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Malaysia targets face scepticism
By Eileen NG |
September 22, 2010, Wednesday
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Print Edition
Print Edition
MALAYSIA has set an ambitious target of luring US$444 billion of investment over the next decade to become a developed nation by 2020, but analysts have warned that the plans are unrealistic and may be hampered by an affirmative action policy favoring the ethnic Malay majority.
Idris Jala, a minister in the Prime Minister's Department, said yesterday that the government wants to bring broadband to the whole country, develop nuclear energy and build a high-speed rail link to Singapore under a 10-year blueprint to kick-start the Southeast Asian nation's drive towards high-income status.
The Economic Transformation Programme encompasses everything from oil and gas, palm oil and agriculture to tourism, financial services education and urban infrastructure.
The blueprint seeks to nearly triple the country's gross national income from US$188 billion in 2009 to close to US$523 billion by 2020 and raise per capita income from US$6,700 to US$15,000 - meeting the World Bank's benchmark for a high-income nation.
"Malaysia has no time to lose. We need a complete, radical economic transformation. The days of depending on traditional growth engines are over," Idris said at a roadshow to gauge public response to the plan.
Analysts, however, said meeting the investment target would be a tall order. Foreign direct investment in Malaysia has slumped in recent years, plunging 81 percent to $1.4 billion in 2009 as it lost out to rivals such as Singapore, Indonesia and Thailand. Malaysia's system of preferences and quotas for Malay and lack of human capital are often cited as stumbling blocks for investors.
"There is nothing which indicates any transformation in policy and practices," said Ramon Navaratnam, chairman for the independent Center for Public Policy Studies, a think tank.
Idris said the government would make affirmative action for Malays more transparent. "We do not pick winners. We will make the rules clear ... so competition is done on an even keel," he said.
Idris Jala, a minister in the Prime Minister's Department, said yesterday that the government wants to bring broadband to the whole country, develop nuclear energy and build a high-speed rail link to Singapore under a 10-year blueprint to kick-start the Southeast Asian nation's drive towards high-income status.
The Economic Transformation Programme encompasses everything from oil and gas, palm oil and agriculture to tourism, financial services education and urban infrastructure.
The blueprint seeks to nearly triple the country's gross national income from US$188 billion in 2009 to close to US$523 billion by 2020 and raise per capita income from US$6,700 to US$15,000 - meeting the World Bank's benchmark for a high-income nation.
"Malaysia has no time to lose. We need a complete, radical economic transformation. The days of depending on traditional growth engines are over," Idris said at a roadshow to gauge public response to the plan.
Analysts, however, said meeting the investment target would be a tall order. Foreign direct investment in Malaysia has slumped in recent years, plunging 81 percent to $1.4 billion in 2009 as it lost out to rivals such as Singapore, Indonesia and Thailand. Malaysia's system of preferences and quotas for Malay and lack of human capital are often cited as stumbling blocks for investors.
"There is nothing which indicates any transformation in policy and practices," said Ramon Navaratnam, chairman for the independent Center for Public Policy Studies, a think tank.
Idris said the government would make affirmative action for Malays more transparent. "We do not pick winners. We will make the rules clear ... so competition is done on an even keel," he said.
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