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Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Sunday, February 25, 2024

Poor ringgit performance due to a lack of competitiveness in Malaysia, a 28-year-old problem as a result of 1MDB financial scandal and the subsequent corruptions.

 

The ringgit's poor performance can be attributed to a lack of competitiveness in Malaysia over the past 28 years, says a World Bank economist. Apurva Sanghi said this was partly a consequence of the 1Malaysia Development Bhd (1MDB) financial scandal.

 

PETALING JAYA: The ringgit’s poor performance can be attributed to a lack of competitiveness in Malaysia over the past 28 years, says a World Bank economist.

Apurva Sanghi said this was partly a consequence of the 1Malaysia Development Bhd (1MDB) financial scandal.

“Weak ringgit is ultimately a symptom of long-term decline in Malaysia’s competitiveness,” Apurva said on X.

The economist said while many Asian countries also slid following the 1998 financial crisis, Malaysia’s lack of reforms had affected its economy in the long run.

He added that Malaysia opted for short-term solutions to boost the ringgit in the immediate aftermath of the financial crisis.

Apurva said it consequently hurt the currency in the long run, adding that the government’s measures resulted in its GDP and exports falling.

He said the Thai baht and South Korean won outperformed the ringgit as both countries arguably reformed the most after the financial crisis.

Separately, Perikatan Nasional chairman Tan Sri Muhyiddin Yassin said the government should own up to its own failures instead of pointing fingers at others.

Muhyiddin said it is unreasonable for the government to blame the Opposition for the fall of the ringgit when they are the ones in power.

“They are the government of the day and have the responsibility, role and power to manage the country,” he said during his Pagoh constituency Chinese New Year celebration at a temple in Bukit Pasir yesterday.

The Pagoh MP was responding to former Sabah chief minister Datuk Seri Salleh Said Keruak, who said the Opposition’s constant claims about trying to topple the government mean they should shoulder some of the blame for the weak ringgit.

 
The ringgit's poor performance can be attributed to a lack of competitiveness in Malaysia over the past 28 years, says a World Bank economist. Apurva Sanghi said this was partly a consequence of the 1Malaysia Development Bhd (1MDB) financial scandal.

 

PETALING JAYA: The ringgit’s poor performance can be attributed to a lack of competitiveness in Malaysia over the past 28 years, says a World Bank economist.

Apurva Sanghi said this was partly a consequence of the 1Malaysia Development Bhd (1MDB) financial scandal.

“Weak ringgit is ultimately a symptom of long-term decline in Malaysia’s competitiveness,” Apurva said on X.

The economist said while many Asian countries also slid following the 1998 financial crisis, Malaysia’s lack of reforms had affected its economy in the long run.

He added that Malaysia opted for short-term solutions to boost the ringgit in the immediate aftermath of the financial crisis.

Apurva said it consequently hurt the currency in the long run, adding that the government’s measures resulted in its GDP and exports falling.

He said the Thai baht and South Korean won outperformed the ringgit as both countries arguably reformed the most after the financial crisis.

Separately, Perikatan Nasional chairman Tan Sri Muhyiddin Yassin said the government should own up to its own failures instead of pointing fingers at others.

Muhyiddin said it is unreasonable for the government to blame the Opposition for the fall of the ringgit when they are the ones in power.

“They are the government of the day and have the responsibility, role and power to manage the country,” he said during his Pagoh constituency Chinese New Year celebration at a temple in Bukit Pasir yesterday.

The Pagoh MP was responding to former Sabah chief minister Datuk Seri Salleh Said Keruak, who said the Opposition’s constant claims about trying to topple the government mean they should shoulder some of the blame for the weak ringgit.

 

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Soul-searching for ringgit solutions





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Soul-searching for ringgit solutions





argin-left: 1em; margin-right: 1em;">The ringgit's poor performance can be attributed to a lack of competitiveness in Malaysia over the past 28 years, says a World Bank economist. Apurva Sanghi said this was partly a consequence of the 1Malaysia Development Bhd (1MDB) financial scandal.

 

PETALING JAYA: The ringgit’s poor performance can be attributed to a lack of competitiveness in Malaysia over the past 28 years, says a World Bank economist.

Apurva Sanghi said this was partly a consequence of the 1Malaysia Development Bhd (1MDB) financial scandal.

