Economic programme set to unlock nation's competitiveness
Discovery Reports - Malaysia's Strategic Reform Initiatives
Competition, in any progressive nation, is not only encouraged but a necessary catalyst for a more efficient and dynamic economy. It promotes better performance and innovation - and more importantly, benefits the end users with high-quality products and services at the lowest possible prices. Applying such a principle in its economic transformation programme (ETP), Malaysia identifies competitiveness as a key to its transition into a high-income, fully developed nation by 2020. With PEMANDU at its helm, the ETP uses a two-pronged strategy founded on focus and global competitiveness.
"In the Olympics, you cannot expect an athlete to join 20 different sports categories and become a champion in each one. With the ETP, Malaysia focuses only on key economic areas and we aim to be the best in these globally," says Idris Jala, CEO, PEMANDU and minister in the prime minister's department. "This means we must create the conditions for competitiveness to exist in the economy so that local companies can become competitive and win in the global market."
Within the ETP, focus is established through 12 national key economic areas (NKEAs), while competitiveness is reinforced by key strategic reform initiatives (SRIs). Cutting across all NKEAs, these initiatives encompass competition, standards and liberalisation; public finance; public service delivery; government's role in business; and human capital development.
Competition, standards and liberalisation
The Competition Act 2010 that came into force on January 1 serves as the anchor of the competition, standards and liberalisation initiative, which aims to foster a competitive environment that deters market manipulation and cartel practices.
"Competitive markets will lead to more efficient production and delivery of goods and services, increase consumers' access to cheaper and better-quality products and ensure better allocation of resources," says Ismail Sabri Yaakob, Minister of Domestic Trade, Co-operatives and Consumerism. He is one of three ministers who oversee the implementation of reforms within this SRI.