ASLI findings: Government’s response fails to convince

ASLI findings: Government’s response fails to convince


Aliran views with deep concern the furore sparked by research group Asli’s recent findings on bumiputra equity ownership which led to the unfortunate but principled resignation of its research director, Dr Lim Teck Ghee. The episode touches on important questions of freedom of inquiry and of expression that are the cornerstones of any research that values high standards of investigation, intellectual rigour and integrity.

Policy research concerns many Malaysians particularly when it involves important national issues such as the New Economic Policy, which affects the political, economic and social life of the nation and its people. It is of vital importance that the methodology applied in seeking answers and establishing the truth is open and transparent for the findings to have legitimacy and public confidence.

Deputy Prime Minister Najib Razak’s warning to Malaysians who question the validity of the official data fuels suspicion that something is amiss. Any data that cannot come under public scrutiny loses validity and credibility. It makes a mockery of the government’s oft-professed commitment to transparency and accountability if basic questions about how the government arrived at its own figure – 18.9 per cent - are not answered. For him to hope that such data will be accepted and not be questioned by anyone smacks of authoritarianism. How are we expected to create a thinking society when people are not allowed to think and question for themselves?

Putting a stop to discussions and dialogue on the pretext that it is a ‘sensitive’ or ‘seditious’ issue suggests that the government is unable to defend its figures and stand by them. Besides, the tired, worn-out seditious argument doesn’t hold water in this day and age. Even if there is a possibility of confusion arising from conflicting figures, it should not lead to name-calling, labelling or ‘rubbishing’ of the other side’s research findings. The government should have responded by providing convincing arguments backed by facts, figures, and an academically acceptable methodology. This is the mark of a society that is rational, scientific and democratic as envisaged in the much-touted Vision 2020.

Finally, it is important that the truth emerges from this public debate and dispute. There has been concern that many segments of Malaysian society have been left out from the mainstream of development even after 35 years of the NEP. Concerned Malaysians want to be reassured that any national policy aimed at improving the welfare of the people will benefit those who need help most, especially the powerless, the poor, the dispossessed and the disadvantaged.


Rejection of Asli report sends wrong signal: Toh

The government's rejection of the report on bumiputra corporate equity published by Asli's Centre for Public Policy Studies, which challenges the official data, has sent the wrong signal that dissent is not tolerated and honest pursuit of knowledge discouraged, says state executive councillor Datuk Dr Toh Kin Woon.

In a statement yesterday, he said: "The government could and should have instructed the relevant agencies to be more transparent on the data and methodology used to compute the bumiputra equity ownership share.

"Discussions with CPPS (headed by its director Dr Lim Teck Ghee) and others on these issues could have been held and a consensus arrived at.

"Instead, the government lambasted Lim. The signal seems to be that dissent is not tolerated and honest pursuit of knowledge discouraged," he said.

The Asli report -- Corporate Equity Distribution: Past Trends and Future Policy -- stated that bumiputra corporate equity ownership could be as high as 45% and not 18.9% as stated in government statistics, drawing sharp criticisms from the prime minister and government economic advisers.

Toh, a University Malaya-trained economist and Gerakan central committee member, said this was a sad development and seemed at odds with the government's professed aim of wanting to make the country a more open, transparent and liberal society.

He said that Lim's wishes for the public space opened up by the work of the CPPS on this particular issue to be expanded upon must be taken up by all.

"This is because the expansion of democratic space, and the strengthening of the right to dissent and challenge, are so important in moving the nation forward," Toh stressed.

The Asli centre had come under attack from Umno leaders and other Malay groups after its findings, submitted to the government in February as part of feedback for planning of the Ninth Malaysia Plan, were publicised.

On Tuesday, Asli (Asian Strategy and Leadership Institute) president Mirzan Mahathir withdrew support for the report, saying it could not be "vigorously defended". The following day, Lim resigned in the interest of defending "the integrity of independent and non-partisan scholarship".

Toh congratulated Lim on his brave and principled stand to resign. He said Lim's action should be emulated by all.

"His resignation was due to the unprincipled position taken by Asli president Datuk Mirzan Mahathir that the study done by CPPS was based on so-called 'faulty assumption' and hence its conclusions 'faulty' as well.

