ID :
114123
Tue, 03/30/2010 - 14:30
Auther :
Shortlink :
https://oananews.org//node/114123
The shortlink copeid
NEM FOR A DEVELOPED AND COMPETITIVE MALAYSIAN ECONOMY
KUALA LUMPUR, March 30 (Bernama) -- The goal of the New Economic Model (NEM)
is for Malaysia to become a developed and competitive economy whose people enjoy
a high quality of life and a high-level of income resulting from growth that is
both inclusive and sustainable.
The Malaysian economy will be marketed, well-governed, regionally
integrated, entrepreneurial and innovative, says the National Economic Advisory
Council (NEAC) in the New Economic Model for Malaysia Part 1 Report released
here Tuesday.
It says the private sector will be the main driver of growth in a market
environment that rewarded innovation and creativity.
Among others, the NEM will provide the framework and environment to engender
the entrepreneurial spirit to make the most of growth opportunities from
available financing.
Also, innovative and state-of-the-art technology will generate high
value-added products and services, creative technical, social and
institutional processes.
All these will feed into an expansion of markets through regional
integration in trade and services and by shaping cross-border production
networks and supply chain.
NEAC says the Economic Transformation Programme (ETP) will not be a
painless journey and hard decisions must be taken and trade-offs managed.
The journey requires, firstly, the steadfast commitment by the government to
stay the course, secondly, the preparedness of the rakyat to embrace the
difficult changes and thirdly, a "big-push" of strategic policy measures, not
incremental changes.
The ETP envisages a special transformation fund that will support firms and
individuals to adjust to the new market environment while enhanced social safety
nets will also be in place to cushion the most vulnerable segments of society
and build their capacity to better contribute to the economy.
A strong monitoring team of technical experts and professionals will be
constituted to process feedback on the effectiveness of measures and to make
recommendations for necessary adjustments.
They will also manage the resistance from vested interests and unexpected
impact on vulnerable groups, the report says.
In the meantime, the NEAC's recommendations will be anchored in eight
Strategic Reform Initiatives (SRIs) namely:
*SRI 1: Re-energising the private sector to drive growth;
*SRI 2: Developing a quality workforce and reducing dependency on foreign
labour;
*SRI 3: Creating a competitive domestic economy;
*SRI 4: Strengthening the public sector;
*SRI 5: Transparent and market-friendly affirmative action;
*SRI 6: Building the knowledge base and infrastructure;
*SRI 7: Enhancing the sources of growth and;
*SRI 8: Ensuring sustainability of growth.
Under SRI 1, firing up the private sector will stimulate a jump in
investment in high value-added products and services, generating sustained
growth and high income.
Under SRI 2, policies will focus on generating a talented workforce to meet
the needs of a high-value knowledge economy while wage-restraining labour market
distortions such as excessive and indiscriminate use of foreign labour, will be
removed.
Under SRI 3, subsidies, price controls and a myriad of distortion-creating
incentives will be phased out. The impact on the vulnerable groups will be
cushioned with an enhanced safety net.
Under SRI 4, public sector reform programmes will continue to improve and
speed up decision making by a lean, consultative and delivery focused
government.
Under SRI 5, affirmative action programmes will continue to truly foster
equal and fair economic opportunities but will aim to achieve their objectives
by removing the rent-seeking and market distorting features which have limited
their effectiveness.
Under SRI 6, the key focus is to promote an environment for innovation by
strengthening the delivery of high quality education that nurtures innovation
and technology.
Under SRI 7, Malaysia will leverage its natural endowment and sectors of
comparative advantage as the main sources of high value-added growth and
maximising spillover effects into new areas of activities.
Under SRI 8, preserving the country's natural resources and safeguarding the
interest of future generations will be complemented by sustainable public
finances through stringent fiscal discipline.
The report says the SRIs would incentivise economic actors to make decision
in ways that will increase private investment and productivity that will
result in the real Gross National Product (GNP) growth at an average annual pace
of 6.5 per cent or higher from now until 2020.
