NAJIB: NO HIDDEN AGENDA on BUMI EQUITY SHARE; METODOLOGY; 18.9% BASED On OVERALL Figure from COMPREHENSIVE STUDIES; AVOID GAG Order on ISSUE

Government Is Transparent About Equity Share Of The Races – Najib; October 15, 2006 15:34 PM
KUALA LUMPUR, Oct 15 (Bernama) -- Datuk Seri Najib Tun Razak Sunday warned all quarters not to depict the government as not being transparent about the equity share in the national economy by the various races based on the figures arrived at by the Economic Planning Unit (EPU).
"The government is indeed transparent about it. Statements are being made to the contrary," he said in response to the remarks by Gerakan president Datuk Seri Dr Lim Keng Yaik who wanted the EPU to reveal its methodology how it arrived at the Bumiputera share of the national economy at only 18.9 per cent.
The Deputy Prime Minister also said that government did not have any problem in making public the method used if there were still doubts.
"The government's figure (on the Bumiputera share) is based on detailed and objective studies. We have no problems (revealing how the figure was arrived), but we don't want cynical remarks made that the government is not transparent or the like," he told reporters here.
Najib also stressed that the calculations were based on the overall figure and not modified to reflect the interests of any one community.
Lim yesterday had said that the methodology used by EPU should be revealed as Gerakan was of the view that something was not right with the 18.9 per cent figure as it had not shown any improvement since the New Economic Policy (NEP) was introduced in 1970.
He also wanted the EPU to issue the figures on equity control of companies held by Bumiputeras since the NEP was introduced.
The issue of the Bumiputera control of equity in the national economy became a controversy when the Asian Strategy and Leadership Institute (ASLI) claimed that the community's share had reached 45 per cent.
It was rebutted by the government as the EPU had calculated the bumiputera portion to be only 18.9 per cent. ASLI later apologised and retracted its report on the issue.

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= = = the Deputy Primer responded (above) chided Dr Lim about his “cynical remarks”(BELOW)

Perceptions vary over same issue, says Keng Yaik; Sunday October 15, 2006KUALA LUMPUR: The recent controversy regarding the bumiputra stake in the economy is an example of a Chinese proverb of an issue being seen from different perspectives, said Gerakan president Datuk Seri Lim Keng Yaik. He said the proverb is: Same bed, different dreams. “It’s like two people sleeping in the same bed but having different dreams. Some are actual dreams and some are nightmares.” He was speaking to reporters after chairing a three-hour discussion here yesterday over the findings of the Centre for Public Policy Studies of the Asian Strategy and Leadership Institute (Asli). The study estimated that bumiputra equity ownership in public-listed companies could be as high as 45%.
On Tuesday, Asli president Mirzan Mahathir said the study was based on faulty assumptions. The centre’s director Dr Lim Teck Ghee, stood by the findings and resigned in protest. Keng Yaik said the issue had affected people's perception of the Government's integrity. He called on the Government, through the Economic Planning Unit, to make known its own findings on the issue so as to uphold the Government's integrity. “Whether it’s 18.9% or 45%, it doesn’t matter. We want the true picture out in the open. “Let’s not hide behind official statistics. These statistics should be made known to the people,” added Keng Yaik, who is also Water, Energy and Communications Minister. Keng Yaik said the controversy had sparked off debates, with the different communities having their own perceptions of the issue.
“The Malays will feel they are not getting enough; the Chinese will feel they are sacrificing too much and have been kept away from economic activities; and the Indians will feel they all have nothing.
“The kind of feelings and perceptions are not good for the country,” he said.

