Sunday, September 10, 2006
Will we act on the World Bank report?
A new World Bank report last week ranked Malaysia as the 25th most business-friendly country in the world. The report will also give the government some bragging rights as it also relegated Taiwan and China to rankings of 47 and 93 respectively. But it doesn't really matter; the lure of commercial opportunities in these bigger economies will continue to ensure a steady inflow of foreign investments; the same cannot be said for Malaysia. Incidentally Singapore took the top spot in this World Bank survey. Last year the tiny republic was ranked second.
The report also warned that Malaysia's competitiveness will take a further beating if it fails to keep up with frantic reforms undertaken by many developing economies. The report indicated that Malaysia’s competitiveness suffered in several categories such as dealing with licences, employing workers, trading cross borders, enforcing contracts and closing businesses. I would hope the government takes heed but then again, after reading Malaysia's Public Service Department director-general's remarks, high-level action may be unlikely.
It is a worrying sign, when the country, led by none other than the Deputy Prime Minister a few months ago, takes an insignificant magazine (Reader's Digest) to task for publishing the results of an innane poll on rudeness, which pronounced Malaysians as being high on the barometers of rudeness. But no similar exhortations from the man himself to his civil servants to buck up and help improve Malaysia's business competitiveness. Meanwhile Vietnam, the rising tiger in the region is quietly welcoming any foreign assitance it finds useful to help it ramp up its economy.
The world does not owe us a living, according to a former top ranking civil servant Tan Sri Ramon Navaratnam. Malaysia will have to improve or be left behind, if the country continues to protect local industries, he says. So far, that urge to continue protecting unproductive, sluggish industries is too politically sensitive to let go. I get the sense that we are on a runaway train to economic uncertainty. ¶ 11:00 AM
The report also warned that Malaysia's competitiveness will take a further beating if it fails to keep up with frantic reforms undertaken by many developing economies. The report indicated that Malaysia’s competitiveness suffered in several categories such as dealing with licences, employing workers, trading cross borders, enforcing contracts and closing businesses. I would hope the government takes heed but then again, after reading Malaysia's Public Service Department director-general's remarks, high-level action may be unlikely.
It is a worrying sign, when the country, led by none other than the Deputy Prime Minister a few months ago, takes an insignificant magazine (Reader's Digest) to task for publishing the results of an innane poll on rudeness, which pronounced Malaysians as being high on the barometers of rudeness. But no similar exhortations from the man himself to his civil servants to buck up and help improve Malaysia's business competitiveness. Meanwhile Vietnam, the rising tiger in the region is quietly welcoming any foreign assitance it finds useful to help it ramp up its economy.
The world does not owe us a living, according to a former top ranking civil servant Tan Sri Ramon Navaratnam. Malaysia will have to improve or be left behind, if the country continues to protect local industries, he says. So far, that urge to continue protecting unproductive, sluggish industries is too politically sensitive to let go. I get the sense that we are on a runaway train to economic uncertainty. ¶ 11:00 AM
