Agenda
- Coping with increasingly complex environment
- Malaysia: Be prepared to face looming challenges
- 2017 Business sector outlook
WHAT NEEDS TO BE DONE?
- Must take all necessary actions and initiatives to strengthen our economic fundamentals, restore confidence and address the growing public trust deficit
- Policy makers must remain vigilant, holding tight the reins on credible economic and financial management policies to keep the economy going
- Confidence is the key to stemming the ringgit’s slide. While external factors were held responsible for the falling value of RM/US$, a conducive and stable ecosystem is equally vital to encourage domestic investors (residents) and foreign investors to increase as well as retain their investments (money) in the country
- Increased transparency and enhanced communication are essential ingredients of an effective implementation of policies. Good communication can enhance policy effectiveness by influencing expectations and by reducing uncertainty
- Fiscal consolidation path should continue to reduce deficits and debt accumulations. Focus on reforms to achieve spending efficiency and productive outcomes with zero tolerance of wastage and leakage
- Continue to address domestic constraints such as slow productivity, lack of innovation, haphazard regulatory reforms as well as outmoded legislation and the heavy weight of administration–oriented rules to uplift the country’s economic growth and investment potential. The policy makers must catch-up opportunities related to creativity, innovation and digitalization
- Corrective measures to strengthen the shrinking current account surplus via exports enhancing, ports and insurance services expansion, boosting tourism and imports substitution. A critical review and thorough assessment, including the sequencing of both public and private sectors’ projects to ease pressure on imports
- Swiftly advancing structural reforms in the labour market and innovation that can boost productivity and unleash Malaysia’s growth potential
