This document summarizes and compares the economic policies and promises of the two main Malaysian political coalitions, BN and PR, for the upcoming GE13 election. Both coalitions maintain an entitlement culture and pledge various subsidies and benefits to voters. They also continue to intervene in and direct the private sector. Whoever wins the election, the private sector may play a larger role in the economy but still within a framework dictated by political priorities rather than economic principles. The document is presented by the independent think tank IDEAS to provide analysis of the competing economic agendas for Malaysia after GE13.

1. GE13 and the
Economy
Wan Saiful Wan Jan
www.IDEAS.org.my

2. About IDEAS
• Independent cross-partisan think tank
• Four principles: Rule of law, limited
government, free markets, individual liberty
and responsibility
• 100% funding from donations, grants, and
project funding. None directly from
government

3. This presentation
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• What are the NEM promises?
• What does BN want to do post GE13?
• What does PR want to do post GE13?
• Economy post GE13

4. Current policies: the NEM
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•Make Malaysia a high income, inclusive and
sustainable nation
•Private sector to become our engine of growth.
•Remove the distributive and entitlement culture
and rentier behaviour

5. BN’s GE13 manifesto (1)
Maintains and perpetuates entitlement culture
– BR1M up to RM1200 over 5 years
– Book vouchers (for everyone)
– Schooling Aid (for everyone)
– Subsidised / price control retail items, retail outlets,
housing, daycare centres, etc
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6. BN’s GE13 manifesto (2)
Further embed intervention in private sector
• Building 1 million affordable homes
• Greater social engineering roles for GLCs
– Produce 1Malaysia products
– Outsource to Bumiputra businesses
– Ethnic-based HR policies
• Minimum wage
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7. The Malaysian Economic Agenda
(PR, 2008)
• Review affirmative action
• Remove protectionism
• Capitalise on globalisation
• Increase income per capita
• Ensure competition
• Devolve fiscal policy
• Identify “mission-critical” sectors
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8. PR’s GE13 manifesto (1)
Also maintains entitlement culture
• RM1000 for above 60s
• Increase government contribution to LTAT to
20% to help increase soldiers’ pension fund
• Non-pensionable soldiers get RM2000 per
year
• Control prices of petrol, electricity and water
• Husbands to pay RM10-RM100 to a fund for
wives
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9. PR’s GE13 manifesto (2)
Also intervene in the economy & private sector
• Dictate % of women in management posts and
above
• Interfere with the prices of
– Petrol and diesel
– Electricity
– Water
But not many promises listed on this
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10. Our economy post GE13
• The spirit behind both manifestos are the
same : “buy the votes and use the private
sector when we can”
• Both sides are ignoring their own “bigger”
policy framework
• So, whoever wins, the private sector may
play a bigger role, but still within a
framework dictated by political imperatives.
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11. Thank you
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