The practice of cronyism is still rampant under Prime Minister Abdullah Ahmad Badawi's administration despite talks of greater openness and efficiency, said Umno veteran Tengku Razaleigh Hamzah.

The Gua Musang MP told the Dewan Rakyat yesterday that government contracts and projects are still awarded based on relationships to those in power and not on the principle of merit or to those genuinely capable.

Razaleigh said at one time 'rent-seekers' were chided but now the criticism has dwindled because "we are seen as producing new rent seekers in new forms".

"I believe this perception can be eliminated if government leaders are more tough, courageous and have stronger political will," he added

Razaleigh stressed that action should not only be taken against those at the bottom but also those at the top.

Where are the plans?

Focusing on the economy, the former finance minister said local industry captains, who are facing the challenges of globalisation and stiff competition from neighbouring countries, are wondering where are the government's plans and why is the economy still sluggish.

"The Ninth Malaysia Plan has not only beeen criticised as being unexciting, but almost a year on, people are wondering where are the big projects that have started.

"Critics say we will be talking about the midterm plan next year but until now, the 'dream car' has not left the garage. Is our car not good or does it have to face various bureaucratic obstacles when leaving the garage?" he asked.

Razaleigh said the business circle has expressed concern over the possibility of losing out to countries like China, India and Vietnam that have lower production cost or to even more developed countries like Singapore and Taiwan.

"They say we do not have the competitive advantage as yet to compete with (these countries) in the long term," he added.

On the rise in global oil prices, Razaleigh said it may not be bad for Malaysia as the country is a net-exporter of petroleum and this will eventually benefit the state-owned Petronas.

He said the increase in oil prices will also indirectly benefit the palm oil and rubber industries.

However, he reminded the government not to be swayed by the world trend. It should make the efforts to face any possibility and in relation to that, the government's move to encourage Petronas to seek oil reserves should be commended.

Disclose Petronas' income

On the same note, Razaleigh said the rakyat would also like to know how much income is Petronas making.

"Several incidents in Sudan (involving Petronas) is worrying, as well as the issue that we were chased out by Chad needs an explanation.

"How safe is our investment in Burma or Iran in the event it is affected by international pressure or political factors?" he asked.

Razaleigh also suggested that Malaysia become the hub for the gas and petroleum industry in this region

"I believe through a national strategic planning, we would not only be able to enhance our position as the biggest producer of oil and gas in the region but also our strategic location between the Straits of Melaka and South China Sea (is an advantage)," he said.

In another development, Deputy Minister in the Prime Minister's Department Abdul Rahman Suliman said the government will continue to ensure that the interest of strategic local companies do not fall into foreign hands.

He was replying to Kamaruddin Jaffar (PAS-Tumpat) during the question-and-answer session yesterday.

The PAS MP asked whether the government is aware that foreigners, especially Singaporeans,

are buying local companies involved in transport, telecommunications, banking and engineering for the past two years.

Citing healthcare service provider Pantai Holdings Bhd as an example, he said the government's investment arm Khazanah Nasional Bhd should ensure that national interest is protected.