Malaysia’s election: Fiscal future at risk

Malaysia’s deficits are not inherently irresponsible, but there is another, more concerning, trend: a tide of ‘hidden’ public debt.

Malaysia: wanted – a genuine new economic model

There is currently a muddled narrative in Malaysia and elsewhere that the country is in some sense ‘stuck in the middle’. It is true that growth has slowed, that the country has been in the ranks of middle-income developing countries for some decades, and that export-oriented economies may not be able to rely on strong global trade growth for the next few years. But the notion of being ‘stuck in the middle’ is devoid of analytical content. It is one thing to observe that, at very high levels of per capita income, as countries approach the frontiers of wealth, growth slows down. But Malaysia is way off such a point. The country’s slowdown is self-inflicted, and there is nothing mysterious about the way out. What is needed is determined, reform-oriented government. Hal Hil comments on what needs to be done with the Malaysian economy.

Malaysia’s fiscal and political uncertainties continue through 2011

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Professor Mohamed Ariff reviews Malaysia in 2011 and postulates on its future in 2012.

Malaysia Budget ’12 – Oxford Business Group

The Oxford Business Group is full of praise for Najib Razak’s 2012 Budget

Malaysia 2012 Budget: Key takeaways and thoughts

Morgan Stanley’s (Singapore office) analysis of Malaysia’s 2012 Budget.

Najib and Malaysia’s fuel subsidies

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Malaysian Prime Minister Najib Razak could face questions over his commitment to economic reform after his government dodged a cut in fuel subsidies, threatening to put finances in peril and test the patience of investors seeking change.

Malaysia struggles with budget deficit, subsidies and elections

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The Malaysian government has been struggling with its budget deficit for over a decade as it has tried to balance its revenues and expenditures amidst a global rise in food and energy prices. The Malaysian government has found it necessary to subsidize food and energy prices to keep the poor off the streets and win elections. The government has, however, cited the ever increasing subsidy bill as the main cause of its perennial budget deficit.

Malaysian economy in three crises

Prema Chandra Athukorala examines the macroeconomic experiences and policies of Malaysia with emphasis on the three major crisis episodes during the post independence era. He probes the nature and origin of the macroeconomic shocks and the institutional and ideological influences on policy formulation and the responses of economic agents, placing the three episodes in their historical, economic and political contexts.

Malaysia tries to shift economy

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It will take more than a new 100-story skyscraper to make Malaysia one of the world’s top industrialized nations. But Prime Minister Najib Razak says Malaysia’s ambitious construction plans—along with a host of other facelifts—will finally help the country break free of what economists call “the middle-income trap.” You really think so, Mr. Najib?

Improving Malaysia’s budget transparency

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International Budget Partnership just released Open Budget Index (OBI). In 2008, Malaysia scored 35% and this year, it improved somewhat to 39% in the Open Budget Index 2010. However, the average score is 42% and it is below average – with Malaysia categorised as providing minimal information to the public in its budget documents during the year.