THE World Economic Forum estimates that the global cost of corruption annually is at least US$2.6 trillion (RM10.9 trillion) or 5% of global gross domestic product (GDP).
According to the World Bank, businesses and individuals pay over US$1 trillion (RM4.2 trillion) in bribes each year.
Corruption adds up to 10% of the total cost of doing business globally and up to 25% of the cost of procurement contracts in developing countries.
I gathered these shocking facts at a conference. There are other alarming statistics that shed light on the damage brought about by corruption and its dreadful impact on the economy.
Corruption leads to further impoverishment of the poor and other issues in many countries. The average income in countries with a high level of corruption is about one-third of those countries with a low level of corruption. In addition, corrupt countries have a literacy rate that is 25% lower.
The Corruption Perception Index 2018 released by Transparency International shows that on the scale of 0 to 100, where 0 is highly corrupt and 100 is very clean, over two-thirds of 180 countries score below 50, with the average score of 43.
In the index, Denmark ranked first in the world followed by New Zealand second. Finland and Singapore were tied for third with a score of 85. Malaysia was ranked 61st in the world, scoring only 47.
We were ranked the third highest in the Asean region, after Singapore and Brunei. Our country is doing better now with the ongoing investigation of the 1Malaysia Development Bhd scandal and other prominent cases.
In TI’s report, Malaysia is one of the countries on the watch with promising political developments against corruption. However, more solid action is needed in combatting all elusive forms of corruption.
According to Transparency International Malaysia, corruption had cost our country about 4% of its GDP value each year since 2013. Added together, this amounts to a high figure of some RM212.3bil since 2013. For 2017 alone, that figure was a whopping RM46.9bil!
As a comparison, our development expenditure in 2017 was RM48bil. If the value of corruption above was accurate, our development fund was almost “wiped out” because of corruption.
Transparency International Malaysia president Datuk Akhbar Satar said: “This is our estimate. It is likely to be higher in reality (on the value of corruption).”
No country can eliminate corruption completely. However, we can learn from good practices shown in some developed countries, such as the Scandinavian countries which all scored high on the Corruption Perception Index.
Corruption leads to poverty as money collected is not used for the welfare of the nation. As a result, the people end up suffering and paying for the leakage in the system.
If a country is corrupt-free, it will reduce the need for non-governmental organisations (NGOs). NGOs advocate for the rights of marginalised groups. The government can take care of those group when it has a surplus in the budget.
A clean government and system will have a positive impact on many aspects including affordable housing, one of the prominent needs of the people.
Whenever there is corruption, there is a compromise in the delivery of goods and services. The same situation applies to affordable housing.
Someone mentioned to me in the past that “the government isn’t interested in affordable housing as there is literally ‘no money’ to be made in it”!
Things have made a dramatic change for the better since May last year. Our new government is working on a platform of clean government and improving transparency. It plans to build one million affordable homes within two terms of its administration. To make this a reality, the government needs to put in real money to make it happen.
Corruption causes a death spiral that leads to various problems. Without it, a virtuous cycle grows that ensures every part runs smoothly and the marginalised in society are looked after.
With a promise of a cleaner government, we hope we will soon see a virtuous cycle that makes the one million affordable homes an achievable target.
By Datuk Alan Tong, who has over 50 years of experience in property development. He is group chairman of Bukit Kiara Properties. For feedback, please email bkp@bukitkiara.com. The views expressed here are solely that of his own.
I WAS not done the last time, so let’s continue our talk about the economy.
In the last article, I wrote that we must spend our way out of the recession and we must act now. We have to spend it on the right things, for the right reasons, using the right people, at the right value.
In the ’80s, we spent on massive highway infrastructure and got ourselves out of the recession. As I said, today we need a different solution that will hit various sectors that will have an overall impact not just on themselves, but also our fundamental way of life.
Where then shall we stake our economic salvation to spark growth in our economy and blaze a path to recovery of the Malaysian nation as a progressive one that will pave our way to be developed?
I say we build on education. Fundamental education. We reform, revamp and rebuild our education infrastructure, systems, administration and human resources. To be specific, primary and secondary education.
Think about it – the East Coast Rail Link (ECRL) is to be built at a cost of RM44bil. Imagine the number of people, companies and all and sundry subsectors that will benefit from a massive capital investment like this in education, not just in the short term but in the long term as well.
