AT the Forum Ekonomi Malaysia held at the KLCC Convention Centre, the former Bank Negara Malaysia (BNM) deputy governor Sukhdev Singh highlighted the Madani government’s shortcomings in combating corruption, despite its ambitious economic targets.
While the government aspires to improve Malaysia’s ranking on the Corruption Perception Index to the top 25, its actions suggest a lack of progress.
Sukhdev criticised the administration for its failure to prosecute political elites involved in corruption, despite evidence of billions in taxpayer funds lost.
This inaction undermines the government’s credibility in addressing fiscal leakages, rationalising subsidies, or raising taxes. Without decisive action against corruption, Malaysia’s policy credibility and economic goals risk stagnation.
“The Madani government has already taken two steps back without even taking the first step forward in this key policy area (combatting corruption). So far, it has had a dismal track record in prosecuting members of the political elite class caught with their hands in the cookie jar, despite the billions of lost taxpayers’ funds.
“Failure to address this weakness and allowing those responsible for billions in fiscal leakages to escape without repercussions will also make it less credible for the government to talk about the need to raise taxes, rationalise subsidies, and achieve fiscal sustainability,” he said on LinkedIn.
At the Forum, concerns were raised about the government’s lack of a clear strategy regarding the role of data centres in advancing Malaysia’s technological aspirations and contributing to the people’s economy.
While the proliferation of data centers aligns with global trends and attracts foreign direct investment (FDI), their direct benefits to the broader population remain unclear.
Sukhdev noted that Malaysia’s tech journey seems more reactive to FDI trends than guided by a well-defined technological end goal. This absence of direction risks funnelling scarce fiscal resources into initiatives that may not significantly improve local skill development, job creation, or the economy’s overall technological value chain.
Sukhdev also commended the government’s intentions in its economic drive but highlighted significant gaps in its execution strategy. While initiatives like the Johor-Singapore Special Economic Zone (JS-SEZ) show promise, Sukhdev stressed the need for broader regional collaboration to truly drive innovation rather than merely attract FDI.
A persistent issue is Malaysia’s shortage of skilled talent, which threatens to derail its high-tech ambitions. Sukhdev emphasised the necessity of attracting regional and global talent, including the Malaysian diaspora, but criticised the government’s failure to create an environment conducive to this. — Jan 11, 2024
