PM Najib Announces Structure, Functions Of Special Economic Committee

PUTRAJAYA (Malaysia), Aug 26 (Bernama) -- Malaysian Prime Minister Najib Razak on Wednesday unveiled the structure and functions of the Special Economic Committee (SEC) which will consider immediate and medium-term planning to further strengthen the country's economic fundamentals. Najib, who is also Finance Minister, said the SEC would report directly to him and he would scrutinise the current issues like the ringgit's value, maintaining the stability of the financial industry as well as improving confidence in the capital markets. He said the setting up of SEC took into account the current situation to tackle and reduce any global impact on the country's economy. "The decision to set up SEC is based on the need of the government to develop and implement immediate measures and plans to ensure that Malaysia continues to grow," he told a media briefing on the establishment of the SEC here Wednesday. Minister in the Prime Minister's Department, Senator Abdul Wahid Omar, will chair the committee which comprises economists and corporate leaders. Other members included Deputy Chairman of Khazanah Nasional Bhd, Nor Mohamed Yakcop; Khazanah Nasional Managing Director, Azamn Mokhtar; Chief Adviser of China Banking Regulatory Commission, Andrew Sheng Len Tao; Chief Executive of Symphony Life Bhd, Tan Sri Mohamed Azman Yahya; and CIMB Group Chairman, Nazir Razak; RAM Holdings Bhd Chief Executive Officer, Dr K.Govindan; Vice-Chancellor of Universiti Kebangsaan Malaysia (National University of Malaysia), Prof Moor Azlan Ghazali; Chairman of Association of Banks in Malaysia, Abdul Farid Alias; and, President of Federation of Malaysian Manufacturers, Saw Choo Boon. The committee will under a secretariat in the Economic Planning Unit where its Deputy Director-General, K.Yogeesvaran, will head it. Najib said several officers from the Finance Ministry, Bank Negara Malaysia (Malaysia's Central Bank), Ministry of International Trade and Industry, Securities Commission, Prime Minister's Office and Economic Planning Committee, and the Prime Minister's Department will also be included in the committee. Najib said the committee was merely a short-term solution will only be operational until the global economy bounced back. "It is short term in nature," he said. Najib said the SEC would have weekly meetings or more frequently if needed, to assess and propose urgent steps. The first meeting, he added, would be held next week. He said at the same time, the relevant agencies would be invited to attend and participate in discussions on how to overcome fundamental issues, settle operational matters or assist in overcoming problems that were stifling economic growth. "We can invite anyone we like to present their suggestions. If there are economists with good proposals, they can be brought for consideration by the government," he added. Asked if the SEC would focus on the ringgit, Najib said: "Anything we consider relevant, whether the current situation related to the ringgit, the question of economic stability or that of confidence, as well as what we can do in the domestic context, especially internal factors." At the same time, he stressed that the existing Economic Council, which he chaired, will continue to function in giving attention to overall economic issues. He said the council will, among others, continue to formulate strategies for sustained economic growth through foreign direct investments, as well as domestic and identify ways to control inflation. "It will also formulate a comprehensive social security net to protect the middle and lower income groups," he added. Last Thursday, Najib said Malaysia's economic fundamentals remained strong, with the financial system sustaining itself, as well as the continued commitment in implementing transformation and strengthening the fiscal position. He reiterated that the government would not impose capital controls and peg the ringgit to the US dollar. At the same time, he emphasised that the current value of the ringgit did not reflect the true state of Malaysia's economy which was strong, and the government was always mindful of the country's integration with the global economy. Najib said the uncertainty in the current global environment needed a stronger response. "The government hopes to overcome any global impact on the country's real economy," he added. (photoBERNAMA) --BERNAMA