Tuesday, November 30, 2010

HOUSING

blogtunm.blogspot.com Tun M 
1. In the 1980’s and early 1990’s there was a great construction boom in Tokyo. Land was sold at USD 3,000 per sq foot. Everyone was rushing to buy expensive land because the market for apartments and office space seem to be forever.

2. Then suddenly the market dried up. The boom became bust. Since then Japan has not been able to really recover.

3. It was the same with Hong Kong. The economy collapsed because of overbuilding.

4. In a way the sub-prime crisis which triggered the financial and economic collapse also had to do with the building industry.
5. I once thought that the tower crane should be included in the coat-of-arms of KL City Council because they were all over the city. KL grew at a rapid pace and the skyline changed almost every day.
6. KL is still growing. New high-rise apartments, condominiums and office buildings are mushrooming everywhere. It is really amazing. We really look like a newly developed country.
7. Can this growth go on forever? True, KL’s population and that of Greater KL (including non-Wilayah areas) have been growing fast. At independence, the population was only 350,000. Today Klang Valley has a population of almost 6 million. Obviously the businesses and the workers at all levels need space to live and work.
8. But it is not impossible that the provision for these would not outstrip the rise in population and their spending power.

9. Shopping complexes are being developed sometimes next to each other. Surely it will cause the shoppers to be divided between them. There will not be enough to support all the complexes. Some will survive, some will die.

10. Already we have seen a few hyper-market chains going out of business. Will this not happen to a few of the shopping complexes? Will this not happen to the other major development projects?

11. And we are told of new giant projects. The Sungai Buloh KL City Centre, the new KL Financial District and the 100-storey Merdeka Tower Project.

12. Some people say that even the Petronas Twin Towers are empty. Well they are not fully occupied. This is because of a policy to allow only prestigious corporations and institutions to have the Twin Towers as their address. In any case, Petronas has enough requests for space to decide to add extra space for the shopping complex and a forty-storey tower.

13. I should really be advising Petronas to abandon its current project. But here I am talking about overbuilding in KL. Really I shouldn’t. But I am really concerned over the possibility of the bubble bursting.

Friday, November 26, 2010

THE CURRENCY

blogtunm.blogspot.com Tun M 
1. The Malaysian Ringgit has appreciated after control was removed. It is now stronger against the US Dollar by approximately 20 per cent.

2. What does this mean to the people? It should result in imports becoming cheaper if not by 20 per cent at least by some percentage below that.

3. But I don’t think Malaysian imports paid for in US Dollars is noticeably cheaper in Ringgit. Why is this so?

4. When the currency appreciates through market forces, it is neither constant nor does it do so at specific rates. It may appreciate a little, then depreciates. Then it may appreciate again.

5. It takes a long time before the strengthening is substantial as to affect costs of imports or exports.

6. Under this circumstance the depreciation in price of imports cannot be monitored. Despite an appreciation of the Ringgit against the US Dollar by 20 per cent, there may not be any change in the price of imports in Ringgit. In some cases the price might increase.

7. It is only when Malaysians travel abroad that they may feel richer due to the appreciation of the Ringgit.

8. But if the rate of exchange is controlled, then it will be possible to monitor the prices of major imports and their retail prices. Sugar, flour, components for manufacturing industry, petroleum products and even manufactured goods should be cheaper in Malaysian Ringgit when it appreciates and dearer when it depreciates. If through control we strengthen the Ringgit by 20 per cent then we should be able to enjoy imports cheaper by about that percentage.

9. If the Ringgit is controlled, how should the Government determine the exchange rate of the Ringgit at a given time. In 1998 the Ringgit was fixed at RM3.80 to the US Dollar because that was roughly the rate of exchange of the currencies of our neighbours against the US Dollar. We did not want our Ringgit to be too strong compared to the currencies of our neighbours. We wanted to remain competitive.

10. An appreciation of 20 per cent to the 1998 exchange rate would be about equal that of the current appreciation of the Thai Baht.

11. When to fix the new rate is dependent on the behaviour of the currency of our competitors. We should avoid small increases or decreases but should wait until the gain or loss would be around 10 per cent. Prior to doing this we should monitor the prices of our imports and exports. When we announce the new rate we can determine the gain or loss by the importers, wholesalers and retailers. The prices can then be calculated and any gain passed on to the consumers.

12. That is the advantage of currency control over free float even when managed.

13. It is strange that at the time when many countries have decided on currency control Malaysia is thinking of freeing the Ringgit from any control.

