M'SIAN ECONOMY STILL NEEDS GOVT INVOLVEMENT, SAYS ANALYST

KUALA LUMPUR, March 31 (Bernama) -- The Malaysian economy still needs the government's involvement to grow though under the New Economic Model (NEM) the responsibility has shifted to the private sector, says an analyst.

Lorraine Tan, Vice-President of Equity Research, Asia, Standard & Poors,
said
the shift to the private sector was good for a balance but government's
involvement was still needed for the medium term.

On market capitalisation, Tan said the Malaysian market has been
marginalised as the size of an average company in Malaysia has not really grown
to the extent of some companies have in other countries like in Indonesia.

She said the government still needs to encourage consolidation and greater
operational efficiency.

"They need to raise the benchmark to encourage them to move up the value
chain but it should be done with the companies that have the capabilities," she
told the "Malaysia's Challenges and Opportunities" session at the Invest
Malaysia 2010 conference here Wednesday.

Tan said Malaysia needs to be more efficient in bringing in higher
technology.

"Local players need to work to set up JVs and foreign investment
companies
that come in must train locals," she added.

Wong Siew Hai, Chairman of the Malaysian American Electronics
Industry, American-Malaysia Chamber of Commerce, said there was an urgent need
to address shortage of skilled and innovative manpower in Malaysia.

"Shortage of skilled manpower at the high-and low-end is widening. Malaysia
has to decide what has to be done as the situation has come to a stage that the
majority of the industries need foreign workers.

"Education is important but to be able to deliver, one needs aptitude,
attitude and skills," added Wong, also a panellist at the same session.

-- BERNAMA