"Dr Lim disagreed and stood by his methodology. Being the honest scientist that he is, he took the honourable way of resigning, rather than meekly comply with the views of his president.

"His stand is a very refreshing departure from the culture of compliance and subservience that the ruling elites in our country attempt to cultivate," Toh said.

The government yesterday continued to defend its data. However, groups stressed the government's figure could only be verified if its data, methodology and analysis were publicised.

Referring to Asli's findings, Deputy Prime Minister Datuk Seri Najib Razak said there was no need for the government to prove the institute wrong.

"We have already explained through public statements the Economic Planning Unit's (EPU) basis of calculations," he said after presenting Hari Raya goodies to soldiers at the Defence Ministry in Kuala Lumpur.

"The government will continue to insist on the official data. We hope this will be accepted and will not be questioned by anyone."

Najib also cautioned non-governmental organisations from raising "sensitive matters" that could be seen as seditious.

"Initially, it could be seen as intellectual discourse but once it touches on sensitive matters, it can incite racial feelings," he said.

"Rather than making a public statement, it is better for these groups to come to the government first."

The Writers Alliance for Media Independence (Wami) and the Centre for Independent Journalism (CIJ) said critics of the Asli report must use the "same or a higher level of intellectual rigour" to dispute its findings.

"The best weapon for the government to rebut the centre's findings would be to publicise its own data and analysis," they said.

"As the NEP (National Economic Policy) has been central to Malaysia's political and socio-economic development, all Malaysians have the right to listen to the debates on its achievements and make their own judgments."

They said the validity of government data used to calculate corporate equity ownership was currently beyond academic scrutiny.

"We believe that releasing important socio-economic data, from equity ownership to poverty incidence, should be a duty and not a discretion of the government," they said.

"There could be no greater harm to the national interest for national decisions to be made from data only accessible to high-ranking politicians."

DAP secretary-general Lim Guan Eng said Mirzan's statement and apology had reduced Asli's credibility and integrity because it was without academic basis or rational. "Clearly, Mirzan's retraction was politically motivated and not driven by any flaws or shortcomings either in the centre's methodology or research data," he said.

Johor Baru MP Datuk Shahrir Abdul Samad, who is Public Accounts Committee chairman, questioned the centre's 45% figure but said it was more important to prevent economic leakages.

"We cannot continue to go through another period of giving opportunities to the Malays and then seeing these wasted through leakages," he said after chairing a Public Accounts Committee meeting.

He said government policies must be based on accurate and credible statistics.


Mirzan: No one put pressure on Asli to back down

On Tuesday, the Asian Strategy and Leadership Institute (Asli) distanced itself from findings of its think tank that Bumiputera equity ownership in public-listed companies may be as much as 45 per cent. Dr Lim Teck Ghee, the head of the think tank, resigned in protest. But so many questions remain unanswered over this episode. V. VASUDEVAN speaks to Asli president Mirzan Mahathir on the controversial findings.

Mirzan says the study was flawed



Q: When was this report commissioned? What was the idea behind it?

A: It was the first project for the Centre for Public Policy Studies which aimed to provide recommendations for the Ninth Malaysia Plan. It was submitted in February. It was never meant to be a public document.



Q: Are you convinced that the study is flawed?

A: Absolutely. Categorically, I am convinced. I was away when all this blew up. When I came back, some people wanted to see me regarding corporate equity distribution.

So, I spent two days reading it. I doubt it would stand scrutiny so we decided if we are wrong, we are wrong, we have to admit it.



Q: Why did it take so long for you to realise that the study was flawed? From March until now, that is quite some time.

A: I must admit I was given a copy, but I did not go through it in detail. It slipped past me. If I had, I would have queried it. Dr Lim Teck Ghee (Centre director) was convinced it was correct and it was submitted.

When it was brought to my attention, I did not want to rush to make a judgment.

I had to read it and determine if it had any merit. I have to look at the interests of Asli, for Asli has been around for a long time.



Q: Is it not strange that no one in Asli found the findings disputable, even before it became public knowledge?

