Cabals, feudalism, and apartheid: will these institutions damn Malaysia's future prosperity?

Politically, this rural Malay class has kept the Malay elite in power, while the educated middle class is turning away from UMNO.

2. A brain drain is happening from Malaysia at present, which does not only include Chinese and Indian, but Malays as well. The political-cabal of elite leaders aren't really concerned with this brain drain, as this seen as a good opportunity to weaken potential future opposition. This loss of creative and innovative people is leaving a rent seeking mentality within the country, at a time, creativity and innovation is really needed to develop the Malaysian economy. The leadership have intentionally nurtured the development of an unquestioning population, which is reflected in the Malaysian education system, as the best means to maintain a docile electorate that will not look at political issues like corruption very seriously.

3. There has been a general failure to eradicate poverty throughout rural Malaysia, as limited resources have been used to prop up the feudal warlords of UMNO through 'white elephant' rural development projects throughout the country. Many UMNO warlords have made it big through receiving contracts while their areas remain inadequate with basic infrastructure, and rural assistance such as farm extension services and even proper roads and irrigation. There are still large numbers of Malays who cannot afford to attend university, through the lack of any general assistance schemes available in most other countries. Poverty is still a major problem within Malaysia, where the government has been claiming undue successes.

4. The Malaysian economy is skewed with inefficiencies and market restrictions that hinder its transformation into a mature developed sustainable economic system. Companies are allowed to have monopolies, the restricted issuance of import permits has created inefficient markets, and general lack of transparency is making the Malaysian market unattractive to investors. A 2012 Asian Development Bank (ADB) report cites the two main reasons for Malaysia's net capital outflow as the distortions introduced into the economy by the NEP, and the widespread presence and overbearing influence of Government Linked Companies (GLCs). The restriction of tenders to Bumi companies has created an inefficient Ali Baba business model, which raises the cost of both government and business. GLCs and other government owned companies openly compete with entrepreneurs in the market with an unfair advantage, thus stifling innovation, and the willingness of private individuals to take business risks. Malaysia still needs economic growth to absorb new entrants to the workforce in the coming decade.

5. Meritocracy doesn't exist within the Malaysian civil service, universities, or other agencies. People are forced to adopt a feudal stance of seeking favour from superiors to get promotions and survive within these organizations. Under such an environment there is no chance for creativity, critical thinking, or even honesty. 'Ketuanan Melayu' is now turning hegemonic is a dangerous way that can spill off Malaysian shores. This stands Malaysian in a poor position to be internationally competitive in the future.

6. The divide and conquer political strategy of the Government, use of bullying through third party NGOs, and straight threats and arrogance has had a major effect upon the people of Malaysia. Many have lost hope and respect for the leadership of their country. Many are now resentful. There is potential for outbreaks of violence due to the uncontrollability of some extreme 'ultra' groups allowed to roam free in society today. The country thinks in terms of race, even to the point where a near diplomatic incident nearly occurred with China a few weeks ago, the second most powerful country in the world. This is not healthy and will not stand Malaysia well within the international community. The dissent generated by this 'divide and conquer' political strategy is fodder that allows the political-cabal to use state apparatus to strengthen their hold on power, as the current spate of arrests indicates.

7. What the policies of the Government and resulting social structure of society has created is a small elite class of rulers who act upon the axiom that 'we are the law'. Comments by the Defence Minister Hishammuddin Hussein (a cousin of the current prime minister), indicate the ruling elite's distain even for the constitutional monarchy of Malaysia. The elite is now in an unquestionable position of power unable to be dislodged by the rule of law. They are unashamed by scandal and control all the elements of power through their network of loyalists through the civil service, police, armed forces, and judiciary.

8. Finally, it could be argued that Malay self-confidence has been destroyed and replaced with a national inferiority complex, that the elite can use and play to at their whim. There is a condescending attitude by the elite that 'Malays are backward' and need special protection by the BN/UMNO Government. Thus a whole section of the population is continually told they need help. The concept of 'Ketuanan Melayu', according to UKM Professor Noraini Othman has connotations of enslavement, with a Malay master and servant relationship implied. Tun Dr. Ismail Abdul Rahman went further and said that the 'special position of the Malays' in the constitution is a slur on the ability of the Malays.

The political-cabal that was set up in the 1970s by Prime Minister Tun Razak, has been transferred across from leader to leader since that time. Each prime minister inherited a complete network of loyalists to the 'Agenda Melayu'.

This has been their strength. However cracks appeared in this political-cabal when Mahathir tried to make an agreement with both his successors, which according to him have not been kept. In addition, the scandals of the present prime minister are beginning to test those loyal to the "Agenda Melayu', to the point where some may begin to feel guilty about their loyalty to the current leadership of the political-cabal and 'spill the beans'. Hence the sackings, demotions, transfers and arrests of late.

This however will not mean self-destruction to Malaysia's political-cabal. It's a fight over control and not reform. Winner will take all. Perhaps Dr. Mahathir was naïve in thinking that he could still exercise control and influence over this political-cabal, once he stepped down from the leadership of UMNO and the nation. This is one of the biggest mistakes of his political career.

The very nature of UMNO itself, once a party of school teachers, junior civil servants, farmers, and fishermen, which transformed into a party of contractors, small entrepreneurs, and professional rent seekers, will serve Najib well as he tries to consolidate his position. The party is run along feudal lines where booty is distributed around the country through lucrative contracts to those who head the party at state and district levels to maintain their loyalty and support. The influence of this on public policy and development planning is rarely discussed, even though it leads to massive misallocations of funds into projects that have little, if any community or economic benefit. This prevents any policy approach to planning and implementation, drastically lowering the quality of government.