Wanted: Comprehensive economic strategy
Khoo Kay PengPublished: Jul 3, 2009 1:43 PM | Updated: Jul 3, 2009 2:49 PM
The true fact is Malaysia is no longer an investment oasis in Southeast Asia. With or without the global recession, it is hardly expected that inward investment can match the level before the Asian financial crisis.
The government just announced that Malaysia only attracted less than RM5 billion of investment in the last five months this year.
The true fact is Malaysia is no longer an investment oasis in Southeast Asia. With or without the global recession, it is hardly expected that inward investment can match the level before the Asian financial crisis.
The government just announced that Malaysia only attracted less than RM5 billion of investment in the last five months this year.
Prime Minister Najib Abdul Razak's recent liberalisation move should be encouraged but it is not going to put Malaysia ahead of the pack in this region. Foreign and local investors will not come rushing through the gate.
It is accurate to say that the horses had bolted somewhere else and many of them are not expected to be back any sooner even though the grass does look greener now.
Malaysian Institute of Economic Research or MIER’s Dr Mohammed Ariff opined that the liberalisation move should have been taken during good times.
Yet, this move should be lauded. It is better to have this liberalisation than trying to preserve status quo.
However, the country must also start to play catch up in other areas. For the next five years, the government development priority must be placed on enhancing education quality, building better amenities, developing supporting infrastructure and creating quality services.
Before we talk about these enhancements, it is necessary for the government to set the right direction for its 1Malaysia initiative. The initiative should be able to address the question if the government and the people are ready to accept that Malaysia is a multiracial country and its future must be determined by policies, decisions and actions which are aimed at strengthening these multiracial pillars instead of destroying them?
By getting this direction set, the country is able to discuss some of the key issues e.g. education reform, judicial independence, civil service diversity, archaic socio-economic policy, corruption, religious understanding, inter-ethnic relations and others in a more wholesome and less provocative manner.
My point is the liberalisation of bumiputera equity participation must be complemented by reforms in other areas in order to create a real inertia to move this country forward.
Overhaul education system
One major area which needs a thorough overhaul is the education system. Without taking politics and race out of the discussion, any dialogue will start with some destructive blame game and shallow generalisation of the symptoms which caused the decline in quality.
Some may unscrupulously choose to blame it on the vernacular schools or the national schools. The fact remains that we are not capable of creating a world-class work force to be able to support a knowledge based economy. Deny all we wanted, but both local and foreign companies looking to hire talents are going to face a tough time in Malaysia.
A good quality education is an enabler to help creating more high paying jobs. The government recently warned that our low cost economic model may become obsolete very soon and it is best for us to move to a higher value added economic model.
This can only be achieved if we have enough skilled people in the country to support the economy. Skilled professionals demand a higher compensation package.
Is the economy ready to accommodate their pay scale? How can the education system be tweaked to bring out the desired results if any discourse on education reform is limited to language, culture and race identity?
Malaysia must start to get more serious in building better public amenities if it wants to promote tourism as a main sector. Our public transport system is a horror to many visitors.
I was told by two annoyed tourism executives from a foreign country that they were fleeced by our local taxi operators. They said it is very important for the country to focus on the improvement of its public transport if it hopes to provide a warm experience to tourists.
Better public amenities including street lights and security distress kiosks may help to reduce crime in the city. Major cities such as Kuala Lumpur, Penang and Johor Bahru are no longer safe for tourists and even locals.
Comprehensive plan needed
Malaysia’s top cities are slowly turning into slumps due to the lack of infrastructure development and proper maintenance. Kuala Lumpur is not longer recognised as a top regional city. Years after the Asian financial crisis, delegations of international investors and fund managers bypassed Kuala Lumpur for Singapore. Since the Commonwealth Games in 1998, the capital city has not played host to any international class event or convention.
A comparison to Shanghai, Hong Kong, Bangkok, Taipei, Tokyo, Seoul and other Asian cities would make Kuala Lumpur look like a suburb. The city centre of Kuala Lumpur comprises of only a few main streets and the iconic KLCC Twin Towers. There are visible signs of a city in distress and disrepair.
What can this country offer or hope to attract visitors, investors and professionals? After 10 years, both Putrajaya and Cyberjaya remain artificial ghost cities. The cities are deserted at night, poorly maintained and not very accessible to visitors and public.
Poor public transport system and a lack of parking space are hampering the progress of both Putrajaya and Cyberjaya. The era of awe and adulation for both Cyberjaya and Putrajaya is over.
For a lesson in city building, the government should learn from the Incheon, Dalian or Shanghai provincial governments. I can’t help but wonder why the so many technical overseas trips made by our local government officials and politicians did not yield any positive results.
Finally, the government should stop making piecemeal policy announcements to prove that it is doing something positive. What the people and nation need is a comprehensive plan and strategy to help us catch up with the leaders of the pack and to put us back on the high growth path of at least 7 percent annually.