Today, Malaysia has in actual fact, a dilapidated, outdated and obsolete – primary and secondary – education infrastructure and system. Our administration and human resources are geared towards upholding this obsolete education model. We need a full revamp and rebuild.
Most public schools are in shambles – old and poorly constructed and poorly maintained buildings; run-down facilities with no air conditioning in this tropical climate. Basically, the hardware of our schools needs a total replacement.
We also need a full revamp of the teaching software – the administration and teaching human resources currently operating our education system. Over the last 30 years, our obsession with seemingly racist policies and religious fundamentalism has produced an ethnic and religious-centric education system, curriculum and teaching profession and administration that is not capable of producing a scientifically and technologically advanced and humanistic progressive majority.
Why else would we have people in government and authority making stupid pronouncements that liberalism and pluralism are dangers to our society?
If you don’t believe our education is so bad, I give you Exhibit No.1: a public university that proclaims so-called religious-based “scientific findings” such as that the various geological age of the Earth did not happen. And you know your education system is in trouble when your professors start theorising that dinosaurs were actually ‘djinns’.
We need a complete revamp of curriculum – what should be taught and not taught in our public schools and who are really qualified to be teachers and administrators for the education of our children. And we need new, well-designed and well-operated places for them to learn in.
For half of the ECRL budget, say RM20bil, we can start the investment and pump-prime the economy beyond our wildest dream. In addition, this spending will fundamentally change the majority of our society to one that is modern and progressive instead of the one we have today, backwards and inward-looking.
It would be something we could call The Great Malaysian Education Revamp Investment.
I would take this initiative away from the current Education Ministry. A ministry that has produced this failed education system cannot be entrusted to carry out a revamp of this nature. An academic, especially one who is steeped in an education based on religious beliefs, is not equipped to lead a major reformation and capital investment initiative. This is a major professional corporate-level investment initiative.
It has to be carried out by a select group of corporate and education professionals supported in the team by various governmental functions on-loan from ministries such as Works, Finance and Legal. This must be a one-stop centre special projects task force. This task force should be separated into
two segments, namely Education Reform and Infrastructure Rebuild.
It is really not that difficult to see what kind of schools we need, both in terms of infrastructure and curriculum. Go to the international schools in this country which cater primarily for children of first world countries – get their blueprint, work with them to understand why they do what they do and implement them.
Look at their infrastructure, see what they have as teachers, what and how they teach, their content and curriculum, and how they administer – and copy them.
If you want to become developed, follow those who already are. Life is that simple.
To all you ethnocentric and nationalistic purveyors of such pride, I have this reminder. You do not go to Nasa and say, “Show me how to build the Saturn V rocket so I can get to the moon and then decide I need to modify its fuel mixture because I need the ingredients to reflect the national identity.”
That doesn’t work. You will be blown to pieces at the launchpad, which is exactly what happened to our education system the day we decided to do that. You want to reflect national identity? Don’t change the fuel. Paint the fuel tanks with our flags, that’s all.
I hope people get the hint.
Hence, this is what we should be investing in – a developed educational infrastructure, curriculum, teaching resources and a small but efficient administrative capability of international standards. Let’s spend tens of billions on it as capital investment. The rewards will be astronomical and will be far reaching all the way into generations.
It will fundamentally change our society. Imagine international schools for our public school system for primary and secondary education. Imagine the society that creates. Imagine, imagine!
So you may ask, what then should we do with our current infrastructure and resources? You do not move from your house in the ghetto to a spanking new bungalow in the suburbs and bring along your old furniture, do you? You transition only the ones that can fit into this new home and leave behind all the rest.
Sounds harsh? Of course it is. If something or someone is capable enough to be part of a developed infrastructure and resources, you test them and take it with you. If they don’t, you leave them behind. Eventually, close them down one by one until the entire ghetto is gone. Then you bulldoze all of them down.
Some will say that what I am saying is utopian, idealistic or not achievable. Here is my answer to that. Look around the world. Don’t look around underneath our tempurung. Changes are everywhere and they are coming fast. This is the 21st century. You either get on with it or you are going to be left behind. Industries are closing down and being replaced by those we never even imagined before. Never imagined.
