Malaysia should emulate countries with a high per capita income like Denmark in the effort to transform the country into a high-income economy. Malaysian National News Agency Bernama writes this.
Dean of Universiti Malaya’s Faculty of Economics and Administration, Prof Rajah Rasiah, said Denmark practised the concept of welfare state where those in the lower-income group received an allowance to buy goods at the world market price.
“What happens there is that the government does not give subsidies but gives an allowance to the target (low-income) group” he told Bernama after the live broadcast of the 10th Malaysia Plan Forum held at the Putra World Trade Centre, here Tuesday night.
The other panellists were secretary-general of the Associated Chinese Chambers of Commerce and Industry of Malaysia Datuk David Chua and secretary-general of the Malay Consultative Council Dr Hasan Mat.
Rajah said the move not to give subsidies enabled the industry players to compete fairly in the market.
Chua said Malaysia had a strong small and medium-scale industry foundation which could make them a catalyst for achieving the 10th Malaysia Plan goals.
“Their effort to strengthen the economy will bear fruit faster if they have the technology to modernise their plant operations,” he said.
Hasan said efficient implementation of the 10MP would be vital for the success of the New Economic Model as it was the platform for the country’s economic transformation.
“We want the success achieved from the New Economic Policy to be repeated through this new economic model,” he said.