Sign up | Log in



Home  >>   Daily News  >>   Malaysia  News  >>   Economy  >>   Malaysian PM calls for reform
NEWS UPDATES Asean Affairs        30  April 2011

Malaysian PM calls for reform

Related Stories

April 27, 2011
Malaysian currency to reach 2.93 per US$ soon

April 25,2011
Malaysian ringgit on a roll

April 22, 2011
No rate increase in Malaysia

April 19, 2011
Indonesia’s economic development plan

April 13, 2011
Indonesia should hike rates soon 

March 9, 2011
Indonesia urges Asean countries to speed up integration

April 8, 2011
Asean finance ministers discuss “Hot Money”

February 2, 2011
Asean economies may overheat

January 26, 2010
IMF raises growth forecast for Asean 5

Malaysia’s economic competitiveness will continue to be threatened if it continues to depend on cheap foreign labor and is reluctant to innovate, said Prime Minister Datuk Seri Najib Tun Razak.

He said the country's labor productivity also needed a large jump for local small and medium enterprises to compete well in the increasingly globalized and liberalized markets.

Najib said Malaysia's labour productivity was valued at RM15,000 per employee per year compared to RM103,000 for each American employee.

“According to this benchmark and compared to other countries, we are still very low. “We must change in the next few years to raise productivity by 100 percent,” he said after chairing the 11th National Small and Medium Enterprise Development Council (SMEDC) meeting here yesterday.

Najib, who is also the Finance Minister, said lack of funding was the least of the SMEs' weaknesses as RM6bil had been allocated for SME development this year through various ministries and agencies

He said the key weaknesses are weak managerial and entrepreneurial skills, reluctance to innovate and use technology and reliance on human-intensive labour to generate output. “We find that many problems do not stem from funding but rather from the need to boost (SMEs') capacity,” he said.

Regarding a World Bank report on Thursday, Najib admitted that businesses were hampered by the slew of licences and permits required to start and conduct business and that this could encourage “elements of corruption”.

“The council (SMEDC) has decided that more radical steps are needed to relax permit requirements as a whole. This is related to our competitive policy to make it easier for companies to enter a market,” he said.

“A green lane policy has been established where the government will give opportunities through contracts to use their products or services.

“We are looking at what other help we can give to enable these companies to enter the global market,” Najib said.

On foreign direct investments, Najib said FDIs into Malaysia had increased four-fold since 2009, rising from US$1.4billion (RM4.2bil) in 2009 to US$9billion (RM27bil) last year.

“I am confident that we will be able to ensure a very healthy growth in FDIs. But don't forget, it's not only about FDI, it's also about domestic investment as 73 percent of our development plans involves these,” he said.

Najib admitted that brain drain remained a major obstacle to Malaysia's plans to achieve a high-income developed status by 2020.

“We have identified (brain drain) as one of the problems that we need to find solutions to. That's why we set up Talent Corp.

“We will try to overcome (brain drain) through Talent Corp and other policy measures,” he said. “It (brain drain) is not something that is happening now. It is a problem that has been happening for some time.”

He said the ringgit's gain over the US dollar will not affect Malaysia's exports. “Local companies should use our stronger ringgit to strengthen processes in their companies, such as buying equipment and ensuring their supply chains are more efficient,” he said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    30  April 2011 Subsribe Now !
 • Indonesia plays down terrorist threat Subcribe: Asean Affairs Global Magazine
• Indonesian film examines religious tolerance Asean Affairs Premium
• Laos to vote for communist-dominated assembly
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Malaysian PM calls for reform       
• Myanmar presidents takes Suu Kyi friend as adviser

• Thai PM says government ready for ICJ

• Thailand’s “Elite Card” fiasco comes to an end

• Drastic measures urged to curb inflation p

Asean Analysis    May 2011

Advertise Your Brand
• WEEKLY SUMMARY Sponsor Our Events

Asean Stock Watch    28  April 2011

• Asean Markets to Extend Rally p

Global News Impacting Asia    17 November 2010


• Bank of America sees Asian inflation


• Lloyd’s increases insurance push in Malaysia


• Wells Fargo analyst on euro


• Obama’s visit to Asia


ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand