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ANNUAL REPORT 2010

IDEAS ANNUAL REPORT 2010

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IDEAS HAS BEEN RANKED AS THE 18TH BEST NEW THINK TANK GLOBALLY IN 2010
by University of Pennsylvania's Think Tanks and Civil Society's Programme

THE IDEAS PROJECT LOOKS BACK... NOT JUST TO AN INDIVIDUAL BUT TO AN ERA IN MALAYSIA’S BRIEF HISTORY. [IDEAS] WILL PROMOTE THE VALUES AND PRINCIPLES ON WHICH WE WERE FORMED’’
Tengku Razaleigh Hamzah in his speech to launch IDEAS on 8 February 2010

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Tun Abdullah Badawi, Former Prime Minister of Malaysia, Commenting on one of IDEAS’ research projects

THE STUDY BY THE INSTITUTE FOR DEMOCRACY AND ECONOMIC AFFAIRS (IDEAS) INTO WAYS OF IMPROVING THE LIVELIHOODS OF MALAYSIAN FARMERS THROUGH MODERN TECHNOLOGY IN AGRICULTURE IS VITAL AND LAUDABLE’’

A MEMBER OF THE ARISTOCRACY, A PAS TURNED TORY AND A DIE-HARD MEMBER OF UMNO. BI-PARTISANSHIP, MIND YOU, IS INGRAINED IN IDEAS ... MALAYSIA NEEDS YOUNG MEN (AND WOMEN) LIKE THE THREE FELLOWS AT IDEAS... ONE CAN ONLY WISH THE FOUNDERS OF IDEAS ALL THE BEST. I AM CONFIDENT THAT THEIR INSTITUTE WILL SHAKE UP OUR POLITICAL AND INTELLECTUAL LANDSCAPE FOR THE BETTER’’
Karim Raslan writing in The Star, 10 February 2010

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IDEAS
IDEAS is inspired by the vision of Tunku Abdul Rahman Putra al-Haj, the first Prime Minister of Malaysia, and we share his vision as stated in the 1957 Proclamation of Independence that this nation should:

be for ever a sovereign democratic and independent State founded upon the principles of liberty and justice and ever seeking the welfare and happiness of its people and the maintenance of a just peace among all nations”
Our mission is to improve the level of understanding and acceptance of public policies based on the principles of rule of law, limited government, free markets and free individuals.

IDEAS is Malaysia’s first think-tank dedicated to promoting market-based solutions to public policy challenges. We are an independent not-for-profit organisation. As a cross-partisan think tank, we work across the political spectrum. Our purpose is to advance market-based principles, and we are not bound by party politics, race or religion.

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WAU BEBAS LOGO

IDEAS’ logo is the wau bulan that flies freely in the sky – hence its name “Wau Bebas” or the Kite of Freedom.

IDEAS
The traditional Wau Bebas motif symbolises IDEAS’ belief that the principles of Rule of Law (Kedaulatan Undang-Undang), Limited Government (Kerajaan Terhad), Free Markets (Pasaran Bebas), and Free Individuals (Individu Merdeka), are deeply rooted in our nation’s tradition and heritage. A wau is only complete and functional when it is rooted to the ground

Institute for Democracy and Economic A airs
via a string, depicting our call for abidance to the rule of law within a small, limited state. Our task is to rediscover these truly Malaysian values and to re-present them to contemporary Malaysian society so that our history and heritage will help us prosper in a globalised world.

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THE TEAM

Advisory Board YBhg Emeritus Professor Tan Sri Dato’ Dr Khoo Kay Kim YBhg Datuk Seri Azman Ujang YBhg Dato’ Dr Michael Yeoh Mr Edmond Yeo JP Cross-Party Advisory Group YB Dato Nur Jazlan Mohamed MP (UMNO) Wong Nai Chee (MCA) Khaw Veon Szu (Gerakan) YB Yusmadi Yusoff MP (PKR) YBM Senator Tunku Aziz Ibrahim (DAP) YB Dato’ Kamarudin Jaffar MP (PAS) International Advisors YBhg Dato’ Anthony Cooper FCA FRSA Greville Trust and Yayasan Tinggi Professor Julian Morris
Executive Director, International Policy Network, London

Board Of Directors YAM Tunku Zain Al-‘Abidin Tuanku Muhriz
Founding President

Wan Mohd Firdaus Wan Mohd Fuaad
Founding Director

Wan Saiful Wan Jan
Founding Chief Executive

Staff Wan Saiful Wan Jan
Founding Chief Executive

YAM Tunku Zain Al-‘Abidin Tuanku Muhriz
Director of Research

Afif Abdullah
Project Manager

Munirah Hayati Muhtar
Programme Officer

Mohamad Naim Ahmad
Executive Officer

Dr Tom G Palmer
Vice President, Atlas Economic Research Foundation & General Director, Atlas Global Initiative For Free Trade, Peace and Prosperity

