­ There are those who say it is far low. Facilities for the disabled and ciety, where investors and citizens more efficient to import the food funds for the poor who need expen­ can engage in productive activity we need if it proves to be cheaper sive surgery are lacking. The qual­ and reap fair returns? than growing it ourselves. But, to ity of education in schools and uni­ them, we say we cannot rely on versities leaves much to be desired. These are the concrete measures others for our food supplies es­ The government bas proposed that Aliran would propose· pecially when the rising world corporatisalion of universities and population will make importing hospitals as the solution and at the Improve transparenc) - <\ ~lisb nations more vulnerable to glo­ same time plans ro cut government the Official Secreb Act nnJ the bal food shortages. spending. But we feel such a move Printing Presse!> diiJ Publications

A/iran Monthly 1997: 17(11) Page4 Act and replace them with a Free­ lies to cronies. dom of information Act. Remove where consum­ curbs on media freedom to encour­ ers have to ab­ age independent, investigative jour­ sorb the inevi­ nalism. Investors are looking for table cost of in­ greater transparency tn the efficiency. Exist­ economy and reliable information. ing privutised Eliminate insider trading and cor­ monopolies, porate wheeling-and-dealing on the such as PLUS, Aooli.flltiU! !SA : ntt·d fnr mon• uitical Mllla_nianJ. Kuala Lumpur Stock Exchange. which stand ro which have hurt many minority make super profits at the expense fessionals, economists. analysts and shareholders and undennined for­ of the consumer. should pay higher sociologists in our midst. many of eign confidence in the local bourse rates of tax. The funds from these whom have had to toe the official (the latest case being the UEM­ higher taxes should go towards pro­ line or risk jeopardistng their ca­ Renong fiasco). Revamp the Secu­ viding basic social services to the reers. Tap their talents and sed. rities Commission to prevent politi­ public. ln this regard the public their ad\ ice immedtately. Quite a cal manipulation in the must be allowed a role in the regu­ number, including scientists and re­ sharemarket. latory process currently denied searcher~. have left the country be­ them. cause they felt their contributions Wipe out corruption and money were not appreciated or recognised politics - for this to happen. it is Enhance public accountability by the authorities. Foreign exper­ important for the Anti-Corruption and the democratic process-pub­ tise - lecturers and consultants - Agency, the Election Commission lic accountability should be the should be imported as long as there and the Attorney-General to be in­ buzzword at all levels of society. is a transfer of knowledge and tech­ dependenr both in substance and in Parliament should be awakened nology. which can lead to higher form. Corrupt individual~ - politi­ from its slumber and assume the productivity and innovative meth­ cians, civil servants. business ty­ pre-eminent role it was meant to ods. coons - must be hauled up, no mat­ play. Local council elections should ter how high-ranking they may be. be revived to enhance public ac­ R eform the Judiciary to make The Government should also ap­ countability and democracy at the it truly independent - the faith point an Ombudsman or an inde­ local level. EJections to the Senate of Malaysians and foreign inves­ pendent Commission to monitor the should be introduced or the institu­ tors in the independence of the j u­ integrity of the civil service and the tion scrapped once and for all. diciary must be restored. loves­ private sector. Insist that ALL pol i­ tors arc looking for a judicial sys­ ticians (from the Prime Minister Abolish the lnternal Security Act tem that protects their commer­ down). high-ranking civil servants - the ISA has spawned a culture of cial rights and the security of tbei r and tycoons publicly declare their fear. More than any law. it bas investmenrs. For that, the 1988 assets. stitled public participation in the legislation making the Judiciary democratic process and ki11cd ef­ subservient to Parliament must be Review the privatisation process forts to create a civil society. It repealed. The Judiciary should - All future privatisation projects breeds social apathy and stunt.s cre­ once again play its rightful role must be canied out through an open ative and critical think.ing. as an independent institution lender. Efficient public agencies, seeking to uphold justice. wbicb are not running at a loss. Promote creative and critical should not be privatised. The pro- thinking and research - apart from Reform the education and vision of public education, abolishing the ISA, the government bealthcare system, cspeciaUy in heaJthcare services and other social should foster critical and creative rural areas - these are critical ser­ amenities should remain the thinking by encouraging feedback vices for all inhabitanlS of Malay­ Igovernmen t's respon•ibility. No and con•ultation atalllevels of SO· sia. The quality of public healthcare awards of privati sed monopo- ciety. We have many talented pro- must be improved and healtbcare ------

A/iran MomN:.· 1997: /7( Ill Pagt' 5 vided for commer­ may not be found in any economic cial organic farm­ textbook, but morally, it is impor­ ing. Much still tant that we implement them. The needs to be done in crisis we face is not just an eco­ lhe promotion and nomic one, but a social political development of and moral one too. So far. we have animal husbandry, used only economic measures to pouJ try rearing and resolve the crisis - without much fishing. success.

Assist marginal It's time for a different approach. Rejimn the heafthcare system: Tlu> quality ofpublic healrhcare mu.~l he impmved. groups and the Let's try putting human develop­ poor, including ment first Once we apply an all­ spending increased. (See A Citizens' pensioners - fanners, fisher folk, round solution that seeks first ro Health Manifesto for Malaysia re­ squatters, and estate workers should strengthen human dignity and en­ produced in /1M 1718). The entire be consulted and brought into the hance the worth of each individual education system must be drasti­ mainstream of development. Pub­ in society, the economic woes will cally revamped to promote critical lic amenities and opportunities for take care of themselves. What is and creative thinking among Ma­ skills training should be provided needed is a total reformation of Ma­ laysians - less emphasis on rote­ for them so that they can realise laysian society. learning and memory; more on ana­ their full potential. The talents and lytical, creative and critical think­ skills of pensioners should also be Announce and implement one new ing. Teachers· salaries must be fully Lapped and the retirement age measure (outlined above) every day rc:tised, teacher training restructured raised. for the next 30 days and watch in­ and promotion procedures re­ vestors' confidence in Lhe economy viewed to raise sagging morale and Conserve our naturaJ resources take off. to lift the image of the profession. and the environment: Use solar energy on a bigger scale to reduce Don'tbelieveit"?Try it cut then. We Build Jow-costhooses to spur the our energy bill. Promote eco-tour­ have nothing to lose and everything construction industry - with the ism widely, especially now that the to gain. 0 property market now soft. the fo- ringgit has weak- cos should switch to building low- ened. Not many cost houses below RM25,000 for know that we have which there is a great demand. Tens the largest caves in "What is a great man who bas madt of thousands of Malaysians are still the world: the awe­ his mark upon history? Every time. if on waiting lists for these houses. inspiring Sarawak we think far enough. be is-aman There must be more efficient, low­ Chamber, which has who bas looked tbrougb the confusion cost designs (perhaps pre-fabri­ enough room for 10 of the mometU and has seen the cated) to aUow developer.; a reason­ jumbo jets lined up. moral issue involved; he is a man able profit margin. State govern­ Tourists arc -looking who ba.' refused 10 have his. sense.of ments could make land avaHable Lo for natural aurae­ justice distorted; be has listened to developers at minimal cost. lions like this and his consc~ until conscience becomes our ancient a trumpet-call to like-minded men. Encourage intensive agricultural rainforests, instead so tbal rhey gather at:x>ut him and research to boostfood production of artificial draws together, with mutual P1.1fP0SC and - research inro improving harvest like the Twin Towers mutual aid. they make a new period yields for essential food should be and theme parks. in history." boosted. New techniques of farm­ ing and high-yield clones should be We realise that a few tried out. Incentives should be pro- of these proposals

Alirail Monthly 1997: 17(11) Page 6 COVER STORY ACCOUNTABILITY AND TRANSPARENCY '==r The fundamentals that matter lji

deficit, which is 5.5 per cent of gross national product, and a property In analysing the significance of the phrase, •'economic glut. Kuala Lumpur's rerail outlets fundamentalS", KUA KIA SOONG exposes the oflldal are aJ ready suffering a surfeit but of­ dOUble speak wbidl covers economic: mismanagement. fice space in the Malaysian capital The key "fundamental'' is accountability and transpar- is expected to double in the next two years from 40 million square feet at the moment to 80 million square feet n Malaysia, the phrase have come out to hail the move as by2000. ''economic fundamentals", "most appropriate". The Energy g like "nationai security" Minister now says the deferring of This overinvestment in non-produc­ has become part of official the Bakun project will not affect tive assets - condominiums, golf doublespeak. In other words, under Malaysia\ future energy needs. Tell courses, securities speculation - is the standard claim by the Govern­ that to the ten thousand indigenous the real reason behind lhe presem ment that "the country's economic natives whose lives have been in tur­ current account deficit. The last de­ fundamentals are strong", it has be­ moil ever since the project started. cade of profligate abundance led to come as elusive for ordinary Malay­ a delusion of grandeur that could not sians to get to the truth as it is for CURRENT ACCOUNT see that every prestige project con­ investors to obtain information about DEFICIT sumed more of the industrialised any projecL Government officials Malaysia's present economic prob­ countries' good~ and services than continue to cite the country's "eco­ lems include a large current account we exported. This was the case in nomic fundamentals" even during the current economic crisis.

Take the Bakun Hydroelectric project example. Just weeks ago, the Government was insisting that it was "vital for Malaysia's energy needs" -the country·s economic fundamen­ tals required it, the last ten years of impressive growth figures justified it! And the nation's economists con­ curred ...

After the latest economic disater and the forced scrapping of objectionable megaprojects, lhe same economists FuJure in doubt : 111e proposed JB Waterfront Ciry project

AliraJ! MoJJJitly 1997: 17( 11) Page 7 compounded by serious mess. envi_ronment crises, air and water pollution, fre­ The predominantly non-Malay-op­ quent power failure and erated SMTs were targeted as the traffic congestion. In­ chosen development path principally deed, the economic fun­ because they were not part of lhe ~o­ damentals can only be un­ cial base of the ascendant Malay elite derstood within the envi­ in UMNO; neither were the rural ronmental, social and po­ Malay farmers who were rapidly litical context. being transformed into workers for the Free Trade Zones and urban sec­ Despite plenty ofrhetoric. tor.ltis now clear to all that the cur­ lhe Mahathir Government rent huge food import bill (estimated has in the past. approved at RM9 billion) is the result of the other projects, besides the gross neglect of agriculture. Bakun Dam, which have NEPAND been disastrous to the en­ AFFIRMAnVE ACTION vironment - the Pulau Redang Golf Reso14 the During the first phase of the New Highlands Highway, the Economic Policy in the Seventies Linear City project and and early Eighties, the ascendant many development Malay elite held Bumipurera capital An em•ironmentlll distL\ter · !.ark oftrcmspanmcy surrou11ded the 8aku11 Dam pmjecr projects which have de­ "in trust". The latterday dominant filed hills. forcsts. and Malay elite have used privati,.ation the construction of the world's tall­ water catchment areas. These have to transfer Bumiputera capital into est Twin Towers as it would have adversely affected lhe quality of life their private hands. It is therefore not been in lhe case of Southeast Asia's of Malaysians, bringing about traf­ surprising that it "':h not the loss­ largest Bakun Dam and the world's fic congestion. flashfloods, air and making public agencies but the longest submarine high-voltage water pollution. choice profitable ones such as cable. Telecoms that were the first to be MEGA PRO.JECTS AND SMIS pri vatised. But while foreign investors may act now like they know about One of the earliest megaprojects, the What was accomplished under the Malaysia's fundamentals, we know national car. was promoted at the New Economic Policy in the name that throughout the last decade of ex­ expen.o;;e of public transportation. the of affirmative action served the cess liquidity they were throwing sma1l and medium industries (SMls). agenda of the new Malay elite in money into this "economic miracle" and agriculture. The consequences UJ\.tNO and their social base of the and (wittingly or unwittingly) allow­ include the large import bill and the new Malay middle class. However, ing lhe local elite to use this hot traffic and environmental havoc we it djd not do any good to the money in lhe stock markctto feather confront today. A great deal of pub­ country's economic fundamentals their political nests. And when this lic spending was diverted into heavy because it did not promote the cut­ global liquidity finally dried up. the industry and the building of high­ ting edge competitiveness needed to stocks of unproductive assets be­ ways when development of small perform in today's cut-throat capi­ came difficult to finance, exp<>sing and medium industries could have talism. The reality behind the much the fragile nature of Malaysia's "eco­ contributed to import substitution vaunted affirmative action was nomic fundamentals". and a healthier balance of payments. cronyism, non-accountabilit) and An integrated public transport sys­ conuption, only recently acknowl­ ENVIRONMENTAL tem should have been planned at edged as a dire problem. CRISES least twenty years ago if not earlier, These economic problems have been to avoid today's smog and traffic Tt is disingcnous ro ju:.tify affirma-

A/iran Monthly 7997: 17(71) Page 8 tive action for any ethnic commu­ nal project costs. measure continues in government nity which has undergone extensive department~ and public agencies to class differentiation. whose elites The Work.<. Minister, who was him­ replace experienced non­ occupy the commandtng he1ghts of self at the centre of questionable con­ Bumiputera professionals and scien­ the economy and political power. By tracts when be was in charge of the tists with bumipureras. the same token, aflirmati\'e action Energy portfolio. has now executed for communities that have not un­ a volte face and recemly called for In the rest of the economy, the Go\'­ dergone marked differenuauon such government contracL'> to be awarded crnmcnt has been relying on the a~ the OrangAsli (the original people through open tender. Thi:-, he now quick fix of cheap foreign labour of Malaysia) could be JUStified. lt says. will ensure that costs arc kept instead of planning for upgrading also makes sense that uplifting the down and economic fundamentals technology and raising productivity. socio-economic status of any ethnic protected! It is estimated that 20 per cent to 27 community should be based on so­ per cent or the Malaysian labour cial class or sector, detinitely not on The key fundamental that 1s in the force of 8.7 million is made up of "race". public intere~t i~ full disclosure immigrant labour. and transparency but the Malay­ PRIVATI SID sian Government has never made Finally. the following example INFRASTRUCTURAL the need for information and trans­ should illustrate quite ent desperate need for knowl­ projects have resulted in new large edge and skilled worJ..ers. The cost payments by con~umers for is incalculable for this has simulta­ projects that are not viable due to neously enriched our competitors in the excessive loading on the origi- the global market. Even so, the same

