Kamal said Malaysia needs to divert its resources and invest in the structural change of long to medium-term growth. Picture by Yusof Mat Isa

KUALA LUMPUR, Oct 3 Malaysia hasto reacheconomic growth of 8.0 per cent in order to attainthe Shared Prosperity Vision 2030, the Malaysian Institute of Economic Research (MIER) said.

Its chairman, Tan Sri Kamal Salih said according to his calculations, the gross domestic product (GDP) growth rate has to be somewhere between 6.0and8.0per cent and it could notbe at between 4.0 and5.0per cent.

It is not enough, it will be a slow rise. In the meantime, other countries will jump over us.To achieve over 6.0per cent, we have to do a leapfrog strategy and focuson key sectors, he told Bernama in an interview.

Kamal Salih said Malaysia has to be wary of anomalies that are happening outside of the country and not be complacent the moment oil prices go up, as it generates momentary boost of income.

He saidinstead, Malaysia needs to divert its resources and invest in the structural change of long to medium-term growth.

We may spend a lot more money, we may even try to restructure the debt, but eventually we must continue to expand in infrastructure, new industries, technology, agriculture, to produce more food and train more skilled people, as all these are already in place, he said.

Kamal Salih said the elements of the Shared Prosperity Vision 2030was already incorporated in Vision 2020, under previous predecessors.

He said however, the last regime had become more greedy, as the whole setup ofwhats in it for meand not for the country attitude had taken root.

We lack that kind of mentality and people do the simpler things, they followthe line of least resistance, and stay in a comfort zone, as they dont know how to venture, and they fear of failure.

Whereas entrepreneurship, technology, investment, innovation, all are experimental, you just need to keep at it, if you fail you rise, failure is a lesson, instead you just give up, he said.

Kamal Salih said some Malaysians have given up onthe country, and they went overseas and thrived.

This trust deficit in government is a big thing, and the younger generation couldnt care less, asthey will do their things and hope that theycan be successful, he said.

Kamal Salih said the early period of the New Economic Policy (NEP) produced quite of a lot of good people, both in Bumiputera and non-Bumiputera.

They have been successful, they are what that have kept this economy afloat. But there is an increasing number of those who havegiven up, and wait for more handouts from the government, and the government not having enoughmoney to hand out.

When the government had the money to hand out, it handedout to cronies, and it isnot spread out enough, not inclusive enough, he added.

Kamal Salih said the country also needs to pare down itsover-reliance on foreign investment as it is the reason why Malaysia cannotindustrialise faster.

In fact, we have gone through the process of de-industrialisationfor the last 20 years, he said.

He said Malaysia has also shifted to servicesand hasbecome a consuming country instead ofa producing country, while it stillproduces in the traditional areas of resource-based economy.

Although diversified, we are stillin palm oil andrubber industries butno longer as the leading producers asThailand and Indonesia have taken over the roles.

We are also depended very much on our oil and gas. When oil prices go down, we get into trouble, he said,adding that the funds that the governmentraisedfrom taxes weremainly used for operations.

Moving forward, Kamal Salih said weshouldpromote local inventors andresearch and development, as well ascommercialiseinnovations from universities.

We areweak in commercialisation. When people have ideas, the bureaucracy tends to be an obstacle, he added. Bernama

Excerpt from:

MIER: Malaysias GDP must reach 8pc to achieve Shared Prosperity Vision - Malay Mail