Where are the telephone operators at the exchanges today? They don’t exist anymore. Anybody using landline phones in homes lately? Are we holding a telephone or a camera? Or is it a miniature laptop or a recorder or a photo album or ... oh well. I don’t know what it is anymore. Cry all you want, but the taxi industry is going to cease to exist. Satellite TV? Wait till 5G comes along.
Disruptions in industries are the norm. In the 21st century, it is moving at breakneck speed. Sometimes I wonder how long general medical practitioners or pharmacists, as we know them today, can survive, or even conveyancing legal practitioners.
Education is not a sacred cow, especially if we want our nation to survive. We either get on with the programme or we wait for our time to perish like that proverbial frog in the slow-boiling pot.
We must change or die. Going back to economics, we are actually living precariously on borrowed time on the credit of our oil money. The other parts of our economy chip in here and there, but it’s very much oil money today. We need to change that narrative now and produce citizens who can compete and create new economies for the 21st century.
We cannot have this education system that turns our people into sheep, rather than thought-provoking industry creators and innovators. We need to stop this nonsense.
If we continue on this path, we will see the collapse of our civilisation. Sounds alarmist? No, I am being a realist. People complain that our university graduates are still earning starting salaries of those about 20 years ago. It’s true, but it’s not the employers’ fault. As Bill Clinton used to say, “It’s the economy, stupid.”
The economy will pay what its cost structure can stand for it to be viable. You can fix a minimum wage but if it cannot sell because no one can afford to pay for it, it will close down. And then no one gets paid. There is a reason the Human Resources Minister suggested that we look at African labour.
This is because our other neighbours’ wages have risen to that of what we pay that they don’t have to come to work here anymore. This is because our economy has not grown with the growth of our population, that’s why.
The signs are all there to see, but we refuse to see it. The worse thing is, our civil service and government-linked company sub-economies have artificially provided shelter and complacency among the majority population, fully financed by taxpayer debts and diminishing oil money. I guarantee you that the retorts to this article, as was to many of my articles, will come from such subsidised mindsets.
Today in Malaysia, mediocrity and unproductivity is rewarded. This cannot, and will not, last for long. We need to change our condition. That change must come with education. Since our economy needs vigorous pump-priming, we might as well go all in with massive investment in education. And in that, we need a true revamp and rebuild of our education.
Let’s just do it.
Siti Kasim is a proud liberal, a non-conformist and a believer in the inalienable rights of individuals to choose their own path as long as no harm is caused to others.
The views expressed here do not necessarily reflect those of Sunday Star
China urges UK officials to stop making wrong remarks on Hong Kong
https://youtu.be/BHdWP-8_OF4
The Chinese way of ruling
https://youtu.be/BPV8mBAiuZ0
Graffiti reading ‘Cancel Functional
Constituencies’ is seen on lawmaker desks after protesters entered and
vandalised the chamber of the Legislative Council building in Hong Kong
in the early hours of July 2. — Photos: Bloomberg
LAST Monday, I watched the live telecast of protests in Hong Kong in horror as hundreds of protesters forced their way into the Legislative Council building, ransacking the chamber and defacing the emblem of the Hong Kong Government.
July 1 marked the 22nd anniversary of the handover of Hong Kong to China in 1997, when British colonial rule and humiliation ended, but it turned out to be one of the city’s darkest days.Protesters were seen waving large Union Jack flags in the middle of the chamber, searching for documents and destroying computers. Watching the TV footage was worrying and mind-boggling. Western media, including CNN, reported that there was no leader – but to me, the chaos seemed organized.
Hong Kong, which had been under British colonial rule for 155 years before 1997, is now under the jurisdiction of China. Hence, the display of the British flag lent credence to Beijing’s accusation that Britain was one of the Western forces behind the series of protests in Hong Kong.
In vandalising the building and its interior, protestors showed a complete disregard for the rule of law – the core value of keeping public order in this international financial centre.I continued to monitor the news on various international news channels until past midnight, when the armed police finally moved in in heavy trucks to clear the rioters. A key reason the police stayed away from confronting the rioters was due to a directive from China’s President Xi Jinping to Hong Kong Chief Executive Carrie Lam that “there must not be blood”, according to local newspaper Apple Daily.
