ID :
123220
Thu, 05/20/2010 - 13:56
Auther :
Shortlink :
https://oananews.org//node/123220
The shortlink copeid
POLICY REFORMS REMAIN THRUST BEHIND MALAYSIA'S IMPROVED COMPETITIVE RANKING
By Farazira Amira Yusof and Shantia Panjanadan
KUALA LUMPUR, May 20 (Bernama) -- Strong policies adopted by the government over the year is bearing fruition, with Malaysia moving up the ladder to be among the top 10 competitive nation in the world.
Malaysia leapfrogged into 10th position from 18th previously, according to
International Institute for Management Development (IMD) in its World
Competitiveness Yearbook 2010.
This is the country's best ranking in five years, and given Malaysia's
resilient economy despite the financial crisis, the nation is poised for further
growth throughout the year.
Senior Economist at AmInvestment Bank Group Manokaran Mottain said with the
improved economic environment, the Malaysian economy can expand as high as 8 per
cent this year.
He said judging from the experience of countries around the world, if a
combination of right polices are implemented, it can make a big difference in
unleashing a country's innovative potential.
"We have a Prime Minister who understands the needs and wants of the
market. He is bold enough to introduce reforms that Malaysia needs for long-term
economic survival, even if the measures may upset the status quo.
"We are referring to a series of measures introduced by the Prime Minister
over the last year. One was to allow 100 per cent foreign ownership in 27
industries and sectors and, relaxing the 30 per cent Bumiputera equity ruling in
listed companies," Manokaran told Bernama when asked on Malaysia's remarkable
achievement.
As an open state-oriented market economy, Malaysia further liberalised its
financial service sub-sector by relaxing a host of restrictions on foreign
investment.
In addition, the government also took a serious look at how to attract more
private investment with the setting up of a Special Taskforce to Facilitate
Business, or Pemudah, he said.
Manokaran also said the accelerated pace of government and economic
transformation programmes in business and regulatory systems made Malaysia more
efficient and competitive.
As for monetary policies, Bank Negara Malaysia was among the first in the
region to normalise rates ahead of the curve this time.
Sharing a similar view, RHB Banking Group Managing Director Datuk Tajuddin
Atan said Malaysia's impressive achievement was derived from various iniatives
implemented by the government on the economic front.
He said the domestic banking sector was a clear example of the country's
willingness to embrace competition.
This was reflected in the government's decision to issue new Islamic
banking, commercial banking and family takaful licences to qualified foreign
players under a liberalisation initiative announced on April 27, 2009 as well as
a limited number of new commercial banking licences via bilateral arrangements
with other countries such as China, he said.
"More importantly, Malaysia's major domestic banks, including RHB Banking
Group, are not only able to compete locally but have begun to venture overseas
to Indonesia and Vietnam in order to seek new growth opportunities," he said.
Tajuddin said the government's efforts were further intensified through the
launch of the Government Transformation Programme (GTP) in January aimed at
transforming the government's delivery system with specific targets and
timeframe.
The GTP was formulated in accordance with the concept of 1Malaysia with the
principal of "People First, Performance Now".
Following the GTP, the government unveiled the New Economic Model (NEM) in
March to transform the country into a high-income nation by 2020.
The NEM, to be achieved through an Economic Transformation Programme (ETP),
constitutes a key pillar which will propel Malaysia towards becoming an advanced
nation with inclusiveness and sustainability.
The ETP, which is currently being formulated, will be driven by eight
Strategic Reform Initiatives which will form the basis of the relevant
policy measures.
With the NEM, the Prime Minister has vowed to adopt a new way of doing
things in order to help the country achieve its growth targets.
The Employees Provident Fund (EPF) was also allowed to invest more
aggresively overseas while at home, it would enter into a joint venture with the
government to develop a new commercial hub in the Klang Valley.
Divestment of government-linked companies would see two Petronas
subsidiaries being listed on Bursa Malaysia while Khazanah Nasional would divest
its 32 per cent stake in Pos Malaysia Bhd through a two-stage process.
Among other things, it also included a commitment to New Key Economic Areas,
or NKEAs, in which investment in information technology, electronics, biofuel
and tourism will be encouraged.
Meanwhile, RAM Holdings Bhd's Group Chief Economist Dr Yeah Kim Leng said
the achievement was indeed a quantum leap for the country.
"It is certainly an outstanding achievement considering that in a short span
of five years, the country has leapfrogged from 23rd position, in 2005, to be
among the top 10 most competitive nations in the world," he said.
Dr Yeah said the sharp improvement in Malaysia's ranking this year will
further boost investor confidence and sentiment, particularly among the global
investment community.
More importantly, he added the current ranking lent support to the
country's economic transformation as well as recognised the big strides achieved
by the present administration in enhancing government and business efficiency.
To improve the ranking in the years ahead, Manokaran said Malaysia must be
looking at ways to minimise further the bureaucracy and speed up the approvals
process.
"We think this is crystallised in the NEM to be launched sometime in
September. NEM will help transform Malaysia into a high-income economy, with
developed nation status by 2020, and more than double Malaysian per capita
income to US$15,000 by the next decade," he said.
He added that the World Bank, in its report on Malaysia called "Growth
Through Innovation," urged Malaysia to push through with reforms, particularly
by improving innovative capabilities.