Thursday, November 25, 2010

TUN DR LIM CHONG EU

blogtunm.blogspot.com Tun M 
1. We know that we must all leave this life one day. But knowing the inevitabilty of death cannot stop us from grieving over the passage of a great man, no matter how long he may have lived.

2. As a nationalist, as a friend, as a compatriot, I feel saddened by the passage from this life of Tun Dr Lim Chong Eu.

3. Except for Tun Razak, Tun Lim contributed most to the formation of the National Front, the coalition which succeeded the Alliance, ruled and developed Malaysia until today. He responded postively to the proposal by Tun Razak to rejoin the coalition for the good of Malaysia. He rose above many of the grievances which had led him to leave the MCA, to become a junior partner even though he had been victorious. He was content to be just a Chief Minister of Penang.

4.It was as a Chief Minister that he made Foreign Direct Investment a by-word in Malaysia and perhaps in the world. He brought the first foreign investments in electronics to Penang. It was the best thing for overcoming unemploymnet which had plagued Malaysia till then.

5. It was he who made the Penang the centre for the transformation of Malaysia into an industrial nation. Towards this end he was tireless, almost single-handedly contacting and persuading foreign industrialists to invest in the new electronics industry. So successfull was he that very quickly Penang was short of workers and other states benefitted from his effort at creating employment.

6. I worked closely with Tun Lim and always found him open to proposals on the development of Penang and Malaysia. When he lost in the 1990 elections, it came as a shock to me. I had thought that the people of Penang would remember his services and overcome partisan sentiments. But I suppose I was hoping for far too much.

7. Malaysia, and I dare say Penang, has lost a great leader with the passing away of Tun Dr Lim Ching Eu.

8. I offer my condolences to Toh Puan Goh Sing Yeng and all the members of Tun Lim’s family.

Monday, November 22, 2010

SOUNDBITES

blogtunm.blogspot.com Tun M 
MULTICULTURAL SOCIETY

The Nation newspaper reported on October 18th that the Chancellor of Germany, Angela Markel, said “Multikulti (Multicultural) in Germany has not worked” (read here).

Her remarks were prompted by the unwillingness of Germany’s non-German population of 16 million, including Turks and Jews to “integrate” with the natives of Germany i.e. the ethnic Germans.

For the Muslim Turks integration means curbs on their religion. Whether the Jews also should have their religion curbed is not mentioned.

I think Malaysia can be regarded as being more successful with multi-culturalism. We are more tolerant of the differences between our racial origins, our religions, our languages and our cultures.

I think Germany and Chancellor Merkel can learn something from Malaysia about multi-culturalism.

Friday, November 19, 2010

THE STOCK MARKET

blogtunm.blogspot.com Tun M 
1. Lately we have been seeing rather rapid increases in the Kuala Lumpur Composite Index. Those who play the stock market must be feeling very happy. Much money must be made by investors from capital gains.

2. Some people believe that the rise of the KLCI is an indicator of the healthy state of the Malaysian economy. This may be true but let me throw some cold water in the belief that the index indicates that the economy is doing very well.

3. It is doing fairly well, no doubt, but that is not enough to push the KLCI to record highs. What is happening is that a lot of foreign money is coming in to buy Malaysian stocks.

4.In itself it is not bad. It is also a kind of foreign direct investment (FDI). But this kind of FDI is not about setting up industries to produce goods for export. The latter will not be easily liquidated to take the invested capital out. The plants which are set up cannot be easily sold. The Investors will have to manage them through good and bad times to get a return on their investments.

5. But FDI in stocks and shares can be sold any time and the proceeds taken out.

6. Just as increases in investments push up share prices and the KLCI, rapid or massive divestments will push down the share prices and index.

7. We read in the papers that the Federal Reserve Bank of the United States is pumping US600 billion Dollars into the US economy. A part of this money will no doubt be used to invest in stock and shares of the developing economies. The result of this FDI-financed purchases will be a rise in the share prices and the KLCI.

8. In 1997-1998 the foreign investors pulled out their investments and the KLCI dropped from 1,300 to 262. Naturally a lot of local investors lost money. They could not meet margin calls nor raise money to augment collaterals for their bank loans.

9. The banks found themselves burdened with large numbers of non-performing loans and had to face the threat of bankruptcy.

10. Should the banks collapse the economy of the country will go into a tailspin. It did in 1997-1998. It will happen again should the foreign investors dump their Malaysian shares to take profits from capital gains.

