Prime Minister Dato Seri Najib Tun Razak
There
is a need to reignite the engines of growth said Prime Minister Datuk Seri
Najib Tun Razak in his opening remarks at the Global Transformation Forum (GTF
2015).
He
said there were tough decisions to be made, policies up for review and a
clearer socio-economic roadmap to be developed if Malaysia wanted to break away
from the middle income trap fast and become a high income nation by the year
2020.
Our
good years of growth are reaching a plateau. Investments are thinning, there is
increased competition for global investors and our economy is in danger of
getting caught in the middle income trap.
The
global economy is currently facing fierce headwinds, with the decline in oil
and commodity prices, the rise in United States’ interest rates and devaluation
of the Chinese Yuan.
This
situation could last a few years, so the government must rethink its objectives
and ambitions to maintain its long-term vision for the country. We are doing so
and I will outline some of the measures we intend to take in our annual Budget
this Friday, he said.
We
should not lose sight of what we have achieved in our transformation over the
last six years. It has been nothing short of phenomenal. Malaysia has seen
sustainable economic growth and more than double the investments compared to
four years ago.
The
fiscal deficit fell to 3.4% last year from 6.7% in 2009 when the Government
first began its national transformation agenda. With this number reducing each
year since 2010, as per our targets, we are confident of reaching a balanced
budget - or as close to that as possible - by 2020.
On
the 1Malaysia Development Bhd the PM promised to take the strictest action
against anyone found to be involved should there be any evidence of wrongdoing.
1MDB
is in the midst of implementing a rationalization plan, which would allow the
company to pay off its outstanding debt and resolve its current cash flow
issues.
On
claims of wrongdoing, there are a number of independent investigations, some of
which I myself ordered. Rather than conduct a trial by media, we must wait for
the outcome of these investigations, he said.
Datuk Seri Abdul Wahid
Omar
Minister
in the Prime Minister’s Department and head of the Government’s Economic
Planning Unit Datuk Seri Abdul Wahid said the bottom 40 (B40) group earnings
had increased by 12.7% from 2009 to last year under the leadership of Prime
Minister Datuk Seri Najib Tun Razak.
The
income level of the B40 group has moved up at a faster rate compared with that
of the top 20% wealthiest group over the past five years.
Between
2009 and last year, we saw tremendous growth of income of the bottom 40%
household increasing quicker than the top 20%,” he said during the ‘Designing
the Future’ session.
Tan Sri Nor Mohamed
Yakcop
Tan
Sri Nor Mohamed Yakcop, who served as Finance Minister II from 2004 to 2009, said
Malaysia was the only country in the world to have a dual banking system
comprising conventional and Islamic banking.
In
terms of our optimal combination of public and private sector, what has worked
is that we’ve built world class infrastructure. We’ve done that very well he stressed
in a session titled
‘Transforming State-Owned Enterprises’.
The
current state investment fund Khazanah Nasional Berhad deputy chairman went on
to say that Malaysia has created world class infrastructure and a strong
financial system with the government and private sectors working well together.
We’ve
created a very developed, very robust financial system, both in conventional
banking as well as Islamic banking. The areas that need further improvement are
skills training, which he noted has not been able to fulfill industry demands,
as well as better coordination between government agencies.
He
warned that if we do not have a stronger performance, we risk becoming like
Nokia. We need better risk management, or we risk a major accident like BP, or
poor governance like Volkswagen.
Tan Sri Tony Fernandes
AirAsia
Group chief executive Tan Sri Tony Fernandes called for more transparency in
taxation when he said governments need to be more open on their tax collecting
procedures, adding that corporations show greater accountability than
governments in their spending.
He
said the current taxation system was very complicated, with many different
demographics and special needs being taken into account that left the system
open to abuse.
In
a session titled ‘Transformational Entrepreneurship’ Fernandes said companies
were better than governments in being more accountable on tax revenues, spending,
ensuring a better P&L, detailing how much money was spent and whether there
was a good ROI.
The
implementation of GST has sparked complaints of the broad-based consumption tax
system being too complex due to a long list of exemptions and zero-rated goods.
He
also said that branding was not merely about external branding but internal
branding as well, adding that “If you’re going to sell a brand; if your own
people don’t believe in the brand, it’s kind of tough. Many great companies
miss out on their greatest asset — which is the people in their own organization”.
“I
think governments also miss out their biggest asset — the people. The strongest
asset in Malaysia is our amazing diversity and the very talented people in this
country. Given the chance, we can do so much,” he said.
Labels: #gtf2015, Abdul Wahid Omar, Global Transformation Forum 2015, Najib Tun Razak, Nor Mohamed Yakcop, Tony Fenandes