Tengku Razaleigh’s Speech at Sultan Sulaiman Club, Kg Baru, Kuala Lumpur, 8 pm on April 3, 2014 on the occasion of the launching of “RICH MALAYSIA, POOR MALAYSIANS”, authored by Anas Alam Faizli
YBM Tengku Razaleigh Hamzah
I am honoured at having been invited by Anas Alam Faizli to launch his book, “Rich Malaysia, Poor Malaysians”, a collection of essays reflecting his thoughts on energy, the economy and education of our beloved country. I applaud Anas for his intellectual discipline to pursue writing which demands mental toughness, quiet tenacity and absolute patience. Indeed, he deserves our admiration.
He deserves our respect given that Malaysians are notoriously apathetic to reading, let alone writing. I respectfully submit that we do not write enough, both fiction and otherwise in comparison to, say, our sprawling archipelagic neighbour to the south. It is in this context that our author deserves our commendation – my commendation in particular – for a task well done, even though the themes are serious and difficult. Well done, Anas.
Having skimmed through the book, I must admit that I have more than just a passing interest in it; and at least for two reasons. I am always interested in writings on the subject of energy, be they articles for lay reading or academic treatises. I feel especially close when oil and petroleum are discussed. This is because of my task previously to see through the legislation of the Petroleum Development Act, 1974; the negotiation of the production sharing contracts with oil majors whose roles were redefined as contractors to the national oil company in the post-PDA era; and, establishing and developing PETRONAS into a professionally reputable and internationally respectable national oil company.
Secondly, having been schooled in economics, I follow its development keenly, both at the national and international levels. This is strengthened further by my having once been the Minister of Finance charged with the financial and economic management of the country. And of course, given the collective responsibility of the Cabinet, national policies on such subjects as education interest me greatly.
Let us reflect, for a moment, upon the situation regarding the supply and consumption of petroleum in the country and the downstream role of PETRONAS in the retailing of this essential and strategic product. Given our continuous inability to guide the country out of the middle income trap into the high income bracket, we have been using, for long spells, petroleum subsidisation to solve the problem of its affordability by ordinary people in the lower strata of the economic chain. While the subsidising of consumer goods is not the most efficient of ways in managing the high cost of living, it is fairly understandable if the government extends a helping hand to the small man in that manner.
What is sinful and cannot be forgiven is the ease with which the power that be had been dishing out subsidies to such entities as the national power supplier, the independent power producers and some other non-power outfits. As has been pointed out by Anas, since 1997 this subsidy has amounted to RM136.5 billion. The sad part is that while these power producers continue to enjoy subsidised fuel price, petroleum subsidy to the consumers – which purportedly cost the government RM14 billion in 2011 – was partly discontinued recently.
It is glaringly obvious that the government has been treating PETRONAS as a cash cow. Anas continues to point out that over 37 years from 1974 – 2011, the government had been paid some RM529 billion in dividends, taxes, petroleum proceeds and export duties from the national oil company. The reliance on PETRONAS to help outfits with strong linkages to the government out of financial trouble has been going on from as far back as 1985. In that year it rescued Bank Bumiputera with a RM2.5 billion bailout and again in 1991 when it coughed up another RM1 billion. In 1997, Petronas had to rescue the financially ailing Konsortium Perkapalan Berhad for RM2 billion.
The national oil company was also made to underwrite the construction of the Twin Towers in the heart of the KL golden triangle for RM6 billion and the building of the extravagant Putrajaya for RM22 billion. In all, more than a half trillion ringgit have been spent. This amount could have been used more productively to fund a national pension programme for Malaysians as has been done by a certain Scandinavian country.
This extravagance that had been forced on to PETRONAS has also deprived the company from the much needed cash build-up for reinvestment which would ensure its business sustainability. Given the finite nature of hydrocarbon as a resource, it is important for PETRONAS to look further afield at investments in businesses outside of oil and gas.
Looked at from this perspective, it is all the more critical for the corporation to have a strong cash reserve for reinvestment purposes. It was this need for prudence that had led Tun Razak, the Prime Minister of the day, to impress upon me the need to ensure that Petronas would enjoy parity with such multinational companies as the once much touted seven sisters, two of which ultimately became its contractors.