11. Foreign funds, especially from the US coming in to invest in Malaysia’s stock market at this time must be considered as hot money. I would not be suprised when the KLCI peaks the foreign investors will dump their shares and collect capital gains. The share prices will fall rapidly and Malaysians who had chased the shares on their way up will be asked to meet margin calls. If they fail they will lose a lot of money.

12. I hope I am wrong. But sometimes my predictions about money and markets have proven to be right. In any case I only own 200 Malayan Tobacco shares bought before I became Education Minister. I have nothing to gain or to lose, but the country and the stock market investors will lose.

Thursday, November 18, 2010

THE CURRENCY WAR 2

blogtunm.blogspot.com Tun M 
1. Malaysians, including Malaysian monetary authorities seem quite happy over the appreciation of the Ringgit against the US Dollar. We think that when our currency strengthens it must be because our economy is strong, Therefore we are doing well.

2. But are we doing well? Is it the Ringgit which is appreciating or is it the US Dollar which is devaluing?

3. Actually it is the US Dollar which is devaluing. It is devaluing against most other currencies, especially against China’s currency.

4. Why is the dollar devaluing? Could it be due to the currency traders selling dollars? Could it be because the balance of payment is not in US favour?

5. Martin Wolf of the Financial Times, an expert on money have this to say. There is a global currency battle going on. “To put it crudely,” he says, “the US wants to inflate the rest of the world, while the latter is trying to deflate the US. The US must win, since it has infinite ammunition; there is no limit to the dollars the Federal Reserve can create. What needs to be discussed is the terms of the world’s surrender; the needed changes in nominal exchange rates and domestic policies around the world.

6. Our reserves are represented by the US Dollar, gold and other currencies which we keep in order to back the value of our Ringgit, The US clearly does not have to hold foreign currencies to back the Dollar. All the US has to is to create (print) money.

7. When we buy US Dollar bonds, we are in fact lending US Dollars to the US. When we redeem the bonds all the US has to do is to print more US Dollars to pay us.

8. How nice it would be if we can pay all our debts by just printing money.

9. There is something fishy going on and the fishy smell is very strong in the US. “Poor” China with 2.5 trillion devalued dollars in its reserve. Wonder how much Bank Negara has?

10. In the face of Governments devaluing their currencies in a currency war, what should Malaysia do? Keep the float or control? When we controlled our currency in 1998 we were called pariahs whose knowledge about finance could be wriiten on the back of a postage stamp. Now it seems many nations are using their magnifying glasses to read what is written on the back of the postage stamps.

Tuesday, November 16, 2010

LABUAN

blogtunm.blogspot.com Tun M 
1. The last time I was in Labuan was in 1998 to officiate the opening of the new building of the Labuan Offshore Financial Centre. So when I was invited to speak on Islamic Finance by the Centre, now known as the Labuan Offshore Financial Services Authority, I accepted it with alacrity. I wanted to see the progress made since I was there the last time.

2. I am glad to see obvious development everywhere. The old wood and zinc sheds have been largely replaced by new brick and mortar houses of pleasing designs. The roads are well paved. The kampung roads have been concretised. New buildings and shop houses are going up everywhere.

3. YB Dato Yusof Haji Mahal (MP for Labuan) rode with me around the island pointing out proudly to the concrete walkways in the water villages, the Direct Reduction Iron plant, the oil supply base and the big Petronas Methanol plants.

4. Somehow I felt once again the happiness and the nostalgia at seeing the greenness of the island and the landscaping. All the roads of Labuan are lighted as Labuan has a big gas powered plant. It exports electricity to the mainland.

5. There is a big new international airport but only MAS and Air Asia flies into Labuan. Although there is an open-sky policy, attempts to get foreign airlines to fly to Labuan has failed. As a result tourist arrivals is very small.

6. When I was PM I had suggested we make Labuan into a garden island. In Victoria Island in Vancouver, an old quarry was developed into a beautiful garden – the Butchart Gardens. Annually it receives 2 million visitors.

7. We once invited the developers of Butchart Gardens to build a smaller garden in Tanjung Malim near a hot spring whose hot water flows into a nearby river. Money was allocated for it but when I stepped down the project was dumped because the Government has no money.

8. If we want tourists to come we must have something to show them. Labuan has a few natural things to offer but not enough to attract foreign tourist. Converting the island into a garden, building bicycle tracts for mountain bikes and holding bicycle races, a regatta for sailing boats, fishing, diving to see shipwrecks would add to Labuan’s attraction as a free port and shopping centre for visitors from Asean neighbours and other countries.

9. The cost to the Government for providing all these would be quite small but for the Government and the country the returns can be quite considerable.

