Don’t follow markets, says Malaysia’s Jomo
Prominent Malaysian economist K.S. Jomo has called for government thinking that runs counter to market cycles rather than following them, saying this is the only way to build the economy. ‘Pro-market’ policies should be avoided, as should the attitude that market forces could do no wrong, he said.
In a lunchtime briefing to Parliament he also warned that Malaysia should focus on securing domestic investment first and foreign investment second, since money usually flowed in that order.
Using words like “dreaming” and “merely rhetoric” he challenged the government to take concrete steps towards fulfilling Malaysia’s 2020 developed-country goals, wondering if plans to redistribute wealth based on need and placing more emphasis on merit were viewed seriously by anyone other than the Prime Minister. He added that Economic Plan initiatives for ethnic Malays to hold 30% of Malaysian equities had fallen short because people sold their shares for profits; meanwhile foreigners were still making gains with their 41% share of the total.
source & article: The Edge Malaysia
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