1MDB did not contribute to economy, says Rafidah

Former international trade and industry minister Tan Sri Rafidah Aziz says Putrajaya should facilitate private sector growth instead of involving itself in business. – AFP pic, January 1, 2016.

State-owned investment firm 1Malaysia Development Berhad (1MDB) has not contributed to the country's economic growth despite its "billions", former minister Tan Sri Rafidah Aziz said in a New Year's message that included a reminder to Putrajaya to facilitate business instead of getting involved in it.

The former international trade and industry minister (pic, right) in a Facebook post yesterday said the government should not be involved in business but instead facilitate private sector growth.

"Now is the time for serious focus on economic governance… and sanity in the political and social spheres.

"The government should be facilitating business... not to be involved in business. The private sector should be assisted to continue as the key drivers of the economy.

"1MDB, for all the billions, has not input into the economic growth of the country. Every effort must be made to bring back confidence and trust in economic and social governance," she wrote.

Rafidah also used the phrase "cash is king", employed by former prime minister Tun Dr Mahathir Mohamad in his criticism of Prime Minister Datuk Seri Najib Razak for preferring to dole out cash through the BR1M programme instead of directly addressing economic problems.

Rafidah said a culture in which "cash is king" should not be allowed to take root as it would only result in "greed, dishonesty, corruption, disregard for rule of law, bribery and corruption".

She urged the government to focus on managing the economy instead of unproductive politicking, petty nitpicking and divisive behaviour.

"Attempts to bring out the so-called 'feel good factor' no longer sit well with many people," she said. 

Rafidah said during her time in government, issues were not whitewashed or taken lightly although the measures implemented were not necessarily popular, such as during the 1997 Asian Financial Crisis.

She said no consultants were appointed then but serious problems were addressed on a daily basis by a group of public sector individuals in touch with private sector groups.

"The people placed their trust in the government and the government delivered in spite of international criticism and chastisement on the 'non-conventional' measures such as capital controls and pegging of the ringgit.

"Malaysia succeeded in stemming the impact of the regional crisis and the ensuing recession, and was able to get back on the positive growth track faster than other affected countries."

She added that while she did not think the country was currently facing a recession, vigilance was required as the situation could continue to slide.

She said 2016 should not be about trying to get political mileage or jostling for party posts, but restoring the country's position in the highly competitive regional and global economic environment.

"It is about enabling Malaysia to weather with resilience whatever impact of economic volatilities and dislocations are triggered elsewhere."

On the still unresolved 1MDB issue and RM2.6 billion political donation, Rafidah said it would continue to be a hot topic within and without Malaysia and would exacerbate the domestic economic situation.

She added that the erosion of confidence and public trust, overzealous control of dissent and differences in opinion, lack of coherence and credibility in government communication with the public pointed to broken parts in the system.

"These need to be addressed and repaired expeditiously."

- TMI