Why the Malaysian Economy is in a Dilemma?

By Khoo Kay Peng

Why is the national economy in such a sorry state? NEAC chairman Amirsham Aziz admitted that Malaysia was still relying on the old model, as a low-cost manufacturing hub with low wages and adequately skilled workers.

Hence, he wants to take a proactive step to reinvent the economic model. But what is the main dilemma of our economy?

This is it. Ignorance. Incompetence.

He said the New Economic Advisory Council (NEAC) will send its team to South Korea, Taiwan, Singapore and several east European countries soon to learn about how they have transformed their economies.

Amirsham A. Aziz said Korea, Taiwan and Singapore had successfully remodelled their economies and their economic growth has been impressive.

If these advisers and policy makers still do not know why these economies are successful, then it is best to find others who already understand the dynamics behind these economies.

South Korea, Taiwan and Singapore have a thing in common – a good education system, a high work rate, a socio-economic system based on merit, capable civil servants and policy makers, low barrier to entrepreneurialism , market liberalisation and performance driven.

Malaysia? Nepotism, know-who, increase marginalisation of SMEs, ignorant policy makers, incompetent civil service, poor education system (overly politicised), NEP, high barrier to entrepreneurialism, corruption, non-productive public projects, policy flip-flops, institutionalised racism apart from low wages and less than professional work attitude.

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