PETALING JAYA: There is little time to waste for the government if it is to ensure that the economy recovers quickly, say economists.
And now that the National Recovery Council (NRC) has been disbanded, the time has come for Malaysia to tell the world that “Malaysia is open for business”, they say.
The uncertainty caused by the pandemic was not good for investors, said former Bank Negara Malaysia deputy governor Tan Sri Lin See Yan.
“Prime Minister Datuk Seri Anwar Ibrahim is right to seek new pathways, but where to?
“I expect him to lay out plans for the future soon. The real issue is the lack of a reliable flow of fixed investment.
“Investors don’t stand still. Countries like Vietnam, Indonesia and Myanmar look good to them. We have to compete for our share.
“Malaysia needs well-designed incentives to convince businesses to invest.
“Anwar has to show the way and guide businesses to put their money here,” said Lin.
Economist Dr Zakariah Abdul Rashid said it was a good decision to axe the NRC as it had no executive power to implement decisions it made.
“Recovery measures have to be taken promptly as they ride on the global business cycle. Such a council was unnecessary.
“Prompt action has to be taken, just as it was carried out before by the Economic Action Council,” said Zakariah, the former Malaysian Institute of Economic Research executive director.
Senior investment professional Datuk Shireen Ann Zaharah Muhiudeen said the key to rebuilding the economy was in sending the right messages to investors, industry and corporates.
“The message must be clear to the rest of the world that we are open for business.
“It does not matter if we are looking for investors in the liquid markets, or for them to come here and open more factories,” said Shireen.
The former Bursa Malaysia Bhd chairman said the country needed to attract capital with the right incentives.
“We have been receiving foreign direct investments (FDIs) but we are still not on the higher end. At this time, when our ringgit is weaker, it is time for us to attract long-term capital,” she said.
Sunway University director of the Economic Studies Programme Prof Yeah Kim Leng cautioned the government against procrastinating.
“Given the fast weakening global economy with high inflation, rising interest rates, the Russia-Ukraine war and China’s lingering Covid-19 woes, the new government does not have the luxury of time.
“It has to ensure political stability and smooth government functioning to strengthen investor confidence,” said Yeah.
