What About Defence, Dear PM?

KUALA LUMPUR: The Dear PM today announced (see story below) that 27 service sub-sectors no longer need Bumiputera equity participation. He also said further liberalisation of the service sector would be done on an on-going basis.

Critics have long cited the equity condition as the main reason Malaysia has been losing out to its neighbours for the last 30 years and the Dear PM latest move is heartening indeed. It is not enough, however, there are lot of conditions that need to be relaxed especially for those in defence.

Everyone knows the Pendaftaran dengan Kementerian Kewangan created a whole bunch of “cronypreneurships” and the condition to Malaysian Defence, is one of the biggest obstacles towards the modernisation of the armed forces.

Before you claim that I am a traitor to my race, think again, who or which Bumiputera company that were selected for Kementah procurement deals had actually contributed to the well- being of the kaum as a whole? None, of course as most of these companies are small Sdn Bhd companies, which were set-up to make money for the owners and their beneficiaries only, no one else, let alone the armed forces and the nation.

Of course, there are equity correct companies which had gone for public listing based on long term support services deals with the armed forces. They survived with the grace of the powers that be and nothing else.

Malaysian Defence is not suggesting that the contract for wet rations for camps be opened to private limited companies but forcing a multi-billion ringgit contract to be signed with a Sdn Bhd company with suspect ownership, is absolutely ridiculous and tantamount to corruption. Thats the reason the Scorpene deal continue to haunt the Dear PM to this day while RB is having a free lunch in London.

Lets hope the liberalisation of the services sector marked the transformation of 1Malaysia as promised by the Dear PM. As I mentioned before we cannot afford costly mistakes again.




Malaysian Defence

M’sia Liberalises 27 Service Sub-sectors With Immediate Effect

PUTRAJAYA, April 22 (Bernama) — The Government has liberalised with immediate effect 27 service sub-sectors with no equity condition imposed on health and social services, tourism, transport, business, computer and related services.

Prime Minister Datuk Seri Najib Tun Razak said today the government would be progressively liberalising the other service sub-sectors on an on-going basis.

“The liberalisation of the services sector is pursued with the view of creating a conducive business environment to attract investments, technologies and higher value employment opportunities,” he told a media briefing on the liberalisation of the services sector.

Najib said the initiative would not adversely affect the domestic services industry as the government would continue to support the industry in capacity-building and in the opening up of export markets.

“The services sector is an important component of the national economy, contributing 55 per cent to the gross domestic product in 2008, of which 47.6 per cent was from non-government services,” he said.

He said the sector accounted for 57 per cent of the country’s total employment.

Malaysia’s approved investments in the services sector totalled RM50.1 billion in 2008, exceeding the RM45.8 billion investment target a year as envisaged in the Third Industrial Master Plan, said Najib.

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About Marhalim Abas 1631 Articles
Shah Alam

1 Comment

  1. I absolutely support your statement Mr Marhalim. I’m passionate to be a part of Malaysia’s defence industry but unfortunately there’s not much push from the government to actually turn our local defence industry into something viable and competitive. All I see around us are Malaysia companies with political connections importing foreign equipment, or producing foreign designs under license.

    Singapore has their own home-grown military hardware now. Heck, Indonesia even have their own standard-issue combat rifle for quite some time now! Malaysia’s home-grown defence industry talents and solutions are still non-existent at this point.

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