Malaysia’s post-colonial history began with optimism and a grand hope  in 1957.  When Tunku Abdul Rahman, the first Prime Minister of  Malaysia, proclaimed our Independence at the Merdeka Stadium in the  unforgettable words that “Malaysia is a parliamentary democracy with an  independent judiciary,” he had a vision of a happy people in spite of  the formidable economic problems we needed to solve.  After that dawn of  independence, there was a search of how we could achieve this happy  society, fulfilling the needs and aspirations of all Malaysians which  was to continue for the generations to come.  He symbolized the concept  and conviction of generational responsibility in his vision.
2.        Tunku Abdul Rahman and his generation were dedicated leaders, not for  power but a sense of duty to the present and the future. They were not  in politics for the money or for themselves.  Indeed, even after they  had assumed power, they never used their position to benefit themselves  or their families, nor did they build loyal cronies who would act as  their financiers or hold any wealth unlawfully earned at the expense of  the people.
3.       The guiding philosophy was  responsibility of public office.  Public office was seen as a duty, not  as an opportunity.  The public office was also part of their sense of  political commitment to create a Malaysia that was fair, just, cohesive,  and balanced.  This was combined by a deep conviction of generational  responsibility for those who would come after them.
4.        One of the greatest losses in public life and in politics today in  Malaysia is that loss of generational responsibility.  Everything seems  to be surrounded by greed and the desire to be billionaires.  This had  led to a pyramid of cronies within the incumbent political parties and  their associates in business.  It is this combination of the hierarchy  of political cronies and business cronies that led to the centralization  of power in the incumbent political leadership and in the office of the  Prime Minister.
5.       This power in one individual  allowed the manipulation of the political system; I mean by this the    institutions of power including the media. In exchange for the  centralization of power greed and self-interest was encouraged by  example and in the guise of racial loyalty deserving rewards. This is  the case in all the parties within the power structure.  This state of  affairs is one of the most dangerous and difficult to dismantle because  there has been three decades of centralized power.
6.        The political style that has dominated in these lost three decades has  been “double-think” and “double-talk”.  One of the features which is  alarming in this plan to maintain status quo is the encouragement  covertly of racial and religious obscurantism.  The underlying theme was  a policy of using a balance of racialism and religion on the one hand  and talks of unity on the other hand in order to make the people hostage  to the status quo of power.  As a result, racialism and racial concerns  seem to have a grip on all aspects of our lives, in politics,  economics, education and employment, irrespective of the present reality  which has got nothing to do with race or religion.  We are deliberately  made to feel that we are hostage to these forces.
7.        Freedom of speech and expression of our political concerns to change  the atmosphere are restrained by how it will be interpreted by those who  want to deny us the right to differ.  Article 10 of the Constitution  which guarantees this freedom is almost non-existence or subject to fear  of retaliation or defamation.  Legal suits intended to silence  legitimate concerns of public responsibility are increasingly used.   Unfortunately, our judicial system has forgotten the fundamental  importance of Article 10 to the democratic life of Malaysia.  Common  sense seems to have been taken out of the law.
8.       On  the economic front, income inequality in Malaysia has widened.  Some  studies suggest that Malaysia’s inequality is wider than Thailand’s or  Indonesia’s.  Historically, the concern was about ownership and control  of the economy.  It was the view of some that if ownership was  de-racialized or balanced at the top, economic justice would follow.  It  is no longer a valid premise for the future.  Income inequality is no  longer a problem between races; it crosses the racial divide and it is a  problem of the majority of Malaysians who feel the pressure of  inflation in almost every essential aspects of their lives, challenging  their well being of themselves, their families, and their future.  Today  and the in the near future, this is the most serious challenge we  face.  It is not an easy challenge to overcome.  It is a time when  Malaysia needs leadership of the highest quality and of those who have  the moral courage to change and re-think our economic policies.