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Sunday STAR October 15, 2006
Avoid gag orders, governmet urged; BY SHAILA KOSHY
PETALING JAYA: Democratic governments should encourage public debate instead of issuing gag orders and dissuading questions on government policies.
This was the view of three Barisan Nasional politicians, a social and political scientist and a non-governmental organisation.
They were responding to the statement by Deputy Prime Minister Datuk Seri Najib Tun Razak on Thursday that there should not be any further dispute over the Economic Planning Unit's calculation of bumiputra equity ownership and his caution that even intellectual discourse could result in discord.
Najib said this following the controversy that had ensued after a study by the Centre for Public Policy Studies (CPPS) of think-tank Asian Strategy and Leadership Institute (Asli) found that bumiputra equity ownership could be as high as 45%, much more than the government's official figure of 18.9%.
On Monday, Asli president Mirzan Mahathir issued a public apology, saying the study was based on flawed assumptions and methodology. As a consequence CPPS director Dr Lim Teck Ghee, who stood by the findings, said he would resign.
“This must be about the sixth time we've been told we can't talk about something this year,” said Kota Baru MP Datuk Zaid Ibrahim.
“The issue here is that the NEP (New Economic Policy) is supposed to help people who have been left behind economically to catch up.
“We are told that we will one day reach the NEP target; does that mean we can only talk about it then?
“I would have thought that, if the CPPS bumiputra equity figure of 45% is accurate, the government and Umno should be pleased that their policies have succeeded and take credit for that.
“The irony is maybe they don't want to reveal the actual figure so that they can keep on asking for more.“I just came back from Prague where we were discussing something more 'sensitive' – co-existence among Jews, Muslims and Christians.
“It was a shock to come back and hear we aren't supposed to discuss or dispute the government’s equity figures.“What will it be next time – no discussion on the haze and the API because it would affect national security?” asked Zaid.
Dr Chandra Muzaffar, president of the International Movement for a Just World, said the root problem was that Malaysians looked at everything through an ethnic prism. He said the ethnic approach was neither helping the bumiputra community nor the nation. “It's a tremendous significance that the poverty gap within the bumiputra community is wider. It has become worse since the mid-1990s. Studies by the late Dr Ishak Shari (director of Ikmas, a research institute in Universiti Kebangsaan Malaysia) showed this clearly.”
Dr Chandra said Malaysians should be able to debate issues without degenerating into ethnic posturing.“One has to allow people to speak and explore ideas. Politicians especially should show maturity and sophistication in their responses and not see themselves as targets. “The ease with which we take ethnic positions – especially the intelligentsia – is frightening.”
He added though that things could have taken a different turn if the media had done a proper report on the study “which had covered issues much larger than the equity figure.”
On the dispute over whether to include ownership Government-Linked Companies in the equity calculations (as computed by the CPPS but not by the EPU), Dr Chandra said GLCs should not be included in any survey looking along ethnic lines.
“How would you then regard the civil service, which is staffed largely by bumiputras, and other public institutions?”
Dr Chandra likened that to classifying private corporations, which may have a large Chinese presence, as Chinese.
“Take for example poverty among fishermen – they are mainly Malays but the reasons for their poverty have nothing to do with their ethnicity. We should instead look at things from a socio-economic approach.”
Transparency International Malaysia deputy president and associate professor Mohamad Ali Hasan said no one should be deprived of discussing issues of public interest as long as they were objective and based their arguments on fact.
“We want to know the truth, we should have information based on hard facts and not distorted information.
“In a multi-cultural, multi-religious country, we need to be more sensitive to each other but we should be open as well.”
Head of MCA Youth Economic Bureau Datuk Henry Wong said, “All communities should encourage the building of a robust entrepreneurial class but we must not lose sight of the need to enhance our overall global competitiveness, to uplift general income levels as well as to reduce poverty and lower the disparities regardless of race. This was and still is the real intention of the New Economic Policy.
Datuk Dr Toh Kin Woon, Penang state executive councillor, said in a statement the controversy would not have arisen had the government been more open and receptive to views, challenging its own findings.
“The signal seems to be that dissent is not to be tolerated and honest pursuit of knowledge discouraged,” he said, adding it was at odds with the government's professed claim of wanting to make Malaysia a more open, transparent and liberal society.
“The expansion of the democratic space, and the strengthening of the right to dissent and challenge are so important in moving our nation forward.”
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……..Background on ASLI Disputed figure of 45%

No Government Pressure On Asli To Back Down; October 13, 2006 21:24 PM
KUALA LUMPUR, Oct 13 (Bernama) -- The government did not pressure Asian Strategy and Leadership Institute (Asli) to back down and retract the controversial report of a study on bumiputera equity ownership, Deputy Prime Minister Datuk Seri Najib Tun Razak said Friday.
"The statement made by president of Asli (Mirzan Mahathir) was voluntary. Asli is an independent think-tank and it is up to Asli to decide on its own on any issue.
"We appreciate the fact there is concern (about bumiputera equity) but there must be a degree of national consensus over economic data, especially economic data that might be of concern and sensitive to Malaysians," Najib told a news conference after witnessing the signing of a sale and purchase agreement between Syarikat Prasarana Negara Berhad and Bombardier Hartasuma.
The report by Asli's Centre for Public Policy Studies (CPPS) concluded that bumiputera equity ownership could be as high as 45 per cent while the government's official figure is 18.9 per cent.
On Tuesday, Mirzan 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 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.

Najib reiterated that the government stood by the accuracy of its data on the equity share of bumiputera and non-bumiputera released by the Economic Planning Unit.
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From The Sun; 13 Oct 2006
Rejection of Asli report sends wrong signal: Datuk Dr Toh Kin Woon

PENANG: 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 Govt defends 18.9% equity figure 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 socioeconomic 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 highranking 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.

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