Statement from Dato Sri Nazir Razak
“The Government must show economic leadership???
The global financial crisis is having a brutal impact o the world’s real economy. It is not just another economic slow-down, this crisis is shaking the core of the established world economic order. The Malaysia Government must show economic leadership beyond just orthodox fiscal stimulus and monetary measures, as major global economic dislocations and enforced reconstruction present not only severe challenges but also tremendous opportunities.
In this environment I believe these 5 key strategies should be considered:-
1. Re-examining NEP – Review how the New Economic Policy retards national unity, investments and economic efficiency and develop a new, more relevant framework for economic policy-making.
2. Leveraging on “MCI??? – There will be an accelerated shift inn economic power to Middle East, China ad India as a result of this crisis. Malaysia should further exploit its unique comparative advantage in terms of social and geographical connectivity with these economies.
3. Encouraging cooperative spirit among “ABC??? – the Government should improve collaboration between Academia, Business and the Civil Service to develop and execute national development plans.
4. Stimulating acquisition of brands and distribution – The Government should develop a clear framework of incentives and co-investment opportunities to take advantages of acquisition opportunities abroad that can fill traditional gaps in branding and distribution for Malaysian products and services.
5. Attracting talent – The weak labour markets in developed countries is a source for talent to work in Malaysia with particular emphasis on filling gaps in the education sector to improve teaching of key subjects especially English and Mandarin.
While fiscal and monetary stimulus would provide a temporary boost to the economy, we also need strategic and proactive leadership to advance Malaysia’s relative economic position in the new world order that will emerge from this crisis.
February 3, 2009
Press Statement
Comment on “True Economic Leadership??? by Dr. Lim Teck Ghee, Director, Centre for Policy Initiatives
All Malaysians will surely support Dato Sri Nazir Razak’s statement today that the Government must demonstrate true economic leadership especially during this dangerous and traumatic global economic crisis. The question is whether there is anyone out there in the Government that is taking heed.
Five key strategies were advanced by Nazir Razak. The first – and most important – relates to the need for the replacement of the NEP by a new socio-economic framework that can advance national unity, investments and economic efficiency. The NEP, it should be noted, also affects at least two of the other four strategies set out in the statement, namely attracting talent and encouraging cooperation of academia, business and the civil service. But what can the public expect of the Government response to this. More denial that the NEP is in operation. More denial that the NEP undermines national unity and consensus. More denial that it inhibits investments and economic efficiency. More foot-dragging on liberalization. More stonewalling on rewarding merit irrespective of race.
There will unfortunately be politics – and racial politics as usual – and attempts to embed even more the NEP’s contentious principles and procedures into the
stimulus package and its aftermath. Expect too that the new package will bring in more opportunities and rewards for cronies and the favouring of vested political and economic interests
No one who has studied the track record of the Government (and civil service) on management of the country’s economy can have any confidence that Nazir Razak’s wise counsel will resonate and have the impact it deserves. I hope I am proven wrong this time.
Kuala Lumpur
February 4, 2009