Sunday 4 April 2010

NEM is just mumbo jumbo

http://www.neac.gov.my/sites/default/files/Chapter%206%20-%20How%20do%20we%20get%20there.pdf


If it were just mumbo jumbo, there is no way for us to implement it.
For guidance NEAC should refer to BEM via its EAC. EAC has the
guidance of the international Washington Accord defining standards for
Engineering Professions.

The principle applied by EAC is simple: you must be able to measure
objectively your targets or plans.


NEM fails to do this.

As one NUS professor from Ipoh, advised me as well as my colleagues;
keep it simple so that we can implement and measure it. I myself was
guilty in trying to be correct in implementing complicated targets.

One clear target of the Singapore Government policy is simple:
Increase per capita income of Singapore in world currency. So
Singapore government implements strategies of defending Singapore
dollar's value while increasing salaries of government servants,
which by the way, include salaries of all University Lecturers.

In just 20 years, Singapore has the second highest per capita income
in Asia.


6.1.1
Restoring market prices for goods and
services will improve economic efficiency
but may initially raise consumer prices
and costs of doing business


Remove subsidies but with such high prices, it will increase poverty
and reduce market for products for local consumption as people have
less salaries.

Cannot remove subsidies unless the poor are given cash handouts from
the gain made by governments in reducing subsidies, already done by
the cash handout when petrol subsides were reduced.

The political repercussions is from the rich and huge consumer of
material subsidies, such as distributors.

n Practices that promote fair and equal
opportunity will inspire market confidence
and create a competitive economy but
may lead to political repercussions

This report may appear to sound as though it removes Affirmative
Action, but affirmative action is designed to promote fair and equal
opportunity for every citizen by reducing rampant and obvious results
of racial discrimination.

Even China practises affirmative action by giving favour to their own
citizens of the special economic zones over that from other states
within china.

n Reduced dependence on foreign labour
encourages firms to move up the value
chain or embrace automation while those
that cannot will exit, costing some local
jobs

Singapore relies a lot on foreign labour but the difference is in the
salaries of these foreign labour.
While Malaysia favour low salaried foreign workers, Singapore and
other developed nations favour high salaries foreign workers.

n Flexible hiring and firing reduces entry
and exit costs for businesses while wage
levels will better reflect skills; but the
perception of less job security will irk
unions

Flexible hiring and firing means that employers can disregard
principles of justice in employment contracts but ALL DEVELOPED
nations have strong UNIONS that can defend the rights of their
workers.

This is unlike Malaysia and ALL UNDEVELOPED nations that DO NOT ALLOW
UNIONS to be strong.

NEM is just perpetuating a critical policy that has made Malaysia so
UNDEVELOPED and with the continuation of this backward policy, will
never achieve DEVELOPED status in the forseeable future.

Singapore may appear to restrict union activities, but NTUC is very
powerful and prominent in Singapore.


Faster connectivity will facilitate further
integration into global markets but requires
greater openness in the telecommunication
market


There is already great openness in Malaysian telecom market with so
many small players entering the market but most of these have gone
bankrupt.
Despite giving concessions to competitiveness in order to allow them
to grow. Wimax is a good example. TM was not allowed to operate Wimax
and yet these small players refused to provide infrastructure for
their networks, relying a lot on TM networks.

n Greater decentralisation in decision making
will achieve speedier implementation and
effectiveness but may result in diluting
federal government power


The advantage of decentralisation is only apparent if geograhical and
monitoring efficiencies are achieved.
It does not have to be dilution of Federal powers, only centralised
Federal powers where decisions are only made at KL.

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