10. Labuan is a Barisan Nasional stronghold. It was once won by an independent. I think enticing the 80,000 Labuanese would be good for BN politics.

Wednesday, November 10, 2010

WATER AGREEMENTS

blogtunm.blogspot.com Tun M 
1. Next year, 2011, one of the agreements to supply up to 86 million gallons of water per day (mgd) from Johore to Singapore at 3 sen per 1,000 gallons will end.

2. I understand Johore is still buying treated water from Singapore for 50 sen per 1,000 gallons. The amount purchased should not exceed 12 per cent of the raw water bought by Singapore.

3. The agreement also stipulates that the price of raw water and treated water can be renegotiated and changed if both parties agree. Should the raw water price be revised upwards Singapore would be entitled to revise the price of treated water.

4. If, for example, under the current agreement the water price is increased to 6 sen per 1,000 gallons, i.e. 100 per cent, Singapore can insist on the same percentage price increase by 100 per cent i.e. from 50 sen per 1,000 gallons to one Ringgit per thousand gallons.

5. If both sides agree on this quantum of price increase, Singapore would actually earn more from selling treated water to Johor than Malaysia would earn from selling raw water to Singapore.

6. Almost 10 years ago Johor was allocated sufficient money to build its own treatment plant so as not to buy treated water from Singapore. I am told that for reasons unknown, despite building its own treatment plant Johore is still buying treated water from Singapore.

7. Johore sells raw water to Melaka at 30 sen per 1,000 gallons. It seems that Johore is less generous towards Melaka than it is towards a foreign country. The wisdom of this escapes me.

8. Whatever, in 2011, a new agreement to supply Singapore with raw water from Johore may have to be made, I think that despite Singapore’s desalination plant, despite Newater, and new reservoirs, Singapore would still need raw water from Johore. We should be willing to supply the people of Singapore with raw water.

9. The question is whether we should sell at 3 sen per 1,000 gallons and buy at 50 sen per 1,000 gallons of treated water as before or we should extract better terms.

10. Malaysian negotiators are unduly generous and we often provide ourselves with no exit clause. I will not cite the cases.

11. The public, the Johore people in particular, should be assured that we don’t make agreements which are indefensible this time.

Tuesday, November 9, 2010

PROTON DALAM ERA TEKNOLOJI HIJAU

blogtunm.blogspot.com Tun M 
1. Pada 6hb November kereta Proton Exora telah menang pertandingan kereta zaman akan datang yang dianjurkan oleh RAC (Royal Automobile Club – United Kingdom). Pertandingan ini melibatkan hanya kereta-kereta otomobil yang tidak terlalu mencemar udara dengan pengeluaran asap, karbon dioksida dan monoksida.

2. Hampir semua syarikat-syarikat otomobil di dunia telah mengambil bahagian dalam pertandingan ini dengan kereta elektrik dan hybrid ciptaan mereka untuk masa depan (future). Kereta-kereta ini dikehendaki berjalan dari Brighton ke London, perjalanan sejauh lebih kurang 60 batu (miles).

3. Diantara jenama yang terkenal yang mengambil bahagian ialah Toyota (Jepun), Volkswagen (Jerman) dan General Motors (Amerika Syarikat). Ada yang mengambil bahagian dengan kereta yang sudah dipasarkan dan ada yang belum dipasarkan.

4. Proton menyertai dengan sebuah kereta Exora untuk pertandingan ini yang menggunakan sistem yang, selain daripada amat kurang mencemarkan udara tetapi juga menggunakan bahan bakar petrol yang amat sedikit.

5. Exora mendapat tempat pertama dalam kategori Extended Range Electric Vehicle (kereta elektrik yang ditingkatkan jarak perjalanannya) serta juga memenangi dalam semua kategori termasuk kereta elektrik (EV – Electric Vehicle), kereta yang ditingkatkan jarak perjalanan (extended range EV), hybrid (menggunakan enjin petroleum dan elektrik bersama) dan minyak disel.

6. Exora mencatat ekonomi penggunaan petrol sebanyak 136 batu (miles) bagi satu gelen. Tempat kedua hanya mampu mencatat jarak 62 batu (miles) bagi satu gelen – iaitu kurang separuh daripada kebolehan Proton Exora.

7. Keputusan pertandingan ini jelas menunjukkan yang teknologi Proton jauh lebih baik daripada teknologi lain-lain jenama.