Before marching to the Legislature on Monday, protestors had already taken to the streets previously in an attempt to disrupt a flag raising ceremony carried out by officials of the Hong Kong Special Administrative Region (as Hong Kong is formally known under China’s rule), but they left after a scuffle with the police that left many hurt.Peaceful pro-democracy street marches on July 1 have been an acceptable annual routine ever since the 1997 handover. This year, however, the situation was tense due to massive demonstrations in earlier weeks against the tabling of an amendment Bill to Hong Kong’s extradition law.
The Bill was first proposed by the Hong Kong government in February 2019 in response to a 2018 murder of a woman by her boyfriend while the Hong Kong couple was visiting Taiwan. Since Hong Kong has no extradition treaty with Taiwan, which is part of China, the Hong Kong boyfriend could not be sent to Taiwan to face the law.
The Bill, based on United Nations model used in the West, is meant to target fugitives suspected of one or more serious crimes. But it rules out targetting people based on political and religious grounds. In essence, the Bill is meant to prevent Hong Kong from becoming a sanctuary for fugitives and criminals.
However, anti-China activists have argued that this Bill will facilitate the sending of suspects to Beijing, whose law is harsher. They say it will destroy the Western rule of law and freedom now enjoyed by people in Hong Kong.
This wider interpretation has spread fear among ordinary residents, who are grappling with the high cost of living and housing in Hong Kong. The main objective of the Bill seems to have been overlooked completely.
Among the vocal protestors are pro-democracy activists, advocates of Hong Kong independence, China critics and dissidents, opposition politicians, and people who conduct shady commercial deals and crimes on the mainland. Also unhappy with this Bill, according to several YouTube narratives, are Taiwan and foreign governments with regional intelligence headquarters in Hong Kong who fear being rooted out from this centrally located “paradise” which gives them much needed “immunity”. Perhaps this is the reason why Western forces have been supportive of the protests.The upheaval has forced Lam to suspend tabling of the Bill.
On June 10, as protests were fast gathering momentum, the state-owned Global Times said in an editorial that, “Some international forces have increasingly collaborated with the opposition in Hong Kong.... Washington has been particularly active in meddling in Hong Kong affairs, and some radical opposition members in Hong Kong are (working) hand-in-glove with the US,” it said.Global Times reported that two opposition groups visited the US in March and May to notify the Americans about the amendment to the extradition law.
After these visits, US Secretary of State Mike Pompeo said the Bill threatens the rule of law in Hong Kong. The British and Canadian governments also issued a joint statement disapproving of the Bill.
Chinese Foreign Minister Wang Yi has, on several occasions, publicly warned foreign forces not to meddle in Hong Kong’s affairs.
The violence of the July 1 protests may have embarrassed Westerners who support Hong Kong demonstrators. But some attributed the violence to a lack of response from the government to opposition demands.
Despite widespread condemnation of the July 1 crimes, US House Speaker Nancy Pelosi claimed that the Hong Kong protesters “have inspired the world” and their courage should not be ignored.
Britain’s Foreign Secretary Jeremy Hunt tweeted on Monday: “... want to stress UK support for Hong Kong and its freedoms is unwavering on this anniversary day. No violence is acceptable, but HK people must preserve their right to peaceful protest.”
The next day Hunt warned Beijing that the Sino-British Joint Declaration, signed in 1984 and setting out the terms for Hong Kong’s return to Chinese sovereignty, was “to be honoured ... and if it isn’t there will be serious consequences”.
As stated in the Joint Declaration and under the “one country, two systems” principle, socialism practised in mainland China would not be extended to Hong Kong. Instead, Hong Kong would continue its capitalist system and way of life for 50 years after 1997.
In anger, China responded by lodging protests with Britain over Hunt’s warning.
Chinese foreign ministry spokesman Geng Shuang said Beijing had made “stern representations” over the comments, and accused Hunt of still harbouring “colonial illusions”.
“We called on the British, especially Hunt, to stop being overconfident and grossly interfering in Hong Kong affairs. This is doomed to fail,” Geng said.
Hong Kong became a British colony at the end of the First Opium War in 1842. Although it was returned to China in 1997, British and Western influence is still strong.
China’s state media reminded Hong Kong’s citizens of the disastrous consequences of past “revolutions” promoted in many countries by the West. When these countries were in turmoil and needed economic assistance, the Western countries shied away, various media said in their commentaries and editorials.