Aliran Momll/y 1997: 17( I I) Page 9 COVER STORY

CORPORATE RAPE ' ~ ByRam In an extraordinary deal, highway toll collector UEM bought a large chunk ofshares in its parent company, Renong, from certain privileged parties at a higher­ than-11UU'ket price • an ac~isition that left many investors seething I

he UEM/Renong deal will To investors, this deal shows that at the moment it just swallows capi­ go down in Malaysian cor­ corporate tycoons who are closely tal with no return~ for debt l>Crvic­ g porate history as a land­ linked to the leadership of the coun­ ing. mark case of stuffing a try may get away with the equiva­ listed company with an asset of du­ lent of corporate rape. The signal is Prolink is involved in the develop­ bious value .in a failed attempt to that the K.LSE is now a minefield. mentof27,000acresofland inJohor maintain share prices. adjacent to the site of the Second Foreign investor!> have no idea Link to Singapore. It ha-. sold 3,000 United Engineers (Malaysia) Bhd where the next corporate bomb could acres of land to date. but has notre­ is being plundered. Tts directors go off. These investors, who have ceived the bulk of the payments. have allowed the company to buy countle-ss other stock markets to 32.6 per cent of its parent holding choose to invest in. will point at this While Renong·s projects are not company. Renong Bhd. for RM2.3 deal as a major reason to avoid in­ yielding cash. UEM ·s are. UEM now billion. The purchase price is vesting in Malaysia. Tf minority owns 100 perccnl ofPLUS. conces­ higher than the market value of rights are not respected here, they sionaire for the North-South Ex­ Renong at the time of the an­ would be reckless to continue put­ pressway (NSE) which collects nounccmcnL Within days, Renong ti ng their funds in our market. about RM700m per year. Its other had fallen to half the purchase to ll road-; are also beginning to col­ PRIOR CONCERNS price; by market values. UEM is OVERUEM lect revenues. eg the Central Link over-paying in excess of RMl bil­ connecting the northern portion of lion in this deal. Before the announcement. some in­ the NSE wiih rhe southern portion vestors were concerned that UEM looping around Kuala Lumpur. By Not surprisingly, UEM's share price may be abused by its major share­ January. UEM will also collect rev­ collapsed to below RM3 a shar:e, holder. Renong. which owns 38 per enues from users of the Second Link barely one-tenth its value a year cent of UEM. is known to be cash­ to Singapore. back. Investors in UEM had no say strapped. It has heavy borrowings, before this move which bas bad a estimated at RM4.5bn. for projects Although UEM"s debt level ofRM7 catastrophic effect on the company. that are currently yielding little cash. billion is higher than Renong\. the Most dumped the stock as quickly Its two major projects are the Light fact that its assets are nm\ generat­ as they could; others were shell­ Rail Transit ll and Prolink . ing strong cashflows means that shocked at the decimation of its mar­ bankers are more comfonable lend­ ket value. LRT IT only begins to run next July; ing further sums ro CEM ratherthan

A/iran Monthly 1997: 17(11) Pu~:e 10 to Renong. Investors were thus al­ lion shares of Renong. representing acquisition, and allow the company ready having concerns that UEM 32.6 per cent of its parent company. to hold on to its stake even though may be used Lo buy assets from The shares were said LO have been the market value is just half the ac­ ~enong to relieve the debt-servicing bought through tbe stock market and quisition price. After the deal has burden M the parent company. not via any private transaction, at an been done, the options left to UEM average price ofRM3.24 per share. shareholders are to either realise the Ironically, in early November. an loss by selling the Renong shares, announcement was made by Renong The announcement also said that or to keep the loss on the books of to the stock exchange, denying a waiver from a general offer on UEM. speculation that UEM would buy Renong had been obtained from any .assets .from Renong. The an­ the Foreign Investment Commit­ Normally, a company makes a pur­ nouncement also regreued that in­ tee (FTC). By law, when major chase and then seeks a waiver from vestors in UEM bad suffered as a shareho Iders increase their stake in a general offer. Here, the FlC bad result of ils share price having fallen a company. they must make an of­ already grdllted approval when the due to these concerns. fer to other shareholder~ who are announcement of the acquisition was given an opportunity to sell if they made. The appearance of complic­ Ultimately, however, what UEM was arc uncomfortable with this ar­ ity, at least on the part of tbe FlC, in made to do was worse - much worse rangement. participating in this rape of UEM - than market concerns. Rather than raises questions. UEM's financial resources being UEM, however, initially got an ex­ used to help oul Renong (eg by buy­ emption from making a general of­ Was it due to the connections of the ing some assets from it). UEM is fer to the remaining shareholders of chairman of the group. Halim Saad. being used to buy shares in Renong Renong. UEM also informed its that the waiver was initially granted? itself, which may help out Renong .shareholders that an extraordinary After all. UMNO had previously had executive chairman Halim Saad and general meeting would he held later controlling s takes in UEM and other major shareholders of Kenong, for shareholders to ratify the the ac­ Renong through its holding com­ but does nothing to relieve Renong quisition. pany Fleet Holdings. Only after itself of its borrowings. UMNO was deregistere~ did Halim The law requires all shareholders to take over these assets. at least in LOSE-LOSE FOR UEM approve the purchase of an asset name. MINORITY above 25 per cent of the existing net LATE DISCLOSURE? SHAREHOLDERS assets of a company. UEM's acqui­ sition was equivalent to all its exist­ It is also obvious that UEM could ing net assets (total assets Jess total not have made tbe purchase of the loans). But what point is there in ask­ shares in the market within the pre­ ing minority shareholders of UEM vious two weeks. By law, an an­ to vote on this after the deal has been nouncement of acquiring a stake of done? more tha.Q 5 per cent has tv be made within this period. It is now a lose-lose situation for UEM's minority shareholders. lf ln tbe two weeks before the an­ they vote against the deal, then UEM nouncement, however, only 45 mil­ would have to sell the shares in lion Renong shares were traded in Renong. Tn the mean time, Renong the market. just 5 per cent of the ac­ shares have fallen to half the acqui­ quisition amount. sition price. UEM would have Lo tlttlim Suatl: the deal mrty ilt!lp him and realise a loss of over RMl bn or more For UEM ro have bought these shares o1lwr major Renong shareholders if it now sells its Renong stake. from the market, it would have had to have been the sole buyer of aJ I The announcement on 17 November The alternative, for UEM minority Renong shares sold on the KLSE was that UEM bad bought 723 mil- shareholders, is to acquiesce to the since late July, i.e. three and a half

Aliran Momhly 1997: 17(1 1) Page I I months before the announcement. ket because or this deal. do not need to point at out.c;iders · manipulating the local market- here Either UEM had bought 95 per cent The value of the Prolink land bank is it was being done on a grand scale of the shares from private parties and now uncertain as the economy en­ by our own corporate players. was thus misleading the public in its ters a slowdown and property buy­ announcement, or it had been in­ ers are harder to come by. The LRT AN ATTEMPT TO SAVE HALIM? volved in holding up Renong's share ll project has not yet started running price by buying everything sold in and various accidents during its con­ Wby was it so important to bold the market since July and is thus struction have threatened to delay upReoong's share price? The only guilty of not making an announce­ the project. conceivable reason is that this was ment within two weeks. an attempt to help the major share­ Renong shares certainly have a holders of Renong. NO RATIONALE value. That value can be derived FOR UEM from what the free market trades the Suppose l:lalim or his partners had There can be no rationale for a com­ shares at - a price that was lower than huge borrowings with Renong pany such as UEM, which already UEM's acquisition price on an­ shares as collateral. U the value of has total debt of about RM7 billion, nouncement. After announcement. their collateral falls, their bankers to pay RM2.3 billion for a stake in because investors now have little will ask them to top up their collat­ its parent, Renong. The debt servic­ confidence in the management, that eral if they want to maintain their ing ofUEM, already tight, would be value has fallen to half the price loans. stretched to the limit. UEM is paying. Renong's share price ha<;. in fact, Renong does not even pay divi­ ARTIFICIAL SUPPORT fallen from a high of RMS.l5 ear­ dends, which means UEM has no OF RENONG SHARES lier thi:. year to about R.M3.20 by added cashnow to help it with the Why did the directors get VEM into June. That the share price was ap­ loan servicing. There is nothing that this scheme? It appears to be a mas­ proaching levels where there could Renong can offer UEM by being an sive exercise to hold up the share be margin calls on the major share­ associateofUEM which it could not price of Renong. If UEM had been holders may have been a re~son that provide by being the parent. buying the shares in the market since UEM wac; being used to hold up July, then without its support Renong's share price. Halim, in a press conference. a few Renong's share price would have days after the announcement said fallen sooner. Jf Halim 's borrowings was the rea­ that this purchase was an opporunity son why Renong shares were being for UEM to buy Renong shares at Certainly by taking 723m Renong shored up, then it is possible that below the revalued net asset value shares off the market, the group re­ Halim and his partners sold some of (RNAV) of RM6.13 per share. He duces the free tloat ofRenong (ie the their shares to UEM to get funds to did not, however, give the basis for shares tradeable in the market) by reduce their loans. The announce­ arriving at the valuation for Renong. more than half. Simply reducing the ment by the company says the shares supply of a stock is itself a means of were bought through the market but The company's value is derived from keeping the price up. no one can be sure of the facts. the marker value of its listed associ­ ates and subsidiaries (UEM, Time Holding up a share price when the For minority shareholders. the truth Engineering, Commerce-Asset, market itself dictates a lower value behind the corporate rape of GEM Faber, Crest Petroleum and Park is a form of manipulation, done here matters a great deal. The Asian Wall May) as well as the Prolink landbank through a public li sted company Stree/ Journal reports that the ~hares and the LRT IT project. (UEM). had been purchased by UEM from just eight partie~. This add to the But the value of the listed associates After UEM made this announcement mystery. have all fallen this year with the and stopped buying, Renong shares stock market; the main one, UEM, collapsed to half the price traded Could it really be that only eight par­ has fallen a Jot more than the mar- before announcement. Our leaders ties were selling 723 million Renong

A !iran Mtmtlily !997: 17( 11) Page 12 shares in the market? Or were most ing and UEM as these are both asso­ It is not Rcnong buying its own of these purchases transacted off the ciate~ ofRenong. sharel> back: rather, Renong was us­ market in private agreements? ing a company it controlled, UEM, That being the case. it is curious that to buy Renong shares. According to the A WSJ article, 340 only UEM is being made to carry out million shares came from BOC the general offer and not Halim Saad UEM already had very high borrow­ Nominees, the nominee company and Time Engineering as well. They ings and would have to borrow up under Commerce Asset Holdings. in are the existing major shareholders to the hilt for this purchase but gets which Renong has an 18 per cent of Renong; UEMhas to make a gen­ nothing positive from it- not even interest: another 80 million shares. eral offer on Renong only because, dividends from Renong. UEM's bor­ according to the article. came from together with Halim's direct stake rowings go up to the limit where it a nominee company ofHalim's law­ and that of Time Engineering, con­ cannot borrow any more without yers and from these lawyers them­ trol ofRenong by these parties (who asset ~ales. Its directors have taken selves. are all linked) has crossed 50 per it to lhe brink of financial collapse cent by making it acquire RM2.3 billion lf this is true, it would appear that worth of shares in the parent. the shares were mostly transacted off That the authorities took one week the market. That they came from to get their facts sorted out-and even Share buy-backs require prior ap­ nominee names serves only to con­ then only got it half right - is embar­ proval from all shareholders of the ceal the true identity of the sellers. rassing. For holders ofRenong who company. This deal was done before sold as soon as they heard or the ini­ minority shareholders were con­ This makes it seem that the purchase tial ann()unccment and were told that sulted. The secrecy in which the ex­ by UEM was of Renong shares that there would not be a general offer, it ercise was undertaken points to an may have been owned by Halim and means a large loss. When UEM ini­ attempt to keep Renong share prices his partners, in order to reduce their tially made the announcement, up. borrowings. UEM thus appears to be Renong·s share price was RM3. By the victim of an arrangement to ad­ the end of the week it had fallen to After the announcemen,t. and with dress the financial difficulties of RMI.49. UEM no longer buying Renong Halim and his boys. shares, both Renong and UEM's share prices fell by half. If the ac­ ANWAR REVERSES Thirty-eight million Renong shares quisition was nothing more than an FIC DECISION were sold in that period. These in­ vestors will have no redress for sell­ artempt to shove up the share price A week after the announcement of ing under the belief that there would of Renong, il may have been a seri­ the purchase, Anwar came out with be no general offer on their shares. ous breach oi trust by UEM's direc­ a statement that the authorities had They were subsequently informed. tors to apparenlly plunder their com­ been misinformed about the stake after they had sold their shares. that pany for this purpose. UEM had in Renong. According to there would be a general offer. which INVESTORS Anwar, it was not 32.6 per ceor but will be at RM3.24 a share, if not LOCKED OUT 77 per cent and as the stake was over higher. (A general offer has to be at 50 per cent, UEM is now required the highest price paid when c.ontrol­ When Anwar reversed the FIC deci­ to make a general offer for the rest ling shareholders increase their stake sion and required that UEM make a of Renong after all. in a company.) general offer on Renong. the two counters were suspended. The direc­ NOT COMPARABLE Anwar appears to be misinformed tors state the company is seeking a TO BUYBACK here. UEM's stake in Renong is just clarification from lhc authorities. 32.6 per cem - it is the shares held Anwar's comments that this deal byTimeEngineering (21 percent of was similar to a share buy-back Analysts feel that UEM will find it Renong). Halim Saad (23 per cent) which is generally seen as positive practically impossible to make the and now UEM (33 per cent) which in markets like Wall Street, also dis­ general offer. The remaining 510 add up to 77 per cent of Rcnong. play ignorance of what is truly million Renong shares in the mar­ Halim Saad controls Time Engineer- shameful .in the UEM/Renong deal. ket would cost more than RM 1.6bn

Alira11 Monthly 1997: 17( II) Page 13 if they are all dumped onto UEM. Subsequently. Anwar received re­ they are likely to be more brazen in Given the current market values, ports from his ministry officials lheir actions. UEM can expect to have practically which led him to conclude that the all the rest of Renong sold to them FJC decision had to be reversed. The government's back-tracking on at the general offer price. Anwar announced thls only on 24 it!i waiver of a general offer on November, the day after the Prime Renong has caused grief for those The company has to get bankers Minister bad flown off to Canada for who sold Renong shares upon the to extend the credit for this gen­ theAsia Pacific Economic Co-opera­ initial announcement that there eral offer. But with the purchase tion meeting. This makes it appear would not be a general offer. Why of the initial 32.6 per cent of that the Prime Minister and his was a waiver of a general offer Renong, UEM's total debt is esti­ deputy disagreed on whether to ap­ granted in such haste by the FTC? mated at about3.5 times its share­ prove what Halim Saad was doing Was its decision innuencec.l by the holders· funds. Bankers may not to UEM. parties involved? be willing to lend it any more. If they do not, then UEM cannot pro­ Many have tied Halim Saad and The unties of the directors of UEM ceed with the general offer- un­ Renong to the Daim camp in in trying to pull off this deal without less it has a rights issue or sells UMNO. Anwar apparently feels no the prior consent of minority share­ some assets. need to grant favours to this camp, holders have created negative as demonstrated by moves to review impessions. Most foreign investors A rights issue will take a long time and is not I ikely to be well received by shareholders now. The only asset sale that would be of sufficient size is PLUS but that would rob UEM of its prized asset.

