Dr M unimpressed by Najib's 'high income economy'

Ex-premier Dr Mahathir Mohamad hit out at the 'high income economy' espoused by current Prime Minister Najib Abdul Razak.

"One thing about high income, that the government doesn't say, is that it will lead to a higher cost of living," he said.

The danger that Mahathir (left) hinted at is the accompanying inflation as observed in Japan.

He also took issue with the government's intention to liberalise the automotive industry in the country, saying that Malaysia is not and has never been, ready for that.

"Which is why we would like to stay as we are But if the government want to liberalise the industry, it is their right."

Mahathir was speaking to reporters at a press conference after attending the ‘PM Tea with Tun Mahathir' organised by Perodua in Kuala Lumpur today.

His statement belied the Najib administration's aggressive policy of liberalisation of our automotive sector, which will come into full effect in 2015.

Mahathir pointed out that other countries were not opening up their automotive sectors to Malaysia.

In particular he singled out South Korea, Japan and China as no-go areas for Malaysian cars as well as the European Union which imposes strict emissions control requirements that makes it expensive to penetrate their market.

"It is a one way traffic... not fair yet. We should look at our own interests first. Why cater to others when others don't cater to us," said the man responsible for steering Malaysia into the automotive industry.

Competitive edge

He however believed that Malaysia still has a competitive edge against its neighbours as it is insulated from truly devastating natural disasters and is relatively peaceful.

"We are a peninsular jutting out to sea, wearing a necklace of volcanoes. But we are protected from volcanoes and earthquakes. Sumatera in the West and Philippines in the east also act as windbreaks, saving us from typhoons, storms and tsunamis."

He also said that Malaysia's polite society doesn't riot often, don't strike that much and is mostly docile.

As such he stated that while no longer cheaper than its neighbours, Malaysia is shielded from disasters natural and manmade, making it a safe haven for investments.