There were also reminders that the semi-autonomous territory’s destiny is tied to the mainland, and that Beijing has looked after the interest of Hong Kong well.
It is not known whether the arrest of people responsible for the July 1 riots will spark further major protests, but if Lam resigns and the situation gets out of control, Article 18 of Hong Kong’s Basic Law could be invoked to allow China’s military forces to take control, according to an analysis from the mainland.
Article 18 of the Basic Law reads: “In the event that the National People’s Congress decides to declare a state of war or, by reason of turmoil within Hong Kong that endangers national unity or security and is beyond the control of the government of the region, decides that Hong Kong is in a state of emergency, the Central Government may issue an order applying the relevant national laws in Hong Kong.”
“For those people demanding the resignation of Carrie Lam, you had better not allow her to quit, as her stepping down can be construed as Hong Kong being out of control,” says one YouTube commentator, Tey Kok Seng.
Another, Mei Han, says in a video: “Stop the ‘one country two systems’ principle immediately, take back Hong Kong now,” adding that she is organising an online petition that has collected more than 10,000 “support” clicks.
China has been patient with Hong Kong’s demands and protests, but it is also time for Hong Kong’s residents to respect the principle of “one country, two systems” that has brought prosperity and stability to the territory.
During an interview Thursday, British Foreign Secretary Jeremy Hunt still refused to directly criticize the violent protesters who stormed and vandalized the Hong Kong Legislative Council. Instead, he superficially stated that the UK condemns "all violence" and warned China again. He did not elaborate on the "serious consequences" that he previously warned China that it may face, but said the UK is "keeping options open" over China.
Almost all analyses believe Hunt is putting on an air. Nobody believes the UK will send its only aircraft carrier to China's coast. Nor would anyone believe the UK will punish Beijing at the cost of hurting trade with China. The UK has been dwarfed by China in military and trade. Hunt's inappropriate statements make many British people nervous: Will Beijing cancel an order from the UK to warn British politicians?
If China-UK relations deteriorate, will expelling Chinese diplomats become a card for London? This was the way that the Theresa May government used to deal with Moscow when a former Russian spy was poisoned in the UK. BBC reporters asked Hunt about the possibility for expelling diplomats. But it seems more like these BBC reporters, who bully politicians for pleasure, were using the unreliable option to make things difficult for Hunt.
Launching a diplomatic war against China leads to nowhere. European countries will not stand by London on the Hong Kong issue. By worsening diplomatic relations with China, the UK will only isolate itself.
What's important is that Beijing has done nothing wrong on the Hong Kong issue. It is obvious to all that China persists in the "one country, two systems" policy, and Hong Kong's system is different from the mainland's. The Fugitive Offenders Ordinance, proposed by Hong Kong regional government, was a small cause of the unrest. It was politicized and magnified by opposition factions. The situation escalated according to the logic under Hong Kong's system, not that of the mainland. But such storming and vandalizing is not acceptable under Hong Kong's system or any system worldwide.
Instead of blaming violent protesters, Hunt directed his ire against Beijing, which is based on his selfish interests to win the election. Hunt wants to defeat Boris Johnson. In charge of diplomacy, Hunt believes the Hong Kong issue is a chance that dropped into his and the UK's lap. But this is not the 19th century when the Opium War broke out. The UK has gone past its prime.
Hunt knew that Beijing would sniff at his threat of "serious consequences." But he still said it because he needed to play in front of voters. This is political fraud. Hunt obviously believes that the British people can be manipulated like a flock of sheep.
But Hunt's stunt has no good effect. Many British people are more worried whether Hunt's words would lead to "serious consequences" from China. Purpose and ability should match in diplomatic strategy, but Hunt is obviously outwardly strong and inwardly weak. Even the British people think his performance is amusing.
In a few short years, one minute the UK calls its relations with China the "Golden Era," and the next minute it warns China of "serious consequences." Although these statements are from different administrations and politicians, the UK still shows inconsistency in policy. The country also swung from side to side on Brexit. The UK's politics have become politicians' coffers and plots. They are undermining the UK's image.
Under such circumstances, we should not be too serious when dealing with the UK. Regardless of whether it shows a friendly or an opportunistic gesture, we should remind ourselves this will not be its first or last attitude toward China, and by saying that we mean it will be in a relatively short time, to be specific.
