PM ON EGO TRIP JUDGING BY HIS SPEECHES RECENTLY WHEN HE DECLARED THAT HIS ECONOMIC TRANSFORMATION PROGRAM AS VERY SUCCESSFUL SINCE ITS LAUNCHING THREE YEARS AGO
Actually, since his announcement of his reforms with the NEM ( new economic model) he has done a number of flip flops. He declared that he would remove the NEP (new economic policy) or do serious modifications. He was immediately criticised by Perkasa who demanded that the NEP should remain. PM Najib caved in to Perkasa demands, and the NEP stayed, to the dismay of investors both domestic and foreign.
In its place, PM Najib introduced the Economic Transformation Program (ETP) which included a plethora of projects amounting to RM179 billion.
FOREIGN DIRECT INVESTMENTS RESPONSE POOR FOR ETP
How did foreign investors respond? They gave the ETP the thumbs down by investing only US9 billion billion Foreign Direct inflows (FDI). Indonesia had more at US$13 billion, Vietnam 8 billion, Singapore 39 billion, and China highest FDI at 106 US billion.
The small amount of FDI at US$9 billion, (RM33 billion) reflect a loss of confidence by foreign investors. without strong foreign participation in the reforms, economic progress will slow down, because FDIs not only bring in cash, but also much needed and valuable foreign technology, research and expertise. Loss of foreign confidence will be a serious handicap for the reforms,
Malaysia may be listed as among the world’s top 10 favorites for investments, but the NEP has put an end to that, and recent figures show that Indonesia and Vietnam are attracting more foreign investors.
GROSS DOMESTIC PRODUCT (GDP)
Loss of investor confidence is also reflected in the GDP. The World Economic Outlook, september2011, show that since the Asian financial crisis in 1997, Malaysia has not yet recovered, and since then, the GDP
Was hovering between 4 to 6. GDP is predicted to be 4.8 this year. With this scenario, the per capita income of Malaysians will be low, at around US$10000 per capita.
If Najib wants to reform AND
IF NAJIB IS SINCERE IN WANTING TO CREATE A HIGH INCOME NATION, HE SHOULD CONSIDER ALL MALAYSIANS AS KETUANAN RAKYAT, IMPLEMENT DEMOCRACY, AND JUSTICE FOR ALL; ERADICATE CORRUPTION, AND FREE AND FAIR GENERAL ELECTIONS.
CHEN MAN HIN
DAP LIFE ADVISOR
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