When he became Prime Minister in early April last year, one of the first things Datuk Seri Najib Razak announced was a new economic model for the country to ensure Malaysia make a quantum leap to escape the middle-income trap to become a high-income country.
At first, this new economic model of Malaysia 2.0 was to be announced by the second half of last year, then delayed to January of the new year and now to the first quarter of the year.
In actual fact, the World Bank had recommended that Malaysia adopt a new economic model three years ago, stressing that industrial countries are already aiming for economic model 3.0, and with competition at economic model 1.0 intensifying, striving to achieve economic model 2.0 is not an option for Malaysia but a necessity.
The question is why the World Bank’s advice that Malaysia migrate to a new economic model 2.0 was ignored for three years, losing more precious time for Malaysia to catch up in the international competitiveness race when the country had become a straggler as compared to other countries.
When the country achieved nationhood in 1957, Malaysia was the second most economically-advanced country in Asia after Japan.
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