MSECC: Malaysia must fix economic fault lines, not rely on cash aid

 

THE Malaysian Strategic Economy Chamber of Commerce (MSECC) has called on the government to prioritise structural economic reforms, corporate governance and strategic industrial development, warning that cash assistance alone cannot deliver sustainable prosperity.

MSECC president Syed Azaudin Syed Ahmad said the RM16 bil allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) under Budget 2027, up from RM15 bil, reflected the government’s efforts to ease household financial pressures.

However, he said longer-term economic weaknesses also needed to be addressed.

“While financial assistance is necessary to protect vulnerable Malaysians, we cannot build a high-income nation through handouts,” he noted.

“The government must address why wages remain under pressure, why businesses struggle to compete and why so many Malaysians continue to depend on financial assistance to meet their basic needs.”

Syed Azaudin said the controversy surrounding alleged “corporate mafia” activities highlighted the need to strengthen corporate governance, regulatory independence and enforcement.

While acknowledging the government’s move to establish a special task force to investigate the allegations, he questioned why a new task force was necessary when existing enforcement agencies should already be addressing such concerns.

“Malaysia needs decisive action, not another report. The investigation must also expose regulatory failures, hold those responsible accountable and deliver meaningful reforms to restore investor confidence,” he stressed.

“We cannot talk about attracting high-quality investments and building national champions while serious questions are being raised about the integrity of our corporate ecosystem. Time is of the essence.”

Syed Azaudin said Malaysia also needed to address structural weaknesses, including stagnant wages, low productivity, excessive dependence on foreign labour, bureaucratic inefficiencies, rising operating costs and limited domestic technological capabilities.

He said Budget 2027 should be assessed not only on the immediate assistance it provides but also on its ability to accelerate economic transformation.

“Cash assistance helps people cope with today’s problems. Structural reforms determine whether those problems will continue tomorrow,” he said.

MSECC also urged Malaysia to revive its ambition to develop major domestic companies and strengthen strategic industries, citing PETRONAS, Permodalan Nasional Berhad (PNB), DRB-HICOM and Boustead Holdings as examples of organisations that had developed significant capabilities across key sectors.

Syed Azaudin also pointed to major national development projects, including the PETRONAS Twin Towers and Kuala Lumpur City Centre (KLCC), Putrajaya, Kuala Lumpur International Airport (KLIA) and the Multimedia Super Corridor (MSC), as examples of the country’s earlier ambitions to develop world-class infrastructure and strengthen its international competitiveness.

“These were not merely infrastructure projects or corporate achievements. They reflected a larger national vision to transform Malaysia, develop domestic capabilities, attract international investment and establish our presence on the global stage,” he said.

Looking ahead, MSECC called for a national economic strategy to nurture globally competitive Malaysian companies in industries where the country has competitive advantages.

Its proposed priorities include moving up the semiconductor value chain into chip design and advanced manufacturing, developing homegrown artificial intelligence, cybersecurity and digital technologies, building globally competitive renewable energy and green technology companies, and advancing sustainable palm-based products.

“Our goal should be to create a nation of wealth creators, innovators and global champions by leveraging on our existing natural and human resources,” Syed Azaudin said. ‒  Focus Malaysia