The Malaysian economists termed this phenomena of a minority community losing faith in Malaysia and expressing it through capital flight and physical migration as “SAIFUL’S HOLE”!!

The flip flops by BN on the abolishment of racial quotas under the NEM, the inability of MACC to make an effective dent on systemic corruption, the tolerance provided by the government towards Perkasa and the prolonged debate on PPSMI have all raised the level of uncertainty within the minority racial communities in Malaysia.

Kapil Sethi, The Malaysian Insider

PNB’s takeover bid of SP Setia, merger talks between OSK Holdings and RHB Capital and Sime Darby taking over 30 per cent of E&O have set alarm bells ringing in the business community despite the prime minister’s reassurance that the deals are strictly on a willing buyer-willing seller basis.

For one, these deals fly in the face of the government’s avowed determination to let the private sector be the engine of economic growth while it takes on the role of a facilitator. Where is the rationale then for the government taking over the management of relatively well-run private businesses?

Even more significantly what is worrying is not the nature of the transactions themselves but the racial undertones to these deals. In most instances the sellers are Chinese and the buyers government linked companies. Even where the government is not involved, there are reports of major Chinese-owned conglomerates like Genting and YTL diversifying out of the country by making significant investments overseas.

While it is nobody’s case to argue that businesses should not be able to take corporate decisions as they see fit, are these isolated cases or part of a larger trend towards a minority community losing faith in Malaysia and expressing it through capital flight and physical migration? As it is, the World Bank recently estimated the size of the Malaysian diaspora at close to 1 million. Even more tellingly, 88 per cent of the Malaysian diaspora in Singapore with tertiary education is of ethnic Chinese origin. Decades of affirmative action has to a large extent contributed to this phenomenon, but recent statements from both sides of the political divide may have exacerbated the problem. The flip flops by BN on the abolishment of racial quotas under the NEM, the inability of MACC to make an effective dent on systemic corruption, the tolerance provided by the government towards Perkasa and the prolonged debate on PPSMI have all raised the level of uncertainty within the minority racial communities in Malaysia.

If the growing emasculation of MCA at the hands of Umno is added to the mix, the picture for those ethnic minority supporters of BN looking for a continuation of its largely tolerant past begins to look bleak.

The opposition too has not helped matters with PAS’ strident stand on the hudud issue backed by Anwar Ibrahim’s tacit “personal” endorsement of the same. DAP, despite its protestations of leaving PR if hudud is implemented, seems to be risking its support from its primarily ethnic Chinese base by its inability to rein in its coalition partners on this issue.

Unless PR is able to revert to a unified position based on its vision of Malaysia as a merit- and needs-based welfare state rather than a theocratic Islamic state, it risks losing its support amongst the liberal educated urban voter across all racial communities, which have been its most vocal supporters so far.

When social justice and economic equality are not forthcoming and both political options seem to be inimical to the minority interest, leaving the country for greener pastures may seem to be the only solution for some people. This has critical implications for the current and future competitiveness of Malaysia in the global economy.

If the tipping point is reached (if it has not been already), the extent of human and capital flight will result in the country struggling to retain its current economic position, far from accelerating towards developed nation status.

The current woes of MAS and TNB under government appointed boards and the lack of high quality local talent across business sectors are symptomatic of what the future of Malaysia could look like if these issues are left to fester.

Comments (8)..

written by Alan Tan Pei Yee, October 08, 2011 19:50:25

Capital flight. I guess I'll convert my $$$ to Singapore Dollars. .

written by tenku jamalluddin, October 08, 2011 18:48:39

Full steam ahead. Make hay while the sun shines. Masok, masok dan terbang as soon as possible. Singapore is not very safe. Go far far away. ...

written by Motherchell, October 08, 2011 17:44:38

Apologies for the typo:

In the second image --------it reads as----------- too[/b]many unemployable unemployed ...

written by RealChange, October 08, 2011 16:05:38

Long Gone!!!!!!!!! ..

written by Motherchell, October 08, 2011 16:03:54

There seems to be a Big Black Hole in a Nation called Bolehland!!! In fact funds leave Malaysia thro UMNO cronies. Bank Negara have been too busy counting with their fingers. They have let the Uputras drain as much as they could!!

So much has been said by the morons in power . Even the budget briefing s are attended by RM She was like a buzzing blue fly wherever and whenever money was talked about-- because thats the only word she understands most.

Now talking about Najib's budget that is written just to keep his votes warm---which may not be so in the coming months!! The whole trouble is ,By the time the Malays wake up the Uputras will be sipping wine by the Danube!

This is KIMBERLY BIG HOLE--South Africa.

The largest hand dug excavation in the world, this 1097metres deep yielded over 3 tons of diamonds. Blood diamonds too--- of the type Jacob and Co buy for their clientele who hold top positions like the former Tunisian First Lady, Flom and many more who are now being dehydrated in some waterhole in the Saudi desert.

Then we have the Govt financed unemployable unemployed used to ink voting slips once every 5 years.

Then we have Sink Holes and Holes on mountain slopes because sand is smuggled under the cover of darkness with no regard for the fragile ecosystems . Petronas has all the money to buy new lands overseas---- that's what they had been telling the gullible folks in the rural areas. --- and imagine how conveniently they put the blame on Allah when catastrophe strikes !!!!

Oh ! here we have the Executive and the Judiciary fully occupied with the power of this Big Black Hole. Even budgets are allocated for back door scholarship for dropouts---- in fact the UMNO Govt revolves around this in all its policy making!!

and finally you will see a hole nibbled in your pocket because of these 3:
With all these happening--- no educated soul would want to live in Canland!! ..

written by Oscar Winner !, October 08, 2011 15:50:33

In the name of AGAMA, BANGSA DAN NEGARA, kononnya. To UMNO, it's all justified. The non-musllims are kafir, the nons are not bangsa melayu, and the tanah belongs to the tuans who are melayu. Based on this racialist, bigoted religious "holier than thou" and "defender of Islam" attitude (read : excuse), UMNO goons Want-Malaysia for themselves, and use all means to rob the rakyat (especilly the nons), rob the rags-to-riches entreprenuers (especially the nons), deny the gifted and bright students their chance to excel further (especially the nons), deny the poor a livelihood (especially the nons)........... and everything else as long as you are not melayu and muslim. Are they wrong? No. Untuk agama, bangsa dan negara, kononnya. What religion is that ?? It's just a tool. True religion will never do that. True religion will never train suicide bombers even to kill their own kind. True religion will never teach you to rob from the non-believers. True religion will never ask you to bully the minorities.

I had read about the SP Setia case and trully believe it's not all business as usual.

I'm reminding my kids to be ready for overseas education and abode, unless PR comes to power and change the whole scenario. God bless this land and may I see a better Malaysia for our kids and their as well. ...

written by somesay, October 08, 2011 15:49:24

Umnonder pink lips will bleed malaysia dry ...

written by syd, October 08, 2011 15:46:16

Under PPSMI, the number of nons in sekolah kebangsaan actually increased. Umno right wing ketuanan neo cons do not want this, despite their constant whining that nons are not interested in studying in sekolah kebangsaan. So they abolish PPSMI.

The number of nons students fell. And the number of seats reserved for bumis in universities are saved from invading nons. And umno once again saved Malays from eventual demise.

I expect massive migration overseas plus capital flight and the fall in value of properties in malaysia, specifically, KL and JB.