Subscribe in a reader | Subscribe by Email The hottest news among the concerned Indians surely have to be the news that Indian equity DROPPED to 1.1% from previous 1.2%. This is a big blow to MIC, and if used properly, will spell the end of Samy Vellu and MIC. For all they claimed on stages and advertised in papers, what we ended up with is a drop in equity. When everyone else registered positive growth, ours went the opposite way. Even though the value of investment increased (by/to?) RM575.2million or 9% within the period 2004-2006.
Unless there is proof that from 2006 to 2007, some sort mini miracle happened to improve the percentage…it will be a body blow for MIC.
Yeah, equity may not be all, but as it is an indicator fondly used by other races, so I guess its fair that we too treat it as an important indicator.
The non-privileged, normal Malaysians share increased from 40.6 percent in 2004 to 43.9
percent in 2006, meaning the Chinese community’s hold increased 3.3%, far more than the privileged and Indians communities.
For non-bumiputeras, it increased from 40.6% in 2004 to 43.9% in 2006. Chinese ownership group saw an increase from 39.6% to 42.4%, while for Indians it showed a slight decline from 1.2% to 1.1%.
However, there was a decline in foreign ownership from 32.5% to 30.1% while for nominees, it fell from 8.0% to 6.6%.
Also, the contentious “privileged’ people equity is being put at 19.4% whereas alternative figures quote more than 45% (google for ASLI’s report on bumiputra equity), increasing from 18.9% in 2004. ?During the period, individual ownership increased from 15.0% to 15.1% while for institutions, including Permodalan Nasional Bhd, it increased from 2.2% to 2.6%. The government’s target under the 9MP is to attain bumiputera equity ownership between 20% and 25% by 2010, which excludes government companies like Petroliam Nasional Bhd and Khazanah Nasional Bhd. The equity ownership is based on the par value of the shares and not on market capitalization.
The irony is privileged people’s equity increased 0.5% and below are among the measures to reach the target of 20 to 25% being introduced by PM:
* Greater emphasis will be given towards ensuring that the bumiputera community has controlling stakes in private companies. * Bumiputera will be encouraged to invest in new growth areas such as information and communications technology, biotechnology, photonics, nanotechnology, advanced manufacturing and precision engineering.
* The role of bumiputera institutions such as Permodalan Nasional Berhad (PNB) and Tabung Haji will be strengthened to consolidate the funds of bumiputera individuals.
* Talented bumiputera graduates with creative and innovative ideas will be provided with capital to commercialise their ideas.
* A comprehensive database to monitor the performance of bumiputera in the corporate sector will be set up.
Abdullah also said efforts such as unit trust schemes, entrepreneurship development and skills training will be further enhanced to increase equity ownership among bumiputera in Sabah and Sarawak.
“To increase the ownership of non-financial assets of bumiputera in Sarawak, native and customary land will be continued to be developed for commercial purposes,” he said.
The second phase of the Bumiputera Commercial and Industrial
Community (BCIC) development will be given further emphasis through the
implementation of the cluster development initiatives, which will be
driven by the private sector, he said.
“This initiative is
expected to increase bumiputera participation in 11 key economic
sectors, including construction, logistics and distributive trade.“To
drive the development of bumiputera entrepreneurs, programmes such as
franchise development, strategic participation in business networks and
the listing of bumiputera companies on Bursa Malaysia will continue to
be undertaken.
Now, let’s look at the steps taken to REVERSE an equity percentage drop for the Indians:
“To increase corporate equity ownership among ethnic Indians to 1.5 percent by 2010, efforts will continue to be undertaken to increase access to skills training and entrepreneurship development programmes.
“In addition, special assistance will be given to the ethnic Indian community to raise the level of their equity ownership through unit trust schemes,” said Abdullah.
So, we can expect more rerouting of funds in the name of helping the privileged community to reach its target of 30%, while at the same time two efforts taken to increase the Indian community’s share by 0.4%. Fine with me, as long as the funds are used properly and the effects since. For last 38 years, God knows how much money have been channeled to increase the equity, and yet still at 19.4%.
Anyway, I’m still interested to find out why is the Indian community’s equity is set at 1.5%. Who arrived at this value? What is the logic for it? Why not 10% or 5%?
In the meantime, its an historic moment since Indian community had entered the Malaysian Plan, at the 9th attempt! Obviously a word of thanks is in order for YSS to finally being able to convince the idea of specific vehicles for the Indian community being set up. But to tell the truth, if there was no rally on the 25th, do you think this would have happened?
Let’s wait and see how the implementation goes for the unit trust. What role will MIC play? Any RM2 companies to be involved? I’m getting carried away here, so let’s just wait and see.
