Prime Minister Anwar Ibrahim has explored the “great debate” between an interventionist government and unbridled capitalism, pointing out that conventional wisdom has been that it is not the “business of the government to be involved in business”.
This doctrine, he said, believes that the government must step aside to allow the movers and shakers of the corporate world to have free rein.
“But there are exceptions, it seems,” he noted.
“For example, when it comes to big businesses that are ‘too big to fail’, then allowance must be made for interventionist policy, especially to bail out failing enterprises such as big banks and insurance companies.
“To my mind, no matter how you slice it, this approach looks very much like ‘socialism for the rich and capitalism for the poor’, where state policies assure that the rich and powerful get to have the cake and eat it too, while the poor and marginalised will be left to clean up the plate!” he said in his speech at the launching of the Khazanah Megatrends Forum 2024 in Kuala Lumpur today.
According to Bernama, the prime minister said this is where he and Nobel laureate Joseph Stiglitz are on the same page.
“Professor Stiglitz calls it ‘progressive capitalism’, and I call it a ‘humane economy for social justice’,” he added.
Anwar, who is also finance minister, said he agrees with Stiglitz’s view on the need to spend money on physical, technological and social infrastructure to achieve a productive economy.
“In my book ‘The Asian Renaissance’, I said that while the key to sustainable economic growth is productivity, public funds would need to be expended towards the growth of human capital, chiefly through education and health care,” he pointed out.
M’sia cannot be complacent
Anwar also assured that the government would not be complacent or “rest on its laurels” but remain vigilant in the face of regional and global challenges, even as structural reforms yield positive results.
He said the evidence can be seen in the ringgit’s improved performance, the phenomenal increase in investments and the positive trajectory of our economic growth.
“Let me take a moment to thank our investment community, both foreign and domestic, for their faith, trust, and confidence in Malaysia’s economy, our governance, our rule of law and our political stability,” he added.
Anwar reiterated the government’s commitment to ensuring Malaysia thrives in this global environment, adding that the nation’s response must be holistic, coordinated, and, above all, focused on the long-term well-being of the nation.
“The Madani Economy framework I introduced last year outlines how Malaysia can prepare for an increasingly dynamic and complex global economy,” he added.
Anwar highlighted that “we now live in a post-normal world defined by chaos.”
“Never have we seen such a convergence of pressures - the climate crisis, the rising tide of geopolitical tensions, impacts of macroeconomic headwinds, (and) a network of complexity and uncertainty that demands coordination of the highest order.
“Malaysia, like many nations, stands at a critical crossroads, to leap forward or be left vulnerable to ‘destructive’ processes.
“The answer is crystal clear - our development pathway must be forward-looking, and our solutions must serve the wellbeing of the people, addressing inequality and cultivating a mindset of shared responsibility and innovation,” he said.
Anwar said the nation would continue to embrace a spirit of openness, with a readiness to adapt, innovate, and constantly push the boundaries of what is possible.
As innovation and technology are prime drivers of growth for the world today, he said the government is working alongside government-linked investment companies to boost venture capital financing in these areas over the next five years. - Mkini
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