Otherwise, both Vision 2020 and 1Malaysia will remain just that – a slogan.
KHOO KAY PENG is a corporate consultant and a policy analyst. He can be contacted at kpkhoo@yahoo.com
The government just announced that Malaysia only attracted less than RM5 billion of investment in the last five months this year.
Prime Minister Najib Abdul Razak's recent liberalisation move should be encouraged but it is not going to put Malaysia ahead of the pack in this region. Foreign and local investors will not come rushing through the gate. It is accurate to say that the horses had bolted somewhere else and many of them are not expected to be back any sooner even though the grass does look greener now.
Malaysian Institute of Economic Research or MIER’s Dr Mohammed Ariff opined that the liberalisation move should have been taken during good times.
Yet, this move should be lauded. It is better to have this liberalisation than trying to preserve status quo.
However, the country must also start to play catch up in other areas. For the next five years, the government development priority must be placed on enhancing education quality, building better amenities, developing supporting infrastructure and creating quality services.
Before we talk about these enhancements, it is necessary for the government to set the right direction for its 1Malaysia initiative. The initiative should be able to address the question if the government and the people are ready to accept that Malaysia is a multiracial country and its future must be determined by policies, decisions and actions which are aimed at strengthening these multiracial pillars instead of destroying them?
By getting this direction set, the country is able to discuss some of the key issues e.g. education reform, judicial independence, civil service diversity, archaic socio-economic policy, corruption, religious understanding, inter-ethnic relations and others in a more wholesome and less provocative manner.
My point is the liberalisation of bumiputera equity participation must be complemented by reforms in other areas in order to create a real inertia to move this country forward.
Overhaul education system
One major area which needs a thorough overhaul is the education system. Without taking politics and race out of the discussion, any dialogue will start with some destructive blame game and shallow generalisation of the symptoms which caused the decline in quality.
Some may unscrupulously choose to blame it on the vernacular schools or the national schools. The fact remains that we are not capable of creating a world-class work force to be able to support a knowledge based economy. Deny all we wanted, but both local and foreign companies looking to hire talents are going to face a tough time in Malaysia.
A good quality education is an enabler to help creating more high paying jobs. The government recently warned that our low cost economic model may become obsolete very soon and it is best for us to move to a higher value added economic model.This can only be achieved if we have enough skilled people in the country to support the economy. Skilled professionals demand a higher compensation package.
Is the economy ready to accommodate their pay scale? How can the education system be tweaked to bring out the desired results if any discourse on education reform is limited to language, culture and race identity?
Malaysia must start to get more serious in building better public amenities if it wants to promote tourism as a main sector. Our public transport system is a horror to many visitors.
I was told by two annoyed tourism executives from a foreign country that they were fleeced by our local taxi operators. They said it is very important for the country to focus on the improvement of its public transport if it hopes to provide a warm experience to tourists.
Better public amenities including street lights and security distress kiosks may help to reduce crime in the city. Major cities such as Kuala Lumpur, Penang and Johor Bahru are no longer safe for tourists and even locals.
Comprehensive plan needed
Malaysia’s top cities are slowly turning into slumps due to the lack of infrastructure development and proper maintenance. Kuala Lumpur is not longer recognised as a top regional city. Years after the Asian financial crisis, delegations of international investors and fund managers bypassed Kuala Lumpur for Singapore. Since the Commonwealth Games in 1998, the capital city has not played host to any international class event or convention.
A comparison to Shanghai, Hong Kong, Bangkok, Taipei, Tokyo, Seoul and other Asian cities would make Kuala Lumpur look like a suburb. The city centre of Kuala Lumpur comprises of only a few main streets and the iconic KLCC Twin Towers. There are visible signs of a city in distress and disrepair. What can this country offer or hope to attract visitors, investors and professionals? After 10 years, both Putrajaya and Cyberjaya remain artificial ghost cities. The cities are deserted at night, poorly maintained and not very accessible to visitors and public.
Poor public transport system and a lack of parking space are hampering the progress of both Putrajaya and Cyberjaya. The era of awe and adulation for both Cyberjaya and Putrajaya is over.
For a lesson in city building, the government should learn from the Incheon, Dalian or Shanghai provincial governments. I can’t help but wonder why the so many technical overseas trips made by our local government officials and politicians did not yield any positive results.
Finally, the government should stop making piecemeal policy announcements to prove that it is doing something positive. What the people and nation need is a comprehensive plan and strategy to help us catch up with the leaders of the pack and to put us back on the high growth path of at least 7 percent annually.
Otherwise, both Vision 2020 and 1Malaysia will remain just that – a slogan.
KHOO KAY PENG is a corporate consultant and a policy analyst. He can be contacted at kpkhoo@yahoo.com
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