NEM or NEP?

Najib unveiled the New Economy Policy Model this morning yet the impact towards Malaysia's financial market is minimal, up only 0.01% to 1319.35. With all the hooha prior to the announcement, I can't help but wonder why is the market not taking it more positively? I spent 15 minutes to go through the PM's keynote.

Very ambitious goal, I would say. Or maybe it's just a wishlist, to double the dollars per capita annual income to USD15,000 within 10 years, albeit it is not entirely impossible as Singapore had achieved this in the 90s. The question is HOW are we going to make this a reality? Just by privatising a few GLCs and gazetting a few parcel of lands for development? Come on!

However, one thing is sure to stay. There will still be two groups under the 1Malaysia umbrella, the Bumiputera and non Bumiputera, as mentioned repetitively in the keynotes.

"For instance, one important consideration will be developing a competitive and transparent tender process, with set and clear rules for the whole Bumiputera community, made of both Malay and other indigenous groups. This is set out as a common-sense enhancement of our policies for a new economic reality and where Inclusiveness is a key component in our new economic model. In practice, this approach will mean greater support for the Bumiputera, a greater support based on needs, not race. The Bumiputera segment still forms the majority in the vulnerable groups by any measure, and while our new approach will help those on low-incomes from any group, it will still largely benefit the Bumiputera community and at same time provide for the disadvantaged of other communities."

"The NEAC report sets out its view that the previous mechanism that concentrated on target setting should now focus on structured and dedicated capacity building investment that allows the Bumiputera to take advantage of new opportunities in the economy. In addition, fair access and opportunities to retraining, upgrading of skills and ability to gain employment will also be emphasized for all Malaysians."

"...transparent process will be implemented to ensure that potential private sector bidders meet a minimum set of criteria, including financial standing, track record in business expansion and management excellence, and that their proposals help grow the Bumiputera and 1Malaysia causes."

NEM replacing NEP. Same script, different title.