Today PETRONAS is at par with the oil majors and it is ranked as one of Fortune 500’s largest and most profitable oil and gas companies. But sadly, it is being abused and treated as the piggy bank whenever the government needs cash in a hurry.
Ladies and gentlemen, why is this so? Why is there a discrepancy between what was visualised by the founding fathers of PETRONAS and what it has turned out to be 40 years on; that is, as a banker of sorts to the government.
The truth is that there had been consistent political interference and this had affected PETRONAS, even though it is a professionally well run corporation. There is a blurring of lines demarcating the party in power and government, and by extension, the party supremo and the head of government. Cynics would contend that it was done on purpose to facilitate the development of politics of patronage. This, in turn, led to the growth of crony capitalism.
This inter-ethnic dichotomy is no more than a duplication of effort which result in the inefficient application of resources. It is worsened by the economic disparity that continues to be persistently reflected along racial line, notwithstanding the efforts made to blur and wipe it out. As explained by Anas, the bottom 40% of Malaysia in economic terms is still made up of Bumiputera households.
Transpose this against the notion that about 90% of their incomes are made up of wages and salaries which are hardly commensurate with the relatively more rapid increases in living costs, this problem takes on a much darker hue. As an illustration of how low Malaysian income generally is, it is worthwhile noting that the EPF had been known to report that about 79% of its contributors earn RM3,000 or less a month.
This reality becomes more significant when we realise that disposable income contributes much to purchasing power, especially among the relatively poor as opposed to the wealthy where purchasing power is additionally sourced from assets other than salaries and wages. A report on the national human development goes further to say that the “Chinese has a higher purchasing power compared to other ethnic groups…” More problematic and easily a potential source of politico-economic problem is the assertion by the report that there is “homogeneity in the purchasing power gap.” It asserts that the super-rich, regardless of ethnicity, has about 18 to 20 times more purchasing power.
Purchasing power has a graver ramification from the standpoint of economic wellbeing. This has to do with the reality that a person who enjoys a high income is not necessarily guaranteed a better quality of life. Neither does the effort to improve the quality of life through high income mean much if the cost of living rises rampantly. Again, an observation by Anas is very illuminating here. He contends that a graduate who entered the job market for the first time, say, in 1978 on a monthly salary of RM1,000 could afford a lower-end car of RM12,400 or 12 months’ salary and take out a mortgage, perhaps, on a RM62,000 house in a fairly upscale Kuala Lumpur suburb.
Today, a fresh entrant into the labour market on a monthly salary of RM2,500, which is two and half times higher than his earlier counterpart, would find a roughly similar car costing him RM178,000, roughly 71 months of his salary. A house outside the Greater Kelang Valley area, in Nilai for example, would set him back by RM350,000. This situation could get worse in all probability.
Ladies and gentlemen, the challenge before us is to mitigate the socio-political issues and problems to a minimum. This will ensure that they do not become a part of our political culture and, by extension, our way of life. We must have the will to stop patronage and cronyism. In this way rent-seekers would be cut off. But herein lies the problem.
Political leaders are loath to upsetting the apple cart and disturb their cosy symbiosis with rent-seeking cronies. More often than not, these are the people whom they rely upon for political funds in their effort to continue to latch on to power.
What then could be done given this near-checkmate type of a situation? I say pressure must be brought to bear and it must be made known that we will not tolerate any more politics that is less than ethical. We must clearly and loudly make it known that politics must be practised with a high level of integrity. No, politics is not dirty but its practitioners, more often than not, are. In the longer run and in order to ensure that ethical politics of impeccable integrity is practised, we must overhaul our education system.
We need to shift our education paradigm from a system that emphasises regurgitating what is learnt by rote to amass distinctions to one that puts a premium on logical and critical thinking in which source as well as general reading is a major activity in providing the primary material. We must revisit our educational philosophy in order that we may give equal importance to classroom and off-classroom activities in educating the young Malaysian into a potential leader material for the public or private domains. Of course, this is a huge and important subject that needs proper addressing at, perhaps, another forum.
Ladies and gentlemen, in the last several minutes I have shared with you my thoughts on the subjects addressed by Anas in his book. I hope it has generated enough interest to trigger off your critical thoughts on the subjects or other related subjects. In the process it is hoped that some of you will go a step further to put pen to paper as Anas had done. On that note, I take this opportunity to congratulate the author for making the book available to the public which I have much pleasure in introducing. Thank you and I wish you a pleasant day ahead.
