Singapore

Malaysia’s Woke Malay e-Commerce Rule and the Sad Economics of Policy U-Turns: A Sepupunomics Analysis

Victor Tan
 

Sepupus, whether we like it or not, government policy affects every single one of us. If it is good, government policy presumably can be good, helpful, and desirable for us. But when I see things like this recent move brought forth by Malaysia’s Ministry of Domestic Trade and Cost of Living, I really have to think back to that old Milton Friedman adage.

The government solution to a problem is usually as bad as the problem.

In this case, though, it is actually worse.

Here we have a whole government deciding that all e-commerce listings have to be in Malay and deciding to do it all in blitz regulation announced on June 20th, presumably because some uneducated politician decided that he wanted to become the most Malay, the most heroic, the most nationalist person in the entire world, planet, country, civilization, universe.

Result? Policy cancelled by June 23rd.

Now, what is the problem in this case?

Oh, there isn’t a problem, there are multiple problems.

I think that most of you who are reading this are wise and you have a sense of what’s going wrong. But anyway, why don’t we list them?

How about performative woke virtue signaling about language and national identity as if that is going to help people become more nationalistic or loyal because some idiot wants to create a career?

What about introducing regulation and U-turning at the speed of light the moment people get angry?

What about never ever once or even for a single moment of your poorly-researched life considering that anything could go wrong because you are incapable and incompetent, and you are so used to the addiction of what the baptism that you cannot imagine ever just introducing something and then getting it right?

I’m sure that there are some good policies from our government once in a while, but I think that our policymakers need to understand this: Mistakes are costly and they are much more largely and asymmetrically evaluated as disastrous than good things.

In very simple terms that I think that we can all understand, mistakes and turning back indicate a lack of political stability, which in turn directly drops demand for Malaysian currency because people are wary of investing in things that just continually change; under exchange rate determination theory (which clearly you’re not expected to understand in detail or in full but are most welcome to), a drop in demand for currency ceteris paribus (which means ‘all things held equal’, and that we’ll talk more about later) leads to a drop in the exchange rate value – if this were an economics exam for A Levels or IB, you could analyze it like this. (Free membership required)

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Alright, I hope you enjoyed that analysis. More of that to come later, likely as a case study or sample commentary for the International Baccalaureate Economics IA.

Here’s my point.

Pandering to so-called national identity without reference to the market or what would be desirable or beneficial for the market as opposed to meaningless and ultimately useless things is not likely to be beneficial for anyone, whether from a cultural and linguistic perspective or from the perspective of actually making Malaysia a slightly better place. Instead, it will make people think that Malaysia is a basket case – Not that they didn’t already think it was, given its corruption scandals, language policy flip-flops, religious sabre-rattling, and hundreds of different flavors of identity politics and politics combined with religion that reflect an immature political and economic culture.

There is no scenario whereby this would make most people any happier, nor would it actually increase sales from e-commerce; instead, it is likely to decrease them. It would also impose unnecessary costs upon e-commerce sellers and users in the first place. This is the reason why the government had to U-turn – because they had to spend time, money, and effort dealing with this kind of nonsense.

It is shocking to me that there are still politicians in this country who would try this kind of thing without learning from experience.

It is like dying in a video game and then proceeding to die repeatedly in the exact same way without ever learning anything over and over again thinking that somehow you could do the same thing in order to try to claim victory, either because you were unable to read history or you were too stupid to recognize patterns.

Well, here’s a pattern for you, one observed by Albert Einstein himself.

Insanity is doing the same thing over and over again and expecting different results.

There is a chance that that didn’t actually come from Albert Einstein though I cannot confirm that he did not say it, but anyway…

Woke policies are not how you redeem the pride of your country. They are the way to destroy it over and over again until there is nothing left, and egotistical politicians with pet projects to try to make their names by so-called being heroes for the country are not a gift to the nation. They are parasites upon it. And if allowed to run high carnival with no questioning from the public, they will casually break the country.

I am sure that some woke politicians would like to take a different tack and would like to celebrate how nationalistic, how patriotic, how wonderful they are in their attempt to assert the identity of this place and somehow prove that we are no longer under colonialism because that is absolutely what they need to do in becoming the heroes of the Global South and heroes for their generation.

To that, I say, rather than taking a page from woke people who were unsuccessful in everything they did, it seems more logical to me to take what Lee Hsien Loong had once suggested or hinted at in his 2015 S Rajaratnam lecture, which is well worth a watch.

