Divided over Najib’s liberal policies
Consumer advocates and medical practitioners also expressed concerns over the liberalisation policy, fearing the potential pitfalls on Malaysian businesses and citizens alike and, particularly, how Najib’s plan will affect crucial sectors, such as healthcare.
Faizal Tajuddin, Malaysian Mirror
In his most important decision since taking office on April 3, Prime Minister Najib Abdul Razak announced on Tuesday a new economic model which, among others, did away with the 30% bumiputra quota requirement for companies seeking to list on Bursa Malaysia.
This is yet another move by Najib in his liberalising policy that has resulted in split opinions across the Malaysian society; from those who are divided over the scrapping of bumiputra quotas and those who are divided over the scrapping of protectionist economic measures.
In less than 100 days in office, he has fast tracked a few measures to open up the Malaysian economy; first, by opening up 27 subsectors of service industries and, now, by dismantling bumiputra policies and allowing foreigners controlling stakes in particular economic sectors.
This liberalisation plan is expectd to be a continuous process with more sectors of the Malaysian economy opening up.
Split support
The dismantling of bumiputra policies has been lauded by proponents as a move that allows parity to Malaysians regardless of ethnic background. On the other hand, those opposing the decision criticise it as a move that mirrors Pakatan Rakyat’s own intended policy changes.
The move towards dismantling of protectionist measures, specifically in allowing foreigners controlling stakes in particular industries, splits supporters.
There are those who believe a deregulated Malaysian market could spur growth and critics who fear opening up Malaysian markets would jeopardise Malaysian businesses that cannot compete with biggerinternational firms.
Dr M: It's not helping anybody
Forrmer prime minister Dr Mahathir Mohamad, largely recognised as the architect of modern Malaysia, is of the opinion that Najib’s liberalisation plan “is not going to help anybody. It will not help the Chinese, Malays or Indians.
“I don’t know if liberalisation will help the economy, because the economy of Malaysia had been growing since Independence.
“But now it’s not growing. And there are external reasons for the lack of growth,” he told reporters at the launch of the Malaysian Mirror on the same day that Najib announced his quota-free economic reforms.
Dr Mahathir added: “You have to be very careful because foreigners, when they come in, don’t owe any loyalty to the country.
“They come here to make money. If they cannot make money, they go out. And,if they go out, we have to pay the price,” he said, asserting the potential hazard of capital flight should investors no longer find Malaysian market lucrative.
“In some instances, they come to build factories and produce things for export. Well, that’s fine. But when they can openly go into the market, well, that’s not good.”
Fearing pitfalls
Consumer advocates and medical practitioners also expressed concerns over the liberalisation policy, fearing the potential pitfalls on Malaysian businesses and citizens alike and, particularly, how Najib’s plan will affect crucial sectors, such as healthcare.
In an interview with the Malaysian Mirror, Federation of Private Medical Practitioners’ Association of Malaysia (FPMPAM) president Dr Steven Chow expressed misgivings over the liberalization process.
“We are concerned that our current laws and regulations pertaining to healthcare are not ready to cope with all the possible implications of liberalisation, which is supposed to be in effect next year. “We should proceed with caution,” he urged.
Monitoring Sustainability of Globalisation director Charles Santiago believes a liberalised market in an uneven environment will only benefit dominant players.
“When you liberalise in an uneven environment, only the dominant players will benefit. When you liberalize you have no control over the rules of trade,” he said.
Santiago, who is Klang MP, said local businesses need protectionist measures to safeguard against international companies that are wealthier and more powerful. He added, however, that it is only okay to liberalise “when there are effectiveness and competitiveness” in particular industries.
He believes it is precisely because of excessive liberalisation that the world is undergoing the present economic flux, somewhat echoing Dr Mahathir’s sentiment of external reasons for the current economic downturn.