*This speech was delivered by former Finance Minister Tengku Razaleigh Hamzah at the launch of the book “Rich Malaysia, Poor Malaysians” by Anas Alam Faizli.
Anas Alam Faizli speaks in Bahasa Malaysia on his book, “Rich Malaysia, Poor Malaysians at Kelab Sultan Sulaiman, Kg. Baru. Kuala Lumpur, Malaysia on April 3, 2014 (below):
Yang dihormati dif-dif jemputan yang terhormat,
YBM Tengku Razaleigh
Dr Syed Husin Ali, YB Saari Sungib, Tan Sri Kamal Salih, TokSu Norizam,
Pak Chong, Siraj, Azlan, Dato Din Merican, Sharaad,…
Para hadirin-hadirat yang dihormati sekalian,
Assalamualaikum warahmatullahi wabarakatuh dan salam sejahtera,
Saya ingin merakamkan setinggi-tinggi penghargaan kepada YBM Tengku Razaleigh yang sudi merasmikan buku Rich Malaysia, Poor Malaysians dan Malaysia Kaya, Rakyat Miskin. Kredibiliti Tengku tidak dapat dipersoalkan – pengalaman Tengku sebagai Founding Chairman dan CEO Petronas yang juga pernah memegang tampuk kementerian kewangan dan perdagangan antarabangsa serta mantan pengerusi Bank Bumiputra.
Dalam pendidikan pula, Tengku pernah mengatakan pada bulan Julai yang lalu bahawa “Sistem pendidikan negara kita gagal dan kita tidak boleh mempertahankannya lagi. Tambah beliau, satu tindakan yang ikhlas, berani dan radikal diperlukan bagi mempercepatkan proses pembaharuan dalam pelajaran dan pembelajaran.”
Buku kerdil ini juga telah diangkat nilainya ke tahap yang lebih tinggi kerana sumbangan dua orang pemimpin yang saya sangat kagumi dan hormati- pemimpin yang mewakili gen-Y dan juga generasi veteran. Terima kasih yang tidak terhingga diucapkan kepada YB Nurul Izzah dan Senator Dr Syed Husin Ali yang telah mencurahkan pemikiran mereka seterusnya menyuntik kehebatan permulaan kepada buku kerdil ini. Terima kasih juga buat barisan panelis yang sangat tersohor, En Mohamed Siraj, En Azlan Awang, Dato’ Din Merican dan juga moderator Mr Sharaad Kuttan.
Buku ini merupakan himpunan esei yang telah ditulis dalam tempoh setahun. Manuskrip versi Inggeris dan Bahasa telah siap serentak tetapi versi Inggeris diterbitkan dahulu untuk menilai sambutannya. Walaupun ia merupakan himpunan esei tetapi Alhamdulillah berjaya disusun dalam satu bentuk kronologi yang mempunyai kekuataan tersendiri. Sebuah himpunan esei yang berbicara tentang isu-isu nasional dan global seperti isu tenaga, ekonomi, pendidikan dan kesukarelawan, yang saya harap mampu mencetuskan wadah bicara kritis dan berguna untuk semua.
Penulisan dimulakan dengan berkongsi amanat almarhum Atok saya, Mohd Zain bin Abu dengan tiga prinsipnya iaitu:
1- Pendidikan ialah perkara paling penting dan akan sentiasa menjadi keutamaan
2- Elakkanlah seberapa banyak permusuhan dengan orang lain
3- Dan jadilah orang yang memberikan banyak manfaat kepada orang lain
Buku ini antara lainnya satu usaha untuk memenuhi wasiat Atok, dengan kerendahan diri, satu percubaan kecil untuk menjadi seorang yang bermanfaat.
Idea utama buku ini ialah satu penerimaan bahawa , Malaysia ialah sebuah negara kaya dengan hasil mahsul bumi. Beratus tahun di jajah dan hasil kekayaan di larikan penjajah, kita kembali memegang daulat sebuah tanah yang kaya dan mewah. Maka kerana itu, sebaik sahaja merdeka, tanah ini tidak pernah putus memberi sumbangannya baik daripada bijih timah, getah, kelapa sawit, bijih besi, bauksit, kayu balak dan terkini minyak dan gas yang menyumbang 40% hasil pendapatan negara. Semua ini ialah sumber tidak ternilai yang perlu dihargai dan digunakan sebaik mungkin. Oleh itu, adalah sangat penting masyarakat umum memahami sebanyak mungkin mengenai industri yang menjadi “cash cow” negara ini.
