‘Cut red tape, let business grow'

The Star

5 days ago

13MP must clear the way for private sector growth, say economists
PETALING JAYA: The 13th Malaysia Plan (13MP) must help steer the country's transition towards becoming a high income nation by 2030 with emphasis on greater private sector participation and less bureaucratic red tape, say economists.
Sunway University economics professor Dr Yeah Kim Leng is of the view that the 13MP must be in tune with the World Bank's definition of a high-income nation.
'It is important to accelerate economic growth so that the income gap with other high-­income countries continues to narrow.
'The plans must also include pressing ahead with the required educational, health, infrastructu­ral and environmental development that underpin a dynamic and resilient economy,' he said in an interview.
The 13MP, which is to be unveiled in Parliament on Thursday, will chart a strategic road map for the nation's economy for the next five years.
The plan, said Dr Yeah, should also contain mechanisms and poli­cies to help Malaysia shift towards a value added tech­nology and innovation-driven economy where private sector participation is crucial.
'There is also a need for policies to increase revenue mobilisation to keep abreast of the need for higher government spending while simultaneously raising spending efficiency and service delivery effectiveness.
'This can be achieved through digitalisation and technology adoption, especially the use of artificial intelligence.'
The economic roadmap, he noted, must include the streamlining and restructuring of govern­ment linked companies and state-owned enterprises.
'This will help unlock the country's full economic potential through stronger investment, entrepreneurship and private sector-led growth,' he added.
Economist Geoffrey Williams said the 13MP should focus on reducing the role and interference of government in existing business and commercial areas and leaving these to the private sector.
'The government should focus on areas that are the direct legitimate concern of government, including public health, education and social protection.
'Regulations should be slashed and focused only on minimum standards of health and safety, anti-corruption, good governance and anti-trust issues,' he said.
The 13MP, he added, must take into account social issues, with the creation of sustainable living income levels in the form of a Universal Basic Income and a Universal Basic Pension.
'These must support policies to raise incomes through meaningful work with a fair share of value created going to emplo­yees.
'Free higher education should be a priority through the reform of the higher education system and replacing National Higher Education Fund Corporation loans with a sustainable financial system,' said Williams.
The recent changes in the ­global economic landscape is also a factor that should be addressed under the MP13, he pointed out.
'The United States tariff issue has given us a lesson that protectionist policies come with reciprocal costs.
'So removing restrictions to market access should be a priority for 13MP,' he said.
Economist Prof Emeritus Barjoyai Bardai said over-­reliance on a purely capitalistic approach with regards to foreign direct investment has resulted in less than 200,000 companies controlling over 80% of the economy.
He said there should be a shift towards developing the nation's micro-small and medium enterprises (MSMEs) which make up 65% of the nation's manpower or some three-million workers.
The 13MP, he said, must also ensure the development of the nation's semi-conductor industry, which currently ranks seventh globally.
Strategic Institute for Asia Pacific senior economic advisor Dr Anthony Dass said the 13MP must shift from the post Covid-19 recovery period to one of economic transformation to drive high-value growth, particularly in the digital and green economy.
This, he said, must be coupled by inclusive development and fiscal reform, adding that efforts must also be carried out to boost high-tech investment while accelerating upskilling and technical and vocational education and training.