It said this could be achieved by ensuring access to talent, technology
and finance besides concentrating efforts on promising niche products such as
high technology.
-- BERNAMA
KUALA LUMPUR, May 20 (Bernama) -- Strong policies adopted by the government over the year is bearing fruition, with Malaysia moving up the ladder to be among the top 10 competitive nation in the world.
Malaysia leapfrogged into 10th position from 18th previously, according to
International Institute for Management Development (IMD) in its World
Competitiveness Yearbook 2010.
This is the country's best ranking in five years, and given Malaysia's
resilient economy despite the financial crisis, the nation is poised for further
growth throughout the year.
Senior Economist at AmInvestment Bank Group Manokaran Mottain said with the
improved economic environment, the Malaysian economy can expand as high as 8 per
cent this year.
He said judging from the experience of countries around the world, if a
combination of right polices are implemented, it can make a big difference in
unleashing a country's innovative potential.
"We have a Prime Minister who understands the needs and wants of the
market. He is bold enough to introduce reforms that Malaysia needs for long-term
economic survival, even if the measures may upset the status quo.
"We are referring to a series of measures introduced by the Prime Minister
over the last year. One was to allow 100 per cent foreign ownership in 27
industries and sectors and, relaxing the 30 per cent Bumiputera equity ruling in
listed companies," Manokaran told Bernama when asked on Malaysia's remarkable
achievement.
As an open state-oriented market economy, Malaysia further liberalised its
financial service sub-sector by relaxing a host of restrictions on foreign
investment.
In addition, the government also took a serious look at how to attract more
private investment with the setting up of a Special Taskforce to Facilitate
Business, or Pemudah, he said.
Manokaran also said the accelerated pace of government and economic
transformation programmes in business and regulatory systems made Malaysia more
efficient and competitive.
As for monetary policies, Bank Negara Malaysia was among the first in the
region to normalise rates ahead of the curve this time.
Sharing a similar view, RHB Banking Group Managing Director Datuk Tajuddin
Atan said Malaysia's impressive achievement was derived from various iniatives
implemented by the government on the economic front.
He said the domestic banking sector was a clear example of the country's
willingness to embrace competition.
This was reflected in the government's decision to issue new Islamic
banking, commercial banking and family takaful licences to qualified foreign
players under a liberalisation initiative announced on April 27, 2009 as well as
a limited number of new commercial banking licences via bilateral arrangements
with other countries such as China, he said.
"More importantly, Malaysia's major domestic banks, including RHB Banking
Group, are not only able to compete locally but have begun to venture overseas
to Indonesia and Vietnam in order to seek new growth opportunities," he said.
Tajuddin said the government's efforts were further intensified through the
launch of the Government Transformation Programme (GTP) in January aimed at
transforming the government's delivery system with specific targets and
timeframe.
The GTP was formulated in accordance with the concept of 1Malaysia with the
principal of "People First, Performance Now".
Following the GTP, the government unveiled the New Economic Model (NEM) in
March to transform the country into a high-income nation by 2020.
The NEM, to be achieved through an Economic Transformation Programme (ETP),
constitutes a key pillar which will propel Malaysia towards becoming an advanced
nation with inclusiveness and sustainability.
The ETP, which is currently being formulated, will be driven by eight
Strategic Reform Initiatives which will form the basis of the relevant
policy measures.
With the NEM, the Prime Minister has vowed to adopt a new way of doing
things in order to help the country achieve its growth targets.
The Employees Provident Fund (EPF) was also allowed to invest more
aggresively overseas while at home, it would enter into a joint venture with the
government to develop a new commercial hub in the Klang Valley.
Divestment of government-linked companies would see two Petronas
subsidiaries being listed on Bursa Malaysia while Khazanah Nasional would divest
its 32 per cent stake in Pos Malaysia Bhd through a two-stage process.
Among other things, it also included a commitment to New Key Economic Areas,
or NKEAs, in which investment in information technology, electronics, biofuel
and tourism will be encouraged.
Meanwhile, RAM Holdings Bhd's Group Chief Economist Dr Yeah Kim Leng said
the achievement was indeed a quantum leap for the country.
"It is certainly an outstanding achievement considering that in a short span
of five years, the country has leapfrogged from 23rd position, in 2005, to be
among the top 10 most competitive nations in the world," he said.
Dr Yeah said the sharp improvement in Malaysia's ranking this year will
further boost investor confidence and sentiment, particularly among the global
investment community.
More importantly, he added the current ranking lent support to the
country's economic transformation as well as recognised the big strides achieved
by the present administration in enhancing government and business efficiency.
To improve the ranking in the years ahead, Manokaran said Malaysia must be
looking at ways to minimise further the bureaucracy and speed up the approvals
process.
"We think this is crystallised in the NEM to be launched sometime in
September. NEM will help transform Malaysia into a high-income economy, with
developed nation status by 2020, and more than double Malaysian per capita
income to US$15,000 by the next decade," he said.
He added that the World Bank, in its report on Malaysia called "Growth
Through Innovation," urged Malaysia to push through with reforms, particularly
by improving innovative capabilities.
It said this could be achieved by ensuring access to talent, technology
and finance besides concentrating efforts on promising niche products such as
high technology.
-- BERNAMA