9.        It is in these circumstances that we face the serious problem of rising  food prices, inflation in price of houses compounded by shortage in  housing for the vast majority of young Malaysians.  Lack of economic  expansion to give all levels an opportunity to use their talents to seek  work that is commensurate with their contribution, their needs of daily  life, and to narrow the inequality gap, is the threat of the future.   Therefore, we should be concerned about the justification of the removal  of subsidies that affects the low income because that will further  widen the inequality and open the society to social disorder and  disintegration, and increase social in cohesion.  It is in this context  that I raise the issue about Independent Power Production Companies  (IPP).  The privatization contracts are today protected by the Official  Secrets Act, and therefore we are unable to really know whether or not  the public and Petronas, as trustees of the public, are directly or  indirectly subsidizing these companies and the tycoons who are  benefitting at the expense of the public.
10.     Related  to the question of the withdrawal of subsidies is the deficit that the  Government suffers from in managing the economy.  This question cannot  be separated from the way that the Government has managed the nation’s  finances.  If the deficit is as a result of wastage, corruption and  extravagance in the use of public funds, then the solution to the  problem should not be passed on to the public.  What is needed is a  reexamination of the management of the country’s finances before taking  any drastic steps that would affect the well being of the people.  We  need to know the reality behind the apparent subsidies that are given to  the public and its relationship in the totality of the management of  the public finance.  Only after we know the truth – and the whole truth –  should any change in the policy of subsidies be implemented, as the  consequences would have life-changing impact on the livelihood of the  people.   In the circumstances of rising inflation in food, stagnation  of the economy and income, we should not do anything that would widen  the disparity of income which would cause social instability.
11.      The challenge today is for the return to generational responsibility in  politics and public office.  This can only be achieved if we have  democracy and parliamentary power which is responsible.  Democracy was  the basis of the founding of the state of Malaysia by the Constitution  in 1957.  When it was briefly suspended in 1969, the leaders of that  generation were uneasy, and they restored democracy as soon as  possible.
12.     That is because they realized that  democracy has an intrinsic value in creating a citizenship that is not  made up of sheep but of responsible citizens.  Only responsible  citizenship that understands democracy can bring about stability,  cohesion and economic prosperity.  During those days, it was ingrained  in that generation of leaders that democracy was not only a form but a  value system that respected the essential institutions of democracy like  the independence of judiciary, the supremacy of parliament subject to  the Constitution, the respect for fundamental rights, and free speech.   They also understood the meaning and primacy of the rule of law and not  of men.  They also knew that democracy is the common heritage of  humanity that we inherited and have a duty to continue.  The law that  they understood was also from the common heritage of all civilized  nations.
13.     And one of our inheritances is the common  law system of the rule of law which is enshrined in our constitution.   They knew that the phrase “common law” meant the wisdom that is passed  to us in the progress of law and the values that are encapsulated in the  law governing public office and responsibility to society. That laws  are meant to enhance democracy and freedom but not to maintain and  continue political power that is inconsistent with the rule of law and  the constitution.
14.     Independence did not come with  peace but with very difficult problems, particularly the management of  the economy and transforming it to bring about a balance between all the  racial groups.  They realize that some of their problems had roots in  the history of Malaysia.  There was a serious imbalance between the  countryside and the urban sector with racial dimensions which were too  sharp.  Indeed, poverty was also quite prevalent.  There were open  discussions and experiments.
15.     Some of you may  remember that one of the highlights of public debate was organized at  the University of Malaya under the title, “The Great Economic Debate”  every year.  That disappeared with the changes in the University &  Colleges Act and the decline of Universities’ autonomy.  The search was  to eradicate a sense of inequality between the various peoples of  Malaysia, whether because of one’s identity and social origins, or for  other reasons.
16.     It was as part of this search that  during Tun Abdul Razak’s time, the Second Malaysia Plan was launched in  1971.  We need to be reminded of the objective of that plan:
“National  unity is the over-riding objective of the country.  A stage has been  reached in the nation’s economic and social development where greater  emphasis must be placed on social integration and more equitable  distribution of income and opportunities for national unity.” 
