My dear Subang constituents,
The year 2024 has seen some ups and some downs. On the upside, we saw strong economic growth for most of 2024. The ringgit has also strengthened compared to 2023. Last month, the IMF projects Malaysia GDP for 2024 to grow at 4.8%. This is above the IMF projection for the ASEAN region at 4.6%, and for the world at 3.1%. Yet, on the ground, there are persistent concerns that most of the economic growth has been limited to the tech sector. The trickledown effect from tech investments has yet to be felt at the high streets and hawker centres. Lowering cost of living and food prices despite Malaysia having a wide range of subsidies, remains a challenge.
The recent massive tech investments are a timely boost to the Malaysian economy. These investments will help us keep pace with the more developed economies of the world. We simply cannot afford to be left behind in this new AI and Quantum Computing revolution. Having these technologies integrated with the Malaysian economy will help us develop and retain talent, stop and reverse capital outflow and boost our trade, manufacturing industries and services.
We have two very urgent agendas vis a vis these investments. First, we need to revamp our energy policy and ensure these tech companies have ample and affordable renewable energy. This development should then be further developed to supply renewable energy to all other manufacturers, particularly for those who are committed to RE100. Second, we need to earnestly prepare our students to be more tech savvy, mastering STEM and English. With a tech capable workforce, we can transform our role from being a host nation for tech companies to one that partners and empowers them in research and development too. For too long our tech talents have migrated to overseas, chasing better ecosystems, better pay and meritocracy.
For those two important agendas to take off, we need enlightened leadership willing to tackle the deep-rooted vested interests of the energy sector and also revamp the lacklustre education policies. In addition, and at a fundamental level, we need an honest and frank conversation about fighting corruption, empowering Parliament, improving transparency, accountability and governance, paying fair wages and implementing fairer educational meritocracy. Only by doing these reforms now, we will be able to have a fighting chance to reinvigorate confidence, reverse capital flight and brain drain.
For 2024, I am thankful that the Madani Government has taken serious actions and charged many suspects for corruption. However, we also had some high-profile cases dropped in the courts. We need better clarity on these cases, as they shake our faith in the government’s anti-corruption drive. We need to verify if these high-profile cases were dropped due to the incompetence of the DPPs or something more worrying, such as questionable rulings. More importantly, after the verifications of these by legal experts; the heads of those responsible will need to roll. Otherwise, the public will call this out as same old, same old system of impunity. We cannot successfully continue the war on corruption if we have systemic incompetency or corruption itself at the investigation, prosecution and judicial levels.
I am also heartened by Prime Minister Anwar Ibrahim recent announcement that he is still committed to fight systemic corruption. I was in the news recently, in support of his noble cause. I suggested the Madani Government implement full public asset declarations of elected representatives and senior civil servants. If we can implement both, the better.
However, if we lack the political will, then perhaps the government can implement public asset declaration of the senior civil servants. Corruption happens when there is collusion between powerful politicians and the senior civil servants. If we take one hand out, and these colluders will not be able to clap for corruption.
Furthermore, after such public declarations are made, these declarations will need to be audited by an independent body. Assets that do not tally with the declarations, ought to be seized by the government. This is not a novel idea. In fact, I am just echoing what the Madani Government has publicly said in the first quarter of 2024, that it is in the process of improving the asset declaration system. The announcement also stated that the new system will be better than the one implemented by the previous 2018 Mahathir administration.
I recall that most government MPs during of the 2018 Mahathir administration period made public asset declarations. So far, after two years, the Madani Government has made no equivalent public asset declarations, and we are still awaiting to see a “better” version.
On the stock market, we have seen an active 2024 with 55 new listings, raising RM7.42 billion in capital. The year 2024 saw the highest number of listings in the last two decades, which is a truly remarkable achievement. Yet, it has also been a year of controversial deals. Bankers, economists and market players were unhappy with the opacity of several high-profile controversial concession deals. Going forward, the government must do more to ensure transparent and open tender processes and engage the investment community promptly. The failure to communicate and manage these narratives has somewhat damaged market confidence.
As the Chairman of the Parliamentary Special Select Committee on International Relations and International Trade, it will be remiss for me to not comment on these two areas. On the foreign policy front, I feel that we have made some gains but also attracted unnecessary ambiguities. I applaud and fully support our consistent stance on the Gaza conflict and yet sometimes, we miss the opportunity to match our words with more direct medical and humanitarian aid. We have applied to join BRICS to strengthen the Global South, yet the processes and objectives remain vague and is now attracting the ire of Trump.
The government is also supportive of Russia, at a time when there is global condemnation on Assad’s iron fist rule of Syria. Perhaps being friends with Russia, China and also the West, may allow us to play a peace broker role next year. Recently, the government appointed several ASEAN advisors; raising some questions on our ability to help end the civil war in Myanmar as the new ASEAN chair. Malaysian foreign policy needs consistency and we need to be consistently neutral. Neutrality should mean not quarrelling with anyone but it should not mean the endorsements of infamous leaders.
On international trade, we have done exceptionally well. Kudos to Prime Minister Anwar Ibrahim, despite his overtly hectic overseas trips, he has managed to improve significantly the inflow of foreign direct investments (FDI) into Malaysia. More often than not, his forays in particular to the West has resulted in increased FDIs. On China, we have been improving our bilateral trade ties and have a friendly dialogue platform for disagreements on the South China Sea territories. We are also mindful of China’s current economic challenges and is confident that when things improve, bilateral trade and investments will also pickup.
On the Malaysia-US trade, we welcome the FDIs from many prominent US tech companies including Nvidia, Amazon, and Google. However, there are also concerns about the threat of new tariffs from the incoming Trump administration ranging from 10% to 20%. BRICS members and countries with big US trade surpluses are on the Trump economic target list. Malaysia is now a “partner” of BRICS but not yet a member, and we do have a history of consistent trade surpluses with the US. We need to urgently emphasise to the incoming Trump administration that our trade surplus has been narrowing of late.
Lastly, I want to briefly touch upon the community work and our budget spending for 2024. As usual, details of our budget are fully disclosed in our newsletter. We have maintained our primary focus on social welfare and on repairing our 51 schools in Subang. This year many schools have informed us of their unhappiness with the government appointed contractors. I have relayed this feedback to the government ICU and have also written a request to decentralise contractor appointments in 2025 back to the schools to decide.
I also want to acknowledge the government ICU recognition that our office is seen as a model of transparency and accountability in terms of the management of our office and budget. On that note of recognition, I want to thank my volunteers, officers and interns for all their hard work, diligence and commitment to the people of Subang in 2024.
I wish all a Happy New Year and may 2025 bring forth peace, prosperity and reforms.