“Weak ringgit is ultimately a symptom of long-term decline in Malaysia’s competitiveness,” Apurva said on X.

The economist said while many Asian countries also slid following the 1998 financial crisis, Malaysia’s lack of reforms had affected its economy in the long run.

He added that Malaysia opted for short-term solutions to boost the ringgit in the immediate aftermath of the financial crisis.

Apurva said it consequently hurt the currency in the long run, adding that the government’s measures resulted in its GDP and exports falling.

He said the Thai baht and South Korean won outperformed the ringgit as both countries arguably reformed the most after the financial crisis.

Separately, Perikatan Nasional chairman Tan Sri Muhyiddin Yassin said the government should own up to its own failures instead of pointing fingers at others.

Muhyiddin said it is unreasonable for the government to blame the Opposition for the fall of the ringgit when they are the ones in power.

“They are the government of the day and have the responsibility, role and power to manage the country,” he said during his Pagoh constituency Chinese New Year celebration at a temple in Bukit Pasir yesterday.

The Pagoh MP was responding to former Sabah chief minister Datuk Seri Salleh Said Keruak, who said the Opposition’s constant claims about trying to topple the government mean they should shoulder some of the blame for the weak ringgit.

 

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Monday, January 22, 2024

China’s contribution to the global economy

 

Growth engine: An employee works on steel castings in a factory in Hangzhou, China. The country’s contribution to worldwide economic growth is approximately 30%. — AFP


IN today’s world, China occupies a pivotal position in the global economy, showcasing a unique combination of rapid economic growth, innovative strategies and global influence.

The country has evolved from a regional power to a global economic leader, making significant contributions to international affairs and economic development.

Through active participation in international organisations, development of extensive trade networks and investments in global infrastructure projects, China exerts a profound impact on the world economic system.

At the World Economic Forum in Davos, Chinese Premier Li Qiang articulated the key aspects of China’s economic policy and strategy.

He noted that China demonstrates sustained progress in economic development and exerts a significant influence on the global economy, serving as a vital engine of global development.

China’s contribution to global economic growth is approximately 30%, underscoring its central role in the world economic system. Li also highlighted that China achieved an economic revival with an expected gross domestic product growth of 5.2% in 2023, surpassing the initial target of 5%.

Furthermore, Li pointed out that China is the only country covering all industrial sectors classified by the United Nations, and its added value in industry accounts for about 30% of the global level.

This testifies to China’s leading position in the global industry and its ability to stimulate worldwide productivity.

China’s active participation in international organisations underscores its commitment to multilateral cooperation and global responsibility.

The recent reelection of China to the United Nations Human Rights Council for the 2024-2026 term at the 78th session of the UN General Assembly marks a significant milestone, affirming its influence and commitments in international affairs.

This is the sixth time China has been a member of this crucial body, demonstrating its active role in advancing global dialogue and cooperation in the field of human rights.

Furthermore, the Belt and Road Initiative, which celebrated its 10th anniversary in 2023, stands as one of China’s most ambitious projects in global economic development.

The third forum of international cooperation under this initiative achieved 458 significant outcomes.

Chinese financial institutions allocated 780 billion yuan to finance projects associated with the initiative, facilitating the creation of close economic ties with numerous countries.

Chinese and foreign enterprises reached business cooperation agreements worth US$97.2bil, emphasising China’s role as a global economic partner and a bridge between various world regions.

China’s transportation infrastructure plays a critical role in its economic dominance. The country has established air connections with over 100 countries and regions worldwide, fostering stronger global connections and increasing trade.

The total tonnage of the fleet owned by Chinese shipowners amounts to 249.2 million gross tonnes, reflecting the scale of its maritime power.

These achievements, combined with leadership in cargo and container throughput at ports, underscore China’s strategic role in global logistics and trade.

China’s industry also exerts a significant influence on the global economy.

The country leads in many sectors, maintaining the world’s top position in industrial added value for the past 14 years.

This achievement is particularly notable given that China is the only country covering all industrial sectors classified by the United Nations.

With over 200 major industrial clusters, China boasts a large and diverse industrial system that contributes to the global distribution of production factors and enhances worldwide productivity.

