47Mehmet argued the challenge of Malaysian development policy was not the lack of resources or savings
constraints, but the distribution of wealth and its management generated by rapid growth. The trickle-down
theory which suggests that the problems of poverty and unequal distribution can be resolved without recourse to
special policy (government) interventions but by accelerating the rate of production (growth), had its weaknesess
He suggested that what happens in the distribution process is explained by the theory of cartels and motives or
behaviour of the public cartel which takes the form of public trusteeship. While his cartels theory relates to
Trusteeship strategy in managing national wealth, it is relevant here. In a housing context, an example of public
trusteeship involvement in commercial investment from public savings was the "Permodalan Nasional Bhd's"
decision to invest RM$165 million to build a 39 storey service apartment in Kuala Lumpur for the rental market.
(See the New Straits Times, Friday, June 21,1996. ) This is a potentially contentious way of using profit derived
from public savings.
47Mehmet argued the challenge of Malaysian development policy was not the lack of resources or savings
constraints, but the distribution of wealth and its management generated by rapid growth. The trickle-down
theory which suggests that the problems of poverty and unequal distribution can be resolved without recourse to
special policy (government) interventions but by accelerating the rate of production (growth), had its weaknesess
He suggested that what happens in the distribution process is explained by the theory of cartels and motives or
behaviour of the public cartel which takes the form of public trusteeship. While his cartels theory relates to
Trusteeship strategy in managing national wealth, it is relevant here. In a housing context, an example of public
trusteeship involvement in commercial investment from public savings was the "Permodalan Nasional Bhd's"
decision to invest RM$165 million to build a 39 storey service apartment in Kuala Lumpur for the rental market.
(See the New Straits Times, Friday, June 21,1996. ) This is a potentially contentious way of using profit derived
from public savings.
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