A: Yes, I know. I don’t know how widely it was circulated within Asli.



Q: Were you pressured into questioning the findings of the study?



A: Nobody called me up and said ‘Look, you have to back down’. We just felt that we had to look after the interests of Asli.

I spoke to my colleagues and said we had to come up with something. So I worked on it. I read the report, did an assessment and made the decision.



Q: Where did the report go wrong?

A: I feel some of the statements in the report were not substantiated. There was no flow in the report.

A good report would present data that is relevant, and it would have logic. From there, you can come up with conclusions. They followed except that it was not as logical as it should be.

For example, if you say that government-linked companies are considered Bumiputera companies, there should be justification. This is a 20-page report. There is no reference as to why a GLC should be considered a Bumiputera company.



Q: Will Asli conduct this type of study again?

A: Our theme or motto is to try and create a better society. We should not shy away from doing research where the outcome would be useful even in areas which are sensitive.





Q: Has this episode damaged Asli’s reputation?

A: What can you do? Damage is damage. The only thing is to limit it and try to come back. To do that, you have to do a better job, basically.



When you are down, it does not mean you are out. You have to work hard to come back. That’s what we have to do.

We have to look at changes that need to be made to ensure we have a proper process.


Government stands by accuracy of EPU data

The Government stands by the accuracy of its data on the equity ownership of bumiputras and non-bumiputras, and Datuk Seri Najib Tun Razak hopes that there will be no more dispute over the figures.

“We hope this will be accepted and not disputed by anyone,” the Deputy Prime Minister said yesterday. “We have explained in public statements the basis of the calculation made by the EPU (Economic Planning Unit).

“We do not want something done that causes discord. Possibly, at the beginning, such discord could be seen as intellectual discourse but if it touches on sensitive issues, it could hurt the feelings of certain races and could be regarded as sedition even though that was not the intention.”

Najib was commenting on a controversial study by the Centre for Public Policy Studies (CPPS) of think-tank Asian Strategy and Leadership Institute (Asli) which concluded that bumiputra equity ownership could be as high as 45%, more than double the Government’s official figure of 18.9%.

Asli president Mirzan Mahathir has issued a public apology over the CPPS report and also retracted it, saying the study was based on flawed assumptions and calculations and its conclusion could not be “vigorously justified”.

Following the retraction, CPPS director Dr Lim Teck Ghee announced he would resign at the end of this month to take responsibility for the report’s fallout, but he said he stood by the findings and disagreed with Mirzan’s statement.

Meanwhile, DAP secretary-general Lim Guan Eng said that by resigning and standing by the findings, Dr Lim has shown his responsibility for his research findings.


Deputy Prime Minister, Datuk Seri Najib Razak should retract his comments yesterday on Asian Strategy and Leadership Institute’s (ASLI) Centre of Public Policy Studies (CPPS) study on bumiputra equity ownership, wrote Lim Kit Siang.

Najib should not force debate on corporate equity ownership and distribution “underground” as it would cause four adverse consequences:

(i)reneging on the Prime Minister, Datuk Seri Abdullah Ahmad Badawi’s pledge of an open society and a transparent administration.

(ii)going against the “first-class mentality” ethos and objective of the Ninth Malaysia Plan and 15-year National Mission to transform the nation into a knowledge-economy with world-class universities and world-class international competitiveness in line with a fully-developed nation.

(iii)undermining national unity by sowing distrust and suspicion both between Malays and non-Malays as well as among the Malays on an important national issue concerning the validity and legitimacy in extending the New Economic Policy from the original 20-year span to 50 years to 2020.

(iv)driving investors away because of worsening instead of improving “good governance” conditions, especially with regard to “voice and accountability, government effectiveness, regulatory quality and control of corruption” – which had shown to have deteriorated in the past ten years by the World Bank’s recent Worldwide Governance Indicators (WGI).

When Najib said that there was no need for the government to prove the ASLI/CPP wrong with its estimate that bumiputra equity ownership was 45%, there is only one conclusion to be drawn by the 26 million Malaysians – that the government with all the vast resources at its command with an annual budget amounting to RM160 billion next year is incapable of proving the ASLI/CPP report wrong.

