Economic Impact of the Alliance of Hope

I was intrigued by the title. It gives hope. What then could we expect or hope for in the next 6-12 months?

1. Restored Confidence in the economy because the “thieves” are out of power. And that means markets will improve – both the stock market and foreign exchange market;
2. Fiscal deficit is potentially reduced through better management of resources;
3. Inflation will abate with GST swept into a bin;
4. Accelerated growth (7%) in the medium term with domestic consumption and investment leading the way;
5. Foreign funds will move back in once they see locals are investing;
6. Better focus on value infrastructure not grandiose projects for benefit of fat “cats” (who are now “dogs” – pardon my expression);
7. Greater transparency and accountability by government machinery;
8. Reforms for legislative, judicial and executive wings of government (including local elections for major cities, especially Kuala Lumpur);
9. Greater autonomy for states and better management of their finances – may the states generate their own revenue and plans for spending – a re-drawing of Federal-state relations. Be like the U.S. or Australia!
10. GLCs are selectively privatised – otherwise they “crowd out” private sector dynamism;
11. Government remains focused on delivering quality services rather than being involved in business;
12. More inclusive policies and a new model to replace the NEP – that will unleash private sector investment and entrepreneurship;
13. Create new financial institutions for small and medium enterprises in every state. These are private sector driven and regulated by BNM or some similar agency;
14. Focus on education, employment and entrepreneurship to drive growth.
• Education of a high standard and access to it alleviates poverty;
• Providing job opportunities for young people secures their future;
• Creating an environment for entrepreneurship creates jobs – special incentives for those investing (including by foreigners) RM500,000 and creating 5 new jobs;
15. Enforce policies / laws of the land. Enforcement is a weak link – because it is always “boleh dirundingkan”;
16. Corruption is a “hidden” tax and bears down on the economy. No investor wants to find out that cost has escalated beyond any reasonable estimate. Have a new Corrupt Practices and Reconciliation Commission created to hear and resolve (with penalties) corrupt practices in public / private sectors;
17. Provide research and development funds for targeted industries / technologies / services – A.I., blockchain; graphene and others. Private sector to work with universities to innovate and develop new applications;
18. Focus on renewables – solar, biomass and others. Residents are subsidised in installing solar panels for their homes. Electric and hybrid cars are cheaper than gasoline-driven vehicles;
19. Develop affordable housing in locations where public transport services are available; and
20. Health costs are driven down with generic drugs and incentives for private hospitals to lower cost of operation and related fees.

That’s a 20-point manifesto! My hope overflows and may we have some concrete steps implemented in the next 180 days. God Bless Malaysia!