Anwarnomics for Malaysia!

The new PM, Datuk Seri Anwar Ibrahim, has many things to tackle. But the good point is anything he does will be positive. You can’t get any lower than the previous PMs.

Besides Cabinet, he has to stamp his mark on cost of living, inflation and tepid growth. Others will include FDIs, DDIs, reforms of institutions, reset education, huge debts at Prasarana and DanaInfra, revise MM2H, transparency on missing persons, deaths in custody, steps to reduce corruption and affordable housing. It seems an awful lot to do. The malaise is really over the last 20 years or so. Some may like to take it over 40 years, but that’s not fair to Tun Mahathir.

Source: https://majoriti.com.my

On cost of living, he has asked the civil service to devise a mechanism for targeted subsidies. This is not easy and perhaps difficult to implement. It is better to transfer under BR1M to the B40s that truly need support. Inflation seems to be on a downward trend and it is best for BNM to address with measured OPR increase that may reduce imported inflation. Electricity tariffs could be reduced to bring cost to businesses lower and also for households. TNB need not have over RM3 billion or more in net profit a year. It just doesn’t make sense, unless you are an analyst or an investor in TNB. Petronas could reduce its retail pump price for RON95 – that will help lower transport costs. Forget about Shell and the rest, leave them to devise their own prices.

On the supply side, look at “pinch points” for disruptions. Food items will be prioritised for exemptions, APs, or availability of land. If we could increase basic necessities and ensure food security, we will weather any storm in 2023.

A stable political climate is sine quo non for investments. Dialogue/engagement with the private sector especially SMEs will be helpful. FDIs will follow if there is local vibrancy and tempo. Get the infrastructure agenda on track and “level-up” the economy so that growth and distribution is widespread and not focused on the Klang Valley. To do so, find new revenue sources from windfall tax to transaction (forex) tax.

There are several other initiatives. But set a tempo that (many) others want to follow. A winning team will certainly gather more followers, just ask Liverpool or Manchester City!