Until and unless UEM can figure out bow to arrange the ftnancing for the general offer, Renong and UEM wi II remain suspended and investors holding on to these shares will be locked out from any disposal. WHY THE ORIGINAL WAIVER? The UEM • Renong deal: Did tlu• Priml' Min iter and his deputy disagree on the waiver? That the government has reversed itself on the general offer is aJso a PLtJS' proposed toll rate hike. The now see Malaysia as a place where matter of curiosity. last hike was delayed for eight minority interests wiU not be pro­ months last year and has crept up tected and feel that they would be In the first place, the waiver of the again as an issue now with another foolish to put their money here. general offer was granted by FIC but increase scheduled for January. this is now under the scope of the THE RESULT OF Foreign investors had already been Securities Commission. However. MONEY POUTICS? selling Malaysian shares because of the FIC is under the Pritne Minister's uncertainties about the economic department and not theFinanceMin­ UMNO's leadersltip has of late outlook. In this latest crisis ofconfi­ istry (whlch controls the SC). Was called for money politics to be dence in the Kuala Lumpur Stock this something that was rushed stamped out. Politics based on who Exchange, the government does not through with the Prime Minister's has financial support to out-spend need to look for foreign manipula­ blessing? Was Anwar aware of the rivals for votes leads to dependence tors to blame. It has only itself and waiver of the general offer in the first on corporate backers. Once these the individuall. behind Renong to place? corporate figure are owed favours. thank.O

Aliran MomhTy 1997: 17(1 1) /'age /4 COVER STORY BAKUN HEP: ENOUGH IS ENOUGH

abungan calls on the sue this year, the market clearly build Bakun without any open Government to aban­ expressed its lack of contidence tender and in utmost secrecy. don the Bakun project in the company. Why should the public be made for the sake of the natives, the to pay for the processes of un­ economy and the environment What has been trumpeted as an accountability, non-transpar­ example of privatisation in en­ ency. incompetence and ex­ In the latest twist in the area of ergy production to justify the cesses of the government and the Bakun Hydroelectric project has today been proven the private sector? Project, all that the Coalition of a dismal railure.lt is inconceiv­ Concerned NGOs on Bakun able that the government would And once again the Malaysian (Gabungan) warned at the start even think of compensating tax payers are forced to pay for of the project has now come to Ekran for this "takeover"! It is a very expensive policy mis­ pass. namely: outrageous and unjustifiable take. The government owes the thatpublic funds be used to pay affected natives and Malaysian * The project is misconceived for private sector initiative un­ tax payers an apology for this because it is economically der any economic environment. very costly blunder. unviabJe, socially disrup­ MANY QUESTIONS tive and environmentally Furthermore. this will be a dan­ STILL UNANSWERED disastrous. gerous precedent. How many more private companies and The government has not clari­ * Ekran Berhad docs not have private projects will the govern­ fied to the country what will be the capability to handle this ment have to bail out using pub­ the scale of the project when it energy project. lic funds? Will we have those is revived. For example: private companies whose * That the government will projects were among the RM65 * Until when willlhe project have to bail out this suppos­ billion worth of projects de­ be 'deferred'? What will be edly private project. ferred in the recent budget the extra costs accumulated scrambling for compensation during this period of 'defer­ TAKEOVER too? ment'? OR BAILOUT? 1 Ekran Berhad has been in seri- The Gabungan reminds the pub- * Will the dam and the reser­ ous lrouble even before the lal- lie and especially the govern- voir be of the same scale as est stockmarket crash. When ment that Ekran Berhad had originally conceived i.e. they tried to initiate a rights is- been awarded the contract to generating 2400 MW?

Aiiran Monthly IW7. / 7( II) Page 15 * Will the I0 billion ringgit submarine cables still be INTIRYIIW WRH laid? liNG PEK KHIING * What has happened to the CHA!RMNI OF IKIIAN BHD. RM300 million intended to Solli'Ce: Mtilaysitm Business, March 16, 1994 compensate the natives?

* Can the government en­ lighten the public regarding the exact state of the forests in Bakun area and whether there is a better alternative for the natives?

The Gabungan also calls on the government and Ekran Berhad to rehabilitate the deflied envi­ ronment at the Bakun site. The company had in the last few years harvested millions of ringgit worth of timber from the project site, caused vast and possibly irreparable environ mental damage in Sarawak and Is tlult IIDw ~ woa~~Hr 1 Titer• •r• tlllb tlttJt juftd traumatised the Bakun-affected llltlllllgnl 11n ,., ilturesled the B•k•" .., bill, #Jy communities with this Bakun ill the (Btlkrm) project aftd s11ylng tlull you wou/4 tUJt monstrosity. It is only fair that 11J11t ao•e of*• IIWil tJud 11eed soft ltHula fro• the Ekran Berhad be made to pay *project;. l'illbk. gt~•e,.,..,_,t for all damages that it has in­ flicted upon the affected resi­ Yes. In fact I have already con­ No, 1 think there were many dents and the environment. firmed the funding of this many reasons ... capability project but I cannot disclose it maybe? {laughs) Lastly, the Gabungan calls on before signing. the government to think of the The project wa ;,ititdl, to welfare of the natives, and pre­ Are tile futuls coming from be completed ill eight years, vent any further drain on the forei611SOIUCel? ftOW 1011 say thlll you e11" 1 public purse by abandoning the co,.,tete it elll'lier? No. They are all local. Malay­ whole project. 0 sians have a lot of money! Alid I will try todo it io six Je&I'S· so, we are not &"Ubject to for­ Dr Kua Kia Soong eign exchange riSks. We will Spokesperson also not be getting a govern­ I Coalitio11 of Co11cemed NGOs ment grant. Yes. yes. yes. on Bakun 22 November 1997 - --

Alira11 Mrmthlr 1997: 17(1 I) Page 16 COVER STORY

MORAL BIG BIZ SICKNESS

Who is going to monitor FOMEMA, the privatised company whose task it is to ''monitor and supervise" medical tests for foreign workers?

TL is not outrageous at all panies pay RM80 per examination. to say that FOMEMA is a g product of shameless lAboratorks Tests Cut From RM75 greed among politicians To RM6S. Currently, biochemical My new computer links me to other ooctors so I can see and businessmen. It is, however, labs charge an average o.f only what they charge outrageous to have a private com­ RM25-30 and they are quite com­ pany FOMEMA performjng jobs fortable with it. They have made Sourr:e : Tire Star. 20 Dec. that should rightly be carried out by profits based on those charges. the state. Ministry should work together and So Car, no laboratory has been caught open the field so that all doctors, Jabs The New Straits Times carried a producing phony resu.lts. Neitherdid and radiologists can be panel medi­ front-page news item: ''Fee Cut for the health au.thorities ever attempt cal examiners without extra costs. Aliens' Health Checks". The Health any law enforcement action before All doctors should be accepted un­ Minister. instead of a FOMEMA they concluded that the labs were less they are caught red- handed in representative, announced that doing this. There is no statistical fraud. Then, the Medical Council FOMEMA would cut the medical study, evidence or moral justi ficalion can take disciplinary action and the examination charges from RM220 for this presumption if the health respective authorities should take for female foreign workers and ministry and the respective authori­ them to court. RM205 for males to RM 190 and RM ties have not done their part in law 205 respectively. enforcement. FOMEMA service clzarges of RM25 per examination will not go CHARGES mLL X-rays Charges Down From RM30 down because it also includes ABOVE THE NORM To RM2S. Average cbarge to doctors RMl 0.000 insurance with RM 2,000 Doctors, however, still have to pay in any X-ray lab w;lh specialist ra­ to repatriate a deceased worker's RM255 to register with FOMEMA. diolog;st reports is only RM20-25. body. Why can't the government appoint The breakdown of all other charges specific x-ray facilities to do the job But the Human Resource Miruster is as follows: without incurring any extra cost and also appointed London and Paciiic creating havoc -like SOCSO, which as the sole insurance company to do Doctors' Medical Examination appoin~N doctors who apply to be on this under the Workmen's Compen­ Fees RM 60. This is despite the their panels without extra costs - sation Act. Are Minjgters, includ­ Malaysia1J Medical &·.wc:iation :v before selling out their authority to ing the HeallhMin.ister or the Home asking .for RM 80 as it is no differ­ a private company like FOMEMA? Minister, empowered to appoint the ent from other insurance medical workmen's compensationillsurance exams for which all insurance com- The Health Ministry and the Home company?

AliranMollthly 1997: /7(1l)Pagel7 Doctors who wish to curry out for­ Apparently the very important role cott but as many as two thirds of the eign workers' check-ups arc forced of enforcement is now in the hands doctors actually suggested it. to computerize their facilitic~. of a private company, which has FOMEMA will charge them mitially been asked to monitor the "integrity T think it 1s a good idea to boycott RM 15 - now down to RM5 - to get of medical check-ups"as well. FOMEMA. But the MMA itself a certificate of computerization in ; ~hould never have entered into an) order to send results 'electrorucally" But Who Monitors FOMENA? negotiation~ with FOMEMA a'i the to FOMEMA. Would falsitication But who i~ there to monitor company is clearly immoral and its then not arise? FOMEMA? Should we then appoint legality, constitutional standing. and another money-sucking company to "integrity" arc doubtful. Also female workers' urine preg­ monitor the POMEMA"~o. integrity? nancy tests are decreased from And another private company to The doctors should boycott RM15 to RMJO. The cost ofa urine monitor the integrity of the company FOMEMA or any governmental pregnancy test i:; less than RM4 that monitors FOMEMA\ integrity? plan similar to it. currently. And most labs add only RM 1-2 for an extra urine preg­ You see what Tmean? Privatization The MMA should not negotiate For nancy test. in Malaysia works under absolute an RM80 exam fees wirh 'opaqueness·. where ffilillSters are FOMEMA. The MMA should pres­ FOMENA To Monitor Integrity Of empowered to appoint any private sure the government to scrap Check-ups? company to 'monitor' illegal activi­ FOMEMA or any similar plan that The Health Ministry does not have ties. is not bcncfidalto anybody but pro­ any enforcement mechanism to vides monetary gains for a few. monitor the labs' activities and but ln the UK, Singapore, and Australia came to a presumptive conclusion no such private company is ever ap­ Our country is not only plagued by that labs are not doing the job prop­ pointed to monitor medical check­ economical illness. but by a sickncs~ erly. Or. rather, the Health Mini'>try ups. They adopt schemes like or "denial'" (as former deput) prime is at fault for not having done its SOCSO's, where doctors formally minister Musa Hitam said) and by job in enforcement properly. report to health authorities. not to a the dying morality of both govern­ private company with no constitu­ ment privatization policies and un­ ln the same press report, the Health tional or legal power. which exists scrupulous profiteering private Minister made the most profound at the expcn<;e of the people's wen­ firms. statement in world and Malaysian being. medical history: "'FOMEMA's role "Opaqueness" in both private and is to monitor the integrity of medi­ Towards A Moral Society? public sector~ has largely led to the cal check-ups onJy. and it has noth­ When the country is facing an prc...,cnt moral and economic cata...,­ ing to do with the actual examina­ economy disaster. the Health Min­ trophe. tion-;". istry, along with the Home Ministry, does not seem to care much. Under Doctors should not only treat physi­ Wow, FOMEMA monitor the "in­ the immoral FOMEMA plan. em­ cal illnesses. but also stand up to treat tegrity of medical check-ups"! Then ployers and workers will be made to the moral sickness of shameless what happens to the Health Minis­ pay I 00 per cent more for medical greed that is plaguing our beloved try. the Medical Council and the rc­ checkups. Soon there will be people nation.O

A/iran Monthly 1997: 17( II) Puge 18 tion was still good when the al­ location was approved.

