IMF wants gov’t to take ‘decisive’ action on NEM

AFP

The International Monetary Fund (IMF) has asked Malaysia to take “decisive” action on reforms under a model programme aimed at revamping a controversial four-decade-old affirmative action policy.

Malaysian Prime Minister Najib Razak announced in March a ‘New Economic Model’ or NEM, aimed at reforming elements of the policy favouring the country’s majority ethnic Malays in a bid to boost economic competitiveness.

Details of the reform programme, including its timing, have not been announced yet.

The Washington-based IMF said yesterday it was looking forward to the NEM’s rollout.

In a report after annual consultations between the IMF executive board and the Malaysian government, the fund acknowledged the “ambitious vision” of Najib’s administration for a far-reaching economic transformation over the longer term.

The board of directors “agreed that the comprehensive structural reform agenda, at the heart of the New Economic Model, holds out promise of faster and inclusive growth,” the report said.

“Directors looked forward to a decisive effort and sustained momentum in implementing this agenda,” it said.

They also called for an “effective communication strategy” to forge “broad public support” for these efforts.

“Further gradual liberalisation of product and labour markets will help exploit policy complementarities, encourage private investment and harness the benefits of reform,” the report said.

Najib, who came to office last year, said the New Economic Model was designed to boost growth, create a high-quality workforce, and attract badly needed foreign investment.

The model also aims to stem Malaysia’s ‘brain drain’ with measures to retain skilled professionals, and make markets more competitive by phasing out price controls and subsidies.

The affirmative action policy which hands Malays privileges in housing, education and business has been criticised as uncompetitive and improperly benefiting the elites.

Opposition from right-wing groups

Under the planned changes to the policy, the government will seek to raise the income levels of all disadvantaged groups, rather than focusing solely on ethnic Malays, the dominant ethnic group in the Southeast Asian nation.

Najib’s reforms face opposition from conservative Malay rights groups.

The country has sizeable ethnic Indian and Chinese minorities, who mostly deserted Najib’s ruling coalition in the 2008 general election.

The IMF also said that Malaysia’s near-term growth prospects were favourable.

The economy was projected to expand by 6.7 percent in 2010 but growth is expected to moderate to 5.3 percent in 2011, the IMF report said.

It also said that IMF staff felt Malaysia’s ringgit currency appeared to be “weaker than its equilibrium level in real effective terms.”

The IMF executive board, according to the report, agreed with the Malaysian authorities’ view that a stronger ringgit could boost over time the role of domestic demand as a growth driver and promote a shift toward higher-value added industries.

27 Replies to “IMF wants gov’t to take ‘decisive’ action on NEM”

  1. The NEP which has been around for 4 decades only helped Malaysia to breed “JELLYFISHES”. Just let these Jellyfishes into the open market and see if they can survive on their own! They would need a “protection order” from the World Wildlife Fund to ensure their existence!!!

  2. CIMB group CEO Naz!r Abdul Razak described the NEP as having been b*stard!sed by deviating from its original purpose.//

    Only NEP is b*stard!sed? Obviously you need to know more than that. Every damn thing in this country is b*stard!sed beyond recognition – MACC, Police, Judiciary, the civil service, the GLCs, elected representatives, the universities, the statutory bodies, and what else, monsterball you fill the rest since you are the smartest old fart around.

    And the father of all the b*stards is none than that mamakkutty.

  3. Top property developer Tan Sri Liew Kee Sin today punctured the Chinese community’s complaints that it had been treated unfairly by the government, pointing out that Malaysian-Chinese have fared well under pro-Bumiputera policies.//quoted from Malaysian Insider

    This precisely the opinion of a businessman who thinks he has made it and therefore has the right to say anything. I am sure you know how your millions are made. But not all Malaysians are desirous of making millions like you. How about living in a clean and safe environment? How about fairness and justice, how about more Chinese holding substantive positions in the judiciary, police, armed forces, GLCs, statutory bodies, local authorities and civil service to bring about a better society for all.

  4. sorry repost: This is precisely the opinion of a businessman who thinks he has made it and therefore has the right to say anything. I am sure you know how your millions are made. But not all Malaysians are desirous of making millions like you. How about living in a clean and safe environment? How about fairness and justice, how about more Chinese holding substantive positions in the judiciary, universities, police, armed forces, GLCs, statutory bodies, local authorities and civil service to bring about a better society for all. Don’t try to be too boastful, you may find your millions worth nothing overnight.

  5. Moon is seen. Lunacy takes over for one born without a father.
    Simply love to have attention…..will irritate at will. What a loner.
    Me polluting the blog?
    What a jerk.
    IMF is looking for trouble with Najib and hope o get it.
    Knowing Najib…he will side walk and ignore.
    Now Najib younger brother said ISA sucks….AP sucks…but when come to protect brother….he sucks.

