Malaysia is one of Asia's biggest employers of foreign labour. But recently, cases of deaths, abuse and forced labour have come to light. What is going on? Who is protecting these migrant workers?
The three "addictions" are reliance on:
<p>• CHEAP foreign labour; </p>
<p>• SUBSIDIES; and </p>
<p>• FAVOURS and connections. </p>
<p>Speaking at the Harvard Club of Malaysia dinner here yesterday, Abdullah said
the country had a clear idea of where to go and what it wanted to be. </p>
<p>However, individuals were still "addicted" to these "bad habits"
which stood in the way of the nation’s objectives, he said. </p>
<p>The Prime Minister said some Malaysians had formed strong pressure groups to
lobby for more cheap foreign labour, rather than make the necessary investments
to become more labour-efficient and adopting high technology. </p>
<p>"Over-dependence and social ills are then seen as an acceptable price
to pay for this seeming necessity in almost all sectors of the economy,"
he said. </p>
<p>As for subsidies, Abdullah said Malaysians would fight to keep prices artificially
low rather than invest to become more energy-efficient. </p>
<p>"Never mind that the money can be better spent on schools, hospitals and
other facilities to benefit many more people, especially those in need,"
he said. </p>
<p>Citing the diesel subsidy as an example, Abdullah said the Government would
have provided RM8bil in subsidy by the end of the year. </p>
<p>"In total, the Government will lose RM16.2bil in providing the subsidy.
That is 60% of the development budget or 40% of the total budget," he added.
</p>
<p>He said he thought it was "crazy" to continue with the subsidy, adding
that leaders must be ready to face the challenge of explaining this to the people.
</p>
<p>The reliance on rent-seeking, Abdullah said, resulted in Malaysians preferring
to go for "know-who" rather than "know-how." </p>
<p>"Rather than investing to become better than our competitors or to add
value in our products and services, we try to find a way in by other means,
and seek to leverage on our sense of privilege and entitlement to get somewhere
in life. </p>
<p>"We seem to think that surely someone else, at the very least the Government,
owes us a living," he said. </p>
<p>(The term rent-seeking is defined as the expenditure of resources in order
to bring about an uncompensated transfer of goods or services from another person
or persons to one’s self as the result of a "favourable" decision
on some public policy. The term seems to have been coined by American economist
Gordon Tullock.) </p>
<p>The treasury’s coffers, he added, were limited and with other countries becoming
more competitive and innovative, it would become more difficult to rely on such
strategies for incomes to grow. </p>
<p>"Furthermore, as a matter of principle, the Government cannot continue
to nurture habits which reduce the incentive to increase efficiency and productivity,"
he said. </p>
<p>Abdullah said there was no easy solution to this problem and Malaysians had
to be willing rid themselves of these addictions. </p>
<p>"It is a question of willingness more than a question of ability. It is
a question of mentality," he added. </p>
<p>He said Malaysians had to go back to basics as well as the primacy of values
and principle, which was why the Islam Hadhari approach was espoused. </p>
<p>The magnitude of change needed in a country, which was evolving and maturing
was enormous, he said, and would require many hard decisions by the Government.
</p>
<p>"I do not want to give you excuses for the lack of progress in certain
areas. I acknowledge that issue and my Government will continue to work hard
to deliver results," he said.
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