The fact that there has been no regime change in Malaysia since Independence is turning the country into the region's “weakest link”, Bloomberg says.
In an opinion piece today, the business newswire said that this has led to “complacency” in Putrajaya and is holding back the country's economy despite its rich potential.
“The need for change is becoming acute, though, as China's dominance grows and neighbours like the Philippines get their acts together.
“And Malaysia? Well, Prime Minister Najib (Abdul) Razak's lackluster party is clinging to power...
“The government's handling of Malaysia Air(lines) Flight 370 said it all. Its deer-in-the-headlights response to the plane's disappearance was the product of an insular political culture.
“The trouble is, that insularity is holding back a resource-rich economy that should be among Asia's superstars, not its weakest links,” Bloomberg's William Pesek writes.
Pesek said that he shares his views with UK-based Oxford University-linked think tank Oxford Economics, which released a report that termed Malaysia the “riskiest” economy in Asia.
'Climate of entitlement'
He said that Oxford's biggest concern is the fact that Malaysia is a “one-party state”, which has perpetuated racial policies which works does not encourage innovation.
“Its 40-year-old, pro-Malay affirmative-action programme chips away at the country's competitiveness more and more each passing year.
“The scheme, which disenfranchises Malaysia's Chinese and Indian minorities, is a productivity and innovation killer. It also has a corrupting influence on the political and business culture,” Pesek writes.
Pesek further cites Sarah Fowler, a researcher with Oxford Economics, as saying that all is not well in Malaysia's economy despite the country escaping investment bank Morgan Stanley's “fragile five” list of shaky emerging economies.
She said that this is driven by Malaysia's high debt level, racial policies and business as usual attitude, especially within Umno.
"A climate of entitlement amongst the Malay community limits entrepreneurialism and vested interests within Umno still resist change," Fowler is cited as saying.
Fowler said that while all is well on Malaysia's surface, external debts have risen to close to 40 percent of gross domestic product (GDP), a level higher than India.
Its current account surplus, a measure of the difference between cash coming in and going out of the country, has also dwindled from 16 percent of GDP in 2008 to 3.7 percent in 2013.
She added that Malaysia has the biggest short-term capital flows, or hot money, among the 13 emerging markets the think tank tracks, including neighbouring Indonesia.
In an opinion piece today, the business newswire said that this has led to “complacency” in Putrajaya and is holding back the country's economy despite its rich potential.
“The need for change is becoming acute, though, as China's dominance grows and neighbours like the Philippines get their acts together.
“And Malaysia? Well, Prime Minister Najib (Abdul) Razak's lackluster party is clinging to power...“The government's handling of Malaysia Air(lines) Flight 370 said it all. Its deer-in-the-headlights response to the plane's disappearance was the product of an insular political culture.
“The trouble is, that insularity is holding back a resource-rich economy that should be among Asia's superstars, not its weakest links,” Bloomberg's William Pesek writes.
Pesek said that he shares his views with UK-based Oxford University-linked think tank Oxford Economics, which released a report that termed Malaysia the “riskiest” economy in Asia.
'Climate of entitlement'
He said that Oxford's biggest concern is the fact that Malaysia is a “one-party state”, which has perpetuated racial policies which works does not encourage innovation.
“Its 40-year-old, pro-Malay affirmative-action programme chips away at the country's competitiveness more and more each passing year.
“The scheme, which disenfranchises Malaysia's Chinese and Indian minorities, is a productivity and innovation killer. It also has a corrupting influence on the political and business culture,” Pesek writes.Pesek further cites Sarah Fowler, a researcher with Oxford Economics, as saying that all is not well in Malaysia's economy despite the country escaping investment bank Morgan Stanley's “fragile five” list of shaky emerging economies.
She said that this is driven by Malaysia's high debt level, racial policies and business as usual attitude, especially within Umno.
"A climate of entitlement amongst the Malay community limits entrepreneurialism and vested interests within Umno still resist change," Fowler is cited as saying.Fowler said that while all is well on Malaysia's surface, external debts have risen to close to 40 percent of gross domestic product (GDP), a level higher than India.
Its current account surplus, a measure of the difference between cash coming in and going out of the country, has also dwindled from 16 percent of GDP in 2008 to 3.7 percent in 2013.
She added that Malaysia has the biggest short-term capital flows, or hot money, among the 13 emerging markets the think tank tracks, including neighbouring Indonesia.
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