The ways to achieve Vision 2020
The New Economic Model (NEM) is an economic
plan in Malaysia unveiled on 30 March, 2010 by Malaysian Prime Minister Najib
Tun Razak which is intended to more than double the per capita income in
Malaysia by 2020. Besides, this is programme aims to shift affirmative action
from being ethnically-based to being need-based hence becoming more
competitive, market and investor friendly. According to Najib the goal is to
"transform the Malaysian economy to become one with high incomes and
quality growth" by 2020.
The keys to the plan as described by Najib at
the 30 March unveiling are "high income, sustainability and
inclusiveness".The goal is to stimulate economic growth by improving
worker productivity across all sectors of society, in part through an improved
system of affirmative action, with an eye towards sustainability. Among other
reforms meant to accomplish this goal, the Najib administration have also
claimed that the NEM is to empower the private sector and to reduce fiscal
disparity between the wealthiest and poorest of Malaysians
6.2
Reform of government subsidies
Subsidy reform in Malaysia was initiated in
July 2010 by Prime Minister Najib Tun Razak via a reduction in subsidies for
fuel and sugar. Further cuts in subsidies for these and other products are
planned over a three- to five-year period in order to strengthen government
finances and improve economic efficiency. Prime Minister Najib announced cuts in the subsidies
for vehicle fuel, sugar, and gas for cooking that took effect on midnight 15
July 2010.
The government plans to regulate the price of
RON97, a premium grade of petrol, through what it calls a "managed float
mechanism". The government plans to adjust prices monthly according to
conditions in the international oil market. The prime minister stressed that
the government would continue to standardize prices in Sabah and Sarawak to
protect the rural poor.
6.3
Economic liberalization
Malaysia has implemented substantial measures
to attract and maintain foreign investment including a moderation of
preferences designed to benefit ethnic Malays. Specifically these reforms
include allowing foreign investors to hold majority stakes in most enterprises excluding
"strategic" industries such as banking, telecommunications, and
energy, easing insurance regulation, curtailing powers of the Foreign
Investment Committee and lowering the minimum quota for Malay ownership in
publicly traded companies from 30 percent to 12.5 percent. As he introduced the
reforms Najib stated, "The world is changing quickly and we must be ready
to change with it or risk being left behind.”
Under Najib, the Malaysian central bank has
increasingly allowed the ringgit to appreciate and has plans to allow settlement
and borrowing denominated in ringgit to be conducted offshore. Najib says that
exporters will not be hurt by these actions
No comments:
Post a Comment