When Najib Razak first became the prime minister, he introduced us to his transformation programs in 2010. It was the Government and the Economic Transformation Programs, easier called the GTP and the ETP if anybody cares to remember anymore. On the eve of the 2011 Malaysia Day, the prime minister announced another one and called […]

I advocate the abolition, or at least a significant reduction of import duties (and other excessive taxes) on cars as well as the abolition of the approved permits system that blow up the prices of foreign-manufactured cars to an outrageous level. This should come at no surprise because I am a libertarian. I do generally support freer […]

The articulation of concern for stagnating wages is well-rehearsed among Malaysians who are just entering the labor force as well as those earning low wages. For most fresh graduates especially, life in the city would be far more painful than it is without the support of their parents. Regardless of justification, many have complained about […]

Prime Minister Najib Razak has just delivered a much awaited speech.[1] It is much awaited because it was hyped up by the media. The speech did contain important announcement of intentions but the first 15 minutes were full of fluff. The substance came later in the second half of the speech. He said his administration […]

A price-control mechanism has its economic cost, on top of that associated with the current subsidy regime in place in Malaysia. There are also some political costs to the control. In tight times when commodities are becoming dearer, any government that dares to reset retail prices upwards invites public wrath. There was talk of an early […]

Subsidy reduction has its pros and cons, even as on the net in the long run, it is beneficial to the economy as a whole. There is no need to soften the negative aspects by putting them in a little colorful box with ribbon on top. The series of subsidy reduction leads to price hike […]

Subsidy reduction will allow market forces to allocate resources more efficiently. Prime Minister Najib Razak was reported saying so recently to justify his administration’s commitment to subsidy reduction in the long run. By doing so, the Najib administration claims to be an advocate of free market. A claim that is not necessarily true, however. At best, that […]

I am generally in favor of subsidy cuts in Malaysia. Yet, I hesitate to support the recent liberalization. The economic rationale for liberalization is clear. Public discourse on this front has seen enough progress that liberalization is a popular position to take in Malaysia. Let us recap the most commonly cited arguments. Firstly, the subsidy […]

There has been noticeable liberalization in the Malaysian economy. Statement by the Managing Director of Khazanah Nasional Berhad, Azman Mokhtar further affirms the trend of an increasingly liberal economy: KUALA LUMPUR, March 28 (Bernama) — Khazanah Nasional Bhd is prepared to cut its stakes in government-linked companies (GLCs) in line with the government’s aspiration to […]