The man is not only a cry baby. he is, as perceived by some, really not very bright. His justification for spending the astounding amount at a time of economic hardship for everyone would have been quite amusing had it not been for the fact that it is our money he is spending. The RM5 million house issue could not have cropped up at a more em­ barrassing and awkward time for the government. Day in and day out, the papers are filled with exhortations from government leaders for us to tighten our belts, cur back on holi­ * The 23-year residence was in days abroad, take on an extra job, I shambles (was that why "Mat buy local goods, grow our own veg­ Tyson'' had to trek around the etables and a host of other depress­ Yes, the crying trend ha~ caught on. Gold Coast with a suitcase full ing things. Thus, no matter how After seeing how effective tears were of money looking for a decent many teardrops may fall from the for Dr M, one of his most loyal house?); eyes of Abu Hassan, he is unlikely henchmen. Abu Hassan Omar, also * It had not been renovated since to find much sympathy among or­ decided to shed a few drops of his Datuk HormatRafie's tenure as dinary Malaysians. own. The tears rolled out ac; the MB (not true because periodi­ snowy white-haired Menteri Besar cal renovations were made dur­ Some say arithmetic was clearly not of Selangor tried to explain away his ing Muhammad Muhammad Abu Hassan's strongest subject in state government's extravagance in Taib's time and a grand banquet school (his strongest some claim, is spending a whopping RM5 million ball was even added shortly probably acting). Barely a day or two of the taxpayers money to renovate before the man was caught after the issue erupted into headlines, his official residence. Yes, it was sad, down under); the man announced that the amount sad story - for him, that is. Some of * The RM5 million bill was only might actually be less, that RM5 the tear-jerking arguments: 2.5 per cent of the total allocated million may not be the actual cost to development in the state; ff that had been the case, then why * Spread over 23 years, the reno­ did he approve the RM5 million in vation would cost only about the first place. Yes, something stinks RM217,000 (now, that's what I and we are glad to read that the ACA call a perverse argument); has moved in to interview PWD of­ * The amount is "nothing" (to ficials. Perhaps the ACA should also quotehim) compared to the bil­ interview Abu Hassan, but they'd lions that the state has spent in better bring along a large box of 6s­ making the state the most vi­ sues. brant and important in the coun­ try (another perverse jewel). The man who made Abu Hassan cry * He was "deeply disturbed" was, of course, DAPAsscmblyman when he learnt about the high Teng Chang Khim who raised it at cost from the Public Works De­ the State Assembly meeting. Teng partment (but he approved the has subsequently pointed out the Trekking around with a suitcase full of amount anyway). string of contradictions regarding the money in search ofa decem hnu.se? * The country's economic situa- issue. For instance:

1\liran Mmtlhly 1997: 17(11) Page 19 * The MB ~aid he approved the henchmen cannot organise those about RMl million went into aes­ amount of RM5 million with the Semarak type of rallies for him for thetic trimmings like ceiling. noor agreement of the state exco. fear of being accused of membazir and wall finishes, plaques and an­ * A day or so later. Abu Hassan (a sinful word these days). Besides, work. light fittings, blinds, curtains, said the amount was not final. some of his more loyal henchmen furniture. etc. Tt docs look like Abu Tt could be less than RM2 mil­ have their hands full with their own Hassan is moving into his post in lion. set of problems. grand style! * But a senior exco member Datuk Zainal Dahalan (who had Megat Junid. for instance, is learn­ Yes. Abu Hassan, Dr M's choice ro earlier on been tipped to be MB ing that putting away people with­ replace Muhammad Muhammad before Abu Hassan's appoint­ out trial was a breeze compared to Taib appears to have become an ment) said the renovations had tackling traders and wholesalers. overnight political liability. Abu been completed. This was con­ He's been getting more brickbats Hassan. though a longtime Cabinet finned by Abu Hassan and the member, was never thought ro be a PWD. bright spark. He had. all along. been considered rather dim. more a relic The message we get: the Selangor of tbe old style administrator than a exco approved a sum of RM5 mil­ technocrat. Firsr thrust in foreign lion for a project that could have cost arrairs, he seemed at a complete loss RM2million. Frankly, Abu Hassan's about what to do when the Gulf War teary explanation bas raised more broke out, and was shifted to the question~> than ever. H ow about Ministry of Domestic Trade and some answer!>, Yang Berhormat? Consumer Affairs where his per­ ceived incompetence would not be Some people are saying that Abu too glaring. Even his appointment to Hassan shed tears because he felt he the MB"s office was a stop-gap sort had been stabbed in the back. The of move. lt was obvious that Dr M hint lay in some telling part.~ or the was merely looking for someone crying episode. He was reponed as Megar Junid : tasier ro pill away people with a yes-man reputauon to warm having said: "l rold this (the renova­ wuhour rrialrlum ro rackle rraders. the scat till a better candidate "'as tion cosr) to Dr Muhathir but because available. Well , il look" like the man or my busy schedule I did not have than bouquets in his handling of not only warmed the seat but turned Lime ro inform the Deputy Prime I prices of consumer items. Another it into a hot scat! Minister ... 1 hope this will be put on henchman Sabaruddin Chile has his the front pages of all newspapen. ... head spinning trying to lure back the I feel this matter is being used as a tourists into Malaysia. He is so des­ I tool by certain quarters." The impli­ perate that he has even gone to the cation, it is said. is that the DAP extent of turning the Malay circum­ Jn the other flank of the peninsula, Assemblyman was tipped off by cision ceremony into a tourist attrac­ the Pahang government was pur on people within the party. Some said tion. Talk about being exposed to the defensive when it was revealed the informers were people close to tourism! Yet another henchmen Tok that the exco had appro,·ed plans to the former MB. others say they were Mat is sti II reeling from the lousy job build an official residence for its .. Anwar's boys.'" he did handling the made-in-Indo­ deputy MB. The M.B declined tore­ nesia haze (only in Malaysia could veal the cost so we reckon ii can't The boo-boo also occurred when Dr a guy like hj m have kept his job this be cheaper than M~\era.l million M could least afford it. Mahathir's long). As they say, it never rains but ringgit. The MB'~ reasoning was image at home and abroad has nose­ it pours. only slightly less pen er--e than some dived in the last three momhs. The of the arguments heard in Selangor: market quakes each time his lips Apart from the RM5 million house, there had been no official residence move and even the periodical a total of RM1.3 million has been for a depury MB for l5 years. Not pledges or support for him seem to spent in sprucing up the office of the only do we fail to see the need for have trickled off. Moreover, his J MB. A huge chunk of the money - I an official residence for the deputy

Aliran Monthly 1997: 17(11) Paxe 20 MB. we fail to see the need for hav- His behaviour infuriated Malaysian No I since the currency crisis de­ ing a deputy MB. Pahang is not ex- businessmen who were franticall y I scended on Dr M like a bad dream. actly a booming state. It\ pace of I trying to juggle with losses. In tum, growth is sluggish at best and the he was furious with the businessmen, And if that is not bad enough, MB. if he is truly efficient and ca- some of whom were known to have Be rita Harian, part of the Umno pable. should be able to handle the told the foreign media that he should I stable of publications has come task of administrating the state gov- step down. Outwardly, he blamed the out on two Sunday with editoria Is crnment without the need for a I foreigners for the resignation sug- admonishing inconsistent leaders deputy. A new post. like a new gestion but inwardly he was seeth- and blasting the I 0 years of rapid bouse, usually means additional ing at the ingratitude of the business-~ growth policy. They are editorials costs, something which we could do men. They bad sailed on the rainbow that if published three months ago without at this particular point in when times were good and it was, would have resulted in the editor time. after all, he who had made possible being sent to political Siberia. Yet, the good times. the editor seems firmly in his seat and ever more belligerent. Yes, it JNJ]Ji(f:r;"!tJt Yes. it has been a traumatic three I would appear that the political I._-- 111 • 1 ••• _,- •• ··-.I_ Imonths for Dr M. Perhaps the stron- floodgates have been opened and gest indicator of the business the signs are that the waters rush­ community's loss of confidence in I ing out will increase in volume and him is the way the market reacts velocity in the coming months. each time he opens his mouth with Whether the waters will rise to a another searing comment. To rub level considered unsafe for certain salt into injury, his deputy seems to I political figures remains to be be drawing better reaction from the seen. Afterall, as the saying goes, market throughout the duration of a week is a long time in politics the crisis. Then again. Dr M has only and from now until 1999 is an evrn himself to blame. He wallowed in I longer period. Anything could anger and self-pity instead of facing happen, you know. up to rhc situation; some say he has still to emerge fully from the denial ~· I stage. He was photographed at Lima, - gleefully yachting in the waters of Langkawi, tinkering with knobs and Another leader who seems to have 1 levers in the cockpit of sophisticated less and less credibility these day George Soro.1: Malwthir'sfavourite aircraft. launching the first national is the Sarawak Man. Missing at the whipping boy. electric car and generally having a height of the haze, he was recently gala time while Malaysians were reported to be planning to turn Poor Dr M. Just months ago, there Ibeing e~horted to be more produc- Sarawak into a "centre of excel- was nothing that he could say or do tive. lence in the research and study of that could be wrong. People hung on I indigenous plant and animal I ife." to his every word. No one dared to He even announced that the RMl 0 If our rather lacklustre quest to be cross him or his wife or. for that mat- billion land bridge project linking a centre of academic excellence is ter. his three sons. He was hailed as northern Malaysian and Thailand any yardstick, then it is best to take a champion of the Third World was on. The man was unreal! Surely the Sarawak Man's ideas with a abroad and the Great Leader at he must be aware that all mega handful of salt. Besides is there home. How things have changed in 1 projects, including his beloved much left in Sarawak's natural the blink of an eye. And boy, was he Bakun Dam, had been postponed? environment that is worth study­ furious. First he lashed out at George Malaysians breathed a sigh of relief ing? Soros, then he blamed the Jews, then when his deputy came out the next he said he did not blame the Jews day to say that the land bridge project Meanwhile, another Man from and finally he said it was a con- I was deferred. And this was not the Sarawak is considering bringing in spimcy. first occasion that No 2 had corrected Russian technology in the form of

Aliran Momhly 1997: 17( II) Page 21 otic, even an act of sabotage to our techniques, forensic science and re­ I local economy. Second, Airport sourcefulness in gathering evidence Limo bought the cars through a are still largely the stuff ofbooks and "middleman" (some claim it's a TV programmes where we are con­ "middlewomao") in the form of a cerned. Our police continue to rely company called NZ Wheels which, heavily on the cautioned starement, supposedly, had the sort of connec­ which. as we all know, is more of­ tions to secure the hard-to-get Ap­ ten than not made under duress and proved Permits needed to bring the not in the most voluntary or demo­ cars in. cratic of circumstances.

It became obvious that things were not quite above- board be­ IIMtWiiiUEHIUII cause the Entrepreneur Develop­ ment Minister had to step in. In the Our economists tell us that the cur­ lAw llieng Ding : raised a cyclone of process, the Minister instructed rent economic crisis may actually controversy Airport Limo lo do away with the be good for us. lt wi II bring our eco­ "middleman" and issued 700 of nomic growth back to a more realis­ artificial cyclones to tackle the haze the I ,050 APs required to let the tic level. reset our priorities, allow problem. Science, Technology and cars through. The message: the for corrections, weed out our weak­ Environment Minister Law Hieng middleman/middlewoman syn­ nesses. But wasn't that what was Ding's proposal has raised a storm drome is sti ll very much alive ex­ supposed to have happened after the of comments and scepticism, bring­ cept that it is now known as the recession of the 1980s? What we are ing back memories of how millions Mr/Mrs 10 per cent syndrome. surer of though is that the current of ringgit were spent on another con­ slowdown may bring Malaysian job. oops. we mean technology. that egos down to a humbler level. For a was supposed to bring rain over while, some Malaysians, infused drought-stricken Malacca. But why with misguided pride about our eco­ is Law Hieng Ding looking to Rus­ The victim and his wife had a mar­ nomic growth, had become obnox­ sian technology when his ChiefMin­ riage that was going from bad to iously arrogaor. even intolerant, of ister had gone to the US to look for worse. The victim was found dead the West, of less developed coun­ expert help to tackle the haze. Re­ in a pool of blood, his throat slashed tries, of the foreign media, of any­ member the controversial holiday, several times. The wife found the one who thought differently from us. oops, we mean fact-finding trip? Or body. There was no sign of a break­ was it a holiday, after all? in. The murder weapon, a kitchen Thus, if our leaders were criticised. chopper, was discovered io the gar- it was because they were jealous of den. The wife was arrested and re- our progress. If they talked about 1U!!!!!!!!!!!!J II maoded for police questioning. She corruption in Malaysia, it was be­ was charged for the murder of her cause they wanted to do us in. If they The picture of 1,050 Mercedes husband. One would have thought made fun of our Twin Towers, it was Benz's-meant to be used as airport that the police bad the case sewn up. because they envied us for having limos- stranded in Port Klang was a An OJ. Simpson case without the the world's tallest building. If they controversial sigbt for several rea- nuisance of a jury or a racist police­ highlighted our environmental prob­ sons. First. it was quite clear that mao, they said. lems. they were ll)'ing to sabotage Airport Limo, the consortium which our growth. The new righteousness ordered the cars, belonged to the cat­ But no, the woman was acquitted was, frankly, getting too much and, egory ofMalaysian society who pre­ and walked out free.Apparently, the if not for anything else, the current ferred foreign to local. Thus, instead police bad gone to court with only slowdown is bitter medjeine for a of settling for say, Proton Perdana, circumstantial evidence in hand and malady that could bave turned out they decided to go for the German the cautioned statements as their to be a sickening epidemic. stuff. Now that's what our political strongest piece of evidence. Yes, it ! leadership would consider unpatri- seems tha_t _m_o_d_e_r_n_lD_·_ v_e_s_ti_g_a_ri_o_n ______-_ h_y_NNP___ - _~

A/iran Monthly 1997: 17( II) Page 22 COVER STORY

THE GREAT PRIVATISATION OF MALAYSIA By TehHalia

playing field is, pardon the pun, be­ tween corporate profit and public Private gain, public Joss. The theme of the Malaysia Sdn welfare. Bhd saga? Profitable parts of the government have been sold oft at questionable prices so much so that money is The all-conquering logic of the mar­ lacking to pay decent wages to demoralised and overworked ketplace also dictates that hospitals government nurses, doctors and teachers. That's the oJd (and other social amenities such as story. We've all heard about the wave of official schools, old folks homes and or­ privatisations sweeping the country, from toll highways to phanages) are ··running at a loss" and hoSpital support services. Now, welcome to the unomdal are "a burden to the government". "prlvatisation" ofsports, of environmental destroction. .,r Should we bother to be surprised stock market profits, of-social ills, or recreational space, of when one day, the smart schools set justice, of social concern and ultimately, or iellgion. up with taxpayers' money are sold off for a pittance (without open ten­ ders of course) to some well-con­ nected warrior of privatisation? L was a sign of the lime~. for private profit. g Lasl April, the Pcrak state PLUS. our modem day North-South government declared that It is a tale rich in multiple ironies. highwaymen, is projected to "pula-;" it had '"no money to maintain" sports Supposedly, sport is one of the best RM150 billion out of the public facilities in Ipoh and thus felt com­ ways to keep youths off bohsia and while its loans amount to onlyRM20 pelled to. wbat else (?), privatise Iepak (loose behaviour and loafing). billion. If only ten per cent of its su­ them. The classic reasons came out. Supposedly. it is a long term invest­ per-profits were used to pay better The facilities were said to be "nm­ ment in the rat..yat's health and well salaries to our overworked and un­ ning al a loss" and "a burden to the being. And supposedly, it is a way derpaid government doctors. nurses state government"'. ThtL.'i sports sta­ for a small country to achieve medal and teachers! The car-driving diums and complexes built with tax­ glory at international sports meets. middle class may moan about hav­ payers' money (including the Yet, fees for sports facilities were to ing to fork out ever higher tolls, but Velodrom Rakyat or People's be raised so that lower middle class for the lower classes, it means giy­ Velodrome, which was built largely Ipoh adult.<; could presumably lead a ing birth in hospital corridors, bav­ from public donations) were set to Malaysia Tak-Cergas (Unfit) cam­ ing "no stock" of important expen­ be handed over to a company "more paign. sive drugs and long waiting lists for efficient" at extracting fees from us­ life-saving treatments. Well, maybe ers. Fortunately the media uproar, Is this what the "Smart Partnership" a few premature hospital deaths here including a description of the move between the public and private sec­ and there will do our nation the "ser­ in the New SJraits Times as the tors of Malaysia Sdn Bhd is all vice" of weeding out the non-corpo­ ··mother of all attempts to pull wool about? When privatisationis encap­ rate weaklings who can't afford pri­ over the rakyar's eyes''. foiled this sulated in a small example like this, vate hospitals. Social Darwinism is attempt at subverting public property it's easy to understand how tilted the alive and well in Malaysia.

