Was Asli pressured to back down? 
Malaysiakini
Oct  11, 2006

The Asian Strategy and Leadership Institute (Asli) has backed down and this led an opposition leader to question if political pressure had triumphed over intellectual and academic discourse.

In a statement today, Parliamentary opposition leader Lim Kit Siang also wondered if Asli directors were in accord with its president Mirzan Mahathir.

Yesterday, Mirzan said there were shortcomings in the study regarding the bumiputera corporate equity ownership.

“Asli concluded that there are shortcomings in assumptions and calculations that led to conclusions that cannot be vigorously justified,” he had said.

He also apologised for the hurt and confusion caused by the study which was carried out by the think-tank’s Centre of Public Policy Studies (CPPS).

The study drew flak from various quarters, including Prime Minister Abdullah Ahmad Badawi and Mirzan’s father, former premier Dr Mahathir Mohamad.

Unilateral stand

Meanwhile, Lim asked if this is the unilateral stand of Mirzan or is it the considered view of all Asli directors and the CPPS.

“Did Mirzan compare the respective methodologies used by the Economic Planning Unit (EPU) and CPPS to reach an informed decision, and if not, what is the basis of his conclusion that the methodology used by CPPS cannot withstand ‘vigorous’ scrutiny?”

“Putting aside for the moment the merit or otherwise of the two claims, is this the triumph of political pressure and expediency over rational, intellectual and academic discourse and the quest for truth?” he added.

According to the study, the bumiputera corporate equity ownership was around 45 percent, way above the 30 percent target set under the New Economic Policy (NEP).

However, the government claimed that the equity ownership was at 18.9 percent.

"A lot of heat has been generated in the controversy, particulary by Umno leaders and heavyweights, throwing no new light whatsoever on the question of ethnic equity ownership in corporate Malaysia," Lim said.

"Prime Minister Abdullah should now intervene to direct the EPU to make public the medthodology it had used to arrive at the official figure of 18.9 percent bumiputera euity ownership in keeping with his commitment of openess, accountability and transparency.

"Otherwise, we will have a very sad situation where the Asli report of 45 perecent ownership would have more credibility in the country than the EPU's official figure," he added. 

Director quits

CPPS director Dr Lim Teck Ghee today tendered his resignation and stated that he stood by the findings.

Previously, Lim said the study was undertaken by a multi-racial group of scholars and consultants as part of work in connection with the Ninth Malaysia Plan.

“The corporate equity study was based on a combination of primary and secondary research. The study found that the official methodology for computation of corporate equity distribution – first used in the 70s and continued till today - is narrowly based, unrealistic and has resulted in an underestimation of the true volume and value of bumiputera equity,” he said.

“Using alternative methodologies, the study has estimated that the bumiputera corporate share is considerably higher than the official figure of 18.9 percent in 2004 – in fact it may be as high as 45 percent.

“This is because, besides the original listing requirement of 30 percent, the bumiputera share has been considerably augmented by that held by government-linked companies (GLCs), which are among the major holders of equity in corporate Malaysia,” he added.