The China-initiated South-South Cooperation Assistance Fund, with a capital of US$4bil, serves as a key tool in supporting international development and strengthening global partnerships.

Additionally, Chinese financial institutions are preparing to launch a special fund of US$10bil aimed at implementing initiatives for global development, highlighting China’s strategic role in worldwide economic progress.

Evidence of China’s growing economic power is also seen in the significant increase in foreign investments.

From January to September 2023, 41,947 enterprises with foreign investments were established in China, representing a 32.1% increase compared to the previous year.

This reflects the attractiveness of the Chinese market to international investors and its ability to draw capital from various corners of the world.

In conclusion, China’s contribution to the global economy is multifaceted and substantial. From active participation in international organiaations and global initiatives, to leadership in the industrial and financial sectors, China demonstrates its role as a global economic leader.

Social and humanitarian efforts, along with contributions to peacekeeping missions, further underscore its commitment to cooperation and sustainable development.

The reflections of these achievements in the speeches of leaders like Li Qiang underscore China’s strategic vision and contribution to shaping the future of the global economy. — China Daily/ANN

By Azerbaijan-based journalist Seymur Mammadov is a special commentator for China Daily. The views expressed here are the writer’s own.


   
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Monday, December 25, 2023

How Malaysia is finding its way out of the middle-income trap

It has taken the slow but steady route while addressing an ethnic incongruity


. Kuala Lumpur's new landmark, Merdeka 118, is a symbol of the country's growing affluence. (Nikkei montage/Source photos by Hiroki Endo and Reuters) 

Malaysian Prime Minister Anwar Ibrahim vows to focus on achieving faster growth.

KUALA LUMPUR -- Asia's megacities often undergo surprising metamorphoses in short amounts of time. Kuala Lumpur is one such example. When I visited the city in late October, I was amazed at how much it had modernized since I visited nine years ago.

Urban rail lines now crisscross the city, with new shopping malls sprouting everywhere. Particularly eye-catching was Merdeka 118, a 118-story skyscraper completed earlier this year. The 678-meter tower -- the world's second-tallest after the Burj Khalifa in Dubai -- is a symbol of the country's growing affluence. Its spire was designed to evoke the image of Tunku Abdul Rahman, Malaysia's first prime minister, raising his hand as he proclaimed national independence in 1957.

Malaysia over the past few years has experienced a rapid turnover of prime ministers, though the political situation seems to have stabilized. On Dec. 5, about a year after the launch of his government, Prime Minister Anwar Ibrahim stressed his intention to push for faster economic growth. "It's time to focus on developing the economy," he said in an interview with a local broadcaster.

Anwar's government in July unveiled its 10-year Madani Economy plan and the National Energy Transition Roadmap. These were followed in September by the midterm review of the 12th Malaysia Plan and the New Industrial Master Plan 2030. In October, Anwar's government launched its Hydrogen Economy and Technology Roadmap.

"It is not clear how these relate to one another," a Japanese businessperson said. Still, it seems clear that the government's main goal is to achieve annual growth of over 5.5%, a target specified in the Madani plan.

A view of Kuala Lumpur's skyline. Given Malaysia's relatively young population, domestic demand is expected to keep expanding. © Reuters 

Malaysia's gross domestic product grew 8.7% last year, the highest in 22 years, and growth for this year is estimated at 4%, despite the global slowdown. Given its relatively young population, domestic demand is expected to further expand. The country's semiconductor and other sectors are also attracting foreign direct investment as alternative supply chain bases amid mounting U.S.-China tensions.

The country's per capita gross national income was $11,780 in 2022. If the economy grows 5.5% per year and there is no sharp depreciation of the ringgit against the dollar, it could shed its middle-income status, as defined by the World Bank, in two or three years, joining the ranks of high-income nations.

Graduation has been a long time coming.

Malaysia became an upper-middle-income country in 1996, according to a working paper that Jesus Felipe, a professor at De La Salle University in the Philippines, wrote in 2012, when he was with the Asian Development Bank. Felipe reasons that upper-middle-income nations become ensnared in the middle-income trap if they are unable to move up for more than 15 years. Once trapped, countries suffer stagnant growth, sandwiched between technologically advanced developed nations and developing countries abundant in cheap labor. The description fits Malaysia's situation.

