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Statement by Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong on the Malaysian Government policy to encourage local investment and consumption. 13.7.2001.

Every year, the Malaysian Finance Ministry holds pre-budget dialogues with various sectors, to sound out their views and proposals for the coming budget. The idea sounds democratic. But, the Government must show that it means business and that these dialogues are not just a public relations excercise.

Malaysians are facing economic difficulty. Business is down. The Prime Minister Dato' Seri Dr Mahathir Mohamad encourages local investment, resilience and competitiveness, instead of relying on foreign direct investment.

During this trying time, we should try our best to defend our economy. However, the Government must have effective measures to eradicate inherent weaknesses such as corruption, mismanagement, feudal mentality and other irrationalities. Some say that these things do happen, but they don't affect the economy that much. Looking at countries riddled with these ills, we don't need further proof of the effects of these cancers.

The American economic growth is forecast as 1.5%, not 3%, and world growth 3.2%, not 4.2% this year. Hence, Dr Mahathir announced a mini budget of RM 3 billion at the loby in Parliament in April this year to increase public expenditure and stimulate the economy.

On the one hand, the Government is stalling on tariffs on cars and components in the implementatation of ASEAN Free Trade Area, AFTA, and rescuing MAS and Time dotCom. On the other hand, it continues to implement privatization and liberalization. It uses the Employees' Provident Fund, EPF, with total assets of over RM170 billion to invest with little transparency.

Although the Government prattles about saving billions with privatization, the public are worried about the ways the Economic Planning Unit handles privatized projects and the criteria to appoint concessionaires as shown in the Induh Water Konsortium fiasco with cronyism and wastage.

Besides letting the people know the definite criteria for privatizations to boost the confidence of the investors, the Government must announce its clear guidelines on liberalization. Investors are sensitive to the Government's handling of privatization, liberalisation and policy to interfere.

Dr Tan Seng Giaw