While Malaysia fiddles, its opportunities are running dry
By Michael Backman
The Age
November 15, 2006
MALAYSIA'S been at it again, arguing about what proportion of the economy each of its two main races
the Malays and the Chinese owns. It's an argument that's been running for 40 years. That wealth
and race are not synonymous is important for national cohesion, but really it's time Malaysia grew up.
It's a tough world out there and there can be little sympathy for a country that prefers to argue about
how to divide wealth rather than get on with the job of creating it.
The long-held aim is for 30 per cent of corporate equity to be in Malay hands, but the figure that the
Government uses to justify handing over huge swathes of public companies to Malays but not to other
races is absurd. It bases its figure on equity valued, not at market value, but at par value.
Many shares have a par value of say $1 but a market value of $12. And so the Government figure (18.9
per cent is the most recent figure) is a gross underestimate. Last month a paper by a researcher at a
local think-tank came up with a figure of 45 per cent based on actual stock prices. All hell broke loose.
The paper was withdrawn and the researcher resigned in protest. Part of the problem is that he is
Chinese.
"Malaysia boleh!" is Malaysia's national catch cry. It translates to "Malaysia can!" and Malaysia certainly
can. Few countries are as good at wasting money. It is richly endowed with natural resources and the
national obsession seems to be to extract these, sell them off and then collectively spray the proceeds
up against the wall.
This all happens in the context of Malaysia's grossly inflated sense of its place in the world.
http://www.michaelbackman.com/LatestAgeColumn2.html
Click on the link to read the rest of the article. Very interesting facts and figures on our neighbour.