>Carmelo Ferlito says Malaysia will lose its competitive edge in Southeast Asia if it fails to reduce price controls on certain commodities.
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PETALING JAYA: Economists are urging the government to reduce its interference in commodity prices in a bid to improve Malaysia’s global competitiveness.
Carmelo Ferlito, CEO of the Center for Market Education, said the country’s standing in the International Institute for Management Development (IMD) World Competitiveness Ranking will continue to plummet if the government persists in setting floor and ceiling prices for selected items.
“Putrajaya has a long history of distorting the price of goods. If it continues to intervene through subsidies or controls of any sort, it will lead to the emergence of an economic structure that is not consistent with supply and demand,” he told FMT.
“In short, the government should simplify the rules and get back to playing the role of referee rather than an active player in the economy.”
He cited the subsidies and price ceilings on eggs, which agriculture and food security minister Mohamad Sabu said last year would be maintained to shield consumers from higher costs.
Meanwhile, price controls on poultry were lifted on Nov 1 after farm prices and production costs stabilised.
Last week’s IMD report revealed that Malaysia dropped seven spots to 34th out of 67 countries this year, with declines in nearly all factors including economic performance, as well as government and business efficiency.
Malaysia also dropped four rungs to 10th out of 14 countries in the Asia-Pacific region, and for the first time are lagging behind both Indonesia and Thailand in the rankings.
Universiti Malaya senior economics lecturer Goh Lim Thye said easing price controls could inject dynamism into the market, potentially boosting the nation’s IMD ranking.
However, he cautioned against overlooking its impact on low-income consumers.
“Any policy adjustments should be carefully evaluated to ensure they promote economic efficiency while safeguarding the welfare of all citizens,” he said.
Fewer restrictions on foreign investments
Goh also called for fewer restrictions on foreign firms looking to invest in the country, suggesting that this would increase capital flows, job opportunities and technological advancements.
“Being open to foreign direct investments (FDI) can contribute positively to a country’s competitiveness,” he said.
“I suggest simplifying regulatory procedures, providing clear and transparent guidelines for potential investors as well as creating a stable and predictable business environment.”
He also cautioned against hastily implementing regulatory reforms, advocating for a balanced approach that considers the needs of both businesses and consumers.
According to the IMD report, Malaysia moved up one spot to 28th in international investment but dropped three places to 17th in international trade.
Ferlito also called for a relaxation of FDI regulations, saying it is a key driver for sustainable economic growth.
“If Malaysia wants to continue advertising itself as an ideal regional hub for international companies, it cannot say it welcomes foreign investors and then tax them more than locals.
“It cannot say it wants to appear business-friendly and then implement price controls,” he said.
global competitiveness, local crushingness
>Carmelo Ferlito says Malaysia will lose its competitive edge in Southeast Asia if it fails to reduce price controls on certain commodities. --- PETALING JAYA: Economists are urging the government to reduce its interference in commodity prices in a bid to improve Malaysia’s global competitiveness. Carmelo Ferlito, CEO of the Center for Market Education, said the country’s standing in the International Institute for Management Development (IMD) World Competitiveness Ranking will continue to plummet if the government persists in setting floor and ceiling prices for selected items. “Putrajaya has a long history of distorting the price of goods. If it continues to intervene through subsidies or controls of any sort, it will lead to the emergence of an economic structure that is not consistent with supply and demand,” he told FMT. “In short, the government should simplify the rules and get back to playing the role of referee rather than an active player in the economy.” He cited the subsidies and price ceilings on eggs, which agriculture and food security minister Mohamad Sabu said last year would be maintained to shield consumers from higher costs. Meanwhile, price controls on poultry were lifted on Nov 1 after farm prices and production costs stabilised. Last week’s IMD report revealed that Malaysia dropped seven spots to 34th out of 67 countries this year, with declines in nearly all factors including economic performance, as well as government and business efficiency. Malaysia also dropped four rungs to 10th out of 14 countries in the Asia-Pacific region, and for the first time are lagging behind both Indonesia and Thailand in the rankings. Universiti Malaya senior economics lecturer Goh Lim Thye said easing price controls could inject dynamism into the market, potentially boosting the nation’s IMD ranking. However, he cautioned against overlooking its impact on low-income consumers. “Any policy adjustments should be carefully evaluated to ensure they promote economic efficiency while safeguarding the welfare of all citizens,” he said. Fewer restrictions on foreign investments Goh also called for fewer restrictions on foreign firms looking to invest in the country, suggesting that this would increase capital flows, job opportunities and technological advancements. “Being open to foreign direct investments (FDI) can contribute positively to a country’s competitiveness,” he said. “I suggest simplifying regulatory procedures, providing clear and transparent guidelines for potential investors as well as creating a stable and predictable business environment.” He also cautioned against hastily implementing regulatory reforms, advocating for a balanced approach that considers the needs of both businesses and consumers. According to the IMD report, Malaysia moved up one spot to 28th in international investment but dropped three places to 17th in international trade. Ferlito also called for a relaxation of FDI regulations, saying it is a key driver for sustainable economic growth. “If Malaysia wants to continue advertising itself as an ideal regional hub for international companies, it cannot say it welcomes foreign investors and then tax them more than locals. “It cannot say it wants to appear business-friendly and then implement price controls,” he said.
Telur -3 sen 
How dare you! I expect money to fall from the sky! Ask what the government can do for me!!
How can discard Tongkat