Malaysia’s problems more than 1MDB and its leaders – Philip George


…it is more, and goes wider than what is expressed here. Malaysia is not excluded from the strangleholds of the cabal. The locals are blind and never will see the big picture. By design the local problems are simply a distraction, a circus show to keep the Malaysians distracted from the more important world control issues.

…Malaysians need to acknowledge the presence of a Rothschild’s central bank here which is fully cloaked and disguised as BANK NEGARA (National Bank). Remove this pesky money leech and Malaysia will start to breathe

The Malaysian Insider

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Corporations are complex and though they may seem messy at times, the malleability and flexibility of the corporate structure is close to the heart of capitalism. Usually, the bigger the corporation the more complex is its corporate structure. What follow is an entanglement of companies, in a structure understood by few, linked in various different way to maximise the effective gains of the “corporation” in the name of capitalism and the free market.

The objective of the profit maximising firm is to try capture all the value and to externalise the costs. The problem of capitalism is the profit maximizing mentality of the firm; by only seeking to maximise utility for one stakeholder (the firm) in society, the rest of the stakeholders are marginalised.

The source of this mentality needs to be changed, when we continue to believe we can only maximise our individual gains by externalising the social costs, we allow individual benefits to take precedence over the social good; hence, although the individual is functioning at an optimal level, society will be functioning at a sub-optimal level because it produces negative externalities and social losses.

This complexity is only compounded when a strategic business unit (SBU) is owned by the government, and inadvertently funded by the public. In such a case, the need for transparency and accountability is heightened.

Therefore, true transparency and accountability requires more than just good governance and corporate or “feel-better” social responsibility because the fault of 1Malaysia Development Berhad’s (1MDB) joint venture is not only in the factors inhibiting its transparency and accountability, but also in the system itself. The faults in the system are proliferated by the recent display with 1MDB, it has shown us that the system has fictitious governance and an alarmingly lack of transparency.

The standard solutions such as laissez-faire and the self-correcting invisible hand, and regulating or socializing industries and markets are not sustainable long-term solutions. Instead of viewing gains as a trade-off between private and social benefits, we must seek an alternative that results in a “win-win” situation for everyone.

By internalizing the interest of society such as the interests of employees, the environment, civil societies, etc., with the objectives of the firm, the decision-making structure incorporates all the needs and costs of society thereby causing a paradigm shift in power, ownership, and control. The enhanced version of capitalism in the 21st century has relied on good state-corporate relationships. However, the interest of society has been marginalised.

When the interest of the state and its official, and the firm are being met but not the interest of the people, democracy and capitalism have failed. The state will become a failed state. However, if civil society (e.g. employees, scholars, lawyers, NGOs, civil servants) is included in the discussion, the state-corporate relationship will evolve into a culturalist society, where there is a state-corporate-society relationship and society will be functioning at an optimal level.

Who is better than society itself to determine the needs and costs to them. When a government becomes so disconnected from its society, it becomes hard to know the needs of society. Our dear Prime Minister Datuk Seri Najib Razak has gone shopping for all the support he can get from his party and corporate counterparts; although he may be doing what he can to clear his name in the state and corporate level, he has left a nasty stain on the Rakyat, and it will be shown in due time.

Khoo Kay Peng, a political analyst, said, “Mr Najib does not need the demonstration of support if he feels that his position is secure… He has to be very careful, especially with the silent majority and grassroots, as Dr Mahathir’s influence is still great.” Likewise, former information minister Tan Sri Zainuddin Maidin warned, “Najib is now overconfident that he will maintain his leadership until his time is u ; riding on the support of the division leaders and Supreme Council members, even though Dr Mahathir has withdrawn his support.”

While the current form of capitalism in Malaysia is confrontational, late, and reactive. A shift to culturalism brings with it the promise of a better tomorrow. Culturalism serves the best interest of all the stakeholders in society and expands the ownership structure by allowing finer decision making at all levels of society than can be offered with regulation.

At the same time, it does not get rid of the capitalist work ethic and self-interest incentives. Malaysia is handicapped by a government and corporate officials who are rent-seeking and self-serving. The government, with the help of the police, are limiting the incentives for the people to become active participants in Malaysian politics.

Under such circumstance, we are blanketed with threats, even though they go against our civil rights; consequently, these threats have the ability to let fear take charge and mystify the incentives of participation.

Unfortunately, we will only realise the incentives and see the true value if we choose to actively participate. – April 28, 2015.

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