8. Sementara itu Proton Saga elektrik juga mendapat kemenangan tetapi syarikat-syarikat lain membuat protes. Pihak Proton telah membantah terhadap protes ini.

9. Selain daripada kurang mencemar udara dan jarak perjalanan bagi satu gelen petrol kereta Exora dan Saga mampu memuatkan jumlah penumpang sepenuhnya dan bootnya (tempat simpanan barang) juga mempunyai kapasiti biasa. Hampir semua kereta lain terpaksa menggunakan boot dan tempat duduk belakang untuk bateri.

10. Kejayaan Proton dalam pertandingan ini membuktikan kemampuannya bersaing dengan syarikat-syarikat gergasi dunia dalam teknologi elektrik, extended range electric dan hybrid.

11. Proton sedang bersiap sedia untuk mengeluarkan Saga Elektrik dan Exora Extended Range untuk pasaran dunia. Buat kali pertama Proton mempunyai harapan untuk bersaing dalam pasaran kereta bermotor di seluruh dunia.

Thursday, November 4, 2010

PERKASA

blogtunm.blogspot.com Tun M 
1. Saya ucap terimakasih kerana ramai yang melawat blog saya dan membuat komen menyokong atau menolak. Ramai juga yang bercakap berkenaan bahagian-bahagian Perlembagaan yang tidak boleh dipinda (entrenched). Tetapi ramai yang tidak ambil kira tentang peruntukan-peruntukan dalam Perlembagaan yang begitu adil. Tiada perlindungan bagi hak sesuatu kaum yang tidak diimbangi dengan hak kaum-kaum lain.

2. Demikian apabila agama Islam dijadikan agama rasmi negara Malaysia, susulan daripada itu perlembagaan memperuntukkan bahawa agama-agama lain boleh dianuti dan dipraktik oleh penganut-penganut agama berkenaan tanpa gangguan.

3. Apabila bahasa Melayu diterima sebagai bahasa rasmi negara, tetapi bahasa-bahasa lain boleh digunakan sebagai bahasa ibunda dan bahasa pengantar di sekolah-sekolah.

4. Apabila sekolah kebangsaan ialah sekolah yang mengguna bahasa kebangsaan sebagai bahasa pengantar, sekolah-sekolah jenis nasional boleh mengguna bahasa Cina (bahasa kebangsaan China) dan bahasa Tamil (bahasa suku kaum Tamil).

5. Perlembagaan juga melindungi hak memiliki hartanah semua kaum supaya pengambilan tanah oleh Kerajaan tidak boleh dibuat tanpa pampasan.

6. Yang jelas ialah Perlembagaan Malaysia adil bagi semua kaum. Apabila keistimewaan diberi kepada satu kaum, kaum lain juga diberi keistimewaan dan dilindungi. Perkara yang harus diingati oleh semua ialah hak istimewa bukan bagi Melayu atau Bumiputera sahaja.

7. Perlembagaan boleh dipinda tetapi ianya hendaklah dengan persetujuan sekurang-kurangnya dua pertiga daripada ahli-ahli Dewan Rakyat. Demikianlah keahlian dewan dari segi agihan antara kaum, tidak mungkin mana-mana kaum dengan sendirinya meminda perlembagaan untuk menghapuskan hak istimewa Bumiputera atau bukan Bumiputera.

8. Berkenaan dengan Dasar Ekonomi Baru pula, agihan kepada Bumiputera hanyalah daripada bahagian ekonomi yang tumbuh dan tidak dengan merampas apa yang telah dimiliki bukan Bumiputera untuk diberi kepada Bumiputera.

9. Dalam pada itu raja-raja juga perlu memberi persetujuan jika kedudukan negeri-negeri mereka tersentuh.

10. Benarlah seperti kata Dato Seri Najib dalam mesyuarat Perhimpunan Agong UMNO bahawa tuntutan untuk meminda perlembagaan untuk melucutkan keistimewaan mana-mana kaum tidak mungkin dilakukan dan berjaya. Tuntutan ini hanya akan memburukkan hubungan antara kaum tanpa memberi manfaat kepada sesiapa.

11. Jika Perkasa dianggap rasis (dan saya juga rasis kerana bersekongkol dengannya) kerana mempertahankan hak keistimewaan orang Melayu, mereka yang bercadang untuk melucutkan hak orang Melayu tetapi tidak hak istimewa mereka sendiri tentulah bersifat rasis juga.

