10 STRATEGIC SHIFTS TO SPUR GROWTH
THE government must be lauded for establishing the new Economic Action Council that gives better directions and priorities for the nation to overcome short-term economic challenges such as the rising cost of living, cost of doing business, restoring investor confidence and promoting sustainable economic recovery.
I propose that the council develop a long-term National Economic Strategy.
Here are 10 strategic shifts or megatrends that need to be addressed:
the international scene, we see a shift from geopolitics to geoeconomics requiring nations to adopt a geostrategic response. This can be seen from Brexit and the United States-China trade war. Geoeconomics, including the control over economic assets such as oil and gas, will have a greater impact on international diplomacy. Increasingly, we will see economic and trade diplomacy becoming more important than political diplomacy to maintain global peace, stability and prosperity.
see a shift in the global centre of gravity from west to east with the rise of China and reemergence of Japan, as well as the growth of India and Korea.
We need to identify a strategy to succeed in enlarging our presence in these markets and create new opportunities for our entrepreneurs and small- and medium-sized enterprises in China and Japan.
world is witnessing a rapid technological shift towards digital disruption and the Fourth Industrial Revolution with growing interest and applications in artificial intelligence, robotics and the Internet of Things. What is our national strategy to deal with these new technological advances? Hopefully, EAC will develop a strategic game plan to deal with these challenges and opportunities.
see an eco-sustainability shift with growing concern over climate change. This will drive demand for green technology and clean energy. We need to embrace clean energy faster and more comprehensively.
shift will lead to an ageing society and we will have more aged elderly and younger cohorts below 30 but less and less of the middle aged. It has been estimated that 20 per cent of our population will be above 60 by 2040.
shift will see the rise of e-commerce as we move from bricks to clicks. The rise of online business and e-commerce will not only impact on retail business but also traditional banking, education and healthcare with the risk of fintechs, online learning and distance education and telemedicine.
GLOBALLY, we see a political shift from liberalism to the emergence of the right. The rightward shift has led to the election of Donald Trump and is also partly the cause of Brexit. Is this era the end of liberalism?
What can we do to bring people back to the centre? Whilst the immediate focus of EAC is economic, it also needs a strategy to deal with this phenomenon as it will impact on race relations and religious harmony so essential for peace and stability to facilitate business and economic growth.
in wealth and income has caused growing inequalities. The income gap between the highest earning population and the bottom 20 per cent has widened. This gap can be destabilising to peace and stability. Much more must be done to address inequalities in society. New thinking and strategies need to be adopted to overcome growing inequalities.
shift arising from continued rural-urban migration will cause urban poverty to rise. Urban poor is a microcosm of society as it comprises all ethnic groups — Malays, Chinese and Indians. The rising cost of living affecting the urban poor needs to be prioritised.
shift is evident after the 14th General Election with more Malaysians feeling more free. This is good as it will lead to stronger support and protection of human rights such as freedom of speech, freedom of expression and freedom of association.
I believe the 10 strategic shifts and key challenges are key priorities the government and the people must work on together.
In formulating new policies, it is important to focus on the 4Cs — consistency, clarity, certainty and coherence.
The new Malaysia also needs the 3Is — integrity, inclusiveness and innovation — for old problems need new innovative solutions and new problems need new ideas to resolve.
Since the government has already established EAC, I propose that it forms a National Strategy Commission to plan future scenarios and effective strategies to overcome them.
A National Strategy Initiative should also be established to carry out in-depth studies.