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Speech by Liew Chin Tong, executive director of Socio-Economic and Environmental Research Institute, to introduce the Penang Blueprint Roundtable Series on Feb25, 2010.
THE MALAYSIAN ECONOMY is at a crossoads; it has stopped being a high growth economy and is no longer a low-cost centre. Furthermore, the global economy is a very different creature compared to what it was just two years ago, before the financial crisis shook the world.
As we contemplate the future of Penang, it is important to take a page from the Robert Nathan Report, the compass upon which the government of Tun Lim Chong Eu relied.
The Robert Nathan Report (1970), in Socio-Economic and Environmental Research Institute (SERI) senior research fellow Goh Ban Lee's words, suggested that Penang "link its economic activities with robust economies outside the country". More importantly, the report looked beyond existing models and national boundaries.
Our evonomy is now at the tail end of the utility of the Robert Nathan model. Since the adoption of export-oriented strategies, Malaysia and, particularly, Penang, have been exporting consumer products targeted at the lower middle class in the United States and other advanced economies.
But in the next decade or so, consumers inthe United States, Japan and Europe will not be able to consume as much as they used to. Calls for protectionism in these countries are bound to increase.
We must also bear in mind that the fast-growing economies of China, India, Indonesia and Vietnam produce cheaper consumer goods than Malaysia.
In short, if we do more of the same, our traditional market will wane, and we will find it difficult to benefit alongside the growing economies, not to mention having to face the sad reality that we are essentially not one of them.
Penang and Malaysia need radical shifts on various fronts. We hope that the Penang Blueprint Roundtable Series and the eventual Blueprint will be able to address the pertinent issues facing the state that require our immediate attention.
Guided by the spirit of the Pakatan Rakyat Penang State Government and the vision articulated by Chief Minister Lim Guan Eng, was recognise that:
SERI has been tasked by the Penang State Government to prepare a blueprint for the state and her people for the next 10 years (2011-2020).
From now on, we hope to hold weekly sessions on the future of Penang, in the context of and evolving world order and economy, with the participation of all sections of the community, We will also not fail to remind ourselves that these sessions are meaningless if resultant plans are not put into action. more
Utter economics more
Source : Penang Economic Monthy. April 2010. Issue 4.10