Pro-growth policies, incentives boosted Malaysia’s recovery, Najib tells forum

KUALA LUMPUR, Jan 25 — Prime Minister Datuk Seri Najib Razak has emphasised that pro-growth policies coupled with incentives to push private sector are crucial ingredients that Malaysia successfully employed to help the nation recover from the regional and global economic downturn.

And over the past few years with the global economy in turmoil from the subprime credit and Eurozone debt crisis, Najib said that it was the Economic Transformation Programme (ETP) that led to a remarkable jump in private investments and that was really the engine of growth,” Najib told a Al-Jazeera televised session entitled “The Economic Malaise and its Perils” at the ongoing World Economic Forum (WEF) in Davos, Switzerland.

“Things are looking up in Malaysia as the country has chalked up slow growth similar to other East Asian and Asian economies despite the global economic crisis and unlike Europe which has experienced decelerating growth,” he said as a panelist at the forum hosted by Al-Jazeera anchored by Kamahl Santamaria Friday.

Najib, who is also Finance Minister, said revitalising the private sector through the ETP unveiled in 2010 had created over 300,000 jobs and had brought down unemployment to 3.1 per cent which is regarded as full employment.

Alluding to expansionary policies embarked on by Malaysia during the 1997/98 financial crisis and stimulus packages injected into the economy several years ago, he said, they had triggered economic activities domestically and brought a ray of hope despite the gloom and doom regionally and globally.

“This has proven to be a much better solution than the tight monetary policies which the International Monetary Fund (IMF) forced on several developing economies which led to deep political and social costs.

“We recovered without paying the huge social and political costs and that is what the spirit of “Malaysia Boleh” or “Malaysia Can” is all about,” he said, adding that is the indomitable spirit to persevere despite the vagaries in the international marketplace that has put Malaysia in good stead in global economics.

Alongside Najib at the session, among others, are Turkish Deputy Prime Minister for Economic and Financial Affairs, Ali Babacan, Iceland President Olafur Ragnar Grimsson and International Labour Organisation (ILO) Director-General Guy Ryder.   

Santamaria, obviously taken up by Najib’s discourse on Malaysia’s economic recovery against the odds, told the prime minister in jest and to the laughter of the audience that “Malaysia Boleh” was a much better slogan that “Malaysia Truly Asia” — the country’s slogan to boost tourism.

“To be honest, it has served its purpose,” the Al-Jazeera presenter said.

Najib said while calling on the private sector to do its part, it also has to be incentivised through tax perks and apprenticeship programmes.

He said another prerequisite is the promulgation of the education system so that it can deliver the right kind of talents, which is required by the market. 

“You have to revamp your education system, and that has to be an ongoing process, because it tends to lag behind what the industry wants,” he said, adding that the upscaling process of talents should be done through universities. 

The forum was held on the second day of Najib’s visit to the prestigious WEF Annual Meeting 2013 where he met key economic and political leaders to sell Malaysia as a preferred investment destination. — Bernama 

(Source: The Malaysian Insider)