An opportunity, not a threat

Economist: An opportunity, not a threat
Pauline PuahApr 19, 06 5:42pm

The rapid growth of China and India should be viewed as an opportunity and not a threat to Malaysia, a renowned economist said today.
Universiti Malaya (UM) Tun Ismail Ali chair lecturer Andrew LT Sheng (left) pointed out that the potentials for Malaysia’s growth is in tandem with growth in the region and that Malaysia should look at the fast growth of India and China as an opportunity.
“The question now is how do we make use of their growth in order to make ours grow faster,” he told reporters after speaking at a seminar in Kuala Lumpur.
At the seminar entitled “Thoughts on the Ninth Malaysian Plan” organised by the Malaysian Institute of Economic Research (MIER), Sheng said the question of how to tap the potentials of the quick pace of growth in the region is a key concern.
“This is not only something unique in Malaysia....my Hong Kong friends sometimes get very depressed on how to compete with the mainland etc. I said what are you talking about? If Shenzhen's growth is about 12 percent then you must think of how to extract their growth in order for you to grow from three percent to five percent,” he said.
Stating that he was speaking on his own capacity, the former chairperson of the Hong Kong Securities and Futures Commission reiterated that as Malaysia is located in a greater growth zone, it is ‘a real opportunity’ for the country to accelerate its growth rate.
He said that Asians now are required to consume more instead of producing, so Malaysia should also take advantage of the trend.
Stable country
“If Asians are going to consume then who will produce for their consumption? If not Malaysia, who else?” said the former Bank Negara chief economist.
He said the natural resources that Malaysia possesses and which China and India do not have should enhance Malaysia’s marketing opportunity.
“I never worry for Malaysia because we are situated right in the middle of the fastest growing zone in the world. We have open society. We have political stability. We have culture diversity . Everybody can see we are living in harmony,” he said.
He added that the 9MP is a ‘fantastic report’ but the issue is how do we fit into a very rapidly changing environment.
The seminar was chaired by MIER executive director Emeritus Professor Dr Mohamed Ariff.
Bank Negara established the Tun Ismail Ali Chair in monetary and financial economies at UM in recognition of the contributions of the late Tun Ismail Ali, its first governor.
Yesterday, Sheng delivered a public lecture on “Monetary and Financial Policies in the Asian Network Economy” at the Kuala Lumpur convention centre.