Expect troubled days ahead if the government fails to get its priorities right on the economic front, warned ex-finance minister Tengku Razaleigh Hamzah.

Razaleigh said although the country's economy was currently doing fairly well, he expressed concerned over the present government's inability to deal with the sluggish stock market, rising graduate unemployment and to bring in new foreign investments.

"People in the marketplace are restless because there is really nothing happening," the 69-year-old seasoned politician told malaysiakini during a 70-minute interview held at his house-cum-office in Kuala Lumpur last week.

Abdullah, who took over from Dr Mahathir Mohamad three years ago, is also finance minister.

The first major test of Abdullah's economic policies was the Ninth Malaysia Plan announced by the premier in March but Razaleigh - who is also the Gua Musang MP - said the high expectations that came with the five-year development blueprint have since "petered out".

"Although the prime minister announced a number of projects that will be implemented soon costing about RM15 billion - all these will be tendered and not going to take place for another three months or so. With the high expectations, people are a bit disappointed."

Rising graduate unemployment

Razaleigh added that the stock market was not performing well.

"The money capital - they said (the investors) try to find safe haven elsewhere. That is very disturbing because we need the money. Not much of the money come into this part of the world. (There are) competitive giants like China, Vietnam, Singapore - this doesn't help."

He pointed out that the country's electronic industry has not attracted new foreign investments while the agriculture sector - heavily promoted by Abdullah - was slow to kick off.

The Umno veteran also expressed concern over the rise in unemployment among university graduates - as high as 60,000 - because the government is not doing enough to create new jobs.

But then again, Razaleigh - who held the finance minister post for eight years from 1976 - stressed that the economic situation is currently doing well and he said the government should capitalise on this.

"Our economy is strong, fundamentals are right, otherwise we won't be getting trade surpluses running into billions of ringgit. We are doing very well but if we rely purely on forced savings like EPF (Employees Provident Fund), very soon we will be in trouble.

"If we are strong fundamentally, why can't we borrow? We have good credit standing. We can borrow provided we use that money to finance productive projects. They can bring returns, not in dollar and ringgit sense but more graduates," he argued.

Mega projects

Razaleigh also called on the government to reconsider several mega-projects such as the proposed bullet train to Singapore and Abdullah's brainchild, the Southern Johor Economic Region (SJER) project.

He said the bullet train project is helping Singapore more than Malaysia because it will encourage locals to go to the island republic given that two brand new casinos are being planned there.

On the SJER project which will be undertaken by the government's investment arm Khazanah Nasional Bhd, he wondered whether the government had made the right move since Khazanah is meant to oversee the government's investments.

"We think Khazanah should confine itself to the management of existing investments of the government rather than going to venture into new things like undertaking this very big project," he opined, adding that private initiatives should spearhead the project.

Meanwhile, he also urged Abdullah to repeal repressive laws such as the Official Secrets Act (OSA), Universities and University Colleges Act and to amend the Internal Security Act, which allows for detention without trial.

He argued that "getting rid" of OSA would be the best way to fight corruption.


Part 1
Ku Li: Let Dr M speak at special Umno meet
Q&A: Mahathir 'must get what he wants'

Part 2
Razaleigh: Anwar has two options to be PM
Q&A: Ku Li's mixed signals on Umno presidency

Photos by Kuek Ser Kuang Keng