Writer： Qing Yuan
Sin Chew, Nov 10, 2014
Recently, Umno veteran and Gua Musang MP Tengku Razaleigh distributed a seven-page letter to all the MPs. In his letter, he expressed his worries over the economic position. He said the Government is being over-optimistic in projecting economic growth of 5 to 6 percent under the 2015 budget. His observations are based on four main areas.
1. Massive government spending.
2. Over-spending on the public service sector.
3. Over-borrowing resulting in too much government debts.
4. Over-dependent on agriculture exports leading to massive outflow of foreign exchange.
He was worried over the economic condition and said that economic transformation must be carried out within five to 10 years. There is a need even to overhaul the economy.
His views are enlightening and it certainly warrants a fresh look in areas he is worrying about. Has our national economy deteriorated to such a bad stage? Are we following the steps of some European countries which are on the brink of bankruptcy because of foreign debts?
Prime Minister Najib said in his reply to a question by Kepong MP Tan Seng Geow in parliament that Malaysia’s government’s debt is only 53% of our GDP. It is low compared to other countries and it won’t be a threat to our economy. On the other hand, many countries admire our economic performance, he said brimming with confidence.
The writer feels that his optimism could be based on Malaysia’s bullish trade, especially bilateral economic and trade exchanges with China which have been highly beneficial to both countries.
Led by the Asian economic juggernaut, economic development will spread in a chain reaction over the region and will provide Malaysia with a very favourable economic environment and bright prospects. However, even with the prevailing optimism, the views expressed by Tengku Razaleigh must be taken seriously because whether Vision 2020 can succeed or not will depend on our economic development in the next six years.
Can Malaysia realize its dream to be an advanced country in 2020? Economists have developed a set of measurements to ascertain the criteria of an advanced country. What constitutes an advanced country?
According to the prescription of economists, an advanced country must have certain level of education, with full employment and a free and democratic system. The people must have high income with high spending power. There must also be a comprehensive welfare system and minimum income disparity. The society must be stable and with basic infrastructure.
These are the standards of an advanced nation. Many northern European countries have become the model of advanced countries for developing nations to follow after the Second World War. They have won praises and admiration.
However, in recent years, many so-called advanced countries are struggling under global economic slowdown. Their economies have deteriorated and they need to start afresh. Therefore, developing countries like ours need a new definition in our journey to achieve our objective as an advanced nation.
Vision 2020 was launched by former Prime Minister Dr Mahathir. After so many years, while we maintain our objective to be a high income country, we need a new definition of what constitute high income due to devaluation and inflation.
For example, 10 years ago, one could be counted as a high income earner if his pay was RM3,000 a month. At current rate, he is considered in the low income group if he earns that much. Thus, even though we may have achieved the targeted figures, the actual benefits have already been diluted. They become abstract figures as our people are still running on the spot with no improvement in the quality of their life. We are still very far away from our objective as an advanced country.
Original Source: 大马离先进国有多远？