Yip Ai Tsin & Hazlan Zakaria
Sep 29, 09
6:45pm
Former federal minister Zaid Ibrahim has questioned the need for a tag line to give recognition to Prime Minister Najib Abdul Razak's policies.
"To give a tag name of 'Najibnomics' to those minimal policy changes is laughable. He has done little by way of articulating serious economic policies to warrant a tag line,” said the former Umno stalwart who is now in opposition party PKR.
"I do not consider Najib as having enunciated any cohesive economic policy framework at all since he became PM, save for some announcement on bumiputera policy in the services sub-sector and the so-called liberalisation package which was rendered necessary to reverse the dwindling foreign direct investment and to placate the demands on us by our trading partners.”
Zaid (left in photo) said Najib (right in photo) has not been open in the way he implements his policies especially in the RM60 billion stimulus economic package, as well as how the government-linked private equity fund, Ekuiti Nasional Bhd (Ekuinas) functions.
"Najib did not dare give the details of where the money went, nor does he care to explain if the stimulus are adequate. How has Ekuinas Capital utilised the government funds? So much for his transparency and reforms," said the former de facto law minister.
The setting up of Ekuinas was among Najib's initiatives to acquire a controlling stake in unlisted local companies to raise the level of bumiputera participation in commercial activities.
Zaid also pointed out that Najib has yet to address the country's drop in ranking in the World Economic Forum Global Competitiveness Report for 2009-2010. Malaysia dropped from 17th to 43rd position within two years, according to the report released early this month.
"He has not set out to tell us on how we can be more competitive as a nation. Is he not concerned we have dropped to 43rd position and are rated poorly in this regard?" asked Zaid.
"What happens when the demand of our traditional trading partners are no longer sustainable? How does he plan to replace our dependency on exports of manufactured goods?”
He added that, to him, these are more fundamental questions rather than the ones that Najib is addressing.
Vested interests?
Putting the issue into context, Centre for Policy Initiatives director Lim Teck Ghee agreed with Zaid that the praise for 'Najibnomics' is premature.
"It has been coined by various business and consultancy oriented organisations such as the CLSA Asia-Pacific Markets for their clients and, in the case of the Harvard Business School, for its members and students,” Lim said when contacted.
"The Harvard case-study work will focus on the pros and cons of the so-called new policy regime of the BN government and what its impact is.
"I presume the study has not been completed yet. Let us await the results of the study and have its findings out in the open so we can have a proper analysis on whether the study is worth looking at.
"To me the jury is still out on how much of a breakthrough there has been in recent policy reforms and the extent to which it has benefitted the people.”
Lim also added that the objectivity of the study would be open to question if the foreign group has vested interests.
"It will be important to know whether the group or various individuals attached to the group have been advising the government on the stimulus package, and the kinds of business or consultancy deals that they have on an individual or organisational basis in the country or with the government. If they are interested parties, then the objectivity of the study is open to question.”
He downplayed the introduction of stimulus packages in Malaysia, saying that most if not all countries in the region have introduced similar measures in response to the financial and economic crisis.
"It is not only Malaysia that has been responsive. In fact, recent UN studies of these packages show that several countries in the region have had deeper, more people-oriented and reform- oriented packages than Malaysia," he said.
In terms of the recent liberalisation policies announced by Najib, Lim said there is much concern that these may be "too little too late" and, in fact, that they “barely scratch at the surface of our deeply rooted social and economic problems”.
"As a result of 50 years of BN rule, we have income inequalities at some of their highest levels ever; the public health system eroded by privatisation, endemic and apparently uncontrollable high level as well as lower level corruption; an educational system that is not competitive and producing too many unemployable graduates; rising inflation and government deficits; a bloated civil service and government-linked companies that have been bleeding the treasury.”
He stressed that it will be important for the analysts of 'Najibnomics' to look at these negative indicators and ask whether the new policies are directly addressing them or whether "it is still very much the same business as usual despite the new marketing spin".
Different take
However, RAM economist Yeah Leng Kim lauded it as a good move to enable the public to know the country's economic direction and the new term signifies "regime change".
"Najib's reforms, policies and changes put in place political sensitive policies in order to overcome the fiscal challenges. The shift from quota-based to market-based income approaches are clearly bold reforms undertaken,” he explained.
"Because 2009-2010 are critical years that could raise deficit and government debt, Najib's stimulus package is timely, targeted and specific in a sense that the plans are within a specific time period.”
Yeng claimed that, under 'Najibnomics', the liberalisation policies can provide a greater multiplier effect for higher economic activities in future.
When contacted, CLSA, the independent brokerage house that issued the report on Najib's economic policies said this is a private special report prepared by its four-member research team in Malaysia and commissioned by a client.
"The report, which was done in July, is not for public circulation. We do not know how the national news agency got it," said its spokesperson who declined to be named.
CLSA is a foreign brokerage house that does equity research. It has its headquarters in Hong Kong, with a branch in Malaysia and other major Asia-Pacific countries. CLSA is an aggregate firm formed by the merger of France's Credit Agricole with Credit Lyonnais in 200
Sep 29, 09
6:45pm
Former federal minister Zaid Ibrahim has questioned the need for a tag line to give recognition to Prime Minister Najib Abdul Razak's policies.
