In the Malay Press: Mahathir says no need TPPA, bumis still need protection

by Meena Lakshana

PETALING JAYA (July 22): Bumiputeras are not fully matured to compete in the free market without protection from the state, former Prime Minister Tun Dr Mahathir Mohamad said.

 

In an exclusive interview withSinar Harianon the Trans Pacific Partnership Agreement (TPPA) today, Mahathir said bumiputeras should not feel embarrassed for their need for state protection in business dealings.

 

“We are not matured yet. It is not right to embarrass bumiputeras just because they still need protection,” he reportedly said.

 

“If we give RM1 million to a rickshaw driver, will he be able to manage the money with the same care compared to an expert in investment?” he added.

 

Despite acknowledging that there were many successful bumiputeras in the country, he defended the need for protection policies for bumiputeras.

 

“Please do an audit if we say that we need to open government procurement deals to whomever without taking into account whether they are bumiputera. The private sector (all this time) have done so? (Companies) in construction, business, have they opened to bumiputeras?” he asked.

 

“They have never given a single contract. So if the government does not give to bumiputeras, (the private sector) does not give to bumiputeras, what are the bumiputeras going to get?

 

“We have the abilities, but the world population is made up of the rich and the poor. So are we going to tell the poor to compete with the rich, efficient and smart?” he added.

 

Asked if the TPPA would affect Barisan Nasional’s (BN)’s survival as the ruling coalition, Mahathir was coy about it.

 

“It will have an effect on BN but we also have to look at the opposition coalition. They are also yearning to get support from them (United States),” he said.

 

Mahathir said International Trade and Industry Minister Datuk Seri Mustapa Mohamed had met with him and given the assurance that the agreement would not be signed without negotiating the terms of the TPPA.

 

“The interest to sign (the agreement) is there. But for me, we don’t need the TPPA. It is yet another agenda by the United States (US) to penetrate the market here because they are having trouble with the market over there,” he said.

 

“The US’ abilities in manufacturing have deteriorated significantly over the past 10 years, they have lost to Japan and Korea and then they moved to the financial market.

 

“The financial market does not churn out materials. They only bet. It is like gambling. Now that (financial market) has already collapsed, the USwants to return to manufacturing but they have lost the capability to compete with others,” he added.

 

He said free trade agreements have cost the nation, including those brokered during his tenure.

 

“For example, we entered into the Afta (Asean Free Trade Agreement). With Afta, vehicles with 40% of local materials are considered to be of national standard. As national vehicles, producers can enter any Asean country without tax,” said Mahathir.

 

“But in Malaysia, we make cars with 90% local materials. So, the costs are higher. So, countries that do not produce vehicles get cars from other countries like Japan and Korea, top it up with 40% (of local materials) and enter Malaysia.

 

“See the amount of cars that enter Malaysia from other countries, from Thailand, compared to Proton cars in their country. If we go overseas, we do not see Proton. That is why I say it is not profitable,” he added.

 

The TPPA, currently being negotiated among 11 countries led by the US, aims to further liberalise economies in the Asia-Pacific region, and covers a broad spectrum of areas which includes public health, the environment and legal system.

 

Questions have been raised over how Malaysia and other countries stand to benefit from it, as many of the nations are already engaged in bilateral FTAs and are in other multilateral trading blocs.

 

Brunei, Malaysia, Singapore, Vietnam are currently signatories to the Asean FTA, and Canada, Mexico and the US in the North American Free Trade Agreement.

 

The TPPA negotiations have also highlighted some pertinent issues, particularly the need for state intervention to protect small and medium enterprises from competition posed by foreign businesses.

 

Despite assurance from Mustapa that the interests of the country will be protected, opposition leaders and activists are still concerned about the agreement, especially on matters pertaining to sovereign control over financial markets, pharmaceutical and medical prices, investor-state dispute settlements and the discreet negotiations which have been kept away from public scrutiny.

 

Critics have claimed that the country may face the possibility of losing its rights to control capital, which was noted in other FTAs that the US had negotiated. - fz.com