To see why Malaysia could not extricate itself from the trap for so long, one needs to look at its history.

Twelve years after the country gained its independence in 1957, a racial riot engulfed the capital. Malays accounted for nearly 70% of the population, but ethnic Chinese, who made up less than 30%, controlled the economy. The strain of this incongruity led to the clash, resulting in about 200 deaths.

To prevent a recurrence of the tragedy, the government began to address the economic disparity and in 1971 adopted a policy called Bumiputera (sons of the soil) -- a type of affirmative action for ethnic Malays. The policy treats Malays favorably in all aspects of life, including school admissions, employment and even stockholding.

The country's ethnic Chinese are traditionally considered to be strong in commerce and industrial activities. "If we recruit people by ability alone, many could be Chinese," an executive at a Japanese company said.

By trying to fix the racial imbalance artificially, Bumiputera is often cited as a source of inefficiency, but it has its merits.

"If the government had not provided elementary and secondary education to Malay villagers and helped them migrate to cities and find jobs in the commercial and industrial sectors, the country would have suffered a serious labor shortage in the early stage of economic development," said Satoru Kumagai, director of the economic geography studies group at the Institute of Developing Economies of the Japan External Trade Organization. It can be said that Bumiputera's goal is to strike an optimal balance between distribution and growth.

A shopping mall in Kuala Lumpur. Malaysia's Bumiputera policy has helped educate young Malay villagers and bring them to cities hungry for workers. (Photo by Toru Takahashi)

Mahathir Mohamad, who in 1981 became Malaysia's fourth prime minister, shifted the national focus to growth by adopting the Look East policy, which sought to emulate Japan's economic success. The country also began to actively attract more foreign capital. In 1991, Mahathir launched Vision 2020, the goal of which was to become a high-income country in 30 years.

"His greatest achievement was to set a goal of becoming a high-income country," said Abdul Razak Ahmad, founding director of Bait Al Amanah, a private think tank. He "thus changed the people's mindset, encouraging them to have a can-do attitude."

Malaysia enjoyed annual growth of nearly 10% for 10 years before the Asian financial crisis hit it hard in 1997. Afterward, its growth slowed to around 5% to 6%. Anwar, then the deputy prime minister and finance minister, clashed with Mahathir over how to cope with the crisis and was dismissed.

When Anwar this year announced the Madani plan, he said the country had been "caught in a vicious cycle of high costs, low wages, low profits and a lack of competitiveness" since the 1997 crisis. Anwar clearly sees the plan as a roadmap to push the country into the high-income category during his tenure -- something his old enemy could not achieve.

The reason for Malaysia's inability to pull itself out of the middle-income trap becomes clear when looking at the economic development of Taiwan and South Korea.

In terms of population, Taiwan and South Korea are not much different from Malaysia. Taiwan is home to 23 million, South Korea to 51 million and Malaysia to 33 million.

In 1981, when Mahathir became prime minister, the three were not far apart in per capita GDP. Taiwan's was at $2,691, South Korea's at $1,883 and Malaysia's at $1,920.

Taiwan became an upper-middle-income economy in 1986, followed by South Korea two years later, according to Felipe. Taiwan stepped up to high-income status in 1993, with South Korea following in 1995. It took just seven years for the two to move from upper-middle-income to high-income status.



Unlike Malaysia, they did not fall into the trap. Last year, Malaysia's per capita GDP was $12,465, far below Taiwan's $32,687 and South Korea's $32,418. Several factors were at play here.

First, Taiwan and South Korea do not have complex ethnic problems that cause them to pursue difficult socioeconomic policies. Second, the two had no choice but to industrialize as they are not blessed with natural resources like Malaysia, which is rich in petroleum, natural gas and palm oil.

Third, democratization in Taiwan and South Korea began shortly before the end of the Cold War in 1989, allowing them to catch the waves of globalization and information technology. Taiwan democratized in 1986 and South Korea in 1987.

Malaysia has held democratic elections since it gained independence, but the country was under a "developmental dictatorship" that prioritized economic development while restricting political freedom. Malaysians had to wait until 2018 for their government to hand power to another party for the first time.

