It Is The Economy, Sunshine!

On Sunday 23 June 2019, the lawyer Siti Kasim wrote an article entitled “Can we talk about the economy?” which was published by The Star.

The gist of her argument was that the following needs to be done:

(i)         eliminate State and Federal GLCs;

(ii)        reduce the size of the Federal and State Governments; and

(iii)       intensify deregulation of the economy

This will speed-up growth in the economy. She then had a Malaysian Growth Plan that seemingly will turn a slower-growth economy to a more vibrant one:

(i)         increase liquidity and risk taking; and

(ii)        spend our way out of a  recession and build on fundamentals;

It was an interesting read but perhaps requires more insightful thinking! The core issue for Malaysia in moving forward is the so-called NEP objectives – so long it is a race-based and not needs-based we end-up in a quagmire of our own doing!

Her proposals are actually dismantling the NEP but at a significant socio-economic cost. This is a detriment to the economy and the social fabric of the nation. It has to be done on a more structured, stepped approach than a one-off action. Any robust reform is like the USSR dismantling its communist system into a more capitalist mode under Gorbachev. And that caused anarchy, corruption and cronyism.

The way forward is quite clear to many but the narrative has to be followed in a  consistent, constant fashion to everyone – rural and urban. Otherwise, you will have “spooky” statements like dismantling the vernacular schools (and Mandarin) and adopting Arabic language – where even the Arabs are learning Mandarin (Saudi school curriculum is to include Mandarin).

The “obvious” 3 areas for reform include:

(i)         institutional – legislative, executive and judiciary;

(ii)        the national economic agenda – needs-based; and

(iii)       education (from a single language to multiple language mode)

Progress on the above needs promotion, otherwise people cannot see the work being done to reform institutions, economy or education. And for many of us, unity is in shared values not race or religion – Pakistan, Northern Ireland and a host of others will testify to that! So let’s get the essentials right, then a thousand flowers may bloom!

Reference:

Can we talk about the economy? Siti Kasim, The Star, 23 June 2019