  6. ///setia alam and setia eco park project is a joint venture with GLCs and the selangor royalty///

    Tan Sri Liew Kee Sin is a great betrayer of the Chinese community by making the claim that Malaysian-Chinese have fared well under pro-Bumiputera policies.

    Perhaps Tan Sri Liew Kee Sin wants to get more GLC projects by making such a claim.

  7. Najib’s so call “New Economic Model” rejected strongly by some UMNO B members.
    So he chickened out and said it was at the drawing board..not finalized yet.
    The truth of the matter is…he is powerless and his contradictions are many and makes him a confirmed liar.
    I am sure Washington knows all that and just want to prove Najib tell lies or say things with no sincerity.
    Washington is indirectly exposing Najib low class character…to see how judges will judge on Anwar’s sodomy case too.
    Washington will use Najib’s NEM to get world leaders understand why investments is at the lowest…for decades….even lower than Philippines..never seen before at all.
    Yes..bottom line….Najib want to continue fooling Malaysians….Washington and France will focus on Najib…again never before seen such disrespects to any Malaysian PM..

    Get it clear…NEP was for Malays. Najib’s NEM is supposedly for all Malaysians.
    NEP is on going. NEM cannot be applied….as Malaysians are no fools or are impressed by his character.

  8. Every right minded people know, Umno is killing M’sia softly with NEP, it ought to be replaced.

    The problem is can Umno survive without NEP? NEP is the magic-wand that bond their members and supports for their leaders all this while. Without this magic-wand there is no magic, back to hard realities.

    Will this NEM ended up like ‘1 Malaysia’? most probably will. Will Najib even NEM this and put his position on the line? Mooyudin and the eighty-something old man with his tigers are watching him closely.

  9. IMF helps poor countries with money on one condition…they have final says how the money on loan to countries should be used.
    Where IMF is…corruptions stay low or else…IMF pulls out.
    Mahathir totally rejected IMF help is so obvious. Malaysia is filthy rich…and he can keep stealing ….after setting up as a Dictator.
    World leaders…especially US govt. kept quiet as they witness Malaysians are happy and well.
    In fact…Malaysians were not happy and well..but have no choice.
    With Internet and opposition news shut out from papers….are read easily …US and all European govt..including Australia…fully understand Malaysians are suffering in silence.
    Yes IMF and Najib’s NEM means MONEY to help all and the country…..not just one race.
    IMF have made Indonesia rise up faster than Malaysia….and look at South Korea.
    It all started with Japan after WW2….and look at Japan.
    Yes China rejected IMF like Malaysia…and look at China now. Because they have leaders that trully love their people and country and take only bribes enough to live well. Yet so many went overboard are being hanged or in prison…makes investors comfortable with Chinese Govt…..who have.from 30 years ago…told visitors and tourists to report ..if they have been cheated or robbed.
    You will find thousands of plain clothes policemen out in the streets to protect tourists.
    Now you know how China become so well respected and feared by USA…and all countries…while Malaysia is being made fun with and Najib…treated with diplomacy smiles..with no true sincere respect to him at all.
    Yes…trace world opinions and behaviors towards UMNO B and Najib.
    Not hard to understand.

  10. Where IMF is…corruptions stay low or else…IMF pulls out. – monsterball

    IMF, like the World Bank is a money cartel. You know, the sort of organization you can sell your country to. DAP leaders are quite naive to take into account any recommendations from the IMF, they like the NEM because Najib can use some of their money, but guess who’s paying?

  11. No one in his right mind trust IMF or US govt.
    Tons of messages can be written…by the original devilish government and IMF.
    However Americans are not that stupid to be taken for a ride for 55 years and never learn.
    What is an American?
    Australia was all British…until lately for past 35 years..and those convicts knows what is not being treated fairly. So all are welcome. Americans are total sum of almost all European races….yet all proud to be known as Americans.
    Unity and pride is he keyword to become strong to withstand all difficulties….which Americans had his fair share of sufferings without a war.
    I will not pay much attention to IMF but it is nice..the devil is on the side of goodness.
    Remember..God does not take sides in politics….yet the movie…’AVATAR” is timely to give Mahathir nightmares.

  12. Good try IMF but who listens to you here? If the word “Malaysian Govt” is a reference to the cabinet strongly united behind leadership of Najib, then NEM would have been implemented sooner than IMF’s advice – because NEM is afterall PM’s brainchild and cornerstone of his policies of reform. Even recently his banker brother Nazir had to come out to counter NEM’s detractors by saying in the Chinese economic Congress that NEP had been ‘bastardized’.

