The year since our 50 th Merdeka anniversary has been vastly eventful, with a political tsunami and now a possible government change.
There are things in the horizon now with the uncertainty of the global economy, sub-prime crisis in the US, rising global crude oil price and the Chinese economy potentially over-exhausting itself after it hosts the Olympics
Malaysians need to sediakan payung sebelum hujan (prepare for the lean times), and I have a wish-list, hoping we can start before Merdeka day.
1. Comprehensive plan on fuel price - With a growing citizens’ uproar over the shaky restructuring of the subsidies system, and inflationary pressures already being felt by the people, a comprehensive plan on fuel price increase is necessary.
2. Proceed with banking reform - The banking mergers were the only major and systematic reforms we embarked on as a result of the Asian crisis of 97-98. However, the momentum for it has ebbed.
The next stage of strengthening our banking system is necessary. The globalisation tsunami has already started kicking in and there is a lot of pressure for Malaysia to liberalise her economy. This will bring in fierce competition and may sweep our smaller banks into troubled waters.
3. Adjust the ‘corridors’ - The Iskandar Development Region and the other four corridors have been launched in a space of just 16 months. Obviously, the government has championed these projects and the opposition has continuously attacked them.
How would these regions fare with the global food crisis and fuel price hike since their blueprints were prepared before these shocks emerged? More transparency is necessary for the regions in order for them not to turn into white elephants.
4. FDI and new strategies for competitiveness - Malaysia has been attracting less foreign direct investments (FDI) due to rising labour costs. China, India and Vietnam who are now major FDI destinations.
The recent fuel price increase does not help either. So are we going to sit and wait for our predicament to worsen? Malaysia has other strengths to lure FDI, like skilled labour and first-class infrastructure. We need to place emphasis on education and better industry links.
5. Poverty and micro-finance as an alternate solution - The UN’s Millennium Development Goals intend to halve world poverty and the proportion of people who suffer from hunger by 2015. Muhammad Yunus and Grameen Bank have helped reduce poverty in Bangladesh using micro-finance. Both were winners of the Nobel Peace Prize.
Amanah Ikhtiar Malaysia (AIM) - built on a similar model - has not been successful despite the support of Bank Negara in giving AIM a master plan to resuscitate micro-financing in the country.
It is not an easy task, but micro-financing will reduce poverty. Malaysia has to look at micro-financing seriously.
Hopefully, Malaysians will not be celebrating a sunset economy come August 31 but an ever brightly shining ‘Malaysia Boleh’ economy.
