Their assumption is that the contingency liabilities of 1MDB and the other GLCs will not materialise to fall on the Federal Government’s shoulders. These two international organisations typically do not discuss in their published reports, although they agree in closed door discussions, the need for structural reforms for Malaysia to get out of the middle-income trap and become a fully developed country. Entrepreneurship and risk-taking need to be encouraged by freeing the economy from restrictive policies and reducing government presence in commercial activities. The recent G25 Report on Invigorating Economic Confidence in Malaysia also covered the same issues raised in the NEM study. Institutional reforms for responsible government should begin with Parliament setting the tone for public institutions to be professional and independent in carrying out their management and regulatory functions.

Source: The Star December 20, 2017 00:11 UTC