Whither the Indian community?

Their votes may be pivotal in the 13th GE but they are a species under threat and the future looks dim unless concerted efforts are made to safeguard their future.


Najib Tun Razak was a beleaguered politician at the Thaipusam celebrations at Batu Caves on Feb 7, 2012. Many listened intently as he appealed to the Indian community of largely Tamil descent to place and put their "Nambikei" (trust) in him.

This was not a whimsical appeal. In the run up to the last general election, towards the end of 2007, the Hindraf episode was the wake up call to Umno-BN that their long held sway and hold on Malaysians was now to be put to a stern test.

A much maligned BN tottered virtually on the edge of defeat and only just managed to stave off the effects of a political tsunami. The lessons of that episode still rankles in the minds of BN leaders and they are aware that the Indian votes in the 13th GE could prove decisive to both sides of the political divide.

The Indians are savouring their moments of glory and greatly relishing the overtures of Najib’s “Nambikei” and have even cheekily requested for a two-day Deepavali holiday. The BN views them as prime voters whose votes they want to build upon to maintain their grip on power, and later, as envisaged, to firm up and tighten this grip once more as before.

While the Chinese community appear to have all but deserted the MCA and Gerakan to opt for DAP, and the Malays are skewered three-ways between PAS, PKR and Umno, the Indians are being wooed by BN as Pakatan appear to have offered them not much so far.

Can and should Indians put their trust in the call of the prime minister? Perhaps it is up to each individual Indian voter to do some soul searching before casting their precious vote, as much is at stake and they should certainly not play their cards wrongly.

The Indian community is under much stress and things are not looking up for them right. Their future is in limbo and this is due to a number of factors. But the community should learn to sit up and pay heed to where they are heading in the quagmire of the currently changing Malaysian political landscape.

Dwindling population
Long considered the third largest ethnic group in Malaysia, the community’s dwindling population needs to be addressed or they will see themselves being eclipsed by persons of Indonesian origin as the third largest race in the country.

In the past, if the community had any difficulty, it was the exceedingly high birth rate. The birth of large numbers of infants in an Indian family caused much hardship and deprivation to them.

This was especially true among the families working and residing in the rubber plantations in the rural areas. While in the past this population explosion was viewed with concern, now it is the declining birth rate among Indians that is of concern.

Falling birth rates among Indians have reached alarming proportions. Indians constitute only 9% of the population of the nation as opposed to much higher percentages in the last few decades.

Wither the Indian community in Malaysia? This certainly means that Indians as a race have in all probability been displaced as the third major component or racial group with the influx of Indonesian immigrants.

There are a number of factors that have led to the Malaysian Indian population dwindling. The most important is that the strength of their economic status has been downgraded, causing them to either not marry or have few children in the event they are married couples.

Another important factor is the emigration of highly qualified and educated individuals, who have left Malaysia for greener pastures. Their departure along with their families in tow has resulted in the Indian population to dwindle further.

What is now becoming a bigger worry is the number of Indian youth who are opting to stay single or tying the knot at much older ages, usually well past their prime and causing the number of childless marriages among Indians to go on the rise.

While the Chinese community has addressed this problem by forming Cupid Clubs to play matchmaker and get single Chinese men and women to court and marry, the same measure may have to be adopted by Indian groups representing the community.

The formation of Cupid Clubs have resulted in a greater number of marriages taking place within the Chinese community. The Indian groups can also play a similar matchmaker role among single Indian men and women.

Wake up call for Indians
While the Indian community needs to repopulate itself, there is also a dire need for them to reinvent themselves in the sphere of economic activity so as to gain a larger share of the economic pie.

While on this front, several groups representing the interests of the Indian community have taken upon themselves the role to empower Indians by creating business and educational opportunities, the momentum needs to be sustained and to grow much further.

The admission of Indian students to public and private institutions of higher learning in this country has also witnessed a drastic drop in numbers. The reluctance of a growing number of Indian youths to secure a sound education and a brighter future is now glaringly evident.

Instead, what is happening is that Indian youth are more likely to be associated or linked with criminal and underworld activities, with Malaysian jails housing large numbers of Indian prisoners in ratio to the numbers of their population.

This has caused the socio-economic status of the Indian to downgrade rapidly. There is a need by Indian groups representing and leading the Indian community to be more watchful and vigilant and to steer Indians, especially Indian youth, in the right direction.