12. Hanya mereka yang bercadang melucutkan hak istimewa semua kaum sahaja yang tidak rasis.

Tuesday, November 2, 2010

PERKASA and ME

blogtunm.blogspot.com Tun M 
1. When the 5th PM took over, it became obvious he was incompetent and unable to govern the country and grow its economy. He was seen as weak by the Malays as well as by the Chinese and Indians. He flipped-flopped, making decisions and policies and reversing them, arresting opposition members under the ISA and then releasing them shortly after, claiming that he wanted to protect them.

2. Extremists among the Chinese and Indians felt they could safely challenge the Government, particularly over racial issues. They demanded that provisions in the Constitution favouring the Malays and the NEP quotas be removed. Even Barisan Nasional partners took up the call.

3. Normally UMNO leaders and UMNO generally would take up the defence of the Malays. But Abdullah as UMNO President and PM was silent (elegant silence) causing the other leaders and members of UMNO to become silent also.

4. As the attack against the Malays escalated and UMNO remained silent, the Malay public felt they were being let down by UMNO. Losing faith in UMNO, they began to set up NGOs to take up the challenges by the Chinese and Indian activists.

5. Perkasa as an NGO gained the most support because the founder was more vocal and willing to take risk and to rebut the views of the Chinese and Indian extremists.

6. Meanwhile Malay support for UMNO was silently eroding. In the 2008 elections the loss of Malay support for UMNO became evident. Many either abstained or voted for PAS.

7. Demands were then made for Abdullah to step down. Najib took over and he tried to regain Chinese support by apparently giving in to Chinese demands on several issues. The new UMNO leadership also opted to remain silent and failed to defend the Malay position. Instead of going back to support UMNO, Malays including UMNO members continue to flocked to Perkasa.

8. In the 2008 elections, many UMNO and BN candidates won only by small margins even in their strongholds. If in the next election defections by even a small number of supporters in some constituencies can result in a reduction of the Barisan Nasional majority or even cause the BN to lose altogether.

9. Because of the poor handling of the Perak crisis, the Chinese who considered the Pakatan Government of Perak as a Chinese Government, swore not to support BN anymore.

10. The situation of UMNO and BN looked bleak. They have not regained the Malay support lost in the 2008 elections and they face the prospect of the Chinese not supporting the Barisan Nasional in the 13th General Elections. Striving to regain Chinese support is not enough. They must also regain Malay support.

11. UMNO may think that all the Malays are supportive of the party. But UMNO cannot be sure of that. Their silence before the 2008 Election was deceptive. We now know that many supported the opposition. Can UMNO disregard or antagonise any Malay group? I think it would be dangerous to do so.

12. Perkasa has not indicated that it is against BN and UMNO. In fact it has hinted that it is for UMNO. Looking at the strength of Malay support for Perkasa antagonising them would not be to the benefit of the Barisan Nasional or UMNO.

13. Perkasa is accused of being racist and should be rejected on that ground. Is Perkasa racist? If anyone cares to study the statement by Perkasa he will not fail to note that it has confined itself to rebutting allegations that the non-Malays have been discriminated against, that the Malays need to retain their present position. If it is really racist then it would be demanding the abolition of the special treatment of the Chinese and Indians in Malaysia. This it has not done except when defending the Malay position.

14. It is illogical to expect that when the Chinese and Indian activists demand for the removal of policies and schemes to help the Malays, they, the Malays should remain silent or to agree. Surely the natural thing for them to do is to defend themselves. If their anointed protector, UMNO, refuses for whatever reason to voice disagreement against the demands of the Chinese and Indians, then the beleaguered Malays will have to find a champion elsewhere.

15. They could form a political party and undermine UMNO. But they did not. The Malays are already fragmented. And so they formed NGOs instead which leaves them with the option to support or not to support UMNO and the Barisan Nasional.

16. True there are a few Malays in Pakatan who seem to agree and support demands to do away with the affirmative action in favour of the Malays. But they are doing this simply to fish for Chinese support for their parties.

17. Whatever may be the feelings of UMNO, I have decided that the NGOs have a big enough following which could do damage to UMNO and the BN in the next election if they want to. Accordingly I have decided to stay close with Perkasa especially and to ensure that it does not swing over to the opposition. I would like to ensure that Perkasa supports the Barisan Nasional in the next election.

18. Does this make me a racist? I had at one time the opportunity and power to be a real Malay racist. But I won elections with strong non-Malay support. In fact in1999 it was Chinese support which gave me my 2/3 majority.

19. I was obviously not regarded as a racist then (except of course by the DAP). So why am I regarded as a racist now when all I want to do is to ensure Malay support for Barisan Nasional parties, especially UMNO.
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