Dr Mark Pennington
Fellow, Institute of Economic Affairs, London

Linda Whetstone
Chairman, International Policy Network and Board Member, Mont Pelerin Society

Senior Fellows, Fellows and Associates Professor Abdul Aziz Bari – Senior Fellow Professor James Chin – Senior Fellow Barun Mitra – Senior Fellow Dr Helmy Haja Mydin – Fellow Hafiz Noor Shams – Fellow Wan Hamidi Hamid – Fellow Keith Leong – Fellow Kwek Kon Yao – Fellow Noor Amin Ahmad – Fellow Jeevan Rasanayagam – Associate Wan Fadzrul Wan Bahrum – Associate Our Interns this year Cilia Chong Catherine See Lenard Lim Yangli Aizuddin Anuar

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IDEAS IN 2010

HIGHLIGHTS

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OFFICIAL LAUNCH CEREMONY
IDEAS was launched on 8 February 2010, in conjunction with the birthday of Almarhum Tunku Abdul Rahman Putra, Malaysia’s first Prime Minister. The event, which received wide coverage in the media, was attended by three generations of Tunku’s family and more than 150 civil society leaders, captains of industries, politicians, senior government officials, representatives from the media and members of the public. Tengku Razaleigh Hamzah, former Minister of Finance, delivered the speech to officiate the launch.

PROMOTING FEDERALISM
Many organisations have been working with political parties at the national level. But Malaysia is a federation of thirteen states, with each state having its own political battlefield. IDEAS believe it is important to engage with political stakeholders in the states, in addition to those at the federal level. In 2010, we organised six workshops for state political leaders and activists in: • • • • • • Sungai Petani, Kedah Sandakan, Sabah Kuching, Sarawak Sibu, Sarawak Georgetown, Penang Kota Bharu, Kelantan

With help from constitutional experts and lawyers, IDEAS developed a special module on federalism, decentralisation and devolution of power for these workshops.

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PUBLIC OUTREACH
In 2010, IDEAS organised 15 seminars and discussions. Our team also spoke or participated in 8 other events to promote market-based ideas. We also feel that it is very important to engage with the public so that our proposals are rooted in reality. IDEAS team visited rural areas across the country to speak directly to villagers and townsfolk in: • • • • • • • Muadzam Shah, Pahang Jitra, Kedah Batu Sapi, Sabah Sekinchan, Selangor Sibujaya, Sarawak Kangar, Perlis Gua Musang, Kelantan

SPECIAL HIGHLIGHT MALAYSIA DAY CELEBRATION
To celebrate the 47th anniversary of the formation of the Federation of Malaysia, IDEAS organised a fundraising dinner and hosted the descendants of Malaysia’s founding fathers, including the children, grandchildren and great-grandchildren of Tunku Abdul Rahman, Tun Fuad Stephens, Tun Temenggong Jugah, Tun Tan Cheng Lock, Tun Sambanthan and Tun Dr Ismail. This was the first time since Malaysia Day in 1963 that so many members of these families were reunited under one roof.

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ENGAGING THE MEDIA
For an organisation that is only in its first year, IDEAS has been very active in the print and broadcast media. Our opinions were sought by journalists from both the national and international press. We have been quoted by news agencies including Bernama, Reuters, AFP, the local press as well as international publications such as The Economist. Our achievements: • regular columns in 6 national press outlets: Utusan Malaysia, Harakah, The Star, The Edge, The Sun and The Malaysian Insider • 17 TV and radio interviews on channels Astro Awani, Bernama TV, ntv7, TV3, RTM1 and on BusinessFM • 121 newspaper articles • 55 mentions in printed news reports • 520 minutes on TV and radio, mostly live • 3 hour live TV debate on channel ntv7 when the Prime Minister tabled the 10th Malaysia Plan IDEAS was also featured in national newspapers and magazines, including The Star, The Edge, New Straits Times, Kosmo!, Time Out, and KLue. We made it to the cover page of the special Independence Day Edition of Malaysia Tatler (August 2010), which ran a 15-page feature on the founding fathers, with us discussing Tunku Abdul Rahman.

