Mara Digital is a Bumiputera-only version of computer and electronics mall Low Yat 2. – The Malaysian Insider file pic, December 16, 2015.
The Bumiputera-only digital mall and electronics business centre, formerly dubbed Low Yat 2, is doomed to fail, says Datuk Zaid Ibrahim in criticising the brainchild of Rural and Regional Development Minister Datuk Seri Ismail Sabri Yaakob.
In his latest blog post, the former law minister said such businesses were doomed to fail.
“There is no need to launch a grand plan that is doomed to fall flat on its face, as many of these politically-inspired business models do.
“Let's first see if the Malay traders will make money in Low Yat 2 (now officially known as Medan Mara Digital Mall).
“We will only be able tell when they actually start paying rent for their premises, which kicks in six months from now.
“We can only say the business model works if they're paying unsubsidised rental and making profits.”
Zaid said the wholesalers were predominantly Chinese, and left little room for Malays selling at end line to control the prices.
“They will only make money if rentals are free or subsidised.
“Is the minister willing to use Mara money (which is of course taxpayers' money) to subsidise the rentals to make his Bumi-only retail centre a success?” he said.
Zaid expressed doubt that Malay buyers especially youth would find prices at Mara Digital to be cheaper or attracted to the location of the mall.
“It's not as ‘happening’ as the ordinary malls. Young people of both sexes like going to places where they can watch people go by, which is not how anyone would describe this or any other Mara building.”
He said the only way to have genuinely successful Malay traders and retailers in the next 50 years is to first provide them with clever and capable leadership, followed by manufacturing capabilities and the skills to become wholesalers and distributors.
“Malays need a good attitude, good technical education and competitive spirit. They must want to compete and succeed in Low Yat.
“Those running away to Low Yat 2 (and 3 and 4 and onwards) are failures before they have even started.
“They are being spoilt by their ministers, who are willing to create artificial and unsustainable business environments for the sake of instant glory and results.
“Malays must know that it takes time to succeed. They must stop blaming others if things do not work. Only if they are in the top end of business can they help Malays at the lower end. There are no shortcuts,” he said.
- TMI
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