Can’t ignore Yeoh’s ‘crony capitalism’ comments, Singapore paper says

(Malay Mail Online) – Tan Sri Francis Yeoh’s controversial comments on “crony capitalism” in the country were valid even if the tycoon did not appear the best-suited herald for the message, Singapore’s Business Times said.

In an opinion piece today, the business paper pointed out that the problems with directly negotiated contracts that often underpinned the malady that is “crony capitalism”, saying that such deals rarely went to the best candidate.

“It’s a message — one that is vigorously championed by reform-hungry Malaysians — that ordinarily, would have resonated well with the populace seeking better governance and equitability.

“But Mr Yeoh, whose company has snagged some big government concessions in the power and construction businesses, was evidently not deemed the right candidate for that speech,” Cynthia Gabriel, a senior correspondent with the BT, wrote.

With seeming irony, Gabriel pointed out that Yeoh’s contentious observation has now put in jeopardy a venture involving his YTL Corporation, a firm belonging to the Sultan of Johor, and Tenaga Nasional Berhad (TNB) Nasional to build a gas-fired power plant in the state.

The consortium is reportedly engaged in the construction of the RM3 billion Track 4A power plant in Johor, but confusion now surrounds the engagement after TNB began distancing itself from the project.

Saying the directly negotiated Johor project epitomised the public distaste for the practice, she said the move also rendered the government’s promise for a more open and transparent system hollow.

“For that reason, no one, not even a businessman who has built a thriving empire outside Malaysia after enjoying some lucrative contracts at home — he could have bungled like some others but he didn’t — should be sidelined in the debate against cronyism,” Gabriel added.

At Pemandu’s recent Global Malaysia Series forum, Yeoh sought to dispel the perception that he was a beneficiary to Tun Dr Mahathir Mohamad’s political patronage, particularly in the lucrative independent power producer (IPP) sector that the former said he had mooted.

The group managing director at YTL Corporation also said 85 per cent of the firm’s business is in Britain, Singapore and Australia because these countries do not tolerate corruption, practice meritocracy and stand for the rule of law.

But news reports on his comments led to scathing attacks against Yeoh.

Detractors included Dr Mahathir, who took veiled swipes at Yeoh, and former finance minister Tun Daim Zainuddin, who urged successful businessmen in Malaysia not to criticise the government and the country, and to be grateful instead as their achievements are due to government help.

Malay-language daily Utusan Malaysia published on its front page a report headlined “Francis Yeoh dibidas” (Francis Yeoh slammed) that quoted the Tenaga Nasional Berhad Junior Officers Union as reminding Yeoh not to be arrogant, saying that he had made gains from various government projects, including those from independent power producers.

Yeoh later apologised to Utusan Malaysia over the furore, saying his comments on “crony capitalism” were misrepresented.

YTL Corp, an infrastructure conglomerate, is one of Bursa Malaysia’s largest firms. Together with its listed subsidiaries, it has a combined market capitalisation of over RM30 billion.