Urgency for Reforms

In an article on “Reform does not have to cost votes” by Davide Furceri, Jonathan D.Ostry and Chris Papageorgiou, (published in The Edge Financial Daily, 21 Oct 2019), the writers present lessons from their analysis:

(i) Government should act swiftly following an electoral victory – carry out the reforms in the honeymoon period;

(ii) reforms are best implemented when economic conditions are favourable; and

(iii) safety nets and active labour markets are available given there is job creation and destruction.

The whole article was on structural reforms for an economy. It seems valid for political reforms as well especially on points (i) and (ii).

Malaysia's new government has failed to deliver on most of its human rights reform promises in its first year in power, Human Rights Watch and Amnesty International said in May 2019.

Most of its planned reforms have either been delayed or withdrawn, following a backlash from opposition parties and conservative ethnic Malay Muslim groups, Human Rights Watch said. "There's been far too much of the government just coasting on prevailing political winds," Mr Phil Robertson, the group's deputy Asia director, told reporters in Kuala Lumpur. "It has to stand up and show some conviction."

Tun Dr Mahathir's administration had promised sweeping changes, including abolishing the death penalty, revoking repressive sedition and detention laws, and reforming key state institutions. But in March, the government said it planned only to abolish the mandatory death penalty, leaving it for courts to decide whether a person convicted of serious offences should hang. Malaysia has also withdrawn plans to ratify a United Nations convention against racial discrimination, and to accede to the Rome Statute, which would have seen it joining the International Criminal Court.

The reversals came after groups representing the majority ethnic Malay community raised objections, saying the treaties could erode privileges enjoyed by Malays and affect the immunity of traditional Malay rulers in nine states.

The momentum to reform laws of the nation has therefore slowed down. Conflicting signals seem to prevail. We need the summary removal of Sosma, Pota, Poca and the Sedition Act, amongst others. Otherwise, the executive branch will behave no better than the previous Government. Having said that and if these laws are to remain with amendments, then why not use it on the kleptocrats and their followers? They seem to be active in the news media and working on intrigues to destabilise the nation.

On the economy, investors need clarity on growth and currency. The recent Budget is rather tepid on both. And if the Industrial Revolution 4.0 is to be implemented, there will be job creation and losses. New re-training schemes and safety nets for workers affected will be in order. The Economics Minister and the Finance Minister have to act in tandem to re-boot the economy. We moved from agriculture to an industrial nation in the 80s. It is time to set-up a new “MIDA” for the Digital Age with R&D labs and innovation clusters. Others are doing it —— Singapore is a good example. Malaysia has great plans (e.g. SPV), it is in implementation that we lack.

Reference:

1. Reform doesn’t have to cost votes, 21 Oct 2019, The Edge Financial Daily

2. Malaysia’s new government slow on reforms, rights groups say, 8 May 2019, The Straits Times

3. Malaysia’s hopes of economic revival under Mahathir fade, 10 May 2019, Reuters