EMULATE DENMARK IN TRANSFORMING M'SIA INTO HIGH-INCOME NATION

KUALA LUMPUR, June 23 (Bernama) -- Malaysia should emulate countries with a high per capita income like Denmark in the effort to transform the country into a high-income economy.

Dean of University Malaya's Faculty of Economics and Administration, Prof Rajah
Rasiah, said Denmark practised the concept of welfare state where those in the
lower-income group received an allowance to buy goods at the world market price.


"What happens there is that the government does not give subsidies but gives an
allowance to the target (low-income) group" he told Bernama after the live
broadcast of the 10th Malaysia Plan (10MP) Forum held at the Putra World Trade
Centre, here, Tuesday night.

Radio Television Malaysia'S (RTM) TV1 carried the live broadcast of the forum on
Malaysia's economic transformation. The other panellists were secretary-general
of the Associated Chinese Chambers of Commerce and Industry of Malaysia Datuk
David Chua and secretary-general of the Malay Consultative Council Dr Hasan Mat.

Rajah said the move not to give subsidies enabled the industry players to
compete fairly in the market.

Chua said Malaysia had a strong small and medium-scale industry (SMI) foundation
which could make them a catalyst for achieving the 10MP goals.

"Their effort to strengthen the economy will bear fruit faster if they have the
technology to modernise their plant operations," he said.

Hasan said efficient implementation of the 10MP would be vital for the success
of the New Economic Model as it was the platform for the country's economic
transformation.

"We want the success achieved from the New Economic Policy (NEP) to be repeated
through this new economic model," he said.
-- BERNAMA