Fourth, internationally competitive businesses like Taiwan Semiconductor Manufacturing Co., Hyundai Motor and Samsung Electronics have driven growth in Taiwan and South Korea. Malaysia, meanwhile, has failed to nurture such companies with an economy that instead has been led by government-affiliated entities. Its automobile, electrical and electronics industries have depended on foreign businesses.

Grab Holdings, whose ride-hailing superapp is now ubiquitous across Southeast Asia, was founded in Malaysia but quickly relocated its head office to Singapore to facilitate fund-raising and other benefits.

On the whole, Malaysia's lack of economic dynamism was to blame for its lower growth curve.

Still, it should be noted that Malaysia has avoided the so-called resource trap, in which the presence of abundant resources holds back a country's industrialization. Malaysia's leading exports are electrical and electronic products, which account for 40% of its total exports. It tops the U.S. and Japan in terms of exports of semiconductor-related products by value.

A worker inspects chips at Unisem's semiconductor packaging plant in Ipoh, Malaysia, in October 2021. It is becoming imperative for Malaysia to boost investments in higher value-added upstream industries. © Reuters 

This trap can be seen in Saudi Arabia, which in 2016 drafted its Vision 2030 strategy to reduce its dependence on natural resources. Malaysia achieved 40 years ago the industrialization Saudi Arabia is now pursuing.

Said Kumagai: "Malaysia is different from East Asia's elite economies like Japan, Taiwan and South Korea, and from countries with unique strengths such as Singapore, Hong Kong and oil-producing Gulf states. If it achieves high-income status, it will be the first 'normal' country to do so."

Still, challenges abound. In chip manufacturing, Vietnam and India are catching up fast, making it imperative for Malaysia to boost investments in higher value-added upstream industries. Given the accelerating trend toward carbon neutrality, demand for its fossil fuels will likely decline.

Yet, while balancing growth and stability, the multiethnic country with an average age of 30 has succeeded in making slow but steady progress toward overcoming the middle-income trap. Its industrial success will certainly serve as a beacon for other emerging and developing countries in the Global South.


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Thursday, December 14, 2023

NEW UNITY CABINET 2023 ; RESOLVE PEOPLE'S ISSUES QUICKLY






UALA LUMPUR, Dec 12 — Following is the full list of Cabinet ministers and deputy ministers in the unity government following the Cabinet reshuffle announced by Prime Minister Datuk Seri Anwar  Ibrahim today.


Prime Minister and Minister of Finance

Datuk Seri Anwar Ibrahim

Minister of Finance II

Datuk Seri Amir Hamzah Azizan (new)

Deputy Minister of Finance

Lim Hui Ying (formerly Deputy Education Minister)

Deputy Prime Minister and Minister of Rural and Regional Development

Datuk Seri Ahmad Zahid Hamidi

Deputy Minister of Rural and Regional Development

Datuk Rubiah Wang

Deputy Prime Minister and Minister of Energy Transition and Public Utilities (a new ministry — split from the Ministry of Natural Resources, Environment and Climate Change (NRECC))

Datuk Seri Fadillah Yusof (also in charge of Sabah, Sarawak Affairs)

Deputy Minister of Energy Transition and Public Utilities

Akmal Nasrullah Mohd Nasir

Minister of Transport

Anthony Loke Siew Fook

Deputy Minister of Transport

Datuk Hasbi Habibollah

Minister of Agriculture and Food Securities

Datuk Seri Mohamad Sabu

Deputy Minister of Agriculture and Food Securities

Datuk Arthur Joseph Kurup (formerly Deputy Minister of Science, Technology and Innovation)

Minister of Economy

Rafizi Ramli

Deputy Minister of Economy

Datuk Hanifah Hajar Taib

Minister of Local Government Development

Nga Kor Ming

Deputy Minister of Local Government Development

Datuk Aiman Athirah Sabu (formerly Deputy Minister of Women, Family and Community Development)

Ministry of Foreign Affairs

Datuk Seri Mohamad Hasan (formerly Minister of Defence)

Deputy Minister of Foreign Affairs

Datuk Mohamad Alamin

Minister of Works

Datuk Seri Alexander Nanta Linggi

Deputy Minister of Works

Datuk Seri Ahmad Maslan (formerly Deputy Minister of Finance)

