In view of Malaysia's deteriorating international competitiveness, DAP chairperson Lim Kit Siang has called on Umno and PAS to stop their competition to 'out-Islam and out-Islamic state" each other.

Lim said in a press statement today that the competition between the two rival Malay-Muslim based parties is "worsening the national investment climate in an already bleak global economic scenario".

"The seriousness of this Umno-PAS rivalry to out-Islam and out-Islamic state each other to the detriment of Malaysia's international competitiveness was highlighted by two events which preceded Friday's budget presentation," said Lim.

"[First, it is] the recent two-day Selangor state government seminar on "Understanding Malaysia as an Islamic state" to implement Prime Minister Dr Mahathir Mohamad's declaration that the country was already an Islamic state on Sept 29 last year.

"[The other is] the immediate ban by the PAS Kelantan state government on women taking part in any public concerts or other live entertainment shows in the state," he said.

Mahathir declared that Malaysia was already an Islamic state last year during Gerakan's national delegates conference in Kuala Lumpur.

Biggest casualty

Lim said if such Umno-PAS competition and rivalry intensifies, the "biggest casualty" will be Malaysia's international competitiveness and the national economy.

The veteran politician was responding to Mahathir's budget 2003 speech in parliament on Friday where the premier called on Malaysians "not to be complacent with our current level of competitiveness as other countries are also striving to strengthen their position".

Mahathir, who is finance minister, had said this in reference to the country's international competitiveness slipping from the 18th position in 1994 to 29th place in 2001 in the World Competitiveness Report.

Malaysia also fared very poorly in another recent report on international competitiveness, the FDI [foreign direct investment] Confidence Index (FDICI) Sept 2002 released by the Global Business Policy Council, which tracks the top 25 countries for FDIs, just before the government's 2003 budget.

In the Index report, Malaysia, which occupied the 22nd position last year has fallen out of the ranking due to "uncertainty about its leadership transition, fears of terrorism and the complex relationship between politics and business have taken a toll on Malaysia's investment attractiveness".

Major factors

Lim said Mahathir has "studiously avoided facing up" to the country's eroding global competitiveness as the cause for the sharp drop in FDIs which has plunged from RM9.4 billion in 1999 to the region of RM3bil for 2002.

"Mahathir should not continue to be in denial and must grapple with the major factors for declining FDI confidence in the country," said Lim.

"It is significant that in the 2003 budget speech, Mahathir made no mention whatsoever of the fight against corruption and corporate fraud, demonstrating minimal commitment to good governance whether in public or corporate sector," he added.