MP for Kluang • Political Education Director, Democratic Action Party

The Black Swan

Nassim Taleb’s bestseller “The Black Swan” talks about a world shaped by highly improbable events. He argues that most of what that we take for granted after the event was considered impossible before the event.

We know swans are white and that acquired common sense often stops us from realising that there are black swans too. We are not given to being counter-intuitive.

As we reflect upon world politics towards the end of 2011, we see that the landscape now has changed beyond recognition when compared to how it was in the beginning of the year. And those changes are permanent, irreversible and will continue to redefine the world in the years to come.

No one expected an Arab Spring to happen. Likewise, the electoral swing to the opposition in Singapore, the riots on the streets of London, the Anna Hazare anti-corruption campaign in India, the Camila Vallejo school fees protest that shocked the Chilean establishment and now the Occupy Wall Street movement were not anticipated at the beginning of the year.

In the years to come, the world will remember 2011 as it does 1968 and 1989. The year 1968 saw the climax of the anti-Vietnam War protest which sparked worldwide anti-establishment movements. In 1989, the collapse of the communist bloc was perhaps the most unexpected spectacle of the century.

As in 1968 and 1989, the existing world political and economic orders are crumbling in 2011, but as yet, no new balance has been found.

While we can’t tell whether a black swan will soon visit Malaysia or not, the country is exhibiting huge and glaring economic, political and demographic contradictions.

Economically, 60 per cent of the population earns a household income of less than RM3,000 per month. The bottom 40 per cent live on a household income of less than RM1,500 per month, with the supposedly favoured Bumiputeras constituting as much as two-thirds of this category.

It is no doubt true that low-income groups can survive in silence if and when the economic pie is steadily growing. But when inflation suddenly kicks in just when growth slows, then the uneasy equilibrium cannot be maintained.

In a rural setting, as long as the weather permits, many live on a semi-subsistent existence by growing food and rearing livestock. But urban dwellers from low -and middle-income families have nowhere to go when times are bad.

This is a serious challenge in a country where growth is slowing and state capacity is weak. The urban proportion of the population in Malaysia was estimated by the World Bank at 70.36 per cent in 2008, up from 35 per cent in 1980.

This eats into the credibility of the ruling parties. For urban dwellers, who now have access to Facebook and other social media, sources of information are multiple and not easily controlled by the government. And daily encounters with establishment cronies flaunting their wealth further erode Umno’s claim to being Malay champions.

Umno continues to survive electorally thanks to blatant gerrymandering and massive mal-apportionment of constituencies. Sixty-five per cent of the seats are in rural areas. For instance, the seat of Kapar now reports a voting population of 122,011 (Q1, 2011; 104,185 in the 2008 general election) while Umno seats have an average of 49,429 voters (in the 2008 general election).

Through manipulating the electoral system, Umno has amplified the significance of its “fixed deposit” voter groups, including Umno members, civil servants, police, military personnel, Felda settlers and Bumiputeras from Sabah and Sarawak.

In essence, Umno is a narrowly-based vested interest party. In the 2008 general election, 10.6 million were registered to vote, of whom close to 2.45 million did not bother to turn up to vote. Barisan Nasional received 51.4 per cent of the popular votes while the opposition as a whole garnered 48.6 per cent of the votes.

According to the Election Commission, as of August 2011 Malaysia has 15.98 million citizens above the age of 21 but, as of June 2011, those who have registered are only 12.27 million. Twenty-three per cent or some 3.7 million have as yet not claimed their right to vote.

The black swan may come in the form of the two million first-time voters in the next general election — 130,000 (estimated), 276,621(Election Commission figure) and 851,260 (Election Commission figure) were registered in 2008, 2009 and 2010 respectively. Another 900,000 new voters are estimated to be registered in 2011.

Admittedly, the number of problematic registrations among the new voters, such as the ongoing foreign-worker-turned-citizen-turned-voter scam, may be substantial and if they are concentrated in Pakatan marginal seats, the balance may tip in Barisan Nasional’s favour. The PAS’s experience in Terengganu in 2004 is a case in point.

Nevertheless, genuine voters will probably still far outweigh phantom voters.

Typically new voters are urban-based and young, with slightly more being Malays than non-Malays. Fifty per cent of Malaysia’s population are below 25 years of age while nearly 70 per cent are below 40. This is characteristically an Arab Spring-type demography.

It is clear that Budget 2012 did not address the economic gap and provides no plan for those below 40 years of age. Politically, the proposed tweaking of security laws lags far behind an ever-rising expectation for a more democratic society.

These economic, political and demographic contradictions hold the potential of springing a black swan on Malaysia.

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