By the time Prime Minister Najib Razak announced his newly tweaked National Economic Model, Malaysia had experienced net capital out flows in the excess of US$27 billion from mid-2008 to mid-2009. Foreign Direct Investment had slowed to a trickle, US$15 billion of portfolio investment departed in 2009 and was slow to return.
This means that, despite the hype, Najib’s plan to revitalize the Malaysian economy was already too little and too late. And the greatest obstacle to economic reform and change was UMNO itself.
US Embassy communicates made available via WikiLeaks pointed to the various initiatives Najib had planned and was working on. At the core of these initiatives was a need to reform the whole economic model Malaysia had been relying on. In layman terms, this meant dismantling the NEP, a brainchild of former premier Mahathir Mohamad.
The turn of events ruffled feathers within UMNO itself, especially amongst the ruling elite, as these power barons depended on the various economic packages in the NEP to line their nests.
Full Article: The Malaysia Chronicle.
What does UMNO have to live for?