The Zimbabwization of Malaysia

[Byebye Penis]

The Zimbabwization of Malaysia​

https://www.asiasentinel.com/p/zimbabwization-malaysia

The government headed by Prime Minister Ismail Sabri Yaakob is planning to force freight forwarding companies and small and medium enterprises across a range of industries to divest 51 percent of their equity to Bumiputeras – native ethnic groups, although in practice that means to ethnic Malays.

That it is an idea that drove Zimbabwe into ruin appears not to have occurred to the UMNO-dominated coalition now running the country. Expropriations don’t work. They typically enrich a class of opportunists, drive productive people out of the country and leave the rest an impoverished economy. The coalition needs to take a look at how closely Malaysia is following Zimbabwe, once one of the most prosperous countries in Africa, down the economic drain. Not for nothing did Bloomberg recently call Malaysia a failed economy.

 

[Byebye Penis]

Capital stampede

For instance, the empire headed by the sugar king Robert Kuok has, for a long time, been slowly moving out their business interests outside of Malaysia. Air Asia decentralized across the region due to high costs in Malaysia and bigger traffic opportunities elsewhere. Liberty Shipping has moved to Singapore. Genting Bhd moved its head office to Singapore. Hyundai closed its Asia Pacific headquarters in Malaysia and relocated to Indonesia, due to lack of a policy roadmap for the creation of an electric car industry.

Tesco divested its assets in Malaysia. The IBM Global Delivery Center relocated its head office out of Malaysia. Malaysia-innovated ride-hailing service Grab set up its head office in Singapore rather than Malaysia. Other Malaysian high-tech companies that chose to start-up outside the country include Coin Gecko, a platform for multiple crypto-currency comparisons, and BigPay, a Malaysian banking app, also to Singapore.

 

[Byebye Penis]

Multinationals say no way

Malaysia has missed a host of opportunities for innovative multinationals to set up in the country. These include Google, Amazon, Uber Technologies, Allianz, Vodafone group, and Akzo Nobel. Most moved to Singapore because of Malaysia’s relatively poor infrastructure, the poor level of human capital skills, and the poor regulatory framework. Zoom Video Communications has selected Singapore over Malaysia for their first R&D center in the region.

In the public sector, Bumiputera companies have opportunities ahead of other concerns. They have exclusive ownership rights to Malay reserve land and business advantages through restricted licensing. Mostly they have used those opportunities to loot the public treasury through rent-seeking and outright corruption.

 

[Byebye Penis]

Equity Rules

The pending imposition of the 51 percent Bumiputera equity rule in the freight forwarding industry has signaled that successful businesses are not wanted. There are already stories of non-Bumi freight forwarders preparing to relocate to Indonesia, Singapore, and Australia. Some are reconstituting their businesses as foreign companies which can be 100 percent owned. This will bring an outflow of profits, and Malaysian ports will be treated eventually as nothing more than feeder and trans-shipment points.

 

[Byebye Penis]

Loss of Incentive

The 51 percent equity in SMEs across a number of industries, along with the requirement for companies dealing with the government to have at least 30 percent Bumi equity, has lasting consequences. The loss of 51 percent of the equity means loss of control of the business the entrepreneur built, to someone who probably has no idea how to run it.

The equity policy requiring either 30 or 51 percent Bumiputera equity, depending upon the circumstances, favors wealthier Bumiputeras to invest and get richer, thus further widening the wealth gap. There is little, if any benefit of equity requirements in assisting their poorer brethren, to increase their income and wealth. They are the forgotten Bumiputeras in the government’s over-regulation of equity. The equity rules will help the rich get richer and the poor become relatively poorer.

 

[Byebye Penis]

The Super Makmur Tax on Companies

A one-off super tax on companies with RM100 million turnover or more from 24 percent to 33 percent in 2022 is a concerning precedent. Unfortunately, governments have poor credibility when they make promises about tax. This could potentially accelerate the exodus of large local companies exiting Malaysia and discourage foreign head offices to locate in Malaysia.

 

[Byebye Penis]

Ringgit set to fall further
https://www.bloomberg.com/news/arti...ll-further-as-election-risk-adds-to-headwinds

 

[Byebye Penis]

Ringgit 3.3379
https://www.theedgemarkets.com/article/ringgitsingapore-dollar-rate-notches-new-record-33379-oct-25

 

[Loofydralb]

This definitely is not Mahathir idea.

 

[Byebye Penis]

This definitely is not Mahathir idea.

He is super corrupted. He see Najib eat so much, he buay tahan, come out again despite making so much money from Malaysia Airlines, Proton and likes.

I hope he wins again. Ringgit will drop towards 4
Then Johor, Sabah, Sarawak, Penang may declare independence

 

[laksaboy]

So who is the Mugabe guy?

 

[Byebye Penis]

So who is the Mugabe guy?

mugabe-type of people & royalties from Myanmar, Malaysia and Zimbabwe all like to go Gleneagles for scans and see doctors. everything they arrive the lobby and lifts got jammed

can someone please tell them that Mount E Novena is newer and better?