Tuesday, 25 July 2017

PM Najib highlights transformation achievements, attacks sabotage



This morning, Prime Minister Datuk Seri Najib Tun Razak delivered the keynote address at Invest Malaysia 2017.
Speaking to an audience of investors and business figures from around the world, the Prime Minister noted that he had first introduced Malaysia’s ‘New Economic Model’ at the same forum seven years ago, and highlighted the significant progress that has been made towards meeting its objectives: 
 transforming Malaysia into a high income nation; and a more inclusive, equitable and sustainable society with no one left behind; opportunity made available for all; and the right fundamentals put in place to secure a stable and successful future.



The Prime Minister said:

“Let the facts speak for themselves:

“Between 2009 and 2016, Gross National Income has increased by nearly 50 percent, and GNI per capita using the Atlas method increased to US$9,850. Based on the World Bank’s latest high income threshold of US$12,235, we have narrowed the gap towards the high income target from 33 percent to 19 percent.

“2.26 million jobs have been created, which represents 69 percent of the 3.3 million target we want to reach by 2020. Clearly, we are making the right progress towards those goals.

“Inflation and unemployment have been kept low. We have attracted unprecedented levels of Foreign Direct Investment, which shows the confidence the world has in Malaysia.

“Our growth has been the envy of the advanced economies, even during years of turmoil for the global economy. This year, the World Bank has upped their estimate. We are expected to record a rise in GDP of 4.9 percent, considerably higher than their earlier prediction of 4.3 percent.

“We had a plan of reform, economic transformation and taking the tough but responsible choices. And it is clear today, that, aided by the hard work of millions of Malaysians, the plan has worked and is continuing to work.”

Acknowledging that the business community likes strength and stability, the Prime Minister said that the record foreign direct investment his government has secured in recent years affirmed that the international business community knows it has that certainty with the present Government. He said:

“Indeed, they are voting with their feet. HSBC is investing over RM1 billion to build its future regional headquarters in the Tun Razak Exchange, recognising Malaysia’s increasing status as an international financial and business centre.

“Broadcom Limited, one of the world’s largest semiconductor companies with a market capitalisation of nearly half a trillion dollars, is going to transfer its Global Distribution Hub from Singapore to Malaysia in 2017, from where it will manage the group’s global inventory of RM64 billion a year.

“Huawei, a leading global ICT solutions provider which serves more than one third of the world’s population, has made Malaysia its global operation headquarters, data hosting centre and global training centre, with a total project cost of RM2.2 billion and employing more than 2,370 people.

“Saudi Aramco is investing US$7 billion – that’s its biggest downstream investment outside the Kingdom – for a 50 percent stake in Petronas’s Refinery and Petrochemical Integrated Development in Johor. That is the single largest investment in Malaysia, and shows the confidence Saudi Arabia has in our people, our technology, and our ability to be a strong partner with their most important business.”

In doing so, he rebutted those who have suggested that this compromises the country’s sovereignty, and attacked the deliberate campaigns of misinformation that have been used by members of the political opposition.

The Prime Minister stated:

“You won’t hear about the very real benefits from our engagement with Saudi Arabia, China, India or anywhere else from the opposition. In fact they’ll tell barefaced lies about it, just as they have been feeding lies about the economy and stoking fears of economic disaster in Malaysia.

“There has in fact been a concerted campaign to send such misinformation overseas to damage Malaysia’s economy for their own selfish political objectives. So if you receive these smears, or you read it in publications that do not check the facts properly, please beware.

“It is not fair to the Malaysian people, and it’s not fair to the business community, both at home and abroad.”

Over the past year, he said, respected international bodies have awarded the Malaysian Government numerous accolades for their handling of the economy.

In its most recent economic assessment of the country, the OECD stated that: “Malaysia is one of the most successful Southeast Asian economies… thanks to sound macroeconomic fundamentals and its success in transforming its economy into a well-diversified and inclusive one.”

The IMF said that “Malaysia is among the fastest growing economies among peers,” due to “sound macroeconomic policy responses in the face of significant headwinds and risks.”

The World Bank concluded: “The Malaysian economy is progressing from a position of strength.”

The Prime Minister noted that studies and reports such as these reflected the clear international unanimity that Malaysia is on the right course, and attributed this to the fact that his government has been unafraid to take the tough decisions needed to build up the resilience of the Malaysian economy.

As an example, he highlighted the introduction of GST, a critical measure that the opposition have said they would abolish. In making clear the detrimental effect this would have to the country, the Prime Minister said:

“Tell me, from where exactly would they produce the RM41 billion collected in GST revenue last year? Out of a hat? It is another example of what the opposition do when faced with tough decisions: they seek the easy or the populist way out, regardless of whether it makes sense or is even possible.  They are not being straight with the Malaysian people.

“This Government, however, will always be straight with the people and we will always do right by the people. We will always put their interests first, from economic welfare to security.

Even if it is not the most popular thing to do, we will not hesitate – because it is the responsible thing to do for the country.”

Noting that this was one of the reasons he was unpopular with a former leader, under whose leadership the Malaysian people were made to pay a high price while a few of his friends benefitted, the Prime Minister stated:

“I say to you now that under this Government, we are cracking down on crony capitalism. No more sweetheart deals. No more national follies kept going to stroke the ego of one man. No more treating national companies as though they were personal property.

"Because it is the people who suffer, and we will not tolerate a few succeeding – and not on their own merits – while the many are denied opportunities, all for the interests of a selfish few.”

In closing, the Prime Minister spoke of Malaysia’s growth from humble beginnings into a modern economy and society with a record to be proud of, but made clear that his Government continues to look ahead.

He invited the global investor community to invest in, and benefit from the opportunities the country has to offer, stating:

“I want to lay out the foundations needed for our nation to be counted among the very top countries in the world.

"We want that competitive edge, and to be a knowledge-based society – but we must always work towards those goals in ways that are sustainable, inclusive and equitable.

"No Malaysian must ever be left behind. All must participate and benefit from this amazing journey that we are on.

“We invite you be to part of that journey, and I hope today we are able to shed light on the tremendous opportunities that Malaysia has to offer. We urge to you to look at our potential; to look at the great achievements the Government’s Transformation Programme has delivered, and continues to deliver; and invest in Malaysia.” - July 25, 2017.

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