COMMENT We refer to our article which was published in two parts in Malaysiakin i - ‘ Has 30% bumiputera equity target been achieved? ’ and ‘ Major flaw in computing bumiputera equity target ’ and the various comments posted by readers.

 

We are glad that generally the comments are favourable and in agreement with our points of view. We would like to sincerely thank those who provided positive feedback. To those who made baseless allegations, please be a little bit objective and at least read and understand the article before you pass any judgement. 

 

We are not the first one to highlight the flaws in the government's methodology of computing equity ownership. Way back in 2006, former World Bank senior political scientist Lim Teck Ghee and his team had already indicated them. Based on a survey of companies, Lim pointed out that the 30 percent bumiputera equity target was already achieved. It was most unfortunate that for his good work, Lim was unfairly penalised by the people in power and his findings were rejected by the government outright.

 

Just like Lim, the subject raised by us touches the raison d'etre of Umno. It will be extremely difficult for the Umno-dominated government to accept the flaws mentioned in the article.

 

Nevertheless, we are of the opinion this time around it is not that easy for the government to shamelessly reject our conclusion because our estimates were entirely based on the government's own data. It will be totally unthinkable for a government which talks about developing the country into an advanced nation to rubbish its own data and figures.

 

The target year of transforming Malaysia into an advanced nation is not that far away. It is ridiculous to talk about Malaysia as an advanced and united nation when the irrationality of using par value of companies and the irregularity of excluding government shareholding are allowed to continue to gauge the performance of a key component in our national agenda.

                                               

Malaysiakini is not an academic journal. We are not academicians. We did not conduct any new survey of companies for the purpose of preparing this article. In our view our article is not an academic paper. Therefore, we did not have the usual acknowledgment which an academic paper has. Nevertheless, we would like to take the opportunity here to express our gratitude and appreciation to the following persons:

  • Lim Teck Ghee, who provided assistance and encouragement.

 

  • Lee Hwok Aun, who took the trouble to go over one of our early drafts and offered valuable comments.

    •  

  • KJ John, who supported us strongly throughout the process of preparing our article by linking us up with relevant people.
    • On the question of anonymity and plausibility, we would like to stress that validity of our article depends on the content, facts and figures, whether it is well-researched and well-presented, and not whether there are big names associated with it. We prefer anonymity because we do not need to add credential to our CVs; and unlike politicians, we do not seek popularity.

     

    Suffice to say that one of the ‘Little Stars’ in our team is a senior citizen who has a rare combination of working experience: many years in various government departments, and in different listed and unlisted companies. He also served as a senior consultant, leading a team of international experts in a key government department.

     

    We would like to reveal that when we circulated our draft paper to a small group of distinguished people, many of them decided to keep a distance from us or preferred to remain silent. Contrary to expectation, our draft was snubbed by an MP from an opposition political party. Luckily there was another supportive MP from the same political party.

     

    Let the truth be known

     

    Our article was finalised in mid-November. However, knowing that some delegates to the Umno General Assembly, which was around the corner then, could be rather emotional and might hurl abusive words without understanding - or more correctly, did not want to understand and open any discussion on the issues - and in order to avoid unnecessary confrontation with such unreasonable people so that a healthy discourse can take place, we waited until the general assembly was over, and only then we submitted our article to Malaysiakini .                                     

     

    To some, the waiting was a show of lack of courage, a sign of timidity; but to us, that was a reflection of maturity and moderation. In our process to build up a functioning democracy, unnecessary confrontation should be avoided and healthy discourse should take place. If we disagree on this point, let's agree to disagree then.

     

    The government is currently in the midst of preparing the Eleventh Malaysia Plan (11MP) scheduled to be released in mid-2015. Therefore, the timing is right to present our article with a view to stimulating open discussion now.

    Furthermore, the minister responsible for the preparation of 11MP, Abdul Wahid Omar ( left ), being a non-politician, has no political agenda and should be more receptive to constructive suggestions.

     

    We hope the fundamental flaws of the government's methodology of computing equity ownership will be brought to the attention of the minister. As a former banker and accountant, we believe he is a man of high integrity who will not easily compromise his integrity for short-term personal political gain and will have the courage to do something to rectify the flaws.

     

    We wonder whether it will be useful if someone initiates a petition to get the government to establish a task force headed by the Securities Commission to professionally update the equity ownership position of bumiputeras, other ethnic groups and foreigners for 2013-14.

     

    Let the task force do its work without political interference. Let the truth be known. Let's show the world that we are transparent about the whole issue.

    LITTLE STARS is a pseudonym of a team of professionals.