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LOBBYING FOR FREEDOM
IDEAS initiated and participated in various meetings to bring free market ideas into our policy debates, including: • National Economic Advisory Council (NEAC) working group on affirmative action for the New Economic Model National Key Economic Area (NKEA) Lab on Education organised by PEMANDU Discussion with Ministry of Finance on Goods and Services Tax (GST)

• •

We held meetings with: • • • • Datuk Seri Peter Chin, Minister for Energy, Green Technology and Water Dato’ Saifuddin Abdullah, Deputy Minister for Higher Education Dato’ Latt Shariman Abdullah, Special Functions Officer to the Minister of Finance Tengku Tan Sri Razaleigh Hamzah, Former Minister of Finance

REFORMING EDUCATION
IDEAS is committed to identifying ways to introduce more choice and competition in our education system. With funding from CfBT Education Trust, England, we embarked on a six months research into this topic. The report will be published in April / May 2011. We also assembled a new education advisory panel which we convened twice. IDEAS hosted a dinner for Teach for Malaysia (TFM) and their stakeholders on 25 October 2010. TFM is an exciting new programme incubated by Khazanah Nasional Berhad aiming to create a cadre of future leaders in education. IDEAS is also partnering with Yayasan Chow Kit to set up Wau Bebas Kindergarten for stateless and refugee children, as part of our effort to prove that private providers can cater for all sections of society. Renovation of the kindergarten site started in November 2010, and it will be opened in the first half of 2011.

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RESEARCH AND PUBLICATIONS
Perspektif Perlembagaan by Professor Abdul Aziz Bari, Senior Fellow, IDEAS a collection of essays reviewing constitutional issues after the March 2008 general elections

What is the Role of Government? by Kwek Kon Yao, Fellow, IDEAS a small booklet discussing the topic using Ayn Rand’s Objectivist framework

Abiding Times by Tunku ‘Abidin Muhriz, Founder President, IDEAS a collection of articles by the author, mainly from his column in The Sun newspaper published by Marshall Cavendish

Adakah Gaji Minima Cara Terbaik untuk Membantu Golongan Miskin? (Is Minimum Wage the Best Way to Help the Poor?) by Afif Abdullah, Fellow, IDEAS a literature review on the topic

Liberalising Malaysian Economy? A response to the proposed New Economic Model by Kwek Kon Yao, Afif Abdullah, and Wan Saiful Wan Jan IDEAS’ response to Part 1 of NEM proposal

Water Provision in Malaysia: privatise or nationalise? by David Bonnadeaux, Maria Rodriguez, Alex Nash, and Wan Saiful Wan Jan

The Fall of the Liberal Party of Australia: lessons for Malaysian liberals by Keith Leong, Fellow, IDEAS

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REGIONAL OUTREACH
In partnership with Atlas Global Initiative for Free Trade, Peace and Prosperity (www.atlasnetwork.org), IDEAS manages www.AkademiMerdeka.org, a platform to promote classical liberal ideas to Malaysia, Indonesia, Singapore and Brunei. Through this partnership, we organised three Akademi Merdeka – our residential course - in Indonesia (Sukabumi, Bogor and Jakarta) and one in Bangi, Selangor. IDEAS is also one of only two organisations from Malaysia that is a member of the Economic Freedom Network (www.efnasia.org), a regional network of research institutes, practitioners, influential think-tanks and individuals working together to promote the benefits of civil society, market economy and free individuals.

SPECIAL HIGHLIGHT WAU BEBAS KINDERGARTEN
Since 2008, IDEAS has been working with Yayasan Chow Kit and other corporate partners to establish Tadika Wau Bebas, a social enterprise kindergarten aiming to provide quality preschool education to urban poor children who are at risk and who have no access to any form of education. Tadika Wau Bebas will be launched in the first half of 2011.

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INTERNATIONAL COOPERATION
2010 saw IDEAS actively widening our international network. IDEAS also took part or delivered presentations in various international meetings and conferences including: • • • • International Democrats Union (IDU) Executive Meeting, Taipei. February 2010 International Academy for Leadership, Germany. March 2010 Heritage Resource Bank, Miami. April 2010 Pacific Rim Policy Exchange, Sydney. September 2010

With John Howard, former Prime Minister of Australia

With Mr Ma Ying-jieu, President of Taiwan

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FINANCE

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INSTITUTE FOR DEMOCRACY AND ECONOMIC AFFAIRS
INCOME AND EXPENDITURE STATEMENT from 1 January 2010 to 31 December 2010 RM INCOME Restricted grants AkademiMerdeka.org Atlas Economic Research Foundation (USA) Friedrich Naumann Foundation (Germany) Greville Trust (UK) International Policy Network (UK) CfBT Education Trust (UK) International Property Rights Index (USA) Subtotal restricted grants Unrestricted fund Local donations Other Income (Book sales, events fees, bank interest, etc) Subtotal unrestricted grants TOTAL INCOME 288,282.81 101,998.65 80,647.00 58,399.85 35,284.08 4,119.98 568,732.37