The NEAC, meanwhile, would seek and incorporate feedback and collaborate
with all stakeholders over the next few months to further analyse and detail the
policy measures and implementation frameworks.
-- BERNAMA
is for Malaysia to become a developed and competitive economy whose people enjoy
a high quality of life and a high-level of income resulting from growth that is
both inclusive and sustainable.
The Malaysian economy will be marketed, well-governed, regionally
integrated, entrepreneurial and innovative, says the National Economic Advisory
Council (NEAC) in the New Economic Model for Malaysia Part 1 Report released
here Tuesday.
It says the private sector will be the main driver of growth in a market
environment that rewarded innovation and creativity.
Among others, the NEM will provide the framework and environment to engender
the entrepreneurial spirit to make the most of growth opportunities from
available financing.
Also, innovative and state-of-the-art technology will generate high
value-added products and services, creative technical, social and
institutional processes.
All these will feed into an expansion of markets through regional
integration in trade and services and by shaping cross-border production
networks and supply chain.
NEAC says the Economic Transformation Programme (ETP) will not be a
painless journey and hard decisions must be taken and trade-offs managed.
The journey requires, firstly, the steadfast commitment by the government to
stay the course, secondly, the preparedness of the rakyat to embrace the
difficult changes and thirdly, a "big-push" of strategic policy measures, not
incremental changes.
The ETP envisages a special transformation fund that will support firms and
individuals to adjust to the new market environment while enhanced social safety
nets will also be in place to cushion the most vulnerable segments of society
and build their capacity to better contribute to the economy.
A strong monitoring team of technical experts and professionals will be
constituted to process feedback on the effectiveness of measures and to make
recommendations for necessary adjustments.
They will also manage the resistance from vested interests and unexpected
impact on vulnerable groups, the report says.
In the meantime, the NEAC's recommendations will be anchored in eight
Strategic Reform Initiatives (SRIs) namely:
*SRI 1: Re-energising the private sector to drive growth;
*SRI 2: Developing a quality workforce and reducing dependency on foreign
labour;
*SRI 3: Creating a competitive domestic economy;
*SRI 4: Strengthening the public sector;
*SRI 5: Transparent and market-friendly affirmative action;
*SRI 6: Building the knowledge base and infrastructure;
*SRI 7: Enhancing the sources of growth and;
*SRI 8: Ensuring sustainability of growth.
Under SRI 1, firing up the private sector will stimulate a jump in
investment in high value-added products and services, generating sustained
growth and high income.
Under SRI 2, policies will focus on generating a talented workforce to meet
the needs of a high-value knowledge economy while wage-restraining labour market
distortions such as excessive and indiscriminate use of foreign labour, will be
removed.
Under SRI 3, subsidies, price controls and a myriad of distortion-creating
incentives will be phased out. The impact on the vulnerable groups will be
cushioned with an enhanced safety net.
Under SRI 4, public sector reform programmes will continue to improve and
speed up decision making by a lean, consultative and delivery focused
government.
Under SRI 5, affirmative action programmes will continue to truly foster
equal and fair economic opportunities but will aim to achieve their objectives
by removing the rent-seeking and market distorting features which have limited
their effectiveness.
Under SRI 6, the key focus is to promote an environment for innovation by
strengthening the delivery of high quality education that nurtures innovation
and technology.
Under SRI 7, Malaysia will leverage its natural endowment and sectors of
comparative advantage as the main sources of high value-added growth and
maximising spillover effects into new areas of activities.
Under SRI 8, preserving the country's natural resources and safeguarding the
interest of future generations will be complemented by sustainable public
finances through stringent fiscal discipline.
The report says the SRIs would incentivise economic actors to make decision
in ways that will increase private investment and productivity that will
result in the real Gross National Product (GNP) growth at an average annual pace
of 6.5 per cent or higher from now until 2020.
The NEAC, meanwhile, would seek and incorporate feedback and collaborate
with all stakeholders over the next few months to further analyse and detail the
policy measures and implementation frameworks.
-- BERNAMA
