Administrative reforms to support NEM soon

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HONG KONG: Prime Minister Datuk Seri Najib Tun Razak will announce administrative reforms when he introduces the New Economic Model (NEM), next week, to ensure its success and effectiveness on the Malaysian economy and the people.

POLICY DISCUSSION: Najib (right) greets Credit Suisse CEO Brady Dougan at the conference. — Bernama photo

POLICY DISCUSSION: Najib (right) greets Credit Suisse CEO Brady Dougan at the conference. — Bernama photo

“The emphasis will be on the execution of the NEM in order to achieve the government’s objective of transforming Malaysia into a high-income economy and to spur development,” he told Malaysian reporters here on Wednesday before returning to Kuala Lumpur after attending the Credit Suisse Asian Investment Conference.

Najib, who is also Finance Minister, said: “Although the new economic model is good but if the implementation is not planned well, with the right people in place, then we will not be able to achieve the desired target.”

When asked if the administrative reforms would involve both the International Trade and Industry and Finance ministries, he said: “Let’s wait and see next week”.

On his visit to Hong Kong and his meeting with foreign fund managers at the Credit Suisse Asian Investment Conference, Najib said it had attained the intended objective of “explaining the direction of the new government policy in bringing about a huge transformation of the Malaysian economy”.

Najib said he obtained valuable feedback from foreign fund managers on the local bourse where they hoped to see increased listing of strong and bigger companies with less involvement by the government in governmentlinked companies.

The Prime Minister said foreign fund managers were also very keen to invest in Malaysia but felt that there were constraints as there were very few listed large companies on Bursa Malaysia for foreign fund managers to invest in.

He said foreign fund managers were also keen on the NEM as they felt that it was the best approach to show the direction of the economy, going forward and the emphasis placed on certain industries.

Besides, “we will also be able to explain that, in whatever we do, the government will take into consideration its impact on the stock market and the people.

“For example, if the government wants to introduce the goods and services tax or even reduce subsidies, all this must be explained to the people first in order for them to receive the changes being made in the interest of the economy,” he added.

However, in the effort to increase listings on Bursa Malaysia, Najib said the question of “good governance” cannot be compromised.

“However, we are speeding up companies which have a listing potential,” he added.

He also said his discussions with foreign fund managers revealed that there were some lingering misinformation about what has happened in the past.

“Although, we have made the reforms, they think that the same situation still exists in Malaysia,” Najib said.

He said this was evident from media reports in Hong Kong as reforms instituted by the Malaysian government were not reported and the message never reached fund managers. — Bernama