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A/iran Monthly J9t)7: 17(11 }Page 23 THE PRIVATISATION OF condo or shopping mall will, in cin­ rear spoilers. instead of catalytic STOCK MARKET ema parlance. be "coming soon" to converters. The result: If the ha7e PROFITS, SOCIAL ILLS a public field or playground ··near worsens in future years, we might AND PUBLIC SPACE you'"? Tiny Singapore has more be blessed with an Tndah Udara than 170 public Community centres Konsortium to provide privatised But the saga of Malaysia Sdn Bhd where people can take karate/com­ clean air- for a very ''nominal" fee. extends beyond such formal direct puter/body building/language rr not. well, fJ.fteen years down the privatisation!> into olher more ob­ classes. organise fishing and moun­ road, what are a couple of lung can­ lique e1.amples of private profit and tain climbing trips or even go cer~ be[ween Smart Partnership public loss. Take the "privatisation" karoake singing and ballroom danc­ friends? of stock market profilS. imagine a ing. We, on the other hand. are beat­ hypothetical scenario. Mr X makes ing out breasts wondering why Then there are (some) irresponsible enormous paper profits in the stock youths are lepak-ing in shopping building developers who finance market. On the back of this artificial complexes. their next boule of X.O. at the Ex­ wealth. he takes loans to buy his sec­ ecutive "Heallh" Centre or the VIP­ ond Mercedes, third mistress and Even hawkers occupying Klang Val­ double-laser-KTY, by scrimping on 17th house. Along the way, Mr X's ley sidewalks or backlanes at night silt traps atlheir project 'iites. The property speculation drives up house will be stuffed into these towkay­ subsequent erosion dogs up dr.Uns prices, thus making it extremely dif­ controlled complexes, in the al­ and rivers. Later - by an "Act of ficult for the average wage earner to mighty name of promoting cleanli­ God'' nolhing less- flillih floods oc­ own one lousy roof over his head. ness and traffic flow. No, health in­ cur when it rains '·too heavily". But if Mr X fails to evacuate from a spectors can't be made to do their Commuters are stuck in massive plummeting stock market, and the jobs properly. bus services can't be traffic jams, children miss school, banks start to hound him, should improved. but public space hawkers tens of thousands of man-hours are hard-earned public money kept in MUST be "privarised'' into indoor wasted shovelling mud from house the Employees Proviuent Fund be food courts. (Food prices will cise to floors. (In April. Kuala Lumpur used to rescue him? When he made "lnflasi Sifar"levels of course.) But Cicy HaJJ announced that RM80 mil­ profits, Lhey were privatised to him.. look again. is this in reality a move lion will be spent to "solve flood So why are his losses, (partially) to soak up the huge oversupply of problems". How much of that is in spread out to the public? shopping space which will soon hit effect a subsidy for the developers· the Klang Valley? cost-cutting?) Social ills, such a<> gambling, arc THE PRIVATISATION OF also tolerable as long as Lhey have On a larger scale. when the High­ THE ENVIRONMENT been "privatised". Some unfortunate lands Highway project is reacth ated, gambling addicts neglect their fami­ Can the environment be "privatised" the fear is that the spoils from it will lies and spend half rheir salaries ev­ as well? Factory owners, to boost be "privatised" while enviromnen­ ery month berting on fantasy escapes private profit margins, have refused tal spoilage "goes public". Or do the from their sorry lives. To prevent to instaJJ air pollution filters, just as highland property speculators. hote­ this son of thing, the government"s they refused to decrease production liers and farmers, having made their "Sinful'" Social Welfare Lotlery, at the height of Lhe haze, despite Dr money, have "high'" enough prin­ which used lO generate revenue for Mahathir's "suggestion" to do so. ciples to reimburse the public for handicapped people, was thus duely And Malaysian plantation compa­ flash floods. decreased drinking wa­ closed down more than six years nies. instead of providing more jobs ter and the sauna-nisarion of ago. But lotteries (plus other forms to impoverished Indonesians. "were Cameron Highlands? The best part of gambling) run for the sacred pur­ not really aware" that they were of all thiN is that housing developers pose of private corporate profit were clearing land cheaply through mas­ can then sell back to the public. the duly allowed to continue. sive open Imming. Similarly, EON "green living'" that they have taken prefers to arm-twist buyers of Pro­ away, but this Lime in the form of Next, the question of public space. tons into paying more than RM3,000 up-up-market "country home­ Even that is being corallcd into pri­ for "optional accessories'' such as steads'". "garden cities". "forest vate hands. for who knows when a alloy rims, fake wood veneers and townships'', ·'ceo-friendly homes"

Aliran Momhly 1997: 17(11) Puge 24 etc etc. Look closely. and you might Australian!. can have such a hlgh ne~>smen were manipulating the agree that these developer:-. arc in quality of life? Go home at five. have Malaysian judicial system. For his effect an Tndah Forest Konsortium. solid time for family and recreation. article "Malay stan Justice on Trial". It'!> the biggest magic trid. from our easily own a house and car. have he has been slapped with a brand of ·free markcC economics. good public o;chools and ho..,pitals. RM60million libel suit. Is there any What was formerly public greenery. work well. study well. play well. that substance to these allegations'! If so. free for everyone to enjoy. now be­ son of thing. Maybe the difference then justice too is in da.ngerofbeing comes a privatised commodity with is that Australia ha~ been blessed "privatiscd" 10 the htghest bidder. a price tag. Malaysian'> yuppies who with great mineral wealth. Why is it slog for years and keep very quiet after40 years of Mcrdcka (indepen­ Meanwhile, overworked, housing­ about social ju.stice. can later rejoice dence) and "world class" economic loan-choked. traffic-jammed Malay­ that they arc ·'rich" enough to buy growth, we can return home from the sians have little energy nor inclina­ back. "exclu.sive'' pieces or greenery office only at eight or nine in the tion left to do anything about what's which they'd unwittingly lost earlier. country's most "developed" cities? not nght with our country. ''What Abracadabra! What a prosperous In thi<; teruS-11UJju-jaya (ever-pros­ to do-/all'! Nevcnnind, tonight got lifestyle we lead! pering) nirvana. man)' government Dunhill double. Astro also can see ECONOMIC GROWTH servants who earn about RM 1.200 a ear-biting contc!.t.'' seems to be the FOR WHOM? month have become -.quatters and collecuvc !-.igh of ma\s escapJ.Sm. are forced to work a second job like forgtving all. forgetting all before the Again and again. the theme of pri­ selling satay to o,upport their fami­ JD.I.Jld-numbing barrage of 24 hour vate profit and public loss rears its lies. (And yet we complain of crum­ TV in our (private) living rooms. ugly self amidst the boisterous pa­ bling family and !>ocial values.) We rade of hip-hip hooray (!)Malaysia ''lack the money" to improve public Ifany natural human instincts ofcare Boleh (!)eight-eight "fatt fau choy" hospitals and schools. We're "still and concern are left over from that. (!)per cent "miracle economic developing" and "lack. funds" to we are not encouraged to channel growth" marching on every year (till build public day-care centn!s and them publicly to society. Instead. the recentJy that is). But beneath the cheap pubLic housing - especially market pusbes us to further EvereM-Iike euphoria. it's worth not­ since our huge petroleum asseLS have .. privatise" our affections to a very ing that when private profiteers been productively and wisely in­ personal Japanese electronic pet - a make money at the expense of the vested in the world's tallest you­ Ta.matgotehi. In any case. laws re­ public. the economy can still boom know-what. Now. we are planning stricting l'rcc speech long ago shrank on. For that matter. the example of to build the world's longest bridge public democratic space and induced South Korea clearly demonstrates to the economically crucial area the indecency of mass bohsia. wbicb that even massive corruption does known as Sumatra. But we get the in Hokkien literally means ··no not retard economic growth (until government we deserve, becau.se we sound". Thus waJ. social concern laid now. that is). The only question is: had not cared enough to say anything on its back. artfully seduced by the economic growth for whom? during the euphoric economic mi­ allure of quick bucks in the stock rage. now diso,olving. market casmo before being painfully If you are a highly educated profc.'>­ pierced by the harsh reality of ringgit sional who can be worked to the bone. A PRIVATISED devaluation. yes. you too might be allowed to be­ NATIONAL SOUL? come a minority shareholder of Ma­ In the final analysis, the soul and PRIYATISED RELIGION lay!.ia Sdn Bhd, to grdb a tiny slice of spirit of the nation may be in danger However. the ultimate awaits us- the the "privatised" profits. But if you are of "sendirian berhad-nisatinn'' as "privatisation'' of religion. The a government teacher. nurse or doc­ well. Take justice and fairplay. two shunting of religious concern away tor. the unequivocal message is. "Why basic qualities of civilised society. from public issues of social justice on earth arc you !>erving the public Datuk Param Cumaraswamy. the to private issues of personal piety. and not making some real private United Nauons Special Rapporteur money. you numbskuJJ?!" on the independence of Judges and But one has to ask. docs religion Lawyers. bas been invesugating advocate that we should be con­ Sometimes I wonder. why is it that complaints that highly placed busi- cerned only with private salvation-

A/iran Month/\ 1997: 17( 1 II Page 25 where, as long as we religiously do vision of a Civil Society? Other quar­ Teh Halia Lf 11 col11m11is1 in 11 our private prayer.., religiously avoid ters have questioned whether Islamic utiolflll dllily. personal sins (oooh. especially those authorities arc paying too much at­ nasty, nasty sexual ones), and reli­ tention to private holinc~s instead of giously avoid speaking up when wider public good. Marina Mahathir, there is public wrong, we have done commenting on the an·est and pub­ ROBIN HOOD the right thing? lic humiliation of three beauty con­ test participants a few month~ ago, When 1011ng I rrad Robin Hood John Stott. in !he book Issues Fac­ wrote,"After all, compared to incest, He n)bbed the rich 11nd helped ing Christians Today, points out that child abuse. wife battering, drug the poor during the Evangelical Revival of abuse and corruption, whether And now I read Robbing Hoods They plunlkr the Ctluntry and 19th century Britain, Christian lead­ you're dressed right or wrong ... rob the poor ers led campaigns against slavery should rank pretty low in the scale They lie to the people and corer I and the harsh conditions of factory of the concerns of our times." "By up their jlllw.f. r workers. In our time, we have seen the way, has anyone in the state ever ! Bishop Desmond Tutu speak out issued afatwa on corruption?" Ministers and aU tluir crolfies f against apartheid. These are Hoods with all the Private gain, public lo~s. Can that money Brother Anthony Rogers, director of fairly be called the theme of Malay­ Hand in glove they k~ep up the the National Office of Human De­ sia Sdn Bbd? Whether it's social ills, act velopment, a Catholic organisation environmenml damage, public play­ Screw llu pet~ple that's theirpeel in Kuala Lumpur, once said. "Nowa­ ing fields or stock market profits. so PrivatisllJWn is only a 1111111e The counlr)·'s wealth is really il days there is growth without devel­ many area' o.;eem to have been th~irgame. opment. Big citie.<; and big buildings. privatiscd away to well-connected

but have the people developed?" He corporations. Crises cam~ but d1ildnn saved cautioned against the dangers of a Next their ~rnnies now the "privatised faith'", believing that MaJaysia does not believe tn becom­ kuves. Christians are called upon to pro­ ing a welfare state where the poor With bailoiiiS as tluir ollly llim mote not just pcr..onal morality but lay around community sheller.. wait­ And only Hood& Cllll nuzb the also social morality. ing for hand-outs. Instead, we seem claims. to prefer well-connected corporate Stott writes."lf travellers on the figures hanging around go If clubs for Again the people foot the bills. Jeruo;alem-Jericho road were habitu­ the hand-outs of privatisation. Media told to diJtort the news As ifthis is sottUihing new. ally beaten up by robbers and habitu­ Maybe a culture of"socialism for the ally cared for by Good Samaritans, ri ch" is more in tune with the funda­ Frighten the people with ISA the need for better laws to eliminate mental, inalienable Asian human Just lilce the bully we know is armed robbery might well be over­ right of''corporate welfare''. As USA. looked." "It is always good to feed wealth and privilege shift to this cor­ And now Sihnt Whispen is the the hungry. It is bener. if possible, porate sector. ··successful" Malay­ on~' way. to eradicate the causes of hunger. So sians have quietly '·privatiscd'' so­ Govemment hos come to holl if we truly love our neighbours and ciallreligious concerns, to align All their stauments come to want to serve them, our service may themselves with the right camp. IUUlght. oblige us take or solicit political ac­ £1•ery kvel plllys the shores tion on their behalf." BuL after aiJ is said and done, this M"ho 's minding the colllflry, no­ could be an overly pessimistic as­ body cans. Is '·political action" such as sessment. Why? Well. after 40 years All these, the greed ofHoods organising petitions, putting up post­ of Merdeka. we Malaysians still Now I reall1 Min 1111 Robi11 ers, and visiting evicted estate work­ strongly care about one major pub­ Hood. ers tantamount to un-Godly rebel­ lic issue, one overriding social con­ lion? Or is it precisely what is called cern - that Soros has been respon­ Tespay for in the Deputy Prime Minister's sible for aU our economic sorrows.O

Alira11 Momhly 1997: 17(1 /)Page 26 PARLIAMENT

LING HEE LEONG i= LANGGAR PERINTAH?