UPDATE (NST) (for future reference):
On narrowing intra and inter ethnic income and wealth gaps, by 2010 income disparity between Bumiputera and Chinese are targeted to be reduced to 1:1.50 (1:1.54 in 2007), Bumiputera and Indian reduced to 1:1.15 (1:1.20), rural-urban reduced to 1:1.70 (1:1.91), while equity ownership restructuring for Bumiputera to be increasedto between 20-25 percent (19.4 percent in 2006) and Indians to 1.5 percent (1.1 percent).
There are lies, damned lies, and statistics! – B.Disraeli
That’s a joke to start with.
Ok, first of all I don’t quote agree with equity ownership as a measure of wealth. This is not just in accurate but also outdated. The reasons are economic as well as due to the wheels of globalization.
Anyway, leave that aside for a while and look at the stats.
As often, the stats can paint a wrong picture and we need to be careful in analysing them. In terms of statistics the change of 0.1% is not significant but when viewed in the light that the Indian % has been declining in the last few years, it could be a cause for alarm. During the Eighth Malaysia Plan period (2001-2005) the Indian equity has dropped from 1.5% (2000) to 1.2% (2004). And that now it has dropped to 1.1% is definitely something that we need to worry about.
However, in terms of absolute value of equity, the Indian equity has actually the Indian equity grew by 5.6% or by RM 1.3 billion during 8MP and RM575.2million or 9% within the period 2004-2006. What actually had happened was that the other communities’ shares had grown much faster
ours. Also remember that the % of Indians population also been declining.
Also many Indians do not have public listed companies like the Chinese, who generally list their family owned companies while keep the bulk of the shares. The bumis grew their share thrugh PNB.
As such, the move to have unit trusts like PNB is an excellent one as suggested by YSS/MIC. Poobalan you don’t have to worry about Rm 2 companies as these unit trusts are controlled by the govt.For example PNB is accountable tp YPB headed by the PM and the BOD that is high powered. This unit trust for Indians should have similar set up and perhaps placed under Khazanah, who is known as one of the best sovereign fund in the world. Perhaps the BOD can consist of Indians of highest caliber such as Ramon Navaratnam, Tony Fernandez, Jomo Sundram, Denilson,etc.
But having said that there are other ways to improve our lot. In must be remembered that Indians are not exactly poor. It is just that our community is top heavy. About 70% of us are middle class and above while the 30% is at or below povertry level.
Poobalan, you are wrong to assume that this is due to the impact of HINDRAF. Go and read 9MP. This was already stated well before that, thanks to the untiring efforts of MIC/YSS. Long before the heroes who speak so loud today emerged, MIC/YSS already made many recommendations. Go and google or look at YSS’ site.
Go and google or look at YSS’ site. – ok, will do. 🙂
points to ponder:
– ASLI’s report was right about the lowly declared % for bumi. But they will never accept it .
– there were 3 major effors to increase equity . PNB for bumi , multi purpose holding for chinese and maika for Indians. The motive was correct but implementation differed . The first two were successful . The 3rd screwed up . It’s not the fault of economy or the maika entity . Then ?? A professor told me that instead of the past 3 chief (useless) of maika , if we had a chinese ‘tauke’ maika could have been a huge success for indians . All gone ; lost !!! Do you think it’s easy to restart such program ? Many lay indians sold their property to invest .
– those share holders whom question this in maika meetings beaten up by thugs . But no worries , indians are most forgiving . They still voted mic thus far !!
– it’s unknow what happened to the 9mill shares (out of 10mill) which was diverted from going into maika . Instead , SV said given to other mic bodies ! Probaly cronies.
– have to admit that other than some social works (via YSS and individual branch folks) MIC failed the community in the sense of economic excellence. But these goons will blame the community why cant they support own tamil schools like chinese instead of going down street demos . If they were like chinese ‘tauike’ do you think they will come down to street ??
– the fundamental of indian politics here is wrong . But they’re not admitting . Or even taking action to overcome.
– but wait a minute …… whether our equity is 1% or lower or whatever we should not blame mic but keep sending them to parliament . As long as they fill up their own pocket . We shd not blame them , ok ? Let’s blame the one whom questioning all these . That is this hindraf/makkal sakhti .
– let the top guns buy properties in australia and indian . Let our lay indians remain in estates . Send them to power again and again . Bcos indians are the most forgiving/forgetful society !
VJ
Please be objective in your criticisms. It is your right in not supporting MIC and I don’t have any problems with that. But making unfounded and unfair accusations is another thing.
Remember, the job of uplifting the society is not the sole responsibility of MIC. It is the job of every Indians. MIC is after all a political party and that has limited power in terms of politics and financial resources. If we follow your logic, then MCA is responsible for the Chinese success and UMNO for Malays’. Then using the same logic it would seems that MIC has done a better job than UMNO since we are better than the Malays per capita.