Minister of Home Affairs

Datuk Seri Saifuddin Nasution Ismail

Deputy Minister of Home Affairs

Datuk Seri Dr Shamsul Anuar Nasarah

Minister of Investment, Trade and Industry

Datuk Seri Tengku Zafrul Abdul Aziz

Deputy Minister of Investment, Trade and Industry

Liew Chin Tong

Minister of Defence

Datuk Seri Mohamed Khaled Nordin (formerly Minister of Higher Education)

Deputy Minister of Defence

Adly Zahari

Minister of Science, Technology and Innovation

Chang Lih Kang

Deputy Minister of Science, Technology and Innovation

Datuk Mohammad Yusof Apdal (formerly Deputy Higher Education Minister)

Minister of Women, Family and Community Development

Datuk Seri Nancy Shukri

Deputy Minister of Women, Family and Community Development

Datuk Seri Noraini Ahmad (new)

Minister in the Prime Minister’s Department (Law and Institutional Reform)

Datuk Seri Azalina Othman Said

Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform)

M.Kulasegaran (new)

Minister of Natural Resources and Sustainability (a new ministry — split from NRECC)

Nik Nazmi Nik Ahmad

Deputy Minister of Natural Resources and Sustainability

Datuk Seri Huang Tiong Sii

Minister of Entrepreneur Development and Cooperatives

Datuk Ewon Benedick

Deputy Minister of Entrepreneur Development and Cooperatives

Datuk R. Ramanan (new)

Minister of Higher Education

Datuk Seri Zambry Abd Kadir (formerly Minister of Foreign Affairs)

Deputy Minister of Higher Education

Datuk Mustapha @ Mohd Yunus Sakmud (formerly Deputy Minister of Human Resources)

Minister of Tourism, Arts and Culture

Datuk Seri Tiong King Sing

Deputy Minister of Tourism, Arts and Culture

Khairul Firdaus Akbar Khan

Minister of Communications (a new ministry — split from Ministry of Communications and Digital)

Fahmi Fadzil

Deputy Minister of Communications

Teo Nie Ching

Minister of Education

Fadhlina Sidek

Deputy Minister of Education

Wong Kah Woh (new)

Minister of Unity

Datuk Aaron Ago Anak Dagang

Deputy Minister of Unity

Saraswathy Kandasami (formerly Deputy Minister of Entrepreneur Development and Cooperatives)

Minister in the Prime Minister’s Department (Religious Affairs)

Datuk Mohd Na’im Mokhtar

Deputy Minister in the Prime Minister’s Department (Religious Affairs)

Zulkifli Hassan (new)

Minister of Youth and Sports

Hannah Yeoh

Deputy Minister of Youth and Sports

Adam Adli Abd Halim

Minister in the Prime Minister’s Department (Federal Territories)

Dr Zaliha Mustafa (formerly Minister of Health)

Minister of Domestic Trade and Cost of Living

Datuk Armizan Mohd Ali (formerly Minister in the Prime Minister’s Department in charge of Sabah, Sarawak Affairs and Special Functions)

Deputy Minister of Domestic Trade and Cost of Living

Fuziah Salleh

Minister of Plantation and Commodities

Datuk Seri Johari Abdul Ghani (new)

Deputy Minister of Plantation and Commodities

Datuk Chan Foon Hin (formerly Deputy Minister of Agriculture and Food Securities)

Minister of Health

Datuk Seri Dzulkefly Ahmad (new)

Deputy Minister of Health

Datuk Lukanisman Awang Sauni

Minister of Digital (a new ministry — split from Ministry of Communications and Digital)

Gobind Singh Deo

Deputy Minister of Digital

Datuk Ugak Anak Kumbong (formerly Deputy Minister of Special Functions and Sabah, Sarawak Affairs)

Minister of Human Resources

Steven Sim Chee Keong (new)

Deputy Minister of Human Resources

Datuk Seri Abdul Rahman Mohamad (formerly Deputy Minister of Works) — Bernama





Resolve people's issues quickly


New cabinet must prioritise tackling economic issues, say interest groups

PETALING JAYA: People’s issues – cost of living pressures, economic recovery and spurring investments – are the key issues that the new Cabinet must deliver amid a challenging 2024 outlook, say economic experts and business groups.

They say the new line-up must work fast to tackle the economic challenges, while delivering the promised key electoral and institutional reforms to demonstrate their capacity for governance.

