The government has not "laid the facts" in countering European Commission to Malaysia delegation head Thierry Rommel's criticism that the New Economic Policy (NEP) crippled the country's economic competitiveness, said Parliamentary Opposition Leader Lim Kit Siang.

Lim added that Umno youth chief Hishammuddin Hussein must clarify whether he has the full authority of other component parties when he accused Rommel of meddling in the country's affairs.

"Deputy prime minister Najib Tun Razak and Hishammuddin have not laid out the facts to prove Rommel wrong, which should be the smart way of operation," Lim told a press conference in Parliament lobby today.

He said he has moved a motion to debate the matter in Parliament on Wednesday.

Last Thursday, at a EU-Malaysia Chamber of Commerce and Industry (EUMCCI) luncheon , Rommel had described the NEP as discriminatory and amounted to protectionism against foreign companies.

He told foreign and local businessmen that the government was using the NEP as an excuse to practise "significant protectionism of its own market," including the automotive sector, steel, consumer goods, agricultural products, services and government contracts.

He said Malaysia claims these are "infant" industries that need to be protected but "in reality .. it is the Malay-centered Bumiputera policy that drives protectionist policies" and that "there is no level playing field for foreign companies".

Arrogant and extreme

In response, the government has slammed Rommel for his remarks and announced it would sent a protest note to the EU to summon the envoy to explain his remarks.

Criticising this, Lim said it was important for Malaysia's international image as a democratic country that Rommel's speech be openly disputed "than to shut him up."

"What does the government propose to do if Rommel can factually back up his criticisms when summoned to explain his speech?" Lim said.

"Instead of protests and saber-rattling by Hishammuddin and the Barisan Nasional youth, the most sensible and productive response is to ask for full clarification from Rommel and to have a full debate in Parliament."

On Saturday, Najib had described his comments as "against normally accepted practices" while Foreign Minister Syed Hamid Albar that foreign investors have not lost confidence in Malaysia as evident in Malaysia's capital and equity market "growing at a very fast pace."

Yesterday, Hishammuddin described Rommel's remarks as arrogant and extreme and that "he should not interfere in the internal administration of the country."

In a response, Rommel said yesterday that he did not call for the scrapping of the NEP and denies meddling in the country's affairs.

The EU and Malaysia currently have two agreements under way aimed at deepening ties the Partnership and Cooperation Ag-reement (PCA) and the FTA both of which were on the table ready for negotiations.

The NEP was started in 1970 to raise rural Malays out of poverty. The government intends to raise Malay corporate ownership by 30 percent in 2010.

Analyse the criticisms

Meanwhile the Centre for Public Policy Studies (CPPS) agreed Najib that Rommel was not following the proper diplomatic protocol in his sharp public criticism of the NEP.

However its chairperson Ramon Navaratnam said the government should rationally analyse the criticisms by providing reasonable responses in answering Rommel.

"Those protesting Ambassador Rommel's comments should substantiate this with valid data and statistics, examining the development of the NEP and its implications on the Malaysian economy fairly," said Navaratnam in a statement.

He added that it was imperative for Malaysia to constantly review its socioeconomic policies to ensure they are effective in promoting real sustained socioeconomic development for all Malaysians in the long run.