Monday, December 14, 2009
Malaysian Second Finance Minister comments honestly on the Malaysian economy
The Second Finance Minister gave a keynote speech at the National Economic Outlook Conference 2010-2011 organized by the Malaysian Institute of Economic Research on the 1st December.
Honestly, what is new? Finally a Finance Minister is telling us what we already knew. We all love our country but also very sad to see the state of affairs in our home land. We are falling behind our neighbors. It is sad that the whole country's future can be neglected to protect a few protected groups.
I pray for our country to be managed properly where there is fairness and equal opportunities for all races. Petronas reported a 50.7% decline in profit (April-Sep 2009 vs corresponding period last year), and now all of a sudden we see an introduction of credit card tax, Goods and Services Tax and reintroduction of Real Property Gains Tax.
According to the AFP report, Datuk Seri Ahmad Husni Hanadzlah (2nd Finance Minister) said:
"Malaysia is trapped in a low-value-added, low-wage and low-productivity structure," Second Finance Minister Ahmad Husni Hanadzlah (left) told an economic outlook conference. Among its peers China, India, Vietnam, Indonesia, Philippines and Thailand, Malaysia's economic growth over the past three years was second-lowest, he said.
"Our economy has been stagnating in the last decade. We have lost our competitive edge to remain as the leader of the pack in many sectors of the economy. Our private investment has been steadily in decline... While Singapore and Korea's nominal per capita GDP grew within the last three decades by 9 and 12 times respectively, ours grew only by a factor of four."
In a withering assessment, Ahmad Husni said the services sector is underdeveloped, private investment is half the levels before the 1997-98 Asian crisis, and the manufacturing sector is suffering from lack of investment.
...He called for sweeping measures including an emphasis on meritocracy and ensuring all Malaysians are given "equal opportunity to participate in the economy".
"We must also consider the gradual dismantling of our open-ended protection of specific sectors and industries which have introduced a climate of complacency and artificial levels of supply... The long-term success of the nation's economy must take precedence over the short term interests of a few protected groups."
Honestly, what is new? Finally a Finance Minister is telling us what we already knew. We all love our country but also very sad to see the state of affairs in our home land. We are falling behind our neighbors. It is sad that the whole country's future can be neglected to protect a few protected groups.
I pray for our country to be managed properly where there is fairness and equal opportunities for all races. Petronas reported a 50.7% decline in profit (April-Sep 2009 vs corresponding period last year), and now all of a sudden we see an introduction of credit card tax, Goods and Services Tax and reintroduction of Real Property Gains Tax.
According to the AFP report, Datuk Seri Ahmad Husni Hanadzlah (2nd Finance Minister) said:
"Malaysia is trapped in a low-value-added, low-wage and low-productivity structure," Second Finance Minister Ahmad Husni Hanadzlah (left) told an economic outlook conference. Among its peers China, India, Vietnam, Indonesia, Philippines and Thailand, Malaysia's economic growth over the past three years was second-lowest, he said.
"Our economy has been stagnating in the last decade. We have lost our competitive edge to remain as the leader of the pack in many sectors of the economy. Our private investment has been steadily in decline... While Singapore and Korea's nominal per capita GDP grew within the last three decades by 9 and 12 times respectively, ours grew only by a factor of four."
In a withering assessment, Ahmad Husni said the services sector is underdeveloped, private investment is half the levels before the 1997-98 Asian crisis, and the manufacturing sector is suffering from lack of investment.
...He called for sweeping measures including an emphasis on meritocracy and ensuring all Malaysians are given "equal opportunity to participate in the economy".
"We must also consider the gradual dismantling of our open-ended protection of specific sectors and industries which have introduced a climate of complacency and artificial levels of supply... The long-term success of the nation's economy must take precedence over the short term interests of a few protected groups."
