World Bank is useless: Dr Mahathir

Tun Dr Mahathir Mohamad described the World Bank as “useless”, saying today that it was politically motivated for putting out a report that pro-Bumiputera policies are stunting the country’s economy.

The former prime minister said the World Bank report was politically motivated as it wanted a change of prime minister.

“We have been critical of the World Bank since my time. We said that they were useless. They dislike us and want to have their good friend become prime minister”, seemingly referring to Opposition Leader Datuk Seri Anwar Ibrahim, a former chairman of its development committee.

The World Bank said on Thursday that more than one million Malaysians live abroad as policies favoring the Malays are holding back the economy, causing a brain drain and limiting foreign investment.

World Bank senior economist Philip Schellekens was quoted as saying that foreign investment could be five times the current levels if the country had Singapore’s talent base.

He said Malaysian migration was increasingly becoming a skill migration with one-third of the one million-strong Malaysian diaspora now consisting of the tertiary educated and expected the trend to continue.

World Bank is useless: Dr Mahathir

Tun Dr Mahathir Mohamad described the World Bank as “useless”, saying today that it was politically motivated for putting out a report that pro-Bumiputera policies are stunting the country’s economy.

The former prime minister said the World Bank report was politically motivated as it wanted a change of prime minister.

“We have been critical of the World Bank since my time. We said that they were useless. They dislike us and want to have their good friend become prime minister”, seemingly referring to Opposition Leader Datuk Seri Anwar Ibrahim, a former chairman of its development committee.

The World Bank said on Thursday that more than one million Malaysians live abroad as policies favoring the Malays are holding back the economy, causing a brain drain and limiting foreign investment.

World Bank senior economist Philip Schellekens was quoted as saying that foreign investment could be five times the current levels if the country had Singapore’s talent base.

He said Malaysian migration was increasingly becoming a skill migration with one-third of the one million-strong Malaysian diasporas now consisting of the tertiary educated and expected the trend to continue.

Japan economy contraction in Jan-June 2011

Bank of Japan Governor Masaaki Shirakawa said the country’s economy will likely shrink in the first half of 2011 due mainly to stalled output in the wake of Japan’s March 11 earthquake and tsunami, the Wall Street Journal reported today.

“We are now expecting production and GDP will decline in the first quarter and the second quarter,” Shirakawa said in the interview conducted yesterday, echoing the views of most private-sector economists who also see a first half contraction.

The focus is now on how quickly the Japanese economy will return to growth. This largely depends on when supply chain disruptions will ease and to what degree power shortages could affect factory output during the peak summer period.

Shirakawa was quoted as saying supply constraints would likely continue at least until August before recovering.

“Once supply capacity is recovered, then the Japanese economy is moving back to the original growth path,” Shirakawa said in the interview.

The BOJ is expected to hold off on any further easing of monetary policy next week but will likely reiterate its readiness to act if the quake’s damage threatens Japan’s return to a moderate economic recovery.

In a twice-yearly outlook report to be issued at next week’s rate review, the BOJ will cut its economic forecast for the current fiscal year, which began on April 1, from its January projection of 1.6 per cent growth to reflect the impact of the quake, sources familiar with the BOJ’s thinking have told Reuters.

But many in the bank agree with the dominant market view that Japan will avoid a contraction for the full fiscal year as growth is expected to pick up from around autumn. — Reuters

Brush aside the demands of the Chinese: Sarawak Perkasa

The Sarawak chapter of right-wing Malay rights group Perkasa told BN to brush aside the demands of the Chinese and focus instead on “reinstating” the rights and privileges of the bumiputeras in the state.

Sarawak Perkasa chief Abang Abdul Nasser Abang Hadari said the Chinese have betrayed the ruling coalition by “membalas susu dengan tuba” (repaying milk with poison)," he said in a statement.

“Ever since Perkasa was launched in Sarawak, it has never questioned any claims by the Chinese, as a sign of respect for the 1Malaysia concept.

“The Chinese community should blame Pakatan Rakyat, and even more so DAP, if Sarawak's pribumi community deny all their demands.”

Abang Abdul implied support for Utusan's views, calling on the federal and Sarawak governments to realize the special rights for pribumis in Sabah and Sarawak by, among others, replacing the New Economic Policy with an affirmative action policy tailored for them.

His other demands include:
i. Realising non-Muslim bumiputeras' rights to practise their religion, while respecting Islam as the nation's official religion
ii. Ensuring all pribumis enjoy access to basic infrastructure such as electricity, water and clinics
iii. Automatic scholarships for bumiputeras in Sabah and Sarawak who achieve the minimum requirements to enter college and universities
iv. Special leeway for bumiputera students in public universities for all critical courses
v. Ensure that projects and contracts for bumiputera contractors and companies are issued transparently and effectively to allow ease of monitoring

“Perkasa congratulates Sarawak's pribumis and the BN government under the leadership of Abdul Taib Mahmud and his elected representatives for winning their respective constituencies,” he added.

“BN must retain its fixed deposit in Sarawak, and not allow anyone to disturb or challenge it.”