M'SIA NEEDS MAJOR ECONOMIC TRANSFORMATION TO BECOME DEVELOPED NATION

KUALA LUMPUR, Feb 9 (Bernama) -- Malaysia needs to undertake a major
transformation of the economy, even if it involves a short term cost or
initial setback, to achieve developed nation status by 2020.

Minister in the Prime Minister's Department Nor Mohamed Yakcop
explained that Malaysia needs such a transformation as it can ill afford to be
stuck as a middle income country, albeit a high middle income nation.

"To achieve developed nation status, our economic model needs to
transform to become increasingly knowledge-intensive and innovation-led,"
he said on the second day of the 1Malaysia Economic Conference here Tuesday.

The conference was organised by the Associated Chinese Chambers of Commerce
and Industry of Malaysia (ACCCIM).

Nor Mohamed highlighted that a transformation of the economy would involve
significant change.

He said adjusting the country's economic model also requires an investment,
which may not immediately pay off, but nevertheless yield good returns in the
longer term.

"In undertaking our economic transformation, we need to have the commitment
to ride through the initial pain and have the conviction to stay the course for
an eventual long term improvement," he added.
-- BERNAMA