Membeli Saham Syarikat Diri Pada Tahun 1996? oleh Lim Guan ERg _,

bila ia baru ditubuhkan dua bulan pengumuman oleh Timbalan sebelum itu pada 8 Oktober 1996 Pengerusi Eksekutif BIB yang dengan modal berbayar sebanyak baru, Ling Hee Leong, 25 bari RMIOO.OOO yang dimiliki oleh kemudian pada 28 Disernber Ling Hee Leong, anak kepada t996 babawa BIB akan membuat Presidcn MCA dan Mcnteri pembelian dengan wang tunai Pengangkutan Datuk Seri Dr seperti berikut: Ling Liong Sik yang banya bcrurnur 27 tahun. 1. Pada 27 Disember 1996, 17 % equiti atau RM350 juta dalam Pembayaran harga pcmbelian Syarikat Papan Pertama BSKL sebanyak RM568 juta adalah Promet Bhd atau 100 juta sabam secara wang tunai menerusi dengan harga RM3.50 sesabam; l.im GuanEng pengeluaran Brokerage Contract Note (BCN) dalam masa 14 hari 2. Pada 27 Discmber 1996, 32 % aya ingin bertanyakan selepas Surat Perjanjian Jual Beli equiti atau RM314.5 juta dalam samada Ling Hee Leong dilandatangani. Tidak ada bukti Syarikat Papan Pertarna BSKL 11 telab mcnggunakan bahawa wang tunai ini dibayar KIB atau 37 juta saham dengan wang dalam Berjaya Industrial dalam masa 14 hari selepas harga RM8.50 sesaham; (BIB) untuk membayar pengumuman pada 3 Disember pembelian 32 % equiti dalam 1996 atau sebclum 28 Disember 3. Pembelian 100 % dalam BID scbanyak RMS68 juta oleb 1996 oleh Linksun Avenue Sdn Promet Dikoye Sdn Bhd untuk Syarikat Linksun Avenue Sdn Bbd atau Ling Hee Leong. RM32.4 juta dan membayar Bhd? hutang syarikat itu kepada Rupanya Linksun Avenue Sdn Promet scbanyak RM32.4 juta; Pada 3 Disember J996, Bcrjaya Bhd tidak mcmbuat pembayaran Group Bhd (BGB) telab wang tunai RM568 juta kerana ia 4. Pembelian 100 % Promet De­ mengumurnkan penjualan 162.3 hanya mcmpunyai modal velopment Sdn Bhd untukRM12 jura saham kepada Linksun Av­ berbayar sebanyak RMlOO,OOO juta dan membayar hutang enue Sdn "Bbd dengan harga sabaja. Apa yang dikesali ialah syarikat kepada Promet sebanyak RM3.50 sesaham ataupun kemungkinan satu kesalahan RM31.6 juta; dan RM568 juta. Saya tidak tabu dibuat dengan pembayaran macam mana Linksun Avenue dibuat daripada wang BIB 5. Pembelian 100 % dalam Sdn Bhd mampu membcli BIB sendiri. Ini boleh dilihat dengan Rekacantik Capital Sdn Bhd

Aliran Month/} 1997: /7(11) Page 27 I dengan harga RMlOO.OOO/­ syarikat menggunakan wa11g 2. J B Nominees (Tempatan) sendiri rmltlk membeli saham Sdn Bhd Pembelian oleh BIB dengan syarikatllya. 3. OSK Nominees (Tempatan) wang tunai sebanyak RM79l juta Sdn Bhd 25 hari selepa" Ling Hee Leong Adalah difahamkan bahawa 4. Simeban Nominees (Tempa­ dan Linksun Avenue Sdn Bhd Linksun dan pihak-pihak scpakat Lan) Sdn Bhd 1 mcmbeli BTB , adalah sungguh dengannya tclahpun memiliki 5. TA Nominees (Tempatan) I mengejulkan. Pembayaran lebih daripada 51 % BIB Lanpa Sdn Bhd RM350 juta untuk 17 % dalam membuaL l-.alu Lawaran am secara Promel mesti dibayar dengan mandatori dan membuat Macam mana pcnguasaan equiti wang tunai pada 10 Januari 1996 pendedahan penuhkepada orang sebanyak 46% ini boleh dan RM314.5 juta untuk 32 % awam. lni melanggari Perintah dibenarkan tanpa memerlukan dalam KIB mesti dibayar dengan 34(1) dan {2) Merger & Takeover satu tawaran am secara 1 1 wang tunai pada 31 Januari 1996. Code dan mcngapakah mandatori dijalankan untuk Kedua-dua pembelian sebanyak Suruhanjaya Sekurili dan Malpac Bhd.? Adakah benar RM664.5 juta ini sudah cukup Jawatankuasa Pelaburan Asing bahawa Datuk Dr Ling bcrsama menampung pembelian Linksun boleh membenarkan amalan dcngan anaknya Lelah Avenue Sdn Bhd dan Ling Hee seperti in i? membcrikan jaminan sebanyak Leong daJam BIB sebanyak RM500 juta ini unluk RM568 juta. Adakah Datuk Dr Ling Liong Sik membolehkan kcmudahan telah memberi jaminan sebanyak dibcrikan oleh TA Securities? Adakah benar bahawa pembelian RM500 juta kepada TA Securi­ ini tidak mendapat kelulusan oleh ties untuk membolehkan Tni merupakan salU perkara serius pemegang saham BIB ataupun Rekapacific Bhd dan Linksun kerana macam mana seorang pemegang saham minoriti tidak Avenue Sdn Bhd membeli saham Menteri mempunyai kemampuan I diberikan peluang tentang nilai dalam Malpac Bhd? untuk menjamin kemudahan dan kewajaran pembelian ini? scbanyak RM500 juta? Macam Cara jumlah wang yang begitu Adakah Menteri Pengangkutan manakah beliau boleh besar dilepaskan oleb BIB umuk Datuk Dr Ling Liong Sik telah mcmbayaroya? Saya percaya pembelian itu hanya membcrlkan jaminan sebanyak dengan gaji bulanannya menimbulkan S)'ak-wasangka RM500 juta kepada TA Securi­ sebanyak RM30.000 pun tidak bahawa wang pembelian ioi ties untuk membolchkan cukup untuk ba) ar faedah, lcbih­ secara wang tunai digunakan Rekapacifil: Bhd dan Linksun lebih lagi hila gaji telahpun oleh Linksun Avenue Sdn Bhd Avenue Sdn Bhd membeli saham dipotong sebanyak 10 %. Kalau dan Ling Hcc Leong membeli dalam Malpac Bhd? Adalah bcliau mampu bayar. adakah ini sahamBffi. }etas ini mehmggari difahamkan bahawa bersama bermakna bcliau mempunyai Seksyen 67 Akta Syarikat yang dengan syarikat bersekutu di sumber lain yang tidak mengikuti melarang wang syarikat bawah Ling Hee Leong, undang-undang? Kalau beliau digunakan untuk membeli Kelanamas Industries Bhd dan tidak mampu bayar, adakah saham syarikat sendiri. Promct Bhd Lelah menguasai 46 beliau akan jadi bangkerap. khususnya dengan pengeluaran % equiti Malpac Bhd dengan Adakah pihak Perdana Mcnteri Brokerage Contract Note yang pihak-pihak sepakatnya menerusi membenarkan seorang merupakan satu komplot menipu firma-firma saham scperti Mcnterinya memberi kan jaminan pemegang sal1am minoriti. Perlu berikut: begilu besar'? ::J diillgalkan bahawa Seksyen 67 masih belum dipillda pada awal 1. Cimc;ec Nominees {Tempat­ tahun ini untuk membolehkan an) Sdn Bhd

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A/iran Monthly /997: 17( 11) Pagt 29 now we have to pay IWK rates as well. T# t T The Editot Is dus all what pri' ali !>ali on b about? ~LIRAN MON\ \\\.'( P.O. BOX 1049 Or is it savmg of Ringgit for the Govemmem at the expense of the 10830 Penang common people? Mala Can the country achieve 'zero infla­ tion' -a:- so frequently mouthed by We welcome letters from readers. These may be edited for purposes of space and our numerous politicians- especially clarity. The views may not be those of ALIRAN MONTHLY Pseudonyms ore when we have to pay extra for all accepted but oil letters should include the writer's nome and address. letters these essential utilities. which the should preferably be typewritten with double spocing; If handwritten they should Govemmem has the moral respon­ be legible. Letters should be addressed to the Editor, ALIRAN MONTHLY sibility to provide for the olizen~ at a reasonable cost? for more! ...... * Highway toll increases seem to Who are the actual beneficiaries? WIIO-IPmt II be never ending and yet another RealisticaiJy speaking. the} arc the is being requested. The Minis- favoured people with connections The New Strails Times on 8 Novem- ter responsible for that says it is who have been 'lucky' enough to ber 1997 reported. 'Pri vatisation a legitimate request since there have been awarded these saves Government RM87 billion - is provision for toll increases in privatisation concc~~iom•. and in RM7 billion annually in manage- the agreement. numerou~ cases e\en \\ithout going ment costs and nearly RM80 billion * IWK has hapha7ard plans for through t.hc democratic open tender in development costs since 1993. which we have to pay. even process. The Department of Privatisation of though we have not been pro- the Economic Planning Unit's Sec- vided their services! Their We pay and the) become richer. It is tion states that the programme has charges seem to be exorbitant! a classic ca.se of 'robbing' the com­ contributed RM22 billion in sales of Yet they keep on dumping their moners to make the rich even richer! assets and equities and such. And waste indiscriminately and at also based on analyses of I 7 the same time put the blame on To me, "privati ...ation" bas lost the privatiscd companies, corporate tax others. especially the Local Au- noble idea] of helping the common amounted to only RM2.3 billion un- tborities who were managing people. der the 6th Malaysia Plan·. this previously. * Assessment rates are being in- ~ Primiisation" Are we supposed to be proud of creased at the whims and fan- Bnmei these figures and accomplishments? cies of Local Authorities and Perhaps so! Yes, our Government City Councils. especially the has saved billions or Ringgit. But 1 Tpoh City Council, where the NIAC ... MIWN must emphasise that it is the People's rates seem to be the highest in 'IAICIOVa money. Malaysia, as reported! Rates go upwithout respite presumably to The conti nuou." fall in the value of Bul, what have all these savings and enable councillors to go on the ringgit amJ ~hares ts senous. al­ pri vatisation brought about to the ''visits" ovcr.;ca.-. - or perhaps for though the fulJ impact has not eitiLens of our country? The follow- a holiday at the rate payers ex- reached the poople at large. ~ever­ ing: pense. under the guise of "edu- theless. it j., feared that the people cational trips". will be feeling the adverse effects * Increased rates for electricity, * FinaJJy, many of us only paid beginning in the first quarter of next sad to say, Tenaga has requested assessment rates previously but year. during and after the three big

Aliran Monthly 1997: 17( 11} Page JO festivals, i.e. Hari Ray a Puasa, Chi­ Bakun Project by government, we to live on rice porridge for tbe next nese New Year and Christmas. wish to emphasise that PRM has six months, diMributing the money consistently opposed the project as which I would thereby save among In principle, we can welcome the being unnecessary and wasteful. people who are more disadvantaged formation of the National Economic When it was announced recently than I am. Action Council, for it is nmtoo late. that some mega projects will be Actually, there 1s no one person postponed, we expressed the opin­ It is well for our politicians -whose smart or effective enough to taclde ion that they should be cancelled life style 1 cannot imitate even in my the present financial crisi~ all by altogether. Now. after robbing dreams - ro talk of sacrifice and the himself. But. it must be remembered Sarawak of its Jogs and destroy­ like. lt ls as if the late President that the NEAC may not he useful and ing its environment, Ekran has Mobutu, with his huge palaces in may not be able to function effec­ decided to withdraw from the Belgium, Switzerland and France, tively if it is controlled only by one project. The government is forced were exhorting the people of Zaire person or dominated by the same to take over. In the end it will be to tighten their belts .... so that he group of people. This is es}X!cially the people who will have to bear could continue living like a real so if there is no change in policies the financial and other burdens President? or orientation. resulting from the stupidity of un­ dertaking tbe project in the first in­ Our leaders must realize that very We hope that the NEAC will not stance. One of the urgent decisions many of the Ra!..yat are educated and concentrate it'> attention in ftnding that will have to be made by the are exposed to the electronic and ways for the recovery of tbe ringgit NEAC is how to abandon unpro­ print media, not to mention the and the share market. For instance, ductive mega projects, with mini­ Internet streaming in from every cor­ beside~ talking about increasing pro­ mum damage, rather than just ncr of the globe. It would be a gross ductivity and reducing production withholding them and then con­ m,istake to assume that they cannot cost (is it by reducing wages'?) there tinuing to bear the costs and the perceive the difference between ~IJUulll also be stress on ways and waste. what is preached and what IS prac­ means to control the rising prices or tised. food and other basic need!\. At the Dr Syed Husin Ali BapaRasuah same time. fum action should be ~esUfen~ JJ~ Petaling }aya taken against corruption and nepo­ tism related to the distribution of ... CAll PlllCIIVI contracts and shares. Corruption and 1RI Dlfi!IBNCI nepotism have Jed to concentration of wealth among a handful of people Dr Mabathir has the remarl..able abil­ close to the powers-that-be. ity to rally the Rakyat around any About four years ago, the Govern­ worthy cause he espouses. Now with ment ruled that future permits for It needs to be emphasised that in the the economy sliding, he is appeal­ taxis operating in the Klang Valley long run the problems of inflation. ing to the people to make sacrifices would only be issued to firms with corruption, nepotism and concentra­ for the nation. I am sure all Malay­ sufficient capital to buy the vehicles, tion of wealth will have far worse sians will heed his call. maintain them in road worthy con­ effects on the people and the coun­ dition, and provide satisfactory ser­ try than the fall of the ringgit and/or But it is said that Dr Mahathir, his vice to passengers. shares. Tt is imperative that rhe children, many of his Cabinet Min­ NEAC should focus its attention on isters and their relatives and friends As a result of this policy. a number these problems. Otherwise. it will be arc very rich. Now if these people of taxi firms were established by regarded only as one of those at­ will come out into the open and tell politicians with close ties to the rul­ tempt<; to salvage big business and us how they acqutred their wealth ing elite and their relatives, ostensi­ corporate figures closely linked to ancl further. if they would lodge any bly to safeguard the interest of the some government leaders. assets not properly obtained with the travelling public since there were, it Public Trustee for the relief of the seems, numerous complaints against Regarding the takeover of the hard core poor, then 1 am prepared individual taxi drivers for whom per-

