Interview with the Prime Minister of Malaysia

Oleh/By:
DATO' SERI ABDULLAH BIN HAJI AHMAD BADAWI

PERDANA MENTERI

MALAYSIA
Tempat/Venue:
PRIME MINISTER'S OFFICIAL RESIDENCE,

SERI PERDANA, PUTRAJAYA
Tarikh/Date:
15/03/2008
Tajuk/Title :
PM'S INTERVIEW WITH BERNAMA TV

PUTRAJAYA, March 15 (Bernama) -- Following are extracts of Prime Minister Datuk Seri Abdullah Ahmad Badawi's interview with BERNAMA TV's (BTV) commentator, Datuk Zuraidah Atan, at the Prime Minister's official residence, Seri Perdana here on Friday.

The interview touched on the stock market, investor confidence, economic policies and projects in the aftermath of the 12th general election.

BTV: In the aftermath of the general election, we all know how the stock market or Bursa Malaysia went. It was rather volatile and the market required some sort of confidence. What would your message be to the investors?

PM: I have to make sure that they have confidence in the government. That is very important. The first thing I have to do is to form a Cabinet. I want to make sure the people have confidence in the Cabinet. There will be new faces certainly.At the same time I want to make sure about the policies that we have already implemented. The good policies, are we proceeding with them or not or are we changing for some other policies.Those policies which have won the confidence of the investors and the business communities will remain, especially the policies that work well. The government will continue to be investor-friendly.We will think of incentives that will further boost the confidence of the investors.How do we manage inflation and the oil price increase now. What do we do. These are very big issues.

I believe we have the ability to handle them.Managing inflation is very important.At the same time, I would like to see our economy continue to be maintained. We have to maintain the sustainability of our economy at a certain level. We will work for it. I dont know how it is going to work, but we want sustained economic growth at a certain level.We must be efficient at managing the economy and the relationship between the Malaysian government and the private sector must continue.

Transformation programmes affecting both the government and the private sector, particularly the government-linked companies (GLCs) must continue. This is absolutely very important to me.And we must ensure at all time we enjoy security and peace, that is the most important pre-condition. How we manage the government, that will be watched very carefully. What we promise, we will deliver.

Programmes that are committed, we will deliver.New projects that we have already indicated to be launched under the corridor development plan, that certainly we will deliver. If they involve state governments, we will talk to them. This is what we have to do and I am sure the private sector is keen and confident by what we do.We are all the time aware that sustainability of the economy is going to be maintained.

BTV: This is obviously one of the concerns, primarily with regards to the federal government and opposition-controlled state governments. From the international investor community's standpoint, will there be changes to the policies?

PM: We don’t need to change the policies. The policies that have been launched were thought out very carefully. And of course we have to deal with the states now under the opposition or under another party. We have to deal with that.We have been speaking with PAS before. PAS has been controlling Kelantan. And then we have to deal with four more states now under another party. It is not a problem for me to talk to them.Whatever projects that we decided to do, projects where funds have been allocated and work that have been committed, of course it will be our priority to have them implemented. But if for some reasons they don’t want the new projects, how can I force upon them.

BTV: So the federal-approved projects will proceed, committed and allocated projects will go on?PM: Yes.BTV: Talking about foreign investors, how would the federal government view if they invest in the states that are controlled by the opposition?

PM: I will not oppose. Why should I oppose investments from abroad in these states if the opportunities are there. By all means go ahead, I shouldn’t prevent them from doing it if it is good for the people.

BTV: Obviously also, when we talk about projects, particularly in your home state of Penang like the second bridge and the monorail, will they still proceed?

PM: That is already approved and we have negotiated the loans with the government of China at very reasonable rates of interest. I don’t see why we shouldn’t start on the second bridge. It is very good for Penang. It is not only for the state of Penang, but for the whole of northern territory. Penang is the logistics hub for the northern corridor.We need a second bridge. It is good for the rakyat and good for the economy.

