2010/11/08

Three Simple Things the PM Can Do to Win Our Support for Mega Tower

by 1M Malaysians Reject 100-storey Mega Tower

Due to overwhelming public discontent including those coming from this page, proponents and supporters of the Mega Tower have now tried to dismiss public opinion by claiming that this is a private investment after the PM announced it in his Budget Speech in 2011.

On one hand, they want to "privatise" the issue that only PNB investors can talk about this. On the other hand, they try to appease the public by making vague claims about "multiplier effect" - meaning the money invested in the Mega Tower will create more jobs and increase GNP because everyone who can pay will further spend.

They want to sound sophisticated and dismiss ordinary Malaysians as emotional, misinformed, lost and even jealous.

Here are the three simple arguments - (a) public fund; (b) national priority; (c) town-planning - that we ordinary Malaysians can easily debunk their propaganda. And we are showing the PM what he can do to win us over.

1. Public Fund

The Private Investment argument implies first and foremost that the private investors will bear the loss should their investment fail. But so often Malaysian Government-linked Companies (GLCs) have been privatising profits and socialising losses. Do we need another Port Klang Free Zone (PKFZ)?

Permodalan Nasional Berhad (PNB) is wholly owned by Yayasan Pelaburan Bumiputera (YPB) whose Trustee Board Chairman is none other than Prime Minister Najib Razak. It manages the politically critical Amanah Saham Bumiputera (ASB) and Amanah Saham Nasional (ASN).

Will PM Najib allow PNB to suffer loses and ASB and ASN holders to have their hard-earned money burnt should the Mega Tower becomes another Plaza Rakyat?

To make this private investment argument credible, the least the PM can do is announce that Government will not bail out PNB and PNB and whoever it partners with will be investing on their own risk.

It's a simple pledge of "no bail out". Do this and you have one third of the objection gone. But will you dare, Datuk Seri Najib Razak?

2. National Priority

PNB is a GLC and by its name, its task is to invest for the nation. The DPM said, almost every Malaysian including the non-Malays is a PNB investor. Correction, Mr DPM, it's every single Malaysian, not almost every. All Malaysians are PNB investors because PNB was set-up and is still supported by the tax-payers' money in many ways.

PNB is a not a private company owned by its investors. The Government is its immediate boss and we the people, being the boss of the Government, its ultimate one. Stop talking about pure business decision. In the language ordinary Malaysians use: "It's not your grandfather's propertylah!"

PNB must be economically patriotic and talk about national priority. If you want to be selfish, cease to be a GLC. Period.

That's why most ordinary Malaysians are protesting: If we have RM 5 Billion, why don't we use it in other better ways: building more roads in Sabah and Sarawak; investing to mitigate floods in Perlis, Kedah, Kelantan and Terengganu; taking over the PLUS highway so that Malaysians can pay less when traveling; or improving the public transport system to reduce jam in KL?


PM and PNB talk about "multiplier effect". Now, will investing in East Malaysia or the Northern States not create more jobs there? If jobs and growth are needed, aren't those poorer states deserving more stimulus in economy?

Mr Najib, show us a benefit-cost analysis that demonstrates that RM 5 Billion should be best used in building the Mega Tower and why this will not crowd out development funding in more deserving areas than downtown Kuala Lumpur, and the second 1/3 of our objection will be gone.

3. Town Planning

Even if the Mega Tower is to be built by YTL or Berjaya or any private company, you still can't bulldozer it with a simple line, "this is a purely business decision!"

Why? Because there are externalities. Mr PM, you studied economics and surely you understand what all first-year Economics students are expected to know.

Externalities, which may be positive or negative, refer to external effects suffered by the third parties when a transaction is made or activity carried out. Why can't heroin be sold on the market if there are willing buyers and wiling sellers? Because it negatively impacts others.

Externalities are basically the reason why market fails and governments are needed. In the case of Mega Tower, externalities are regulated through town planning. Every development project needs to be examined on the ground of town planning - traffic jam, pollution, population density, living quality to name a few aspects. And the losers in development need to be fairly compensated.

Now, have the local communities been consulted? Have the parents, students, teachers and alumni of the five schools (Victoria Institution, Methodist Boy School, Confucian Private High School, SM Confucian and SRJK (C) Jalan Davison been consulted? Have the traders and others who make their living at both sides of the Jalan Tun Tan Cheng Lock and Jalan Pudu been consulted? And what about the architectural integrity of the oldest part of Kuala Lumpur?


PNB or any company cannot just build any building because they see profit. Again, in simple language that ordinary Malaysians use, "This country is not owned by your grandfather!"

Dear PM, present a feasibility report, do a proper consultation with the local communities, convince them that the project is good for them and have their concerns addressed, and you can win the last 1/3 of objection.

People First, Accountability Now

We, a quarter million of Malaysians on Facebook and many more out there who oppose the construction of Mega Tower are reasonable people. We love our country therefore we speak up.

Don't talk down to us. Don't dismiss our objection as misunderstanding or jealousy. Only colonial governments did that. There can be no greater irony if a tower named Merdeka is to be built in a colonial manner of governance.

We may speak humbly but we are ultimately your boss.

We are glad that you have recovered and hope you are now strong enough to lead. We request you to hold public meetings in Kuala Lumpur, Kuching, Kota Kinabalu and all other state capitals to convince us why this Mega Tower project is well-though and justified. Facing the public and winning them over is what democratic leaders are expected to do when they have an unpopular policy or project to go ahead.

Mr PM, give us three things and we may turn out to be the most passionate supporters of the Mega Tower:
1. a pledge of no-bail-out for PNB;
2. a macro-economic benefit-cost analysis; and
3. a town-planning feasibility report.

We want to hear you, Mr PM. Please hear us.

People First. Accountability Now.

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