A/iranMonthly JW7: 17( II) PageJ I mlts were given. general of !be union hoodwinked !be sections 1 (a) to (l) of these Rules delegates !laying that it was an ad­ are identical to Sec. 50 {l)(a) to (I) Now even a simpleton can sec the vance and not a loan, wilbout say­ of the Trade Unions Act 1959. udang sa-balek batu: that the whole ing what the advance payment was idea is a "get rich quick" scheme foi! These list out clearly what union whereby the heartless Ali Babas who funds may be used for. There clearly own the taxi companies make the What is the truth? As the DG's of­ is NO provision in this section, or poor taxi drivers work for them for fice had chosen to be secreti vc. the anywhere else in the Act. for any a trifling commission.ln spite of the member, having faith in the Public form ofloan or advance to be given general resentment against these so­ Complaints Bureau of the Prime to any officer or member of the cial parasites, there bas been little MinisLer's Depanmem, sought the union, let alone interest free personal improvement in the taxi service al­ assistance of the Bureau. The Bureau loans. Yet, Siva strangely seems to though the commencing fare, like the proved to be very helpful and in­ not to know the union financial regu­ PLUS toll rates, has been raised folll1ed the member through its let­ lations. Mind you, be was also finan­ since. ter dated 18 October 1997 that Siva cial secretary of the MTUC. Subramaniam bad applied for a loan/ Disabled people like me who oeces­ advance of RM9,000, which was One would think that leadership by sari I y use the taxi as a convenient approved by the Executive Council example means one should keep means of transport have to suffer for of the NUTP on 20 July 1996. This one's own hands clean before shout­ the avarice of a few. Not only that, was not in accordance with the Tmde ing about other dirty hands! Or is it the younger generation are being Unions Act 1959 (read unlawful). that by shouting about other dirty taught by word and example that Upon realising this and upon advise hands people would believe the when one enters politics one must from theDG's office, he had repaid hands of the person shouting must abandon all principles of fair play the loan in full on 2 June 1997. As be clean! I and decency - only the mega bucks such, the DG's department was not matters. going Lo take any further action! How is it then that th~: DG\ office Si Malang is standing up for Si\a thai he was Kuala Lumpur When Siva Subramaniam, com­ ignorant of the union·., financial menting on the revelation by the regulations? And if the DG·s office School Audit Division - in October is so convinced of Siva\ ignorance, 1997 - that school funds to the tune shouldn't it be investigating all fi­ of RM2.5 million had been misman­ nancial dealings of the ~UTP whose aged, described it as 'a serious income and assets run into millions, The Star reported on 6 August 1997 crime' and advised the Ministry of being the largest union with around that a member of the National Union Education that candidates selected 70,000 members, '>rnce Siva look of the Teaching Profession (NUTP) for the posts of headmac;ters 'should over the reign as -.ecretary general had complained to the Director Gen­ be aware of the financial regula­ and became one of the three signa­ eral of Trade Unions (DG) that the tions governing school funds'. He tories of the union's accounts? What secretary general of the union had was not speaking as a person igno­ is the basis of !be stand by the DG's taken an interest free personal loan rant of financial regulations. What office that Sjva was ignorant of the ofRMlO,OOO in contravention of the aoclicity for the pot to call the kettle law? Even ifhe wa'\. since when has law. An officer from theDG's office, black! ignorance of !be law become a pow­ Khoh Ah Lek had replied that "ap­ erful defence to a wrongful act? So propriate action had already been You see, Siva has been a headmas­ anyone can claim ignorance when taken" -without saying more. Siva ter himself, hence his knowledge of discovered and go scot free? Subramaniam, the secretary general, school financial regulations. But be clismissed the complaints against has been deputy general and then Isn't the action of the DG's office him as 'baseless' and a deliberate secretary general of the N UTP for a tantamount to abetting a wrongdo­ ploy to discredit him. At the last Bi­ longer period. The financial regula­ ing as iL gives hcence to trade union ennial Delegates Conference of the tions of the union are embodied in officials in the coumry to do what NUTP in September, !be treasurer rule 20 of the union's Rules. Sub- they please with union funds, and if

Alirw1 Momhly 1997: 17(11) Page32 r::-covered and reported, to feign corruption campaign. The Public Complaints Bureau de­ I ~~~-orance and be let off? What if serves a good pat on the bad. for they are not discovered? Titis is ut­ I wonder who is persona no11 grata having lifted the veil of secrecy in terly shameful, especially when the - the whistle blower, the wrongdoer the oa·s office concerning this mat­ country is attempting to fight corrup­ or the non-enforcer of law-;? As ter. Please keep up your good work tion of all kinds and at all levels. It things stand, it is the whistle blower, ru. public servants musr be account­ is an affront to the country's anti­ or the one who cries rape who is per­ able for whar they do or don't do. corruption campaign. unless we are ceived as the offender - not the rap­ expected to believe that the cam- ist or the policeman who helps the Ravintfer Singh paign i\ a mere eyewash! What kind rapist to escape. Sungai Petani of precedent is the DG's office set­ ting? What has happened to all the statements of the Minister of Human Resources that uruon financial affairs

would be closely watched to prevent BCRO r tNOAilUAN \ \\1\M J,\BAT/\" PI:RD,\1'1\ i>d£.'TfRI abuses by union officials? 11"(JKAl K. 'WlSl>IA hll!oll RA\A. 1/\LAS RAJA IA\!T ~'ill l'liAI ~ I L.\1PUR Is the DG's oflice balking at taking Tf'lrlt"' lf.llllli'\1 proper ·appropriate· action i.e. ru:. provided for in the law when a wrongdoing is discovered, because the NUTP is a model union in the ~ . Ravmdcr Songh. eyes of the Department? You see, in ~ !!· Lorona lOW! B/5. Taman lDWl 1993, the Department honoured the 08000 Stlll&ai Petani, NUTP by conferring THE MODEL ~1IDA11 DABUL AMAN, UNION award on it. What son of a model is today's NUTP when its ) present top manangement thinks Aneka Bay11111n Kepao:bl Sftlausaha AJIOIIi K1'P)( - En. Sin Su.bramanlam nothing of disregarding the rule of

law? And tl1i\. in a teacher''> union, Aduan ruan benarikh 12 ()goo 1997 diroJuk. whose members and officers reach 2. Se!elah dllemalc. llPA mendapau bahawa penama do 8laS telah moral and ethical values to our chil- memoboo plnJaman/pendalluluan stbanyat RM9,0001- dan celah dilulll$bo dren in schools? oleh MC5)-uual Majlis ~ KPPI< pada Wuw 1996 Petbualan 101 llhlah tidat teml clengln Am Ke$atuao Sderja 1959. Setelab menyedui IQI iai ciao detlgao oasobal 1REXS En Siva tellh mentel.aslalo ke9emua pinjaman oni pada 2 JWJ 1997. Olchiru pibakJIIEl

We should also be asking whether there should continue to be a place in enforcement agencies for people who tak sampai hati to enforce the laws for whatever reasons that only they know best. an attitude which

I does not help in the country's anti------

Aliro11 Monthly 1997: 17(1 I ) Pat~~ 33 HERITAGE SAVE OUR MERDEKA STADIUM! 1 The venerable monument is a cherislud reminder ofour tUition's birth 41l:y«U:S ago. i, By Tunku Sofiah Jewa (

have taken place by the time the The stadium fonns part of lbe ctt:y's press gets hold of the news, reme­ land-scarce golden triangle and de­ dial steps by the authorities would velopers should not be deprived from at all be possible. exploiting every available inch of iL For after a11, the proposed developed The importance of bui Idings of heri­ area will enhance the beauty and tage value bas oflen been highlighted value of the city as a whole. With by such luminaries as Ahmad Satji. the existence of other more modem Sanusi Junid and Lee Lam Thye. sports stadiums built or in the course Whilst existing laws and regulations of being built away from the hurty­ have helped preserve structures such burly and the traffic-jams of Kuala as the Central Market at Jalan liang Lumpw. Stac.liUlU Mt:rdcka has in­ Kastun, the BPR (Anti-Corruption deed outlived its purpose. ln this Agency's) Building at Jalan modem day and age. the stadmm is Thr Tunku : nothmg was mort dear to hun SuJaiman, the former Majestic Ho­ an anachronism which should give than Stadium Merdtka tel at Jalan Sultan Hishamuddin. the way to mega-developments, with f late, various news items VI Theatre at Jalan Tun H S Lee and perhaps a bronze-tablet embossed have sprouted in our na­ the industrial Court at I alan Belanda, with lbe words ..here once stood Sta­ tional dailies over concern it is extremely sad that one particu­ dium Merdeka where our naTion's aptly expressed by prominent per­ lar structure. lbe heritage value of independence was proclaimed by sons regarding blatant dJSregard by which i., undebatable, falls outside Tunku Abdul Rahman Putra on 31 developers of the environment and the protection ofcurrent laws and has August /957' (or an epitaph to that of heritage buildings. been left to lbe mercy of develop­ effect) to mark its fonncr glory. ers. On the environment front. what must lt is ramer ironic that the various leg­ have incensed every right-minded That structure is the Stadium islationstopreservehistoricalbuild­ citizen of the country. is surely the Mcrdeka- that very historical place ings (legally. those built more than a report mat emanated from the Prime where my uncle, our first Prime Min- hundred years ago) have only been Minister's own chance observation ister the late Tunku Abdul Rahman used to protect buildings built either from his helicopter of the vast area Putrc~. declared our nation's indepen- by colonialists or during lbe colonial of rainforest - turned - "desert'' in dcnce from Britain on the morning era. According to a report attributed Hulu Klang. The report is, of course, of 31 August 1957. to lbe Housing and Local Govern- by no means an isolated one and one ment Minio;ter Dr Ting Chew Peh, I wonders whether. as destruction on Excuses for the destruction of the the pre«:rvation of hbtoric.J buDd­ massive scale would invariab_l_y_s_ta-dium are many and imprcs-si_v_e.__ in_gs_le -ss than a century-old. which J

Abron Monthl.Y 1997: 17( 111Page 34 are unprotected under existing antiq­ as a gift to the nation. named "Putrajaya" in my uncle'f.. l uicy regulations, is the subject-mat­ honour. And hardly two weeks ago ter of a proposed new legislation ten­ Even today, Stadium Merdeka is not the Prime Minister announced an­ tatively called the Conservation of without utility. Soccer matches, other signal honour for my late Heritat:e Buildings Act. sports championships and parades uncle. Universiti Pertanian Malay­ have been, and continue to be held sia has now been renamed Univcrstti Stadium Merdcka may be a pile of there; so have public entertainment Putra Malaysia. destruction by the time the proposed shows. And when a neighbouring Conservation Act come!o. into being stare authority withdrew the licence For a man whose strained relation­ but if legal authority is indeed re­ for the performance of an interna­ ship with my uncle during the de­ quired to save the Stadium, resort tional artiste at their stadium, was it clining years of the latter's life was can be made to the following provi­ not Stadium Merdeka that was cho­ public knowledge, Dr Mahathir's sions of the Antiquities Act 1976: sen as a suitable alternative? action to so posthumously honour him borders on more than magna­ Section 2( I): ... ''historical site" Of all the buildings my uncle had nimity - it is clearly an act of means a site which has been declared helped built during his tenure in of­ statemanship of the highest order - in accordance with the provisions of fice, none was more dear to him than one which even his btllcrest politi­ section 15 to be a historical site; ... Stadium Merdeka for it was there cal foes cannot but admire. that the proudest moment of his life Section 15(1) : The Minister may by took place. On his 80th birthday on On 31 August 1997 our nation cel­ order declare ... any site to be a his­ 8 February 1983. I presented him ebrated its 40th anniversary of her torical site and may determine the with a painting of his Proclamation independence. lf I may interpo!>e a limits of such ... site. of Independence, which T had com­ line or two from one of Winston missioned a local well-known artist Churcill's great war speeches, it is But is a legal reason really neces­ to produce.lt wa' then that my uncle not given to us to peer into the mys­ sary to preserve Stadium Merdeka? confided to me in writing of his deep teries of the future. Still, 1 avow my The Italian government and their affection for the Stadium."Stadium hope and faith. sure and inviolate, Jflpanese counterpart sought no le­ Merdeka is here for all lo sec in that in the days to come our P1 iuu:: gal authority to respectively preserve Kuala Lumpur", my uncle later told Minister may be moved to endow the the coliseum in Rome or the Atomic­ me in answer to my question as to nation with a most meaningful gift. Bomb Dome at the Hiroshima Peace why he decided to present my gift by saving Stadium Merdeka from Memorial Park. By the same Loken, to him to the Museum Pelamin in destruction. If that happens, the sta­ no legal authority need actually be Alor Setar, instead of to the National dium shall remain tntact, not merely sought to preserve the stadium. Our Museum in Kuala Lumpur. as a painting hanging in a comer of nation wac; bom there and that should some unheard of museum in Alor be reason enough. As a famous As the days of reckoning for the Sta­ Setar but as it has always been since mountaineer replied when be was dium grow nearer with each passing the first shouts of "Merdeka!" her­ asked why, despite the number of moment. I really do not know to alded the birth of our nation that fate­ human tragedies and wasted funds whom l should address this appeal ful 31 August morning 40 years ago prior to his attempt. be sti II wanted to save it from destruction. - sometimes calm, sometimes vi­ to climb Mount Everest, his simple brant, but ever alive as indestructible reply wa\, "because it is there''. On 29 August 1995. just before the a' the nation itself- for all of us, the n~tion celebrated its 38th anniver­ present and the future generations of In fairness to those who reportedly sary of independence, Prime Minis­ Malaysia, to admire and cherish for­ may lose billions of ringgit should ter. Dr Mahathir Mobamad launched ever.O the proposed development on the the Federal Government's new ad­ stadium land be abandoned, their ministrative centre which he said 1 'hiiD !lfl/ldJ.w ...,.. .., ~~ loss may be reduced if an alterna­ would one day emerge as a megacity Mllltt.'l*~fttll-.,.... 1 tive site can be given to them in ex­ comparable to other megacities like Abtlal ..._ .,._ Slw ;. • change, unless, of course, Lhey Tokyo-Yokohama. Costing almost .,., .. ,...,.,. --be ...... waive their righL' over the stadium RM21 billion, the new city has been t..,.,.

