Euromoney came up with an article which questioned how far should the "bloodletting" continue in finance in Malaysia. I bring this to a wider spectrum, not just finance but in every facet.
Despite public delight, there is a mood of some paranoia in Malaysian business and finance right now – and you can see why. Since the shock opposition election victory on May 9 restored 92-year-old Mahathir Mohamad to power, deposing the party he once led, one person after another with ties to ousted prime minister Najib Razak has been removed from leadership positions in Malaysia’s key institutions. And the big question for many is: who is next? Is it me?
Other institutions said to be facing a great deal of scrutiny under the new government are the Securities Commission, which regulates the capital markets, and the fund for Muslim pilgrimages, Tabung Haji.
When the dust settles and after short-term pain and disruption, many in Malaysia think the outlook for the country and its banks will be better if reform is implemented as planned. In policy terms, this is exactly what many people wanted to happen. But it remains to be seen how much blood-letting has taken place in the country’s senior ranks by the time banks and institutions regroup for a hopefully brighter future.
I do agree that we have to draw a line cause culpability has a wide definition. Some may be caught up in the tangled web for survival purposes. Its the instigators and those who schemed that must be brought to law.
There are various means to curb the transgressors and reform the system without destabilising the working platform:
a) removal of previous senior government appointees in GLCs
b) removal of people with strong links to previous government and benefitted unjustly in private sector
c) removal of payments and allowances to smaller cohorts and gatekeepers
d) remove ineffective rubber stamping board members from GLCs and important finance institutions
e) give 'teeth' to regulatory and supervisory bodies, to that end, these people must be independent and professional, those who do not make the cut gets the cut
As for listed companies, its a grey area. Most companies are in business in some ways with the government. If the bulk of the business is not solely dependent on government contacts and panhandling, we should leave them alone.
The banks, almost every single top banks were tainted in some way, esp with the 1MDB case. Those who were critical in approving or rubber stamping knowingly illegal transactions should be punished.
Its not just banks or construction firms, we haven't got to property companies. Highly irregular land banking deals should be looked into. Hefty fines should be issued in particular where property companies got sweetheart deals.
Heads must roll. Blood letting must proceed or else the message may not register sufficiently. If you were let go, just be glad there is no prison sentence. Move on. Plus a lot of the heads n cronies are rich from corrupt deals already. Give others a chance. Plenty of Malaysian talent, just go ask Singapore true or not!
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