COLUMNIST
CME CALLS FOR A POST-BUDGET RECOVERY STRATEGY
By Dr Carmelo Ferlito
The Center for Market Education ( CME ) welcomes the latest Budget 2021 approval but invites the government to think about a wider recovery strategy .
“ Now that the discussion on Budget 2021 and its tail of political fights are over , it is time to move forward with those measures that will move Malaysia from the containment to the recovery path ”, said Dr Carmelo Ferlito , CEO of CME .
The Center for Market Education believes that the growth projections for 2021 are too optimistic and invites to consider the possibility of a reverse square root trajectory : the crisis is followed by a physiological rebound ( which follows the reopening of the economy ) but then a period of flat growth follows . The length and flatness of such a stage will depend not only on the reliability and distribution chain of the vaccine but also on the economic strategy that is implemented now .
CME indicates the following urgent measures : but also its limits . Business practices require physical interactions in order to produce long-term strategies which will create positive spill-over effects on employment .
Re-discover the business-friendly approach which made Malaysia an attractive destination for investment .
This means : More clarity on the labour market : Malaysia needs the contribution of both foreign workers and expatriates , within a clear regulatory framework which create opportunities for the local labour market and avoid the emergence of illegal situations .
Extension of the MIDA “ principal hub scheme ” to Small and Medium Enterprises ( SMEs ).
Further reduction of the business-related red tapes , with particular reference to the inefficiencies of the banking system .
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The Covid-19 crisis has demonstrated not only the potential of digitalization
A new industrial strategy for relaunching Malaysia as a potential manufacturing hub .
Covid-19 demonstrated the importance of a domestic industrial backbone , which in the case of Malaysia does not need to be rebuilt
Property360Digest e-magazine Issue # 7 - 2020