Killing the sacred cow of economy
This monster called FIC is indeed an absurd product of a bygone era. Despite the harms it has done on the national economy, the committee has been made a sacred cow–something that must never be offended–under the protective net of the NEP.
By TAY TIAN YAN/Translated by DOMINIC LOH/Sin Chew Daily
The infamous Foreign Investment Committee (FIC) finally meets the destiny that serves it well!
The agency which used to hold too much power is now almost stripped of all its authority, leaving behind nothing more than an empty shell!
And that is great news for all!
The FIC was set up under the auspices of the New Economic Policy with an explicit mission of promoting investment and economic development but has in fact hampered healthy economic development.
Over the past 35 years, the committee has curbed the advances of the national economy. It has set up quotas and equity requirements as thresholds and restructuring as its fortified wall!
Any form of investment, acquisition, merger and the like must first get the go-ahead of this committee.
If quotas and bumi equity requirements are not met, the deal will be pronounced dead.
The corporate world shakes its head in dissatisfaction talking about the FIC, and investors are instantly put off by it.
Especially during the past ten over years when global economy has been liberalised at accelerated rates and nations across the world rush opening up their economies to rake in the much needed technology and capital.
Nevertheless, Malaysia's FIC remains recalcitrant in resisting external changes.
Global investors do not have the oligation to please the FIC or to invest in this country. In the face of such outdated, unfair and inefficient economic restrictions, they need not frown and can walk away just that.
| "Despite the harms it has done on the national economy, the committee has been made a sacred cow under the protective net of the NEP." |
In the end, the Malaysian economy remains static, and we have to be contented with Hong Kong, Taiwan, Korea and Singapore throwing us further and further behind while China, India, Vietnam, Eastern Europe and Latin America are fast catching up.
Our foreign investments have slided consecutively over the past several years while domestic investments remain sluggish.
This is the result of our government's antiquated policies. We can't blame the world for shunning us!
This monster called FIC is indeed an absurd product of a bygone era. Despite the harms it has done on the national economy, the committee has been made a sacred cow–something that must never be offended–under the protective net of the NEP.
Having said that, if we allow it to continue to exist, it will eat into our economy.
Foreign investments have been halved and the alarm bell has been rung!
Only with a strong willpower could we possibly get rid of it.
Najib's announcement has made that very important first move.
Albeit a little late, at least the country's investment environment is moving towards the right way.
Of course, this doesn't mean all the obstacles have been removed. There are still plenty of irrational and inefficient policies hanging around.
Najib's reform agenda must never stop just here.
