Are we a tiger?

 

From Walter Sandosam

The 

tiger

 has featured rather prominently in the news over the past few days. This is most remarkable especially in the context of the Malayan tiger and its much admired qualities.

The second finance minister has alluded to the positive outlook from rating agencies and analysts, supported by encouraging economic figures, to suggest that Malaysia is making great strides to reclaim its Asian Tiger (fast growing economy) status. This is good news.

Two veteran politicians have come out with differing viewpoints – one claiming that we do not so much have a full-blown Asian Tiger status economy (in the mould of Taiwan, South Korea, Singapore and Hongkong) but are 

a smallish tiger

 nonetheless.

On the other extreme is the contention that Malaysia was never a Tiger and that it is misplaced grandeur. Meanwhile, an economist has viewed Malaysia as second tier; qualified to be described as 

little tiger

.

On a completely different platform, the tiger had also featured in donations to vernacular schools. It has attracted controversy. Political affiliations are being tested on both sides of the divide.

From an economic viewpoint, the finance minister had stated that there is limited fiscal space of about 2-3% to manoeuvre in relation to the operating budget of RM311 billion. Of significance is that 48% is spent on pensions, civil service remuneration and other liabilities.

Given that percentage, is the civil service bloated? As an ageing population, this percentage of the operating budget can only grow larger, narrowing further 

fiscal space

. What is the remediation?

Add to this the much lamented corruption which is reported to cost about RM2 billion. The civil service cohort of the early years which drove the government’s economic agenda has passed on. The auditor-general’s reports continue to highlight repeated malfeasances accentuating the lethargy therein.

Our competitors in the region are making much progress. Indonesia, with its move to relocate its capital, opens many economic opportunities. Cambodia and Vietnam, considered backwater countries in the late 1980s, have gained much ground and are on sharper trajectories.

The hunger of their homogenous populations (to be educated in English and the sciences) and to strive for economic and social betterment are driving the latter two countries.

In the past, Malaysia was a role model of economic success to emulate. For the current generation, a sense of entitlement has bred complacency and the lack of technical skills development is worrisome.

We have lagged behind in investment and entrepreneurship and take the brain drain too lightly. The ecosystem, impaired on many fronts, has to be rekindled and made conducive to retain talent.

Politics has taken much for granted and racial diversity is being negatively exploited for tribal gain. Political stability, a key factor, has taken a dive since 2018 pursuant to perilous 

unity

 coalitions.

There is much to be done if Malaysia is to re-establish itself as a powerhouse to be contended with. Analyst ratings are, like accounting records, a point in time reflection. While the economy may be fundamentally 

on-track

, political posturing is the demon to push it off the rails!

Innovative ideas have to be sought out and pursued. The civil service has to step up, be more stakeholder centric, proactive and eradicate corruption from within the ranks. Arguing about being a matured tiger or little tiger cub is unproductive. - FMT

Walter Sandosam served as a senior research fellow at a private university, specialising in economics and accounting.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.