The next question is: Why then force the retraction and apology by ASLI President, Mirzan Mahathir for the CPP report which the EPU and government cannot prove is wrong when it came up with the 45% estimate for bumiputra equity ownership?

When Najib said that he hoped that the EPU’s figure “will be accepted and not disputed by anyone”, he is asking for blind faith from the people to believe in the government figures, as he is as good as saying that the government is incapable or not prepared to publicly disclose the methodology and data used by EPU to prove to public satisfaction the correctness of the 18.9% figure.

It is time for a deep soul-searching by the Prime Minister and the Cabinet as to whether they are serious in wanting to nurture “first class mentality” to catapult Malaysia into a knowledge-based economy and society, for if so, then they must change their entire approach to the controversy over bumiputra equity ownership.

Instead of retreating into the bunker declaring that there is no need for the government to prove ASLI/CPPS study wrong and hoping that the EPU data will be accepted and not be questioned by anyone, the government should challenge and welcome all and sundry to prove the official data wrong, or better still, come forward to prove the ASLI/CPPS study wrong. Only then can the government qualify or be serious enough to talk about nurturing “first class mentality”.

What Najib said yesterday appears to be the beginning of a new “gag” on the debate on bumiputra equity ownership and distribution.

Can Najib explain why a debate on bumiputra equity ownership can result in “tension” and “conflict” when the objective is to establish the true facts – unless there is a possibility that the ASLI/CPPS’ 45% bumiputra equity ownership is closer to the truth than the EPU figure, raising the question as to where all the corporate wealth had gone to as the Malay masses had not benefited as evident in the greater intra-ethnic inequality between the Malay rich and Malay have-nots.

I am quite intrigued by Mirzan Mahathir’s interview in the New Straits Times today where he said that although he had been given a copy of the CPPS study early this year, “I did not go through it in detail. It slipped past me.”

He said that when the controversy erupted, he spent two days reading it. Mirzan must be the slowest reader in Malaysia if not the world.
The report on “Corporate Equity Distribution: Past Trends and Future Policy” has less than 18 pages of texts – and not full texts as they also contain tables and charts – taking an ordinary reader half to an hour or a very slow reader not more than two hours. Mirzan however requires two days.

I am not interested in Mirzan’s reading speed but only in so far as it underlines the utter impropriety, under the circumstances, for him to unilaterally and arbitrarily retract and apologise for the study without consultation, consent or consensus whether by the CPPS director, Prof. Dr. Lim Teck Ghee, or the multi-racial group of scholars and consultants who contributed to the study, or the ASLI directors – just to salvage his political fortunes in Umno.

This is a major blow to independent non-partisan scholarship of excellence without which Malaysia cannot succeed to become an international hub of educational, research and development (R & D) quality as well as to the government’s declared goal to nurture “first-class mentality”!

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Bangladeshi Economist, Bank Win Noble Peace Prize for Advancing Economic Development to the Poor

Bangladeshi Muhammad Yunus and the Grameen Bank were awarded the Nobel Peace Prize on Friday for their work in advancing economic and social opportunities.

The economist and his bank, who will share the prize, were cited for their efforts to help "create economic and social development from below" in their home country by using innovative economic programs such as microcredit lending.

"Every single individual on earth has both the potential and the right to live a decent life. Across cultures and civilizations, Yunus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development," the Nobel Committee said in its citation.

Yunus has drawn praise for advancing microcredit, which has been credited with helping poor women to advance their lives and pull them out of poverty.

"Economic growth and political democracy can not achieve their full potential unless the female half of humanity participates on an equal footing with the male," the committee said.

Grameen Bank, which was founded by Yunus, provides credit to "the poorest of the poor" in rural Bangladesh, without any collateral, according to its Web site.

"At GB, credit is a cost effective weapon to fight poverty and it serves as a catalyst in the overall development of socio-economic conditions of the poor who have been kept outside the banking orbit on the ground that they are poor and hence not bankable," the committee said.

Malaysia, Where arth Thou ?


Malaysiar Abdullah Ahamd Badawi Asli Equity share Bumiputras Bangladeshi Economist Noble Peace Prize