ID :
57805
Tue, 04/28/2009 - 06:10
Auther :
Shortlink :
https://www.oananews.org//node/57805
The shortlink copeid
NAJIB CONTINUES WITH BREATHTAKING REFORMS
By Alan Ting
KUALA LUMPUR, April 27 (Bernama) -- Barely three weeks after taking office
as Malaysia's sixth Prime Minister, Najib Abdul Razak has been able to bring
into shape, several major reforms which he has promised Malaysians.
He revised several policies and announced the liberalisation of some sectors
of the economy to level the playing field of opportunities.
Since taking office on April 3, Najib has announced a series of major policy
changes, including the lifting of some regulations designed to benefit
bumiputera (son of the soil) but had deterred entrepreneurship and foreign
investments.
This included scrapping a 30 per cent Bumiputera ownership requirement for
investment in some services sector to help boost the country's flagging
economy, with immediate effect.
It will benefit part of the services sector, including computer services and
health-care sectors.
As part of his first major policy reforms, Najib also announced that five
foreign law firms would be allowed to offer services in Islamic finance.
Economists and analysts have been watching closely, whether the government
would gradually liberalise more sectors, particularly the more sensitive sectors
such as retail and banking, which also have certain ownership requirements but
the government is seen as trying to avoid liberalising these sectors to avoid
a political backlash.
However, judging from the speed and determination of the new administration,
it seems that they are all out for liberalisation in this sector to turn the
nation into a more attractive place for investment.
"In fact, we are very encouraged, quite a number of far-sighted decisions
are now being undertaken at a very quick pace since he assumed premiership. This
is very encouraging. If it follow through, it will have a positive impact on the
sentiments, more importantly the investor confidence," said Chief Economist, RAM
Consultancy Service Dr Yeah Kean Leng.
"Less than 100 days, there are breathtaking changes. If we can follow
through, it can be achieved in less than 100 days," he added.
The New Economic Policy (NEP) was introduced in the 1970s to provide for
equitable distribution of the economic wealth, which required businesses to have
certain percentage of Bumiputera ownership or quota on the hiring of
Bumiputeras.
Foreign investors found this policy to be restrictive, in terms of their
businesses.
Political analysts said Najib was smart and bold in continuing this anti-
affirmative-action jag, as they said he was aware of its political implications
and knew that it was also the only way forward, particulary in the current bad
global economic situation.
More importantly, Najib's breathtaking reforms are what the public has been
expecting all this while as the way forward for this multi-racial but small
country which is still very much dependent on natural resources, plantation and
manufacturing as the main sources of income.
"It's a practicality. You have no choice. Either you do something to give it
a chance, or you wait till it dies naturally," said James Wong, a former
politician and political analyst.
Wong said, since the NEP was announced in 1971, Malaysia's preferential
treatment of Bumiputera in education and business was seen as hampering growth.
"If the government can move past these, its economy will benefit most," he
added.
Najib took the reform agenda to a new high today when he allowed up to 70
per cent on foreign shareholdings in insurance and investment banking, as part
of measures to boost the finance industry under the economic liberalisation
package.
His latest move seems to be in tandem with the promises he made during
an interview with Financial Times, just before he took over the premiership,
that he wanted Malaysia to move away from its dependence on electronics exports
and commodities.
Although opposition lawmakers and political parties are expecting wider
reforms, DAP member of parliament Tony Pua has described Najib's announcements
as a "baby's step forward" to unwind long-standing policies which hindered
investments.
In the past, Pua said state agencies and government-linked companies
imposed strict guidelines on procurement of goods and services from private
firms, requiring them to comply with Bumiputera equity rules and staff quotas.
For instance, he said, some banks engaged only legal firms which have at
least 50 per cent Malay equity.
Despite perceptions that the government was unwilling to scrap policies
which benefited Bumiputera, for fear of alienating them as they formed the main
support of the ruling party, some politicians believe Najib would continue with
his reforms even if he faced fiery criticisms from his own party.
-- BERNAMA
KUALA LUMPUR, April 27 (Bernama) -- Barely three weeks after taking office
as Malaysia's sixth Prime Minister, Najib Abdul Razak has been able to bring
into shape, several major reforms which he has promised Malaysians.
He revised several policies and announced the liberalisation of some sectors
of the economy to level the playing field of opportunities.
Since taking office on April 3, Najib has announced a series of major policy
changes, including the lifting of some regulations designed to benefit
bumiputera (son of the soil) but had deterred entrepreneurship and foreign
investments.
This included scrapping a 30 per cent Bumiputera ownership requirement for
investment in some services sector to help boost the country's flagging
economy, with immediate effect.
It will benefit part of the services sector, including computer services and
health-care sectors.
As part of his first major policy reforms, Najib also announced that five
foreign law firms would be allowed to offer services in Islamic finance.
Economists and analysts have been watching closely, whether the government
would gradually liberalise more sectors, particularly the more sensitive sectors
such as retail and banking, which also have certain ownership requirements but
the government is seen as trying to avoid liberalising these sectors to avoid
a political backlash.
However, judging from the speed and determination of the new administration,
it seems that they are all out for liberalisation in this sector to turn the
nation into a more attractive place for investment.
"In fact, we are very encouraged, quite a number of far-sighted decisions
are now being undertaken at a very quick pace since he assumed premiership. This
is very encouraging. If it follow through, it will have a positive impact on the
sentiments, more importantly the investor confidence," said Chief Economist, RAM
Consultancy Service Dr Yeah Kean Leng.
"Less than 100 days, there are breathtaking changes. If we can follow
through, it can be achieved in less than 100 days," he added.
The New Economic Policy (NEP) was introduced in the 1970s to provide for
equitable distribution of the economic wealth, which required businesses to have
certain percentage of Bumiputera ownership or quota on the hiring of
Bumiputeras.
Foreign investors found this policy to be restrictive, in terms of their
businesses.
Political analysts said Najib was smart and bold in continuing this anti-
affirmative-action jag, as they said he was aware of its political implications
and knew that it was also the only way forward, particulary in the current bad
global economic situation.
More importantly, Najib's breathtaking reforms are what the public has been
expecting all this while as the way forward for this multi-racial but small
country which is still very much dependent on natural resources, plantation and
manufacturing as the main sources of income.
"It's a practicality. You have no choice. Either you do something to give it
a chance, or you wait till it dies naturally," said James Wong, a former
politician and political analyst.
Wong said, since the NEP was announced in 1971, Malaysia's preferential
treatment of Bumiputera in education and business was seen as hampering growth.
"If the government can move past these, its economy will benefit most," he
added.
Najib took the reform agenda to a new high today when he allowed up to 70
per cent on foreign shareholdings in insurance and investment banking, as part
of measures to boost the finance industry under the economic liberalisation
package.
His latest move seems to be in tandem with the promises he made during
an interview with Financial Times, just before he took over the premiership,
that he wanted Malaysia to move away from its dependence on electronics exports
and commodities.
Although opposition lawmakers and political parties are expecting wider
reforms, DAP member of parliament Tony Pua has described Najib's announcements
as a "baby's step forward" to unwind long-standing policies which hindered
investments.
In the past, Pua said state agencies and government-linked companies
imposed strict guidelines on procurement of goods and services from private
firms, requiring them to comply with Bumiputera equity rules and staff quotas.
For instance, he said, some banks engaged only legal firms which have at
least 50 per cent Malay equity.
Despite perceptions that the government was unwilling to scrap policies
which benefited Bumiputera, for fear of alienating them as they formed the main
support of the ruling party, some politicians believe Najib would continue with
his reforms even if he faced fiery criticisms from his own party.
-- BERNAMA
