G25 measures will move us out of middle-income trap

G25 group of eminent Malays has recommended reforms and measures that the Economic Action Council (EAC) should implement to inspire confidence in the economy and enable the country to move out of the middle-income trap and become a developed country.

The main one is the need to review the New Economic Policy.

It’s outmoded after 60 years of headstrong application, during which time it has been abused.

After achieving its many goals, NEP added to the problems by providing opportunities for corruption and widening the income disparity.

It can be argued that the present major concern, which is over the high cost of living, is largely due to non-competitive NEP policies and practices.

The G25 recommendation to reject race-based policies and implement needs-based economic policies must, therefore, be the first priority of EAC.

We should welcome the continuation of affirmative action for the poor of all races.

The proposal to reduce the role of government-linked companies (GLCs) is welcomed.

There could be new policies to include small- and medium-scale industries to work with GLCs, or we could disinvest from weak GLCs. GLCs could be made more efficient, competitive and meritocratic, which will promote greater productivity, with more competition and more inclusivity of non-Malays.

The education system was, and is, largely responsible for our success or decline as a nation.

The recent dialogue organised by the Asli Centre of Public Policy Studies showed the frustration expressed by many over the slow pace of educational reforms.

There should be more teaching of science and technology, the English language and arts to produce more rounded students.

The use of foreign labour has been excessive.

G25 has indicated that this is due to lobbying by vested interests and even corruption. EAC must investigate this and introduce solutions to stop this abuse.

I would add these items to boost the public’s confidence:

public service should be better represented, not just Malays, but more Sabahan, Sarawakians and non-Malays;

development should be decentralised so that poorer regions get higher priority; elections will boost the performance of local governments;

17 United Nations sustainable development goals could be adopted to boost quality of life;

and bigotry can undermine our socio-economic development and must be rejected;

UN Human Rights Conventions should be adopted to eliminate discrimination; and,

institutions must be strengthened.

This would include the independence of the judiciary, the press, civil service and religious freedoms.