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Malaysians are now at the crossroads – an advanced high-income country in 2020 or a bankrupt nation in 2019

Malaysians are now at the crossroads and must choose to take the road towards an advanced high-income country in 2020 or a bankrupt nation in 2019.

The New Economic Model (NEM) launched by the Prime Minister, Datuk Seri Najib Razak on March 30 promised a new development path encompassing economic, social and government transformation to catapult Malaysia from two-decade-long middle income trap to become an advanced high-income nation by 2020.

The NEM is however predicated on one basic assumption – the existence of “political will and leadership to break the logjam of resistance by vested interest groups and preparing the rakyat to support deep-seated changes in policy directions”.

One alternative to a high-income advanced nation with inclusiveness and sustainability by 2020 is the spectre of a bankrupt nation by 2019 so vividly spelt out by the Minister in the Prime Minister’s Department, Datuk Seri Idris Jala, last Thursday.
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Tackling Subsidies And Their Myriad Manifestations

By M. Bakri Musa

Idris Jala, Minister in the Prime Minister’s Department and PEMANDU CEO, has yet to convince his cabinet colleagues, in particular the Prime Minister, of the need to reduce subsidies specifically and government spending generally. He has to do that first before taking his Subsidy Rationalization Lab road show to the rest of the country.

Responding to the first “Open House,” Prime Minister Najib indicated that he would “leave it to the people to decide on whether they [the subsidies] should be maintained or abolished.” In doing so he abrogated his leadership on a critical economic issue. He is following instead of leading public opinion; a wet-finger-in-the-air type of leader.

While I do not share Idris Jala’s dire prediction of Malaysia becoming bankrupt in nine years – nations, unlike corporations and individuals, cannot do that – nonetheless the grim picture he painted is not far from the likely reality. His likening Malaysia’s future to today’s Greece may or not be valid but there are enough useful lessons from the current Greek tragedy.
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