If your country does not have itself together, if its things are not in order, if it is not doing well, it can say a million different things but nobody will ever listen. It is nice to preach justice and talk about how beautiful, wonderful, and amazing you are, but at the end of the day, if you cannot even handle simple and basic things, then there is no point in your talking because people will not listen to you.

It is natural and understandable that that is so.

After all, you cannot give what you do not have, and if what you do not have is the basic common sense to be able to realise that you should not be dealing with this kind of woke policy, it beggars belief as to how it is that you could ever proclaim that you are a hero for justice, or anything worthy of emulation for anything other than a coincidence of geography and the good fortune of natural resources.

How lucky Malaysia is to have these. With these kinds of leaders, if they had inherited Singapore instead, it is incomprehensible how they could have ever survived.

I will be writing a series of IB Diploma sample IA commentaries soon, and this will be one of the many case studies. Please look forward to it and make sure to bookmark this page, RSS feed it, or track it by signing up for our newsletter to make sure that you don’t miss out on everything that’s going on. Of course, signing up for a premium membership if you don’t have one already is a great idea.

Thank you for reading, and I look forward to seeing you in the next one!

Sepupu.

Dr. Goh Keng Swee: Architect of Singapore’s Economic Miracle

Victor Tan
 

Sepupus, most of you who are reading this are probably aware that I am from Malaysia, and a subset of you are probably aware about the traumatic separation between Malaysia and Singapore.

If you have known me over the years, you may also know how I have wrestled with this complexity both in my existence as a Malaysian and in my interactions with Singaporeans, and in my later reading, reflection, and heightened understanding of this event.

In time, and upon reflecting upon the ties of kinship, trauma, and renewed kinship between our two nations, I have come into the realization that Singapore’s story is a story of transformation, renewal, not just of surviving but also of thriving – It is a key case study that any student of economics must be aware of if they wish to understand the importance of institutions, policies, and economic planning for securing the future of a country.

Most of you who know me in person further likely understand very clearly that I am a strong admirer of the Singapore story – not just the story of the country itself as articulated by Lee Kuan Yew, but also his book “The Singapore Story” in itself, which I have read from cover to cover three times by now, even as I now read his “From Third World to First” for the third time for a project that is coming up for Singapore’s Diamond Jubilee, SG60.

But you probably also know that I like to read beneath the surface – At least, I like to tell myself that I read beneath the surface, and therefore, I cannot discuss Singapore’s success without highlighting the role of one of its chief architects: Dr. Goh Keng Swee.

With that in mind, I am very proud to share with you this premium report below, accessible in full by our premium members or purchasable for USD10 over here, about the man behind Lee Kuan Yew and a sine qua non of Singapore’s economic success.

Introduction

When Lee Kuan Yew delivered the eulogy for his old comrade Dr. Goh Keng Swee in 2010, he declared that “of all my Cabinet colleagues, it was Goh Keng Swee who made the greatest difference to the outcome for Singapore” (pmo.gov.sg). 

Dr Goh is clearly from Singapore, but the fact that he was one of the chief planners of a nation that so sharply diverged away from Malaysia and became one of the most prosperous countries in the world in per capita terms is something that should give not only Malaysia but the rest of the world pause, as they contemplate the consequences of a grand natural experiment illustrating the consequences of institutions and policy formulation upon the fate of two countries that share in ties of kinship, but prioritize dramatically different things. (More on this in subsequent reports and posts) 

Indeed, Dr. Goh was the quiet powerhouse behind many of Singapore’s early triumphs – the economic architect who engineered the nation’s leap from Third World to First, the strategist who built up a credible defence from scratch, and the reformer who overhauled Singapore’s education system. 

A man of incisive intellect and steely pragmatism, Goh served as Prime Minister Lee Kuan Yew’s trusted lieutenant, often tasked with the toughest problems of government (pmo.gov.sg), combining scholarly rigor with an unflinching practicality to carry out the bold policies that laid the robust foundations of modern Singapore. 

This report explores how Dr. Goh Keng Swee set up Singapore’s economic base and key institutions, his interactions with Lee Kuan Yew (including Lee’s own influence and support), and the unique thinking and vision that Goh brought to the fledgling nation. It is a narrative of how one extraordinary man – perhaps one whom we could dub Lee Kuan Yew’s “hatchet man” for his role in executing difficult policies – systematically planned and built the structures that would support Singapore for generations to come. (Lee once said he intended to see that Singapore “will be here a thousand years from now. And that is your duty and mine” – a vision made attainable by the enduring institutions he and colleagues like Goh created(pmo.gov.sg).)

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