Is Najib Breaking into a Run?

PM Najib has put into place a series of of reforms to transform Malaysia into a high-income country. Not only has he effectively removed the need for bumiputra equity in listed companies, but he has also removed most of the wanton powers of the Foreign Investment Committee.

In 1957 at independence, Malaysia had the second highest per capita income (PCI) in Asia, after Japan. World Bank has statistics that showed per capita income has slowed down since 1971, and has fallen far behind South Korea, Taiwan, Hong Kong and Singapore. In 2008, Malaysia had a PCI of US$6,000, while South Korea had US$19,000, Taiwan US$17,000, Hong Kong US$30,000 and Singapore US$34,000.

It's been 100 days, Najib has been in the driver's seat. As such,Najib must pull up the socks of the executive, particularly his cabinet members, GLCs, and ministries so that the nation can strive in a concerted manner with industry to regain its lost status among Asean economies.

As always, education is the key to success for all. The next is discipline and hard work. These are the same qualities of successful people in other countries, especially developed countries in the US, Europe, Japan, or India.

China is the classic example of success. From a poor communist country, it has become the third richest country of the world because of its concrete liberalising initiatives.

The Chinese people put in a lot of hard work and discipline. China, it is predicted, will overtake Japan in 2010 and become the world’s second richest country.

Malaysia must now review all its backward looking policies if it is to be able to play a fast catch-up game with many of its Asean members notably Vietnam.

So is Najib breaking into a run to lift the economy to its glory days pre-1971?