Towards A Competitive Malaysia # 87
Book serialization # 87
Chapter 13: Deteriorating Institutions
Next to the fragmentation of society, the greatest development challenge for Malaysia is its deteriorating institutions. They are fast losing their integrity and effectiveness through the twin blights of incompetence and corruption. The Report of the Commission on the Royal Police (2005) indicates the deep and widespread rot in that one important institution.
If similar investigations were to be held for other agencies, the revelations would be equally appalling. The army’s gross lapse of discipline and lax security were glaringly exposed a few years ago in the deadly assault on its base in Grik, Perak, by a band of sarong-clad villagers belonging to the Al Mu’anah group. The corruption and incompetence at the land office and local governments are legendary; they no longer surprise anyone. As Mahathir observed, corruption is now no longer “under the table.” It is right there on the table, in your face!
As discussed in Chapter 8, effective and efficient institutions are crucial for economic development. Ineffective and corrupt institutions impose a significant drag on the economy through leakages in the various programs and by discouraging investments. For Malaysia there is another more dangerous and sinister consequence: these corrupt institutions poison race relations.
Of all Malaysians, Malays should be the most concerned about bad public institutions because they impact Malays disproportionately. The success of the various policies to help Malays depends on the effectiveness of the various agencies and institutions. Further, through provisions of the NEP, public institutions are viewed as primarily Malay institutions, with their personnel mostly if not exclusively Malays. Consequently, the shortcomings at these institutions are seen as the shortcomings of Malays. It further reinforces the ugly Malay stereotype.
This more than anything else is what makes me angry. The poor Malay race gets blamed for the corrupt and incompetent amongst us who man and lead these institutions.
As they are the preserve of Malays, the ambience of these institutions has become increasingly Islamic. Nothing gets done during prayer times and during religious observations. Friday afternoons are effectively wasted, with the staff leaving early and arriving late after their Jema’ah prayers. I once reprimanded a junior Muslim doctor for abandoning his patients while he was off for his Friday prayers. Apparently his own salvation was more important than his patients’ well being. I could do that because I am a Muslim. You can bet that that doctor’s previous non-Muslim superiors would not dare reprimand him for such lapses. I am not against Friday prayers; I try to observe them as much as possible. We all know what time it would be, just arrive for work earlier or work more efficiently, or forego you morning and lunch breaks on Fridays. Those civil servants go for Friday prayers on government time. That is tantamount to robbing the government, by drawing your salary but not putting in the work. During Ramadan, the already low efficiency and productivity plummet further.
Just as with the schools, the few non-Malays working in these institutions feel increasingly out of place with the overtly Muslim environment and soon leave, further contributing to the segregation of Malaysians.
If we enhance the quality of public institutions, they would attract non-Malays. The Malays working there would have their experiences valued by the private sector, thus increasing their marketability. This would reduce the fragmentation of society. As it stands today, a stint in the public service does not enhance one’s resume; it is a negative as far as the private sector is concerned.
You need good institutions to foster economic growth; at the same time a strong economy would demand and stimulate the formation of efficient institutions. Economists have long argued over which comes first: economic development or good institutions. It is a puerile argument, akin to the chicken or egg riddle. What is clear is that if we have more eggs, we have more chickens, and vice versa. The aim therefore should be to adopt policies that would encourage both economic growth and strong institutions.
When Malaysia achieved independence, the British bequeathed many fine institutions, in particular the civil service and judiciary. The momentum was maintained for the first decade or so; since then these institutions have deteriorated markedly.
Reversing the decline would be a formidable task; it would be best and more likely effective to concentrate on few select institutions. Learn from the experience, and only then tackle the others. The top priorities should be law enforcement, financial, educational, and political institutions. Trying to improve too many institutions at one time would only dilute the effort, and the message would not register. More importantly, from an operational point of view, by tackling too many institutions simultaneously, their workers and constituents would ally themselves to block any reform effort, making the task that much more difficult. They are adept at sidestepping reforms. All too often ‘reform’ efforts are announced with great fanfare, and after a few months they lose their steam, and the workers will resume their old bad habits and becoming even more cynical in the process.
Next: Enhancing Public Institutions