Aliran Month/)• 1997: 17( Ill Page 35 WHERE HAS ALL THE CRITICAL SPIRIT GONE? continued from page 40 but because of crucial structural is clearly not proper has become the are some individuals who may not weaknesses in the economy: particu­ norm. be active in Aliran but in other larly, our over-involvement in the organisations. Indeed. some of these non-productive sectors of our Why is it that, in spite of the fact that Aliran members have made a differ­ economy like property and the ~tack the economy is down. people remain ence to marginalised people like the market and over-stretching our re­ uncritical? estate workers and the urban poor. sources by undertaking numcrou~ We are proud of them. prestigious mega projects in our ob­ Ten years ago, the situation was very session to find a niche in the book different. There were then controver­ However, we need to reflect senously of records. The wastage and the sial issues and a recession. The me­ why we joined AI iran. what moti­ squandering of the nation's wealth­ dia highlighted mismanagement and vated us then, and why this disinter­ all this can only be done at a price wastage. People were losing jobs and est now. Hopefully, while debating and we are paying for it now. taking salary culls. There was Bukit the report some answers will emerge Merah and Papan and Tambunan: to help us to relcindle the old spirit. Now that it has dawned upon them there was the OSA (Official Secrets that the 1998 budget is not the cure Act). there was the attempt to restrict Our main activtty nowadays is they hoped it would be, they have societies; there was the BMF scan­ A/iran Monthly. Since almost all our decided to set up a National Eco­ dal. All this stirred people and they comments and statements and letters nomic Action Council robe chaired became critical and vociferous. lu the press are hardly carried in the not by the Finance Minister but by mainstream medi~ A/iran Monthly the PM himself. This has alllhe trap­ But don't we have issues now? Isn't is the only thing that identifies pings of an emergency without ac­ the economy a problem? Aliran's work and reminds the tually declaring an emergency. people that we are -;till around. Have the ten good years dulled us This Council \\ill have extra parlia­ that unthinkingly we echo the leader. But the impact of A limn's work and mentary powers. but it IS unclear When he points his finger at some­ our presence will not be effectively who it will be answerable to. It ap­ one as being the source of our eco­ felt unless the sales and readership pears. however. that the NEAC will nomic problem, they say in unison, of the Monthly increases. We need work from the top-down rather than "Yes that is the guy who is causing to focus our attention on how we the bottom-up. And il will probably us problem." When he says that is might further promote the distribu­ be an extension of a continuing trend the nation that is trying to do us in, tion of Aliran Monthly. to consolidate power in the hands of we take the cue and condemn that the Executive. country. The leader is accepted as the Hopefully, with this new building. all-seeing. the all-unerring. the res­ there wtll be a new spirit to serve. The way the idea for the setting up ervoir of truth - the epitome of wis­ After wandering around for 20 long of the NEAC was mooted no longer dom. Why so? years we have finally come home to surprises the people nor upsets them. settle. And thts is importanL It gives But it merits comment. Whether it And what about our members? Are a sense of permanency. is the Societies' Act, constitutional they also victims of d1is syndrome? amendments, confrontation with the Finally we need to find new people monarchy- it's always the same. The The majority of our members are and new blood to enthuse our work UMNO Supreme Council decides - seemingly affected by this malady as and to reJuvenate our efforts. This is the BN leadership i.e. the Cabinet, well. It's either they have been lulled very important not only for Aliran endorses. it merely rubber stamps into believing that there are no more but for all typec; of organisations in­ that decision. What about Parlia­ issues to pursue or that the society, cluding government. For new ideas ment? What role does it play? And Aliran. does not need their llelp to to emerge. there must be a continu­ what about us? Are we ever con­ function. Believe me. we need all the ous renewal. For a society to remain sulted? help we can get. vibrant, change is necessary.

Tt is unfortunate that something that But it must be recognised that there Thank you.O

A/iran Monthlv 1997: 17(1 /)Page 36 Backbenchers Club president~ Ruhanie Ahmad'~ threat against students who are actively involved in party politics.

Ruhanic had called on the govern­ ment to withdraw scholarships and other financial assistance from these students, particularly those who support the opposition Islamic party, PAS.

From his statement, it appears that 1 ~~==::;::=:=::;::=== it is all right for these students to [;2:Z!]~[]~~~:E1:JJ~~~~~~~======~= engage in political activities that support the ruling coalition - just many other Malaysian non-govern­ like their countetparts overseas who mental organisations and political are actively involved in UMNO groups, we too know how frustrat­ Clubs. ing and even painful it is when our views are ignored by the main­ We feel it is unjust for the govern­ Aliran feels that the information stream media and our views are of­ ment to favour overseas students Ministry's plan to buy advertising ten distorted or taken oul of con­ over local ones as if somehow im­ space in the international media in text, so that we are portrayed in a plying that the local students are an attempt to put forward a 'true ac­ negative light. politically immature. Ruhamc's count' of Malaysia may turn out to statemem also reveals an inability be counter-productive. It would The government can overcome the to understand that the aid given LO also be a waste of money, especially problem of perceived bias in the in­ student does not come from politi­ at a time when the Government has ternational media by itself becom­ cal party coffers but from embarked on an austerity drive. ing more transparent and account­ taxpayer's hard-earned money. able. To pre-empt charges that it Information in the form of adver­ practises double standards, the Ma­ His sentiments also reflect the tisements is usually perceived. es­ laysian government should move to government's intolerant attitude pecially in the Western social con­ protect and uphold press freedom towards differing and dissenting text. as propaganda that promotes within Malaysia. One way it can do views, which are necessary in a only a particular viewpoint. Faced this is by revoking the law requir­ democratic society. They also with this perception. the message ing newspapers and magazines tO contradict the government's pro­ invariably loses its credibility. apply for a new licence every year fessed desire to build a civil so­ - a stifling rule that effectively curbs ciety in which citizens have an Even worse. the use of advertise­ press freedom. important role to play in public ments in the foreign media would P RamaA:Tishnnn life. only heighten suspicion thar the President Malaysian government has a ten­ 18 November 1997 Society doesn't progress just be­ dency to push its own version of the cause everyone happens to think truth by all means, disregarding SIUDIIIII' POUIICS alike. Rather, an atmosphere con- other viewpoints. AIID IIIDWCIUAL ducive to debating issues, evaluat- ..OW!II ing alternative views and question- We empathise with the government ing the established order is the cor- over what it claims is the unfairness nerstone to intellectual develop- l of the international media. Like _ A_l_ir_a_n is concerned abou_t_ _m_en_t and growth.

Alira11 Momh/J 1997· 17( I I ) Page 37 have already announced their rec­ ommendations and action plans ALIRAN'S 21ST AGM: prior to any form of consultation or comprehensive study of the RESOLUTIONS economy. Consequent]y, their rec­ ommendations, such as cuning out foreign travel and buying locally We, the members of Aliran, gather­ Tn this regard the NEAC should not produced good!., are not facing up ing inPenang on 23 November 1997 focus on the losses and debts that to the serious problems ad­ for the 21st Annual General Meet­ certain companies and individuals. equately. ing. hereby resolve and call upon the who were involved in the stock ex­ government: change and currency market. have Much of our current problems has been saddled with. been caused by our enthusiasm' for 1. To focus its attention on the cur­ mega projects most of which should rent economic problems confront­ We strongly urge the NEAC to con­ be dropped once and for aJI, not ing the country. sult ALL sectors of the population - merely postponed. rural farmers and lishcnnen, urban We are glad that the government has workers and squatters. consumer as­ Another contributing factor has been set up the National Economic Action sociations and unions, people in­ the lack of transparency and ac­ Council (NEAC) but would like the volved in !.~ales and providing ser­ countability in many areas of Ma­ NEAC to investigate the entire vices to the public, and not only the laysian business and political deci­ workings of the economy, including captains of industry and big business sion-making. The wastage and cor­ its structural weaknesses, and how - before it makes its recommenda­ ruption, huge profits for some and ordinary Malaysians have been af­ tions. rising costs for others. have been at fected by the downturn in the the expense of ordinary Malaysian economy. Unfortunately, certain leaders consumers.

Current Concerns continued from page 37 Finally, rather than threatening stu­ Such a threat reinforces lhe suspi­ We are concerned that this warn­ dents, the government should be en­ cion among Malaysians and for­ ing is the latest in a series or couraging them to be more politi­ eigners that the Malaysian govern­ threats against freedom of expres­ cally conscious and intellectually ment is not inclined to be open and sion, free access to information, perceptive to face the many chal­ transparent in its performance. It and constructive criticisms, par­ lenges in the country and to con­ may also lend credence to some of ticularly when the country is fac­ tribute to meaningful development. the unfounded rumours abut the ing an economic crisis. Tr certain country now flying around. rumours are true. then whose in­ Dr Mustafa K Anuar terests are reaUy being threat­ Executive Commirree Member Concerned Malaysians, particularly ened: the nation's or the ruling 20 November 1997 those who hunger for investigative elite's? reporting and independent news analyses, should not be penalised Finally, such a waming doesn't au­ for wanting to know what's really gur well for a country that is sup­ ![ -~-- ] going on in their beloved country. posedly trying to build a so-called :.:...- ~ 0 Information society through the Aliran views with grave concern The government should also realise well-publicised Multimedia Super the Home Ministry's recent warn­ that rumours thrive in a society that Corridor. ing against Malaysians who trans­ is often shrouded in mystery, that mit 'negative rumours' that the prohibits or discourages open dis­ P Ram.akrishnan Ministry deems detrimental to 'na­ cussion of current social issues, and President tional security'. that curbs press freedom. 26 November 1997

.4.1/raJI Momhly 1997: 17( II) Page 38 The recent detentions have occurred about a week after human rights workers ~tnd political uctivi~ olh served the lOth anniversary of Op-­ eration Lalang on 27 October. In 1987. I06 Malaysians were detained in ao ISA crackdown against dissi­ dent voices • ao indelible blot in the human rights record of Dr Mahathir Mohamad·s administration. It is surely time for the ISA to be re­ pealcd.Q Finally. we are appalled at the irre­ to the poor. sponsibility of the mainstream me­ dia, which. because of their lack of 3. To repeal the Internal investigative reporting and critical Security Act and to re­ ALl RAN'S analysis of the economic and politi­ lease immediately all de­ NEW EXCO cal problems, have inadvertently tainees held without trial contributed to disinformation. We under tbls unjust law. The 21 stAnnual General Meeting of I '\trongly urge them to assume their Aliran was held on 23 November responsibility to help improve the We are concerned in par­ 1997 in the Allran office, Penang. economic situation by investigating ticular about the fate of the and writing about these problems 10 Malaysians who were Sdr P Ramakrisbnan was unani­ comprehensi vc I y. recently arrested in No­ mously re-elected as President. vember 1997 because they Other office bearers elected were: 2. To ensure that inftatlon is con­ were allegedly "lx.."Coming trolled, jobs are not lost and essen· more aggressive and vio­ Secretary: Dr Francis Loh tlal services not disrupted. lent" and were involved in Asst. Secretary: Dr Arlftln Omar ''deviationist teachings''. Treasurer: DrS P Subramaniam In particular. we arc concerned about AudiJor: Sdr S Franci$ Xavier the continued provision of compre- Aliran calls on the govem­ hcnsive bealthcare service for all rnent to charge them in Malaysians especially the poorer court if it has proof that Also elected were eleven other ex­ -.cgments ot" :.ociety. : they were involved in vio­ ecutive commill.u members: lent activities. Islam, like ln view of the dismal record in re­ all other religions, upholds Dr Mustafa K Anuar gard to cost-effectiveness. reliabil­ freedom of religion and in­ Sdr Anil Noel Netto ity and efficiC'ncy ofcorpora tised and sists on j ustice for all indi­ Sdr Gan Kong Hwee privatised healthcare. we strongly viduals. It is ironic that the Sdr Amar Gill urge the government to take the nec­ ISA is apparently being Dr Wong Soa,k Koon essary step., to re-invigorate the pub­ used to protect Islam when Sdr Jubal Lawrence Lourdes lic health -.ector. to raise morale and the same law goes against Dr Chan Chee Kboon redress the outflow of staff, and to the core of the religion. The Dr Molly Lee channel su)Ticient resources to pub· ISA denies justice to the Sdr Daphne Gob lie sector healthcare so as to ensure accused, and this violates Sdr Pajan Singh that adequate and reliable care re­ the concept of justice es­ Sdr Zaharom Nairn mains widely accessible. especially poused by Islam and all

Alirwr Momlrly 1997· 17(11 ) Pa~:~ 39 his is a very significant babbling in our attempt to explain AGM. We are 20 years this this nightmare. g year. and it is amazing that we have been around all The doom may not be in sight but these years. Twenty years in the life the gloom is cenainly going to be of a society like ours is a very long part of our scenario for some time to time. come- in spite ofDrM's claim that this aberration is only a temporary I must thank all of you for your set-back for the nation. But most presence today and for keeping analyst'\ are less sanguine about our faith with Aliran all this while. It economic recovery in the immedi­ is this loyalty and fellowship that ate future. matters most to all of us and keeps us going. The budget that wa:) prc::,c:nlcll on 17 October wa." hailed ns something full Thank you very much. of vision and wisdom to tackle our economic woes. It was seen as the Allra/1 President P Rumuk ri~/111an This time last year when we met for cure for our ailment. Like parrots, our previous AGM, our economy party functionaries and hangers-on Those of you who have been read­ was riding high. We were basking and the mainstream media. in their ing the A/iran Momhly would be from an unintenupted and unprec­ usual uncritical and unthinking fash­ aware that whether it be the Cur­ edented rapid economic growth ion. chorused their praises for it. Just rency Cri-;is or the Haze. whether it"s which we were blessed with for one month later it ha.... become very 1 Malaysia Incorporated or the Multi­ nearly a decade. clear that the budget was woefully media Super Corridor. or whatever inadequate to help us overcome our the issue or topic. we have alway), , We were held up as a model of eco­ problems. attempted to present the other per­ nomic management worthy of emu­ spective; the other side of the coin. lation. Many came courting us: to This is our problem and the nation's learn and borrow our expertise hop­ tragedy. Our newspapers are not ana­ And those of you who have read the ing to repeat the economic miracle lytical and our people are not criti­ recent past is~uc:, of the Monthly we were enjoying- at least that wa.' cal. would realise that our economic what we were told. . \\ oes arc not ~imply a result of Through the A/iran Momhlv. we speculation b} cenain individuals But all that seems to ~ve changed. cried to analyse the budget ernie ally. The euphoria that enveloped this We were one of the few gm~s CONTINUED nation has e~aporated st,\ suddenly. which attempted to present the al­ ON PAGE ••• The bubb:le bas bt,trsl ~hd we are ternative view.