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SOMEONE recently said in a Clubhouse talk that Malaysia is actually progressing quite well despite all the complaints about the country.
Our economy, he alluded, was growing steadily – we’re not going down like Venezuela or Greece.
We’re certainly not backtracking but undoubtedly, we’re lagging behind, as seen in Malaysia’s decline in competitiveness.
Malaysia was ranked 18th in the 2015-2016 Global Competitiveness Index. In just four years, we fell nine places, ranking 27th in 2019.
In 1965, Malaysia’s export of goods and services were above Singapore and South Korea.
When Singapore’s exports of US$1.35 billion (RM5.6 billion) surpassed Malaysia’s US$1.34 billion in 1966, the relative percentage difference was 1.2%.
Last year, the difference was 97%, with Singapore recording US$599 billion while Malaysia US$207 billion.
When South Korea (US$4.94 billion) outdid Malaysia (US$4.24 billion) in 1975, the difference was 15%.
Last year, the difference increased to 98%, with South Korea achieving US$601.62 billion.
Over the past 50 years, the export value of the two countries has not only surpassed Malaysia but has grown almost three times that of Malaysia’s.
Less-developed countries such as Thailand and Vietnam have even overtaken us in the last 10 years. Thailand surpassed us in 2010, and Vietnam in 2017.
Our government’s response to this problem is by launching blueprints, with the latest being the National Trade Blueprint 2021-2025.
It is the latest in the government’s long line of blueprints, such as the Logistics and Trade Facilitation Masterplan, Services Sector Blueprint, and Aerospace Industry Blueprint.
Even with all these blueprints, Malaysia still fell nine positions in four years in the Global Competitiveness Index.
The truth is that we are not short of blueprints. We are short of capable ministers, and the current ones at Putrajaya are not promising. Three recent failures tell it all.
While Thailand and Vietnam are now building their own high-speed rail (HSR), our government cancelled the Kuala Lumpur-Singapore HSR project earlier this year.
The reason for the cancellation was due to our ministers’ disagreement to appoint an independent experienced HSR company through open tender to manage the system.
The second instance is the current government’s reversal of Pakatan Harapan’s policy that has led Google, Facebook, Amazon and Microsoft to bypass the installation of subsea internet cable in Malaysia.
This policy reversal risks losses of RM12 billion to RM15 billion of high-tech investment into the country and is a missed opportunity to boost our digital economy.
The third example is the sidelining of Penang in the 12th Malaysia Plan (12MP). Penang is Malaysia’s most promising export-oriented state, recording the highest export value in the country last year, at RM312.4 billion.