ID :
45078
Wed, 02/11/2009 - 15:58
Auther :
Shortlink :
https://oananews.org//node/45078
The shortlink copeid
NEP IS PERFECT BUT WEAK IN IMPLEMENTATION, SAYS MINISTER
KUALA LUMPUR, Feb 11 (Bernama) -- International Trade and Industry Minister Muhyiddin Yassin says the New Economic Policy (NEP) "is perfect and good" in its original form.
"In the process of implementation, there could be some weaknesses," he said
at the Malaysian Industrial Development Authority (MIDA) annual media conference
on the performance of the manufacturing and services in 2008 here Tuesday.
He was asked to respond to a suggestion by CIMB Group chief executive Nazir
Razak to improve certain areas in the New Economic Policy (NEP) to woo
investments.
Nazir had said the NEP should be reviewed with regard to how it retards
national unity, investments and economic efficiency and develop a new and more
relevant framework for economic policy-making.
Muhyiddin said: "If we talk about the industrial sector, there has been
policies over the years requiring foreign investors to comply with (Bumiputera
or "sons of the soil") participation, for example."
"There is a FIC (Foreign Investment Committee) requirement that they
(foreign investors) need to fulfill, among others, to give a bit of leverage
for Bumiputras' interests," he said.
Some sectors such as the services sector have not been too open because "we
thought that this sector is a bit more Malaysian in nature and we want to
encourage Malaysian Bumiputeras to participate."
Muhyiddin concurred with Deputy Prime Minister Najib Razak's assurance that
the government would gradually liberalise the NEP, "where it is possible and
when we are ready."
"This will provide new avenues for foreign and local investors to come.
"So when you say there is a need for a review of NEP, first you should
understand what NEP is all about. Maybe a review on how you implement the NEP
could be a correct interpretation."
"I am not too sure whether Nazir means a total removal. I am not too sure
which specific areas of NEP he has suggested for a review...whether he mentioned
about business sectors, banking or services."
"But he said sooner than later, some of the service sectors would be
opened up but "it doesn't mean that this is a banning of what has been the
mainstay of Malaysia's policy of NEP."
"So, where some adjustments are needed. we will do that accordingly," he
said.
Najib, who is also Finance Minister, had said recently the NEP elements
would not be abolished at this time but liberalisation would be undertaken in
stages.
He had said although the NEP had been replaced with the National Development
Policy and now the National Mission, there were provisions in the two policies,
which still mirrored the NEP spirit, such as the quota allocations and certain
considerations, which were still practised to achieve a fair wealth
distribution.
"When the Malays and Bumiputeras have attained success and the confidence to
compete at the domestic and global levels, then they would no longer need quotas
or special considerations," Najib added.
-- BERNAMA
"In the process of implementation, there could be some weaknesses," he said
at the Malaysian Industrial Development Authority (MIDA) annual media conference
on the performance of the manufacturing and services in 2008 here Tuesday.
He was asked to respond to a suggestion by CIMB Group chief executive Nazir
Razak to improve certain areas in the New Economic Policy (NEP) to woo
investments.
Nazir had said the NEP should be reviewed with regard to how it retards
national unity, investments and economic efficiency and develop a new and more
relevant framework for economic policy-making.
Muhyiddin said: "If we talk about the industrial sector, there has been
policies over the years requiring foreign investors to comply with (Bumiputera
or "sons of the soil") participation, for example."
"There is a FIC (Foreign Investment Committee) requirement that they
(foreign investors) need to fulfill, among others, to give a bit of leverage
for Bumiputras' interests," he said.
Some sectors such as the services sector have not been too open because "we
thought that this sector is a bit more Malaysian in nature and we want to
encourage Malaysian Bumiputeras to participate."
Muhyiddin concurred with Deputy Prime Minister Najib Razak's assurance that
the government would gradually liberalise the NEP, "where it is possible and
when we are ready."
"This will provide new avenues for foreign and local investors to come.
"So when you say there is a need for a review of NEP, first you should
understand what NEP is all about. Maybe a review on how you implement the NEP
could be a correct interpretation."
"I am not too sure whether Nazir means a total removal. I am not too sure
which specific areas of NEP he has suggested for a review...whether he mentioned
about business sectors, banking or services."
"But he said sooner than later, some of the service sectors would be
opened up but "it doesn't mean that this is a banning of what has been the
mainstay of Malaysia's policy of NEP."
"So, where some adjustments are needed. we will do that accordingly," he
said.
Najib, who is also Finance Minister, had said recently the NEP elements
would not be abolished at this time but liberalisation would be undertaken in
stages.
He had said although the NEP had been replaced with the National Development
Policy and now the National Mission, there were provisions in the two policies,
which still mirrored the NEP spirit, such as the quota allocations and certain
considerations, which were still practised to achieve a fair wealth
distribution.
"When the Malays and Bumiputeras have attained success and the confidence to
compete at the domestic and global levels, then they would no longer need quotas
or special considerations," Najib added.
-- BERNAMA