Institute for Democracy and Economic Affairs (Ideas) chief executive officer Dr Tricia Yeoh said through the restructuring, the government is sending the signal that the issues of economy, health and cost of living are the key areas of focus, as seen in the new appointments.

She noted that the appointment of Datuk Seri Amir Hamzah Azizan as the Second Finance Minister in Prime Minister Datuk Seri Anwar Ibrahim’s latest Cabinet line-up has been “highly anticipated”.

The former EPF chief executive officer’s appointment is also likely to be welcomed by the market, given his strong corporate background, having been in Tenaga Nasional Bhd and MISC Bhd before joining EPF, said Yeoh.

“This appointment will strengthen the Finance Ministry’s policy execution and hopefully speed up the ministry’s plans towards fiscal consolidation,” she said.

Meanwhile, Yeoh said the new Domestic Trade and Consumer Affairs Minister Datuk Armizan Mohd Ali will have to focus on addressing cost of living issues, which has been the primary driver of dissatisfaction among voters in their perception of Anwar’s administration.

She also said the return of former ministers Gobind Singh Deo and Datuk Seri Dr Dzulkefly Ahmad to the Cabinet in their respective roles as Digital Minister and Health Minister was interesting as they had experience under the previous Pakatan Harapan administration.

Prof Dr Chung Tin Fah of HELP University said the new Cabinet must focus on delivering its manifesto promises, including bringing down cost of living, creating a more equitable social class, raising investment to grow the economy, and higher wages to share in growth prosperity.

“Investments and productivity are key drivers to help achieve these seemingly diverse goals,” he said.

Socio-Economic Research Centre (SERC) executive director Lee Heng Guie said the government has to execute the promised reforms and policies to strengthen the country’s economic resilience against the still uncertain global environment in 2024.

“The government needs to rebuild trust with the people and businesses that it can deliver better outcomes through good governance and responsible fiscal management,” he said, adding that easing cost of doing business, creating a better investment climate, mitigating the higher cost of living, and generating better income jobs should be the economic agenda.

SME Association of Malaysia president Ding Hong Sing said economic development must be prioritised as the country’s economy has yet to improve while the cost of living continues to rise.

“In this regard, our expectations are high for the Second Finance Minister, Datuk Seri Amir Hamzah Azizan.

“With his extensive management experience in EPF, we believe he can play a crucial role in revitalising the national economy,” he said, adding that Hamzah must engage with the business sector and listen to industry suggestions before implementing policies.

“Ensuring the Minister comprehends the influence their policies may have on the business sector is pivotal. We must steer clear of any policies that could hinder our progress,” he said.

Ding also said that SMEs are more than willing to collaborate with the newly appointed Human Resources Minister Steven Sim to improve operations and drive the growth of the economy.

Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry president Nivas Ragavan said the reshuffling is expected to serve as a positive beginning for 2024, particularly in bolstering efforts to enhance economic growth.

The government’s immediate focus must now be to address issues such as unemployment, inflation and economic recovery, said Nivas.

“The foreign direct investments secured in 2023 by the Investment, Trade and Industry Ministry during the trade delegations to various countries especially China and the United States should be quickly realised in 2024 so that adequate employment, business opportunities in the supply chain, and significant growth of the gross domestic product can be attained.

“We also hope that the Cabinet will concentrate on more reforms in 2024,” he said.

Associated Chinese Chambers of Commerce and Industry of Malaysia president Tan Sri Low Kian Chuan said the new Cabinet must work to implement promised reforms and policies.

Low emphasised the necessity of improving income levels and mitigating the impact of the rising cost of living, as well as the importance of close cooperation between the ministries and civil servants to enhance public delivery of services, streamlining of business investment procedures, and the reduction in the overall cost of doing business.

Low added the new ministers should prioritise these key areas, acknowledging the pressing need to address the cost of living challenges that Malaysians face.

Malay Chamber of Commerce president Norsyahrin Hamidon said the country’s economy has not fully recovered and numerous SMEs continue to face significant challenges.

He hoped that the new ministers, especially the Second Finance Minister, would quickly inject their expertise towards economic recovery and the strengthening of businesses, though he added that it is important that the new Cabinet members be given six months to demonstrate their capabilities.