Sunday, June 7, 2009

The 9Th Methodist Convention - The Future Of Sarawak From A Christian Perspective - Part 5

Economically, Malaysia is facing problems which are detrimental to the nation's growth.

Malaysia being an export-oriented eeconomy is experiencing a downward trend in export. This is worrisome since we hinge our growth on export.

In addition to export slowdown, Malaysia's private investments are declining against the public investments. Simply put, per ringgit of public investment now attracts less private investments than it did in the past.

Ultimately an economy needs private sectors to invest to propel its growth. Public sector should not be a locomotive of growth and its role is best confined to stimulating economic activities.

This signal of declining Malaysia's private investments has far-reaching consequences in terms of our growth.

Calling for deep concern is Malaysia's share of global FDI (foreign direct investments) which is now going downhill.

Look, even Malaysians are investing less now on our own homeland, why should the foreigners bring FDIs to Malaysia?

Years ago, Malaysia embarked on value-added developments to prop up the economy. But to date, the progress is patchy and there is very little that we can shout about.

1. Little downstream in sectors with upstream strengths:
Oil and Gas - petrochemicals?
Palm Oil - secondary and tertiary processing?
Timber - finished consumer and industrial wood-based products?
Rubber - finished consumer and industrial rubber-based products?

2. Science-based, industralised agriculture and aquaculture?
Serdang lost its way and became just another university.

3. Major Government initiatives:
Bio Nexus, biotechnology
Rubber Research Institute
Malaysian Palm Oil Board
Multimedia Super Corridor (MSC, ICT)
Knowledge-intensive economy

4. Large-scale tourism

5. Education "Hub"

6. Medical tourism

7. Halal Development Corporation (Islamic finance)

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