Latest news with #GeoffreyWilliams
Free Malaysia Today
4 days ago
- Business
- Free Malaysia Today
Next economy minister should be a technocrat, says economist
Economist Geoffrey Williams said finance minister II Amir Hamzah Azizan (left) is an example of a strong technocrat leader, while former EPF chief strategy officer Nurhisham Hussein is an ideal candidate for the post of economy minister. PETALING JAYA : The post of economy minister should be filled by a technocrat instead of a career politician once Rafizi Ramli's resignation takes effect on June 17, an economist said. Geoffrey Williams said that as the ministry was responsible for devising policies and not implementing them, its head should be able to provide technical economic insight. 'They need to be good at identifying strategic reform priorities and to motivate the need for reform. 'They also need to oversee the design of these policies, and ensure they are feasible for implementation,' he told FMT. Earlier today, Rafizi announced his resignation as economy minister following his recent loss of PKR's deputy presidency in the party polls to Nurul Izzah Anwar. Williams said the future economy minister should not be 'bogged down in politics', as it would cause the ministry to fail in the execution of its function from the outset. 'If it is headed by a charismatic and ambitious politician, it will be used to push career agendas rather than necessary long-term reforms. 'This will damage both the policy design process and the government's credibility, because all reforms will be driven by personal and political agendas,' he said. Williams pointed to the 'successful' appointment of Amir Hamzah Azizan as finance minister II as an example of a strong and largely apolitical technocrat leader. He suggested that Nurhisham Hussein, the senior director of economics and finance in the Prime Minister's Office, would make an ideal candidate. 'He has a strong economic background and a detailed knowledge of policy implementation and how to navigate administrative hurdles,' he said. However, Akademi Nusantara's Azmi Hassan pointed out that appointing technocrats such as Amir would require them to first be appointed as a senator. 'I'm not sure if there's any vacancy for senators except for (investment, trade and industry minister) Tengku Zafrul Aziz's, as his Senate term ends in December,' he said.
The Star
6 days ago
- Business
- The Star
Removing barriers will hasten integration, say experts
PETALING JAYA: Asean countries must tackle persistent regulatory and financial barriers that continue to hinder regional economic integration, say experts. Economist Geoffrey Williams said there are still many trade barriers among Asean countries, especially for small and medium enterprises (SMEs). 'Asean needs to establish a framework to identify regulatory barriers across all areas. 'This process should systematically remove or harmonise regulations at the lowest cost,' he said when contacted. Williams said there are still many constraints on simple issues, such as setting up businesses, bank accounts, and even payment transfers. 'Harmonising regulations on payment transfers, reducing transaction costs and building common platforms for e-payments is essential,' he said. Asean countries still vary greatly in economic development, political systems, and economic self-interests. This variance, he said, is holding back closer integration. 'Tourism provides a good model because private-sector-driven business models make travel, accommodation and currency exchange easy. 'So integration is not impossible if it is market-driven, but it is proving difficult if it is government-driven,' he explained. He said Asean can follow a market-driven integration model using technology platforms and e-commerce which avoids brick-and-mortar business models and moves online. 'An Asean-wide digital nomad visa would be a good idea and would be attractive for the region as a whole while reducing competition between countries. 'Another Asean-wide entrepreneur visa would also be helpful in reducing costs, especially for the non-Asean business community. 'This would allow foreign investors to move easily around the 10 member states,' he argued. Centre for Market Education chief executive officer Carmelo Ferlito said going cashless can become a burden if a person needs to have a different app in each country. 'I travel often to Indonesia, and I struggled with their cashless system, which must be linked to a local bank. 'So I think having more integration is good, but in reality, it is better to increase options rather than reducing them,' said the economist. At a special media briefing on