MIC has its problems (remember I am not even a member) and certainly they had done some blunders along the way. I am still unconvinced about their leadership. But in my mind they have worked tirelessly for Indians and achieved much. No doubt some leaders have used their position to amass wealth but then the same accusation can be hurled against every politician, including the PR ones who just came to power.
To check the status of Indians if they have progressed, there is a simple test. Just compare yourself with your parents and grand parents. If you are much better off than them, then it shows the progress Indians have made in the past decade.
To be fair the progress is solely due to MIC is wrong as much of it due to govt policies. But neither it is fair to accuse MIC for the poor in the society. The contribution of MIC is very clear. That we have the most dynamic Indian culture outside India is a testament of MIC’s work and even UMNO’s tolerance. We have our culture intact, we have indian radio stations, newspapers, TV stations, hundreds of schools,etc. All these is due to BN.
Compare this against Sri Lanka, Mauritious, Kenya, the US,etc. People like to compare us with Singapore where Tamil is one of the official languages. But in reality, the Indian culture is far from thriving as compared to us. Most of these measures are merely wayang. The Indian ministers are jokingly referred as Zoo ministers as they are powerless.
Just like Penang under LGE, words like “equal” and “fairness” is used to justify the Chinese dominance. Using meritocracy (in actual fact it is not really based on merit, but’s another story), they have effectively made the Indians and the Malays into 5th class citizens. There is no scheme to help these people, there is no special quota or allocations. If you speak up, then you can kiss your future goodbye. All the Indians can do is fill the clerical and lower paying jobs and be happy with it. The Malays are worse off with only the lowest paid jobs available for them. All in the name of “meritocracy”. Do you want this situation ?
Even in MNCs, the same situation exists. I know because I have a regional role and Singapore has one of our bigger operations. I have a number of staff there and I often face big problems in even getting Malays and Indians for interview. The HR dept look at Indians and Malays as lepers except for low level positions. But even for clerical posts, the HR people are highly reluctant. The same thing applies to Penang albeit on a lesser scale. However, now that we have LGE there, we will reach there soon.
The Tamils in Singapore now treated lower than the migrant Northern Indians. Soon, the immigrant Indians will be more than the original Indians. The imiigrants are better educated and paid and slowly they are taking over the local Indian scene.
Killer , you have your personal state of mind and i have mine . My frustration is based on real time issues for past years and decades rather than someone from oppo brainwashing me .
Btw , i have seen and heard ppl comparing Indians in M’sia and those in US/UK/uganda …..etc . Dr.M did that too on his blog . See , there’re differences between us and others historically .
For record , MIC was the very first party to be formed in Malaya back then , not mca and not umno . In 1946 , John Thivi demanded independence from British . Not even malay leaders demanded at that time claiming they are not ready . Anyone knows about this ?? Well certainly school history book not going to tell this . And you will hear umno leaders saying they were the ones fought British . Remember i wrote somewhr that there’re history facts hidden from us .
Indians (and chinese) developed this nation much at those days .
So dun just shake our heads if umno tells us we are mere ‘pendatang’ like those in us/uk/uganda …..etc .
Well mic is not the same now .
Similarly , like you killer , i’m not part of oppo political parties . But part of the ‘makkal’ .
Well , MP is right to link Hindraf and current effort of gomen for Indians . When you dun demand you’ll be treated as dumb and deaf .
Dear VJ
May be MIC was formed before UMNO and MCA or they demanded Indpendence first,but I don’t think it is a fact people are trying to hide.
I think you slept through your history lesson as there were many Malay parties before UMNO like KMM which was formed much earlier than MIC. And it might be useful remember than MIC was originally formed Indian inpendence in mind rather than Malaysia’s. Only after 1947, they turned their to Malayan independent.
However, that was 1947 and not 2008. Situation then was very different. I suggest you read Form 5 or 6 History books before you comment further on history.
Perhaps you could share your “frustrations” on the “rea time issues” you alluded to. Let’s see what issues that made you think way. Ready to debate ?
there were small parties like KMM formed but the Q is do they exist now ?? the 3 are the major component of BN and lasted thus far . Dun just buy what schools books tell you . Well , certainly they not going to give creadit to John Thivy .
Seems like i (and many M’sian Indian) have woke up , have you ?
KMM small party ?? What is the relevance of KMM not existing now ? That is beside the point as UMNO has effectively replaced them.
The role of UMNO, MCA and MIC in the context of Malaysian Independence is well documented, even a school book will tell you that.
BTW My knowledge of history is not just from school text books.
Perhaps you could quote some historian (and not polician) who has said differently from me. Then I would accept your arguments