The Malaysian Bar - The Sunday Star Says: Banks need to work for the nation

Home

News

General Opinions/Comments

The Sunday Star Says: Banks need to work for the nation

Sunday, 13 May 2007 07:55am

The Sunday Star says ©The Sunday Star (Used by permission)

BANKS operate in the private sector and are more than just isolated institutions with their own closeted agenda. By providing loans and encouraging savings among the general public, they also have broader social responsibilities.

In this context, Prime Minister Datuk Seri Abdullah Ahmad Badawi reminded Maybank in particular to be fair to all. This is a timely reminder for the biggest bank in multiracial Malaysia, after its recent attempt to impose discriminatory conditions on associated legal firms.

There was a time when such conditions as ethnic quotas had their place, as in the 1970-90 New Economic Policy. Since then, a more mature and confident nation has emerged, with the National Development Policy (NDP), Outline Perspective Plans (OPP) and Vision 2020.

To insist on throwbacks would be regressive for the nation as a whole, particularly in a highly competitive 21st century. Clinging to the past will not make the job of working harder and working better together any easier.

Our more enlightened leaders are well aware of these realities. Besides Abdullah, Deputy Prime Minister Datuk Seri Najib Tun Razak had also made the point clear to Maybank and AmBank.

The issue goes beyond ethnic relations and national unity in a modern world, important as these are in their own right. It also involves competitiveness and professionalism, which need to be “colour blind” to succeed.

Contracts and partnerships should be built with the most suitable candidates, regardless of race or creed: pragmatism and meritocracy are still the most assured keys to success. What is the point of ethnic networking if the business fails, or does not do as well as its competitors, or promotes dependency on the government?

It is in the interests of the bumiputra community to get used to more competition and universal business practices. If a community is kept from evolving in accordance with external circumstances, drastic shocks could be inevitable when realities suddenly intrude.

Meanwhile, local banks can still do more to improve their quality of service. Even being the country’s biggest bank alone does not guarantee continued success. This will become clearer when more foreign banks come here, but it is better to begin improvements now.