‘Don’t do it’ - don warns M'sia against continuing race-based policies

The continuation of race-based affirmative action policies will deter domestic investment in the economy, contended political economist Terence Gomez (above) today.

Using the previous BN government’s Bumiputera Economic Empowerment (BEE) programmes as an example, he argued that domestic investment had plummeted after such programmes were introduced.

“An interesting thing happened in 2013. BN lost big and they had to capture bumiputera support so they brought in a different type of policy but that killed off domestic investment.

“[...] race-based policies do not encourage investments.

“If the new government is also talking about race-based policies, then I am concerned what will this do for domestic investments,” he said during a panel discussion on “Economic Cooperation Amid Political Tensions” at the China Conference in Kuala Lumpur.

'Without fear'

Met afterwards, Gomez raised another example where very few bumiputera-owned companies were ranked as the Top 50 companies in the country.

“After having introduced these policies since 1970 until today, if we can only produce two bumiputera firms in the Top 50, what does that alone say about the value of these policies?” he pointed out.

Gomez elaborated that a continuation of policies like the BEE or the NEP of the 1970s would not inspire investor confidence, particularly among non-bumiputera investors.

“Do they feel they can invest without fear? Do they feel that their property rights are protected? These are important issues that you must convince investors today.

“And at this moment, when we’re trying to get the economy back on track, the first thing the government must do is inspire investor confidence and get everyone to invest.

“Investors will be ready to invest (so) why bring up this policy and scare investors again?” he questioned.

‘Don’t do it’

Gomez said he had observed with caution recent developments like the “Future of Bumiputeras and The Nation Congress” (KBN 2018) that signalled Pakatan Harapan had little intention of rolling back policies such as the NEP or BEE.

“If we want to have (such policies), we have to have a public debate on them because my own argument is they have not been successful.

“Don’t do it, that’s my argument. Don’t do it,” he told the media.

Aside from Gomez, today’s panel featured Asian Development Bank vice- president Stephen Groff, City University Hong Kong president emeritus Chang Hsin-kang and Malaysia-China Friendship Association Abdul Majid Ahmad Khan.

It was moderated by Hong Kong newspaper South China Morning Post (SCMP) deputy executive editor Zuraidah Ibrahim.

The China Conference, held for the first time in Kuala Lumpur, was organised by the SCMP. - Mkini