It is well known, though not well publicised, that the Malaysian government watches closely what letter writers in malaysiakini are saying. This is because foreign governments, embassies, analysts, and fund managers regularly read these pages to get a better feel for what is really happening in Malaysia, as opposed to what they read in the mainstream newspapers.

It is a pity that Dr Mahathir chose to put across his views on Europeans by using the Umno General Assembly as a forum. In one swoop, he has quite possibly undone all the good work of the various investment promotion agencies tasked with the unenviable responsibility of attracting foreign investment into Malaysia.

The investment promotion people in countries like Thailand, Singapore and the Philippines must be quietly celebrating! Given such polemics from the PM, no major foreign businessman or company would want to look at Malaysia as a place to invest in, not when other countries in the region offer a more conducive and welcoming environment.

Nor would any European expatriate want to put their family in a place where racial sentiments are openly bandied. As a corollary, one can forget about Malaysia ever becoming a hub for anything - high tech, biotech, infotech, finance, transportation, etcetera.

The sad part is that Malaysia has so much going for it, in spite of the awful mess it has made of its educational system in the name of affirmative action and Malay advancement.

The positive aspects of Malaysia have been clouded by this strange affinity for controversial views and an in-your-face attitude towards Europeans and Americans in general.

Is there a deeper political agenda here? Is it part of a general move to cement Malaysia more firmly in the Islamic world?

I can foresee a major split developing in Asean as Thailand, the Philippines, Indonesia and Singapore become favoured locations for foreign direct and portfolio investments.

Malaysia, given the current government mindset and thinking, will be permanently relegated to the sidelines in the great game of globalisation. Which will exacerbate the already serious brain drain from the country. And accentuate the racial divides as the pie shrinks. Truly, one reaps what one sows.