20,575.00 11,338.41 31,913.41 600,645.78

EXPENDITURE Funded Activities (direct costs, excluding salaries) (see note 1) Student engagement activities Publications Federalism workshops Public Outreach School Reform Research (see note 2) Subtotal funded activities 110,370.01 77,046.17 57,179.70 34,656.11 3,948.75 283,200.74

Unfunded Activities (see note 3)

Subtotal unfunded activities

36347.78

Operations Salaries / Honoraria / Allowances Utilities, telephone, internet Office rental, equipments, supplies Administration Media monitoring Other Expenditure Subtotal operations TOTAL EXPENDITURE

183,844.70 10,472.30 46,544.89 4,703.09 1,380.00 15,591.17 262,536.15 582,084.67 18,561.11

Surplus brought forward to 2011

Note 1: Funding for our Parliamentary Reform Research Project from Greville Trust is used to pay only for salaries / honoraria of researchers, and is therefore not listed under this category Note 2: The bulk of the funding from CfBT Education Trust was to pay for researchers' time, which explains why this figure is low. Note 3: Unfunded activities included research on minimum wage, New Economic Model, Economic Transformation Programme, participation in meetings / labs organised by PEMANDU, National Economic Advisory Council, and other policy meetings

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KEY CHALLENGES & OUTLOOK

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KEY CHALLENGES 2010
Restricted funding prevents us from responding to arising issues. Most funders do not fund core operational costs, preferring instead to focus on specific projects. This severely restricted our ability to quickly respond to emerging issues as they arise or to take part in activities for which there is no funding. For example, we could have played a more active role in the shaping of key policy documents such as the NEM and ETP if we had the resources to pay for staff time to participate in the various meetings we were invited to. Our staff team is too small, thus forcing us to stretch our resources very thinly. We have been very lucky to be able to find the committed and talented team that we have now. But growing the team proved to be challenging because not many job-seekers fully appreciate the meaning and importance of the classical liberal values we are promoting. And we were also unable to create specialised teams within IDEAS to address specific issues in more details.

OUTLOOK FOR 2011
While we have been successful in 2010, we must do better in 2011. This is a crunch year for IDEAS - our achievements in 2011 will impact IDEAS’ trajectory in the future. Our aims for 2011 are to: • • • conduct more activities to revive the thoughts and ideas of Almarhum Tunku Abdul Rahman Putra make our activities more focused on specific areas increase the proportion of funding we receive from domestic sources

Help us to make Tunku Abdul Rahman’s vision for a Malaysia based on “liberty and justice” a reality
IDEAS is funded through the generosity of donors - foundations, individuals and corporations. Our policy in receiving donations is very simple yet strict: while we are indebted to all donors, we will never compromise our commitment to our mission, which is to improve the level of understanding and acceptance of public policies based on the principles of rule of law, limited government, free markets and free individuals. We therefore do not accept funding from political parties or sources that threaten our independence and cross-partisanship.

We invite you to renew or to become a supporter for the first time. We cannot survive without your help.
DONATION FORM
I support IDEAS’ cause and I want my donation to be used to fund IDEAS’ activities. ( ) I enclose a cheque made payable to “IDEAS Management” ( ) I have transferred my donation to IDEAS (CIMB account no: 1456 000 147 0059) Amount ( ) RM250 ( ) RM500 ( ) RM1000 ( ) RM5000 ( ) RM10,000 ( ) other amount: RM Name (with titles): ______________________________________________________________________________________ Address: ______________________________________________________________________________________________ City / State: ____________________________________________________________________________________________ Postcode: _____________________________________________________________________________________________ Email: _________________________________________________________________________________________________ Tel: ______________________________________________ Fax:_________________________________________________ ( ) Please tick here if you agree to being listed as a donor on our website and literature. Please send this form to: Institute for Democracy and Economic Affairs (IDEAS) D6 Taman Tunku, Bukit Tunku 50480 Kuala Lumpur, Malaysia

Institute for Democracy and Economic Affairs (IDEAS) D6 Taman Tunku, Bukit Tunku 50480 Kuala Lumpur Malaysia Tel: Fax: +60 3 6201 8896 / 8897 +60 3 6211 0222

email: admin@ideas.org.my www.ideas.org.my