17.      That dream was slowly eroded from the mid-1980.  The hope that we had  at that time is now challenged in the most serious way.
18.      Recently, Petronas announced that it had made a 90.5 billion pre-tax  profit.  If we accumulate the profit of Petronas over the years, it  would come to a mind-boggling figure of billions and billions.  Yet, the  greatest poverty is found in the petroleum producing states of  Kelantan, Terengganu, Sarawak, and Sabah.  This moral inconsistency in a  way exemplifies how the nation’s economy is mismanaged and how the  institutions set up in the 1970’s have lost their objective and  commitment to solving the immediate and pressing problems of the nation.
19.      Petronas was set up with the objective of serving the nation’s interest  as a priority. It was never intended to give Petronas a life of its own  as an incorporated company for selected individuals to profit at the  expense of the national interest, nor was it the objective to allow  Petronas a cooperate existence independent of national interest.
20.      What is needed is for institutions like Petronas is to have a national  focus rather than maintain a multinational status. The aim of making  Petronas a multinational cooperation at the expense of national interest  is contrary to the Petroleum Development Act.  Petronas should have a  Petroleum Advisory Council to advise the Prime Minister on the operation  of the law as well as the managemend and utilization of its resources  as spelt out in the Petroleum Development Act.
21.      Another example of the abuse of power is the privatization of certain  government institutions which were set up as a public service to serve  the people.  Bernas is one example of a privatization of an essential  commodity as a monopoly for a group of people and owned partially by two  companies in Hong Kong. An essential commodity such as rice should not  have been privatized for business purposes.   We are the only rice  producing country that has privatized and given as a monopoly to one  company the importation and distribution of all rice products.
22.      The reality today is Thailand and Indonesia are self sufficient in rice  and we are dependant on 30% of imported rice. But because it is a  monopoly, imported rice is cheaper in Singapore than Malaysia.   Privatization for the benefit of private individuals to profit from such  an essential commodity is a clear abuse of power.  It would not have  happened in those days. But with the centralization of power in the  office of the prime Minister who had the party under his absolute  control, anything was possible!
23.     I will suggest to  you that there was a deliberate plan to centralize power in the  leadership in a surreptitious manner. Unfortunately the nature of racial  politics blinded us of the reality behind certain policies and conduct  of leaders at that time. The decline of democracy, the abuse of power,  and the mismanagement of our economy and the nation’s finances, the  economic waste, the lack of national cohesion in our economic policies  led to the flight of capital in the region of RM880 billion over the  years from the 1980s. That was the beginning the lost decades and the  full impact of the consequences of the economic policies which has  continued since then, is yet to have its full impact on our national  lives. And when it does the consequences are unpredictable.
24.      The centralization of power in the office of the Prime Minister and the  Attorney general had a major role in this state of affairs.  The  challenge today is to reverse the centralization of power and restore  the check and balance of a genuine democracy.
25.     We  need to reclaim as citizens of Malaysia our rights in a democracy; that  power and authority are positions of trust and responsibility, not to  serve personal interest or as an opportunity for personal enrichment. We  need to reassert as politically active and responsible citizens the  concept of social obligation and public service in those who seek  political office. Power is duty, NOT a prize.
26.     We  need to rethink our economic policies. Particularly in the focusing on  the national objectives that are urgent; economic policies is not only  about wealth creation but needs to have a moral dimension which takes  into account the well being of all citizens as the ultimate priority  over profits.
27.     I have given you a broad sweep of  the past and a bird’s eye view of the looming problems of managing our  economy as it is today.  I hope this will open a dialogue which benefits  all of us.
“THOSE WERE THE DAYS 
by  YBM Tengku Razaleigh Hamzah, at Perak Lectures in Taiping on Saturday  18th June 2011 at 8:45PM at the New Club, Main Hall, Taiping, Perak.