Great document crafted by National Economic Advisory Council (NEAC); It is honest, it is bold and it is a way forward recommendation leaving outmoded economic policy which impeding our true potential for too long!
I need something refreshing. I am in reading the final part of New Economic Model until page 55 (public sector transformation). The sublime thoughts to put market and private sectors lead the growth is pivotal ticket in our movement. As I emphasize previously, to succeed, market-driven economy is inevitably principles to ensure everybody’s blessing while present thoughts; peoples first has misconstrued us with taxpayers or citizens on the hook. In short, authoritarian government has jeopardized our own liberty to save, spending and setting up businesses in very perilous manner.
Choice of strident words motivates me to read deeper. A reflection of free economy sounds taking its root here, in Malaysia. The words such as removal subsidies, fairer competition, rationalizing government linked company, liberalizing economic sectors, and more important small businesses are pretty well defined. Now, it is up to the government to take this proposal as official policy or otherwise. But I personally believe the tendency for pick and choose always a preference especially when political weightage been taken hardly.
So far, I truly commend the suggestion for GLC’s divesting their investment, adopting competition model and reducing and eliminating stakes control from the government. In other words, it suggests reforming GLC’s into supportive mode to the role private sector. There are 445 GLC’s in the country which is Federal government owned 332 GLC’s and State government owned 113 GLC’s. In 1987, there were more 1,000 entities of GLC’s. Government must stay out of business once and for all. The era of government knows best is over. Economic planning authority based does not work
Secondly, deregulation of economic activities. It is a burden, costly and painful process. Nobody prefers overregulation. The Malaysia Administrative Modernization and Management Planning Unit (MAMPU) has identified a total of 896 agencies at the federal and state levels that administer over 3,000 regulatory procedures. The time needed for getting regulatory approvals in nearly 50% of procedures is about 14 days each. What’s next? Remove them. Remove all unnecessary legal and acts that holding us down.
Thirdly, small business plays vital role in our economy. They create jobs. They create wealth. They are representing 60% of total workforce and approximately one third of GDP. Help them to grow the profits, you help them create jobs. More jobs more employment. Wage increase and low income groups gradually enjoying nascent standard of living. You feel good and you do not need government subsidies for assistance. You are independent.
However, still Bumiputra courses apparently the intractable issues to deal with. Why there is always political havoc if meritocracies fully apply? Implementation is the key. A policy which benefit only targeted Bumiputra in needs, not fancy Bumiputra; the implementation with greater transparent and accountable to all of us. Good decisions only turn up then because of available information.
Few hours ago, I chatted with Prof Danny Quah in Facebook, man behind the scene of NEM. I questioned him whether this document might alter the entire Malaysia economic policy at least for gradually? And he replied, we will see. Skeptical, I suppose?
What if Pakatan Rakyat succeeding Barisan Nasional in the future? Possibility to embrace free market, individual liberty with DAP and PAS? Yesterday was a dramatic Friday. A Friday of price hike, a Friday of Anwar Ibrahim suspension from Parliament, a Friday of Prime Minister Najib’s release final part of NEM at Putrajaya. I can see many people out there are outrage and frustrate over government decision to raise the price of petrol and sugar. Yes, democracy is fine and hard to exercise. A hint for the government, if you raise the price with the intention to not distorting the economy, I shall say I agree. But if you raise the price to profligate spending money habits, I strongly say I oppose! Whereas I suggest, you raise the price to get a market price, preventing distorting market and reducing expenditure. Get your government in ‘S’ size. Small is beautiful.
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