BTV: For your first term in office, your main thrust was agriculture which was very well-received by the people. The restructuring of GLCs, and of course, the setting up of various economic corridors. But now that you are running your second term, what would be your main thrusts in your economic plans?

PM: I will put it this way. We have developed many programmes during the past four years and we have begun to launch them. The corridor development was the last to be launched. We already launched that and I cannot, therefore, leave it alone and think of some other new policies.The policies have been formulated, programmes have been decided upon, money have been allocated. So for 2008, a lot of implementation has to take place.

BTV: This is to follow through?

PM: This is to follow through. We believe that those projects that we launched are good for our economy, for our country and for the people. It will create jobs, there will be investments coming in, it will create new wealth and new opportunities for us.There's no reason why I should stop just because now we are having some (states that) do not belong to the Barisan Nasional. I will continue to do that. We have to implement them. There are other places too (where development needs to be implemented).That agriculture corridor area is now controlled by another party. Sabah is still Barisan, Sarawak is still Barisan, for example.

BTV: So, agriculture was the main thrust?

PM: As for priority that had been determined before, we have succeeded. The agriculture sector has performed well not just the plantation sector but the tertiary sector has performed well too. So why should I stop half-way.

BTV: So, there will be more thrusts, more enhancements?

PM: We have to have (enhancements). I agree with you. We should use the word enhancement and at the same time, we have some new projects to be implemented. I would implement them. There are so many things that we launched. We keep on launching but not implementing.

BTV: There's more pronouncements. I am glad you said that because this is one of the things that a lot of people are saying.

PM: There's a lot in 2004. In 2004, when we came in, we came in on the basis of a manifesto which the rakyat was very happy (with). But the manifesto of 2004 has so many things that could not be implemented between 2004 and 2008.Many of the things that we said that we wanted to do, I have intention to implement until 2020 because we have got three five-year (development plan) periods. We have to blend. It is the beginning of the second phase of the development for the vision 2020. And this has to be taken step-by-step.That involves some long range programmes, some wide-ranging problems and some could be the implemented and completed within the last four years that have been done. So many areas that we have to work into. I am very glad to say that the rakyat still want us.We are still given a very good mandate. That's a strong majority actually. It is not something that is making it difficult for us to work. Certainly not. I do not believe that with a majority (which is) less than two-thirds, we become incapable or incapacitated or we become lifeless and cannot do anything else.We can. It is good. We can be a strong government and I intend it to be.

BTV: There actually could be a psychological barrier in relation to the two-thirds majority.

PM: Well, the people are so accustomed to that and suddenly we ended up with less than that.

BTV: Well, you’re still running the government, that is what is important.

PM: I would run the government. I'm in charge.

BTV: We talked about the market sentiment. It is always a reflection of confidence and so forth. Against the backdrop of the world economy, as you know the US has been our trading partner and the US is the undergoing some slowdown. People said they are going into recession. So that's going to affect us but at the same time, I do believe we have a strong trade surplus. Do you think our economy is strong enough, is it resilient?

PM: Our economy is fundamentally strong. We have diversified our markets, if I can use that expression. We have diversified. We are not entirely dependent on the US market alone.Today, in terms of trade volume, percentage-wise, we deal more with Asean. Our intra-Asean trade has increased to 26 percent. Trade with US is less than 18 percent ... 16 percent plus. And we are also trading more with East Asian nations, with Japan, China.China is a very big trading partner. We are developing new trade linkages with India that we regard as a very important strategic partner and more trade now with the Middle East.So we are pleased. We are well-placed in the region that people hope can do well, can perform well. It is very important to bear that in mind.