Bahagian sumber petroleum Malaysia ini dimulakan dengan persoalan adakah kisah Petronas ialah kisah si tanggang? Beberapa soalan penting seperti – bilakah minyak akan habis? Dimanakah industri perkhidmatan tempatan dan isu-isu yang lain telah dikupas malah diakhirnya turut diberikan beberapa cadangan penyelesaian. Kemudiannya, satu penerangan mengenai sejarah Petronas, bagaimanakah ia beroperasi dan sistem fiskal Malaysia diperjelaskan. Konsesi vs PSC. Persengketaan Royalti Minyak juga telah disampaikan secara terperinci daripada perspektif semua negeri yang terlibat. Bahagian ini ditutup dengan cadangan pemberian ekuiti Petronas kepada negeri pengeluar minyak berbanding penambahan Royalti.
Bahagian Sosio-Ekonomi pula dimulakan dengan merungkai 8 realiti Malaysia dan mengapa pendidikan tinggi wajar dibiayai oleh kerajaan. Saya ambil jalan berbeza dan tidak membandingkan dengan negara lain tetapi melihat perspektif kaca mata Malaysia itu sendiri dan menyimpulkan mengapa kita perlukan pendidikan tinggi. Slogan saya dalam buku ini, 1 Keluarga 1 Graduan.
Esei berikutnya menghuraikan dengan panjang lebar apa yang dimaksudkan dengan Negara Berpendapatan Tinggi, Rakyat Berpendapatan Rendah. Malaysia Kaya, Rakyat Miskin.
Ilustrasi disampaikan dengan fakta dan diterangkan secara halus. Kemudiannya saya membuka kisah Mitos Si Kaya dan Si Miskin diikuti dengan penerangan bagaimana sebuah Negara Berkebajikan akan meluncurkan Malaysia kearah masa depan yang jauh lebih baik.
Menuju kearah demokrasi yang lebih kukuh dengan dua parti dominan negara, saya juga menulis bagaimana kaedahnya untuk memahami dan membuat analisis kritikal ke atas manifesto yang dijanjikan oleh parti-parti bertanding.
Bahagian ini ditutup dengan penjelasan panjang mengenai perjanjian TPPA yang sedang dirunding oleh Malaysia.
Seterusnya, saya mengupas isu pendidikan dengan analisis pencapaian ranking antarabangsa Malaysia. Saya kemudiannya menyeru membina budaya membaca buat menuju mentaliti negara dunia pertama. 1996 – 2 muka surat, terkini 2 buku berbanding Jepun Perancis 10, AS dan Kanada 17 buku. Kemudiannya saya menyeru kepada penyemaian budaya berfikir dengan beberapa cadangan. Saya juga mempersoalkan jika sekolah moden itu satu pengkhianat kepada pendidikan. Bahagian ini ditutup dengan cadangan mendefinisikan semula falsafah pendidikan negara dengan cadangan Cinta sebagai Pedagogi dan FPN yang baru.
Saya percaya pendidikan boleh dijadikan penyelesaian kepada semua masalah yang dihadapi negara.
Bahagian terakhir menyentuh mengenai kesukarelawanan dan satu penulisan panjang yang menghuraikan mengenai bagaimana kesukarelawanan boleh berjaya dan menyumbang kearah pendidikan yang lebih baik. Saya juga nukilkan konsep kuasa ketiga dan bagaimana kesukarelawanan boleh menjadi agen menyubur demokrasi dengan memberi ruang suara kepada semua pihak.
Buku ditutup dengan epilog bahawa gerakan massa Reformasi adalah milik semua dan rakyat perlukan satu Rejuvenasi. Seperti yang saya sering utarakan, penulisan ini adalah milik umum, dan saya seru warga umum untuk mengulas, mencabar dan memperkembangkan idea-idea di dalam buku ini. Usul-usul kritis yang padat di dalam buku ini saya mohon diperhaluskan dan semoga dapat dimanfaatkan oleh semua.
Akhir kata, Baca, Faham, Fikir dan Bertindak. Berjuanglah!
Terima Kasih.
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