    However in Malaysian politics what was said in the Chinese Economic Congress cannot be as important and influential as what was said in the last Bumiputra Economic Congress in which PM had to publicly back down to tweak NEM nearer to NEP.

    It is the perversity of Malaysian politics that the Cause of NEM is more prejudiced than served by IMF being seen backing it.

    It could provide a platform for the principal detractor of NEM and advocate of NEP to obliquely isolate our incumbent further by launching another tirade against the IMF and aggrandizing his role in saving the country in 1997!

    The following argument though imaginary is predictable:

    “IMF is interested only in dismantling protectionism of Malay equity interest
    developed by NEP so as to serve foreign/western capitalist interests. (IMF must have advisers of Jewish lineage conferring with their APCO’s counterparts). If Malaysia had followed IMF’s prescriptions in 1997 currency crisis – and Anwar had his way – bumiputra’s corporates would have gone for fire sale unwinding all the good work of the NEP that he had achieved. Of course today the IMF is interested in working for dismantling the NEP by aggressively pushing for NEM. Who is proven right in the end to save the country? It was not orthodoxy of IMF’s prescriptions but the unorthodoxy of TDM’s prescriptions: currency controls on the capital (as distinct from current account), ring fencing by demonetization of the Ringgit and pegging it against the Greenback, 1 year freeze on the repatriation of portfolio funds and other capital control measures. These have helped to avert political and social instability as witnessed in neighbouring countries – Indonesia’s Suharto fell from Reformasi street protests and Thailand’s Chavalit and Chuan Leekpai fell in quick succession – but my govt, we survived throughout thanks to protectionist NEP being in place to avert mass dissatisfaction! Even my detractors MIT’s Paul Krugman and billionaire hedge fund speculator George Soros conceded subsequently that I was right! Now even Hungary is inspired not to follow blindly IMF. True although foreign investment returned at a faster rate in South Korea and Thailand, much of the foreign capital inflow in those two nations was acquisition by foreign companies of assets or equity of domestic companies. We not and even today ought not to promote acquisitions or take-overs by foreign companies of bumiputra companies nurtured by NEP no matter how inefficient because dignity of race and economic sovereignty is paramount overarching imperative. We not have to listen to IMF because we don’t need its money for bail out. We have our Petronas oil and a large reservoir of domestic savings in EPF, Amanah Saham and our banks..”

  13. limkamput :
    Top property developer Tan Sri Liew Kee Sin today punctured the Chinese community’s complaints that it had been treated unfairly by the government, pointing out that Malaysian-Chinese have fared well under pro-Bumiputera policies.//quoted from Malaysian Insider
    This precisely the opinion of a businessman who thinks he has made it and therefore has the right to say anything. I am sure you know how your millions are made. But not all Malaysians are desirous of making millions like you. How about living in a clean and safe environment? How about fairness and justice, how about more Chinese holding substantive positions in the judiciary, police, armed forces, GLCs, statutory bodies, local authorities and civil service to bring about a better society for all.

    I believe that bloody Tan Sri LKS would see anything to be what he is. It is a shame to the Chinese community when his name consist of three Chinese characters.

  14. ///In the harshest rebuke yet of the abuse of the New Economic Policy (NEP), CIMB group CEO Nazir Abdul Razak described the NEP as having been bastardised by deviating from its original purpose.///– Malaysiakini

    It is better late than never that the truth is told, especially by a Malay who would not face ISA.

  15. ///In the harshest rebuke yet of the abuse of the New Economic Policy (NEP), CIMB group CEO Nazir Abdul Razak described the NEP as having been bastardised by deviating from its original purpose.///– Malaysiakini

    Strangely after the evidence given by Tun Lin Liong Sik to the PAC and comment by the Secretary General that Tun LLS actually suggested in the cabinet that PKFZ acquire the land form Kuala Dimensi at 10 rinngit a sq feet through land acquisition Act of 1960, based on the suggestion from the attorney general office, and that the cabinet decided at that time to wait for further development, we do not hear comment from Mamakthir whether that was true. Mamakthir said he would offer evidence if asked to. He could repeat his performance at the RC where he said he could not remember. This time, unless the relevant file in the attorney general office
    goes missing, and the cabinet record left the suggestion blank, Mamakthir has to explain why he allowed PKFZ to pay 25 ringgit rather than 10. If not for NEP, the land which should have known in advance to be the suitable site for PKFZ would not have been alienated by the state of Selangor to the fisheries cooperative society, waiting to be sold at 3 ringgit a sq ft, and subsequently at 10 ringgit a sq ft based on land acquisition act of 1960 (before NEP came into being). The largest cost increase was when but Mamakthir upped it with NEP to 25 ringgit. PKFZ would not have a 10 billion costs overrun if not for NEP.