So we continue whatever we do. We have the mandate but we must choose what is the best to develop, what projects, what sector we should develop that give us some kind of competitive edge, something that we can have different from other people.For example, tourism. Many countries want to promote tourism, right? But what is so special about Malaysia? What is so unique and effective about Malaysia is that we want to do. This is something that we want to do. We need to position ourselves but we must do it efficiently then we can get the best returns of what we are doing.We have to improve many areas. For example, I think (the area) that can (be improved) is Islamic financial services, that is something that we have a niche. We can expand (it), it can expand, it is expanding today.Then, the area of biotechnology. The development of biotech as an industry. We are well-placed to do that. We can do that. It is a new industry.

We must therefore put in our resources and get the right people.And very importantly it is the emphasise on human capital development. To me, the most important asset that the government must possess is this one product called human capital.We must have efficient managers and technicians. We must have people that are experts in many areas and people that invest in knowledge and management techniques.So these are the people that make Malaysia moves. These are the people who will have the strength of mind and knowledge that they have to face challenges, problems and recession.They must be strong enough and only then we will survive. If the human capital is not strong, then even the best equipment and facilities will not help us.It is the men and women of Malaysia, well-educated, ready to compete and win, and efficient in the way they do things. This is one area, one priority that I must give attention to.

BTV: So shall I assume that this will be one of the key challenges that you'll be undertaking ... you and your new Cabinet line-up. The economic challenges and not to forget, there's also inflationary pressures that have been creeping in and they have become an issue.

PM: Yes. Inflation. It is an issue. People have to be more (careful) because of the increase in oil prices. Before 2004, the oil price was US$50 per barrel but it has already more than doubled. It is not easy. The situation is not easy to face, but what do we do.What we do is to make sure that people have more money in the pockets. Not just bank in or give the money, but create opportunities for them to earn additional income.

We give them permits and licences to have stalls or undertake small projects and businesses where they can make some money.We have to create opportunities for this and we have also the micro financing. It is easy for them to get money from the banks to ensure small businesses can grow and provide income. At the same time, we are also ensuring that the prices they pay for other services or their needs, are as low as possible.You know we have a list of essential goods that we maintain at certain price levels. That will continue. We will continue to have this list and will continue to ensure that if the prices go up they will at least be reasonable.Houses with affordable rents, affordable prices. It will be affordable.

We do care. This is a government that cares for the people. At the same time, we must make sure that our economy is doing well. You must encourage investments.These investments will create employment opportunities. That is very important. But we have to train our people in order to enable to take advantage of the employment opportunities that are created. If they have no skills, what can they do.

BTV: So, it is all about human capital resource allocation?

PM: The resources must be there. If we have good capital human resources, good workers, discipline, skills, with the right attitude and efficient, investors will come.

BTV: I mean, this is where you obviously will be talking about nominating or appointing your new Cabinet members. From the investors standpoint, everyone is very keen (to know).

PM: Everybody is very keen.

BTV: Because they are helping you to govern Malaysia for the next five years. So particularly, there are certain portfolios, if I may say so, will be scrutinised, like finance as well as trade. Would you like to comment?

PM: They will be watching very carefully who's going to be there. Whether they are happy or not, whether you have confidence or not. Many things to be look at. Very sure (that) everybody has their own method of keeping assessment and etc. There are new faces too.

BTV: I mean to what extent would you take the voice of the people into consideration?

PM: Of course I have to take into account the voice of the people. How can the government not take into account the voice of people ... what they want. I went through the last four years. I know, there are many things (that) they think I have not done that they wanted me to do. Why are you not listening to me, they ask Pak Lah. This is one one of the reasons why they reacted in that way.

BTV: By now the election, the aftermath, the shocks, whatever, have already piped down in a way. So what area would you like Malaysians to concentrate on now that the election is over?

PM: Concentrate on their work now that the election is over. And make sure you have productivity so that your ability to compete will be better today than before. Your determination to succeed must be there. Just come along with us. We will do whatever is best for Malaysia.

BTV: And you reckon that the next five years, with all the challenges that are before you, you are fairly confident. I am sure you are and you will, in moving forward

PM: I like challenges. They make me alive.

BERNAMA