While all is not lost, the Indian community needs to wake up to the challenges of a globalised world or they will only have themselves to blame for becoming failures in their own country.

The need is urgent and pressing that Indians in Malaysia not go into a time warp but be aware that they are a species under threat and in all likelihood may not count or favour anymore as voters or as an important ethnic group in the years to come.

It is therefore imperative that Indians rise up and answer this wake up call to pull the community out of the doldrums and to strive to contribute in a greater and more meaningful and impactful way towards building a better Malaysian society.





Christopher Fernandez

The writer has been teaching and writing throughout Asia since 1984.

Malaysia’s RM456 billion of federal government debt does not take into consideration additional RM96.9 billion of “contingent liabilities”.

Based on the Government’s Economic Report 2011/2 published last year, our Federal Government debt will hit RM455.7 billion as at the end of 2011. This was a 11.9% increase from RM407.1 billion incurred in 2010. Our debt levels have been increasing rapidly in recent years compared to RM242 billion in 2006 and RM146 billion in 2002.

As it stands, our Federal Government debt has hit 53.8% of our Gross Domestic Product (GDP) compared to 53.1% in 2010 and 44.6% in 2006.

However, what is of greater concern is the Government “off-balance sheet” financing which isn’t reported as Federal Government Debt. In recent years, the Government has increasingly issued debt papers via its statutory bodies and corporatised entities. These loans are obtain with guarantees provided by the Government, but are not reflected as Federal Government borrowings.

In 2010, the “off-balance sheet” financing activities has hit a record high of RM96.9 billion in 2010, a 14.9% increase from RM84.3 billion in 2009. These are loans which have been taken with a Government guarantee i.e., the Government is obligated to pay should the borrowers fail to settle the debts. As an example, if the Federal Territories Foundation is unable to repay the proposed RM300 million loan from EPF to provide financing for the low-cost housing purchasers, then the Government will have to step in to make the RM300 million payment to EPF.

Hence for all intents and purposes, even though these loans are not taken by the Government, they are essentially government debt or otherwise known as contingent liabilities. Adding RM96.9 billion to the current debt of RM455.7 billion, the effective debt which Malaysian tax-payers are liable for is RM552.6 billion. This expanded figure would then constitute 65.2% of our GDP, well above the 55% federal government loan limit as defined in the Loan (Local) Act 1959 and Government Funding Act 1983.

The list of statutory bodies and corporate entities which have been given Government guarantees are as per Table 1 at the bottom. Based on the list, there are some serious concerns over the performance or non-performance of these loans which will require bail outs by the Federal Government.

For example, the PTPTN and Syarikat Prasarana Negara Bhd owes RM17.0 billion (17.5%) and RM9.1 billion (9.4%) respectively and they have both been heavily criticized by the Auditor-General for their weak financial management and their inability to repay their loans.

The list also includes Syarikat Penerbangan Malaysia Bhd (RM7.0 billion) which was set up to bail out Malaysian Airlines System (MAS); 1MDB (RM5.0 billion) which in turn lent nearly all its money to a questionable foreign company, PetroSaudi International Limited and Silterra Bhd (RM1.0 billion) which has made more than RM2 billion in losses to date.

What is interesting is also the fact that loans of Tan Sri Syed Mokhtar Al-Bukhary-owned Port of Tanjong Pelepas (PTP) also received financial guarantees from the Government. PTP’s “guaranteed” loans have in fact increased from RM715 million in 2009 to RM1.275 billion in 2010.

Expert testimonies in 2009 in the United Kingdom Parliament has heavily criticized Government guarantees to statutory bodies, government-linked companies or “private-finance initiatives” as an attempt to hide real debt levels in order to achieve better credit ratings. Professor Dieter Helm of Oxford University said that such initiatives had succeeded as "an exercise to get investment off the public balance sheet so that the debt numbers look better than they otherwise would have done." The Greek financial crisis has similarly unraveled as a result of hidden contingent liabilities not reflected as official government debt or reported in its balance sheet.

For a start the BN government must reflect all its guarantees and contingent liabilities in the annual Economic Report and Budget to be debated in Parliament and it must impose measures to slow down the rate of growth of Malaysia’s debt levels. Malaysia should not wait for a major financial crisis of Greek proportions before attempting to reform our public sector finance. At the pace which our debts are increasing, we are accelerating and plunging headlong into a financial disaster.

Tony Pua is the DAP MP for PJ Utara