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Friday, January 6, 2023

Marrying Affirmative Action With Meritocracy / Free Market / PRICE MECHANISM

 First lets listen to this speaker who is a learned person.

My Comments :

Affirmative Action has failed (in Malaysia) because we ignored the carrot and stick. 

'Carrot and stick motivation is a motivational approach that involves offering a “carrot” (a reward—for good behavior) and a “stick” (a negative consequence for poor behavior)'

In Malaysia we have plenty of carrots but no stick. Our bumiputra policies have failed because we reward failure. 'You fail, we reward you'.

The school teacher molests the student and he gets transferred to another school. End of story. No punishment. No stick. That is the reward. He escapes punishment. Instead he still gets his salary, moves to a new area and starts all over again.

That coach who slapped those volleyball players gets no punishment. He 'apologises' and thats it. Case closed. That is his reward - he has escaped punishment.

On the other hand ABSOLUTELY NO INDIANS WERE INVOLVED in the death of that fireman yet so many Indians were hauled to the Police Station for questioning.

The forensic expert said in the Inquiry that the fireman had been hit by the Bomba vehicle. It was an accident. It was an unfortunate accident. 

What  is the reward? The Bomba were never held accountable for the 'accident'. 

Six Bomba drowned in another really stupid accident.  No one was penalised or held accountable. That was their reward. 'We followed the SOP' was the reply. 

No one is punished for failure. No one is penalised for failure. Instead people get rewarded for failure.

The fellow cannot compete in business. He has started as a failure. Never mind. Give him free money, easy money, bumiputra assistance, give him bumiputra licenses, APs etc. 

So he can get started. Then he cannot sell his product. Another failure. Give him more subsidy. Ask FAMA to sell his produce in some market. Lorries and trucks all provided. Free. More reward for failure. No stick. No punishment. It is carrots all the way.

Finally his business fails anyway. If he is a big koporat (or keparat) he probably has lost millions or billions. He also has a Bentley, a Bugatti, two wives at least (at some point) and lives in a mansion on a hill. No problem. Just bail him out, using public funds. More reward for failure. It is carrots all the way. No sticks.

This is bumiputra Affirmative Action. REWARD FAILURE. 

So after 53 years of Dasar Ekonomi Bebal there is no such thing as the BCIC animal. What is the BCIC animal? It is NOT an extinct species. BCIC is a species of animal that failed the evolution process from day 1. In the Darwinian survival of the fittest, the BCIC had no chance to even survive  for one day. Hence the BCIC never came into existence. Since it did not even exist so it cannot go extinct.  BCIC means Bumiputra Commercial and Industrial Community. A non-existent creature.   

When they get rewarded for failure they do not need to compete. 

There is no need to think. Penat nak memikir. There is no need to work hard. And the greatest failure of all - there is no need to take risk. AVOID TAKING RISK. NO NEED FOR RISK TAKING BEHAVIOUR.  Hence they cannot compete.

How do you destroy Malay civilisation? Simple - keep them away from taking market risk. No need to compete. 

So after two or three generations since the NEP, the father cannot pass on commercial or industrial skills to his son. The father does not know. He did not compete. He did not take risk. So what can you teach your son? Not much. So there is no BCIC.

The solution? 

If the bumi candidate gets into university on a lower entrance grade fine. Let him enter. 

The Chinese and Indian must enter university on full merits. Fine. If they qualify do not prevent the Chinese and Indian from entering university. (The Chinese and Indians pay the large(st) portion of taxes anyway - it is their money that funds the public universities.) 

So where is the stick for the lower grade entry bumi candidate? He has to do more course work in university than the entry on full merit Chinese and Indians. Instead of a four year degree, the lower entry-grade bumi candidate should stay another year and do more coursework. That is the stick. There must be a stick.

If th bumi candidate want to also graduate in four years then you must have the same entry qualifications as the Chinese and Indians.

If you dont have its ok, but you stay in university lonegr and you do more coursework.

Then it is also just on the non-bumis. The non-bumis will not feel shortchanged (as much). 

Here is another example. The bumiputera contracts for example the Class F contracts. All Class F contracts are reserved for bumiputra contractors only. Fine. We can all accept that. 

But there must be a stick. What shall be the stick? 

The stick is the PRICE MECHANISM - ALLAH swt's great gift to mankind. The price mechanism, the invisible hand that makes all things go round.

Since all Class F contracts are exclusive for bumi contractors there must be a volume discount. 

All Class F bumi contracts must be below market price. Say 5% or 10% below market price. That is the stick. The reward is the Class F contracts are yours. The stick is it must be below slightly market price.

If the Class F contracts are below market price, you cannot sell the contract (Ali Baba) to the Chinese and Indians. So the bumi contractor will learn to do the job himself. (Which is the original intention anyway - so that they learn skills and business and they can compete).

If the bumi contractor wants full price contracts then he must compete with the non bumis. He has to step into the real world.

He must step outside the fake world of make believe. He must leave the la-la boleh-land.

You cannot and should not reward failure. If they fail let them fail. 

You should not shield the Malays from taking risks. 

Without taking risk, pasti Melayu akan hilang di dunia. 

Tidak ada mamak pun yang boleh membelanya.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.

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