Pro-Business not Poor Business
It’s been a wonderfully relaxing CNY break and a good time to recharge the brain cells. I felt quite vindicated about my last post after I read yesterday’s NST article “Looking for a boost for small businesses” commenting on the upcoming 9th Malaysia Plan.The DPM, Najib Tun Razak is quoted as saying that though Malaysia doing well at the macro level, “there are discernible rumblings that things are not moving fast enough and that business remains slow.”
And his prognosis? “We need to seriously address the savings-investment gap and stimulate stronger domestic investments.”- which is exactly what I was trying to drive at in my last post. However, as always is the case in this country, politician rarely does what politician says - especially as rent-seeking (thinly disguised as social and economic restructuring) constantly hovers at the top of the UMNO government’s agenda.
The article also mentions that the ‘private sector’ hopes the 9th MP will “enhance national competitiveness with greater economic liberalization and fewer government regulations”. Paraphrased, it probably says “Lighten up on the equity rules please. Just introduce pro-business policies and don’t force us to surrender our hard-earned success to some already wealthy-but-greedy rent-seeker.” Knowing the UMNO government, that ain’t going to happen soon, so we’ll have to wait with bated breath for the new ways they plan to force you to share your pie with them.
On another note, the government is also advised to re-think how banks can help generate business growth. Dr Mohamed Ariff, Executive Director of MIER (Malaysian Institute of Economic Research), comments that medium enterprises are taking up the lion’s share of the Government’s financial support, whereas smaller companies “face different problems” (not elaborated).
posted by hew @ 5:43 pm
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