Billionaires? More like politician-business incest

Prime minister Najib Razak was offered a lesson on economics today by Kuala Selangor member of parliament Dr Dzulkefly Ahmad, following a remark linking the number of billionaires in the country to prudent economic policies.

According to Dzulkefly, Najib's view only showed an urgency for UMNO and BN leaders to understand "rent seeking behaviour", under which ruling policians indulge in "incestous relationship" with big businesses, resulting in the bulk of wealth circulating among a small number of political cronies.

“This group will then secure a system of patronage and cronyism by picking up the bills of politicians," said Dzulkefly.

On Saturday, in his opening address at the forum on "Malaysian Chinese at the Political Crossroads", which saw a debate between DAP secretary general Lim Guan Eng and MCA president Dr Chua Soi Lek, Najib welcomed the growing number of billionaires in Malaysia, saying the trend had been due to the government's economic policies and the country's stability.

"I looked at yesterday's newspapers... the list of Malaysian billionaires. I studied each one of them. Maybe some in this room today. Every one of them became rich because of our policy," said Najib, who added that these billionaires were in "the right place and at the right time".

"Even if they don't get concessions, they have to be in the right place and at the right time. They benefited from our policy, they benefited from the fact that we give stability to this country."

However, Dzulkefly said the existence of what he called the 'super rich' phenomenon was due to the government's wanton privatisation of such basic public services and facilities as highways, water and electricity supply, ports, sewarage and health.

'Season of contracts'

Citing what he called the 'season of contracts' in the run-up to the general election, Dzulkefly said the size of "kickbacks and paybacks" commensurate the value of the contract, and added that it was "normal practice" for a minister linked to a government project to demand 10 per cent from the awardee.

Dzulkefly also said a quick check on each of the 30 Malaysian billionaires that Najib alluded to would reveal their origins and their political connections.

“Those ‘instant bilionaires’ invented by Tun [Mahathir Mohamad] are now saddled with debt around them... I don't have to mention who they are as it is an open secret!" said Dzulkefly, referring to the former prime minister's 'Malaysia Incorporated' economic model that centred on privatisation of major public bodies.

While not all super-rich entrepreuners such as those in the United States were borne out of a system of patronage, the same is not the case with Malaysia, said Dzulkefly.

"But almost of the local billionaires - barring a small group - have been the product of such a system in this land of 'Malaysia Boleh'," he quipped.

Echoing a recent speech by former Finance minister Tengku Razaleigh Hamzah who lamented the disastrous consequences of crass privatisation, Dzulkefly said the failure to distribute wealth equally among the populace ought to be treated with embarassment by Najib.

"40% of household incomes are less than RM1,440 and close to 60% are within the RM3000 monthly income bracket. And 80% of households with income less than RM1000 are from among the Malays-Bumiputera!" stressed Dzulkefly.

"Therein lies the economic scourge stuck in the 'middle income' regime which has been criticised by the World Bank, with only a 2.6% increase in real wages in the past decade, as cited by the World Bank."

He said such failures in closing wealth disparity among Malaysians should be enough reason for UMNO and BN not to plead for another mandate at the coming polls.

He said in contrast, the policies of Pakatan Rakyat were based on the concept of distributive justice.

"We are ready to take over, but only with the support of the people."

Info : News