Malay unity means little without good governance, says analyst

Ahmad Zaharuddin Sani Ahmad Sabri, an analyst with Global Asia Consulting, has stated that Malay unity holds little value without proper governance. He argues that political dominance does not necessarily ensure the safeguarding of Malay interests, as seen in the mismanagement of key institutions. These institutions, such as Lembaga Tabung Haji (TH), the Armed Forces Fund Board (LTAT), and 1Malaysia Development Bhd (1MDB), have been plagued by financial problems, often resulting from poor decisions and failures by politically appointed, unqualified managers.

Zaharuddin explains that these financial issues, if left unresolved, ultimately burden the rakyat, the common people. For instance, TH's underperforming assets, totaling RM9.7 billion, were acquired by Urusharta Jamaah (UJSB) for RM19.9 billion, rescuing TH with a balance sheet worth RM10.2 billion. However, the government had to make up the shortfall with an additional RM17.8 billion in outlays to cover UJSB's sukuk obligations.

Similar concerns have arisen at LTAT, where the financial troubles at its primary investment arm, Boustead Holdings Bhd, could lead to the loss of billions belonging to armed forces personnel. Moreover, 1MDB has proven to be a significant financial burden, with the government having paid RM42.5 billion in principal and interest, with another RM8.9 billion left outstanding.

The analyst emphasizes that every ringgit spent on rescuing these public funds or repaying debts from past failures could have been allocated to essential services like healthcare, education, and food security. He considers poor governance a matter of utmost importance, rather than a theoretical debate about financial management.

With another election on the horizon, Zaharuddin argues that the true test of leadership lies in the professional management of institutions, early confrontation of losses, and holding those responsible accountable. He points out that the royal commission of inquiry into TH's predicament revealed that the pilgrimage fund faced a severe financial crisis in 2017, following high hibah payments and "creative accounting" that concealed its true financial state.

Veteran journalist A Kadir Jasin notes that these revelations should have angered the Malays, but questions whether that anger would persist, suggesting that Malays are "easily pacified". Furthermore, former ACCA Malaysia advisory committee president Khalid Ahmad describes the TH practices as a "massive and diabolical Ponzi scheme", emphasizing that this breach is especially serious because TH is entrusted with safeguarding the savings of Muslims who wish to perform the haj.