FMT:
Rafidah’s economic recovery council idea gets thumbs down
Economist Geoffrey Williams says the panel will have no independence with the prime minister as its chairman.
06 Mar 2024, 7:00am
Former minister Rafidah Aziz recently called for the establishment of an economic recovery council to address the struggles presently faced by Malaysians.
PETALING JAYA: Former minister Rafidah Aziz’s proposal that an ad hoc national recovery council be set up has failed to garner the support of an economist and a business sustainability group.
Geoffrey Williams of the Malaysia University of Science and Technology discounted it outright, saying such a council would give the impression that the economy is in crisis.
“With stable factors such as low inflation, employment and steady fiscal policies, there is no crisis at hand,” he told FMT.
PETALING JAYA: Former minister Rafidah Aziz’s proposal that an ad hoc national recovery council be set up has failed to garner the support of an economist and a business sustainability group.
Geoffrey Williams of the Malaysia University of Science and Technology discounted it outright, saying such a council would give the impression that the economy is in crisis.
“With stable factors such as low inflation, employment and steady fiscal policies, there is no crisis at hand,” he told FMT.
Geoffrey Williams.
Williams said the real problems faced by the unity government are legacy issues which require a different approach and long term reforms.
He said a better option would be to establish an independent economic policy institution to formulate long-term strategies and analyse short-term ones.
Rafidah had, on Feb 25, urged Prime Minister Anwar Ibrahim to set up an ad hoc national recovery council to address the economic struggles faced by Malaysians presently.
She suggested Anwar as its chair and said it should address daily economic challenges faced by the people.
Williams said the real problems faced by the unity government are legacy issues which require a different approach and long term reforms.
He said a better option would be to establish an independent economic policy institution to formulate long-term strategies and analyse short-term ones.
Rafidah had, on Feb 25, urged Prime Minister Anwar Ibrahim to set up an ad hoc national recovery council to address the economic struggles faced by Malaysians presently.
She suggested Anwar as its chair and said it should address daily economic challenges faced by the people.
Rafidah Aziz.
She also proposed that economists, private sector representatives, academics and representatives of civil society sit on the council as the government appears unable to manage the issues by itself.
However, Williams said setting up an ad hoc body “with the usual suspects on the committee” would result in a lack of action.
“There is a need for new people, not former MPs and civil servants, to drive change,” he added.
She also proposed that economists, private sector representatives, academics and representatives of civil society sit on the council as the government appears unable to manage the issues by itself.
However, Williams said setting up an ad hoc body “with the usual suspects on the committee” would result in a lack of action.
“There is a need for new people, not former MPs and civil servants, to drive change,” he added.
He also said Anwar, being both prime minister and finance minister, may give weight and authority to the council but not independence.
“Although it makes sense to ensure that policies are put into practice, only an independent body that reports to Parliament would be able to give impartial advice,” said Williams.
‘Don’t waste time’
Meanwhile, Malaysia SME Sustainable Entrepreneurship Organisation offered its conditional support for the idea.
Its treasurer, Angus Ng, said an ad hoc council would be valuable only if the government heeds the advice of its members.
“Although it makes sense to ensure that policies are put into practice, only an independent body that reports to Parliament would be able to give impartial advice,” said Williams.
‘Don’t waste time’
Meanwhile, Malaysia SME Sustainable Entrepreneurship Organisation offered its conditional support for the idea.
Its treasurer, Angus Ng, said an ad hoc council would be valuable only if the government heeds the advice of its members.
Angus Ng.
“Otherwise, it will be a waste of time, money and council members’ effort,” he told FMT Business.
He added that the council may be rendered redundant if it was chaired by the prime minister since he would have the final say.
There is no need for a council if it has no power, he said.
Qualified support
However, Small and Medium Enterprises Association (Samenta) chairman William Ng gave the proposal qualified support, saying it may be worth considering if certain conditions are met.
Firstly, he said, steps must be taken to ensure that only “the best brains in the country” sit on the council, adding that they must represent the public and private sectors, as well as civil society.
Rafidah’s proposal is not new. In 2021, Ismail Sabri Yaakob’s administration established a national recovery council to steer the country’s economic direction following the Covid-19 pandemic, with former prime minister Muhyiddin Yassin serving as its chair.
“Otherwise, it will be a waste of time, money and council members’ effort,” he told FMT Business.
He added that the council may be rendered redundant if it was chaired by the prime minister since he would have the final say.
There is no need for a council if it has no power, he said.
Qualified support
However, Small and Medium Enterprises Association (Samenta) chairman William Ng gave the proposal qualified support, saying it may be worth considering if certain conditions are met.
Firstly, he said, steps must be taken to ensure that only “the best brains in the country” sit on the council, adding that they must represent the public and private sectors, as well as civil society.
Rafidah’s proposal is not new. In 2021, Ismail Sabri Yaakob’s administration established a national recovery council to steer the country’s economic direction following the Covid-19 pandemic, with former prime minister Muhyiddin Yassin serving as its chair.
William Ng.
This council replaced the special Cabinet committee that had been tasked with managing the plan.
Ng said that with the pandemic over, the economy has undergone a reset.
“We now need innovative ideas from unconventional sources,” he told FMT Business.
Therefore, he said, membership of the recovery council should not be limited to the same associations and government agencies.
“Steps must also be taken to avoid making the council a platform to reward supporters or former legislators who failed to win seats in the last election,” said Ng.
“Samenta’s call for a ‘future of work’ task force has largely fallen on deaf ears. As such, we are hopeful that the PM will heed this call for a national recovery council,” he added.
Last year, Ng was reported to have urged that the authorities create the taskforce to find ways to replace outdated policies and deal with rising underemployment.
He said the change was necessary to respond to the rise of digital technology that has disrupted the labour market and is changing the way people work.
This council replaced the special Cabinet committee that had been tasked with managing the plan.
Ng said that with the pandemic over, the economy has undergone a reset.
“We now need innovative ideas from unconventional sources,” he told FMT Business.
Therefore, he said, membership of the recovery council should not be limited to the same associations and government agencies.
“Steps must also be taken to avoid making the council a platform to reward supporters or former legislators who failed to win seats in the last election,” said Ng.
“Samenta’s call for a ‘future of work’ task force has largely fallen on deaf ears. As such, we are hopeful that the PM will heed this call for a national recovery council,” he added.
Last year, Ng was reported to have urged that the authorities create the taskforce to find ways to replace outdated policies and deal with rising underemployment.
He said the change was necessary to respond to the rise of digital technology that has disrupted the labour market and is changing the way people work.
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