  16. Have you ever seen any Malaysian PMs been treated with no respect at all… by wellknown world leaders and politicians?
    ————————————
    Monsterball,

    These idiot does’nt need any respect from anyone well known!
    He can buy “respect” temporarily, if he want.
    Remember the arranged meeting with Obama?
    What he need want is money and as long as he can get all those “ampu” idiots back here to raise their hands and shout “satu……! Malaysia” , he’s very happy.

    As for comment #14:

    It’s a very common type of character for a chinese race already.
    Most chinese people are born of an idiot and selfish type and that’s for real.
    They’ll betray you anytime if it concerns about money.
    Most idiotic ones are those “half cooked” and who’re not of a so rich type.
    They tend to “spit” on you and their nose tend to point towards the sky whenever you meet them.
    You’ll find some of these, even in your family as well.

  17. Remember..God does not take sides in politics….yet the movie…’AVATAR” is timely to give Mahathir nightmares.

    ————————————
    That “kerala devil” never fear god ‘cos he thinks that he’s the reincarnation of satan.
    The final battle between the good and evil is not over yet so who dare to say the good will triumph over evil and he’s here to prove that.
    “Avatar is just a joke”, says he!

  18. Asking the Najib Administration to take ”decisive” action on NEM was a language of diplomacy used by the IMF. They can read Najib and his cabinet like a leaf from a book.

    In layman’s term ( You, I and everybody ) would say ”all talks and no action, flip-flop, racists……hey! you, huark off!!!

  19. Ask Liew Kee Sin how many shares he actually owns of SP Setia, and how many shares are held in trust for some UMNOputras. Ask him who in UMNO gave him his first big break in the property sector.

    Finally, ask him who instructed him to put Rashid Manaf as his chairman.

    At least UMNO nominees like Vincent Tan knows how to keep quiet.

  20. I bet 3/4 of Tan Sri LKS’s fortune is in Euro, US$, S$ & A$. Even over night RM becomes worthless, LKS still standing strong in Bolehsia.

    Don’t bombard him anymore, in future no businessman dares to be speaker in any economic forum. Afterall he just a businessman. Making $ is his main motive and ability, so long as he has made his millions, others are all crappy . Future growth, income disparity, middle income trap, poverty… all beyond his fascination.

  21. As a Chinese businessman no one will fault him and those like him for knowing how to work within or around and take advantage of an inequitable NEP system….

    But thats different from apologising and defending the very system as if it has merits when its failure is acknowledged even by a prominent investment banker who happens to be the PM’s brother.

    Its thumping at the very nose of the minorities marginalised by such a system. The way he said it was insensitive.

    Surely Liew Kee Sin doesn’t expect others to be in vantage position like him to take advantage, exploit and prosper under such a system.

    Besides it is not just about an individual finding a niche within such a system and selfishly say its OK. It is about whether it is good for the country as a whole.

    I am sure some of us here who criticise the system have personally benefitted or prospered by or in spite of the NEP system but that does not mean that we defend it as a good or acceptable system for all just because we ourselves know how to work around it or make it work to our favour or need the present system and our contacts within it to make us further prosperous.

  22. ///Surely Liew Kee Sin doesn’t expect others to be in vantage position like him to take advantage, exploit and prosper under such a system.///– Jeffrey

    It is because of people like Liew Kee sin, notice the sin in the name, that NEP could continue. If Liew has half the courage of the people who left this land out of disgust of the unfair system, Mamakthir could not even claim that some businessmen, Chinese who are worst than prostitute, would have gained, and with those prostitutes gaining under the corrupt system, Mamakhir said that NEP benefited Chinese too. Some time ago one Chinese tycoon complained that MCA did not do enough for Chinese businessmen. He forgot that it was because of some of those rich Chinese said to be controlling the economy that ordinary Chinese have to pay for the curse of NEP. Now we have a person who has only Chinese sounding name but not a bit of Confucius culture in him comes out, not to save his life, but to suck the balls of some UMNO racists to claim that NEP is good for Chinese too. This person no doubt practised the 7% discount offered to Malays in house prices, and certainly that 7% did not come from the company’s earning, but from the higher prices included in house prices for non-Malays. A person who contributed to exploiting non-Malays so that Malays enjoy the 7% comes around to say things a decent person would not utter, and yet that person carries a Tan Sri title. Was that the price paid to have Tan Sri? Tan Sri my foot.

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