No more "Ali Baba" concept, that’s what former deputy prime minister Tun Musa Hitam said when asked to comment on his statement to the Bloomberg about the Iskandar Regional Development Authority (IRDA).
During an interview by Bloomberg, Tun who sits on the IRDA advisory council, had called on the government to review the policy of giving special privileges to Bumiputera companies for projects under the Iskandar Development Region.
Contract awards will have to be on merit, the Malays will have to face competition. […]
"I am confident that this Bumiputra thing, if I may put it this way, need not be the negative factor, and I am stressing this in this particular exercise." […]
"There needs to be a revision, updating, of the way we approach it."
Tun also called for a special briefing in Umno to explain to its members why it was time to give up the New Economic Policy (NEP) and believes that there is a need to have a change in mindset to draw investors to the country. He volunteered to be one of the speakers at the briefing.
Johor Menteri Besar Abdul Ghani Othman, who co-chairs the IRDA, said he agreed with Musa, saying his suggestion fell under the announcement by Abdullah on the exemption of FIC rules.
"It should be looked at in the broader context such as in terms of the multiplier effect which includes the benefit to the country later."
March 22, Prime Minister Abdullah Ahmad Badawi in his speech at the Invest Malaysia Conference 2007 said the Government will exempt companies from corporate income tax within in growth regions, starting with the IRDA.
However, those who’re are exempted from the Foreign Investment Committee (FIC) would have to contribute to the Social Project Funds for social welfare development in the IDR, including bumiputra development.
Indeed, with the Government trying to make a development decisions based primarily on economic logic with Tun calling for a merit-based economy policies starting from IDR, is a milestone in the nation’s economic dialogue.
It’s also a positive indication of putting in more priority on the comparative advantage that Malaysia has to offer to investors, in which it’s also a normal response that is causing foreign direct investment to relocate to the most competitive environments.
I believe the time has came for bumiputra entrepreneurs to take up the challenge and capable of thriving without government support. In turn, this would prove that they are ready for the new era of global competitiveness.
Bear in mind that, we’re living in a flat world anyway.
Meanwhile, click here to watch Tun Musa Hitam on Bloomberg.