[ Index ]
 

Although Malaysia is not in recession, we are experiencing a slump in almost all sectors, including petty traders and hawkers. Now, the Government has given rubber and oil palm smallholders in rural areas hundreds of millions of ringgit in subsidies (is there an effective distribution?), it should also work out ways of relieving

urban folks of difficulties such by making better use of the allocation of RM763.62 million for the distributive trade. It can help the small and medium entrepreneurs, petty traders and hawkers.

In the present economic slump, the people are unhappy that the Government is using tens of billions of ringgit to rescue ailing companies such as Renong. The Government says that this is based on the social factor: the conglomerate going down will affect thousands of people. What are the criteria for bail-out? Why doesn’t it rescue other sick companies?

Granted other governments such as USA and UK have bailed out companies. But, can the Malaysian Government convince the people within and outside the country of its corporate governance, banking merger and fiscal prudence?

For example, most people cannot accept the Government’s purchase of MAS equity at RM8 per share, being double the market price. Similarly, few are convinced of the merger between Bank Bumiputera and Bank of Commerce into Bumiputera-Commerce Bank. People believe that Bank Bumiputera still behaves like a government department, with its less professional personnel influencing the more professional staff members from Bank of Commerce. The Bumiputera personnel outnumbers the Commerce personnel by 4 to 1. How competitive is Bumiputera-Commerce Bank?

Dr Tan Seng Giaw