Malaysia Should Move on Beyond Political Tsunami

The days since our 50^th anniversary Merdeka celebration in 2007 to the coming 31^st August 2008 seem too eventful, witnessing a so-called “political tsunami”, shocking fuel price increase, and repeated claims and denials of government change. As every natural disaster needs time to recover, Malaysian tsunami seem take too long, hence the nation forget that continuous progress is still utmost important. Increasing uncertainties in global economies, particularly the sub-prime crisis in the United States, rising global crude oil price and possible of China economy exhausting itself after the Olympic need our urgent attention. All Malaysians need to “sediakan payung sebelum hujan”, as said by the wisdom of this Malay proverb. Therefore, the country should move on. Attentions should not be stagnated at the days of political tsunami of the Malaysian 12^th General Election in March 2008. The following list needs utmost important attention too.

1. Comprehensive plan on fuel price

There are already mountains of response on this issue since the announcement of the fuel hike. Nevertheless, the government neither calms the nation through its rebate compensation nor looks confident in their decision. Various new measures announced or proposed from time to time in respond to the citizens’ uproar, implying that the shakiness of the “subsidies restructuring plan”. Effect of inflation already felt, thus a comprehensive plan on fuel price and show of confident of the highest level from the government to its own plan are urgently needed for the benefit of the nation.

2. Proceed with banking reform

The banking mergers as the result of Asian Crisis 1997/98 were the only major and systematic reform we have so far. However, is that supposing not the last planned banking reform? So, when will be the next wave of strengthening our banking system? Globalization tsunami has already kicked in lots of pressure to liberalize the Malaysian economy, bringing in fierce competitions that might easily sweep our smaller banks into trouble water. Do we need to wait for another crisis?

3. How about the Corridors?

Since the Iskandar Development Region (now, renamed “Iskandar Malaysia”) was officially launched in November 2006, Malaysia proudly and rapidly launched four other economic corridors (regions) within the space of less than 16 months. On one hand, the ruling government claimed that these corridors will propel Malaysia to another higher stage of economic success but the oppositions beg to differ. Blueprint for each have been successfully developed but that was before the food crisis and fuel price hike. Would these two factors derail the progress of these five corridors? Most importantly, are these corridors, launched just before the general election, are for “show” as claimed by the oppositions? More transparency and highlights are needed to enable the public from laymen to academicians to monitor the development of these corridors. Hopefully, these corridors would not become white elephant nor the plan being derailed due to political reason.

4. FDI and new strategies for competitiveness

It cannot be denied that Malaysia has somehow lost its relative competitions in attracting foreign direct investment (FDI) due to rising cost of labour. China, India and Vietnam have taken over as the major destination for FDI. Increase in Malaysian fuel price certainly doesn’t help either. So, are we going to sit idle and wait for our destiny? Well, Malaysia has other strength to capitalize on to attract FDI. Skill labours cum first-class infrastructures are the most obvious. Grassroots-education-to-all policy seems work well in generating abundance supply of skill labours in Malaysia. In addition, great supporting industry linkages, which might not be a commonly seen positive factor, should be further enhanced and promoted.

5. Poverty – Micro-finance as alternative solution

Last but not least, poverty issue should not be neglected from the needed attention in the period of the Millennium Development Goal that wish to halve, between 1990 and 2015, world poverty and proportion of people who suffer from hunger. In this aspect, Malaysia should learn from the success of the Nobel Peace Prize winning Grameen Bank and its founder Muhammad Yunus in reducing poverty in Bangladesh through micro-finance. In Malaysia, some of the most influential micro-finance institutions like Amanah Ikhtiar Malaysia (AIM) did not performed well. Despite strong effort by Bank Negara Malaysia to come out with master plan to actively promote the development of micro-finance since end of 2007, concrete success like the Grameen Bank certainly not easy to emulate but it will greatly help reducing poverty in Malaysia. Thus, the nation should give more effort and support to the development of micro-finance as alternative solution to poverty alleviation.

Hopefully, Malaysians will not be celebrating a sunset economy comes this 31^st August 2008, but an ever brightly shining “Malaysia Boleh” and “Malaysia Gemilang” economy.