"To give a tag name of 'Najibnomics' to those minimal policy changes is laughable. He has done little by way of articulating serious economic policies to warrant a tag line,” said the former Umno stalwart who is now in opposition party PKR.
"I do not consider Najib as having enunciated any cohesive economic policy framework at all since he became PM, save for some announcement on bumiputera policy in the services sub-sector and the so-called liberalisation package which was rendered necessary to reverse the dwindling foreign direct investment and to placate the demands on us by our trading partners.”
Zaid (left in photo) said Najib (right in photo) has not been open in the way he implements his policies especially in the RM60 billion stimulus economic package, as well as how the government-linked private equity fund, Ekuiti Nasional Bhd (Ekuinas) functions.
"Najib did not dare give the details of where the money went, nor does he care to explain if the stimulus are adequate. How has Ekuinas Capital utilised the government funds? So much for his transparency and reforms," said the former de facto law minister.
The setting up of Ekuinas was among Najib's initiatives to acquire a controlling stake in unlisted local companies to raise the level of bumiputera participation in commercial activities.
Zaid also pointed out that Najib has yet to address the country's drop in ranking in the World Economic Forum Global Competitiveness Report for 2009-2010. Malaysia dropped from 17th to 43rd position within two years, according to the report released early this month.
"He has not set out to tell us on how we can be more competitive as a nation. Is he not concerned we have dropped to 43rd position and are rated poorly in this regard?" asked Zaid.
"What happens when the demand of our traditional trading partners are no longer sustainable? How does he plan to replace our dependency on exports of manufactured goods?”
He added that, to him, these are more fundamental questions rather than the ones that Najib is addressing.
Vested interests?
Putting the issue into context, Centre for Policy Initiatives director Lim Teck Ghee agreed with Zaid that the praise for 'Najibnomics' is premature.
"It has been coined by various business and consultancy oriented organisations such as the CLSA Asia-Pacific Markets for their clients and, in the case of the Harvard Business School, for its members and students,” Lim said when contacted.
"The Harvard case-study work will focus on the pros and cons of the so-called new policy regime of the BN government and what its impact is.
"I presume the study has not been completed yet. Let us await the results of the study and have its findings out in the open so we can have a proper analysis on whether the study is worth looking at.
"To me the jury is still out on how much of a breakthrough there has been in recent policy reforms and the extent to which it has benefitted the people.”
Lim also added that the objectivity of the study would be open to question if the foreign group has vested interests.
"It will be important to know whether the group or various individuals attached to the group have been advising the government on the stimulus package, and the kinds of business or consultancy deals that they have on an individual or organisational basis in the country or with the government. If they are interested parties, then the objectivity of the study is open to question.”
He downplayed the introduction of stimulus packages in Malaysia, saying that most if not all countries in the region have introduced similar measures in response to the financial and economic crisis.
"It is not only Malaysia that has been responsive. In fact, recent UN studies of these packages show that several countries in the region have had deeper, more people-oriented and reform- oriented packages than Malaysia," he said.
In terms of the recent liberalisation policies announced by Najib, Lim said there is much concern that these may be "too little too late" and, in fact, that they “barely scratch at the surface of our deeply rooted social and economic problems”.
"As a result of 50 years of BN rule, we have income inequalities at some of their highest levels ever; the public health system eroded by privatisation, endemic and apparently uncontrollable high level as well as lower level corruption; an educational system that is not competitive and producing too many unemployable graduates; rising inflation and government deficits; a bloated civil service and government-linked companies that have been bleeding the treasury.”
He stressed that it will be important for the analysts of 'Najibnomics' to look at these negative indicators and ask whether the new policies are directly addressing them or whether "it is still very much the same business as usual despite the new marketing spin".
Different take
However, RAM economist Yeah Leng Kim lauded it as a good move to enable the public to know the country's economic direction and the new term signifies "regime change".
"Najib's reforms, policies and changes put in place political sensitive policies in order to overcome the fiscal challenges. The shift from quota-based to market-based income approaches are clearly bold reforms undertaken,” he explained.
"Because 2009-2010 are critical years that could raise deficit and government debt, Najib's stimulus package is timely, targeted and specific in a sense that the plans are within a specific time period.”
Yeng claimed that, under 'Najibnomics', the liberalisation policies can provide a greater multiplier effect for higher economic activities in future.
When contacted, CLSA, the independent brokerage house that issued the report on Najib's economic policies said this is a private special report prepared by its four-member research team in Malaysia and commissioned by a client.
"The report, which was done in July, is not for public circulation. We do not know how the national news agency got it," said its spokesperson who declined to be named.
CLSA is a foreign brokerage house that does equity research. It has its headquarters in Hong Kong, with a branch in Malaysia and other major Asia-Pacific countries. CLSA is an aggregate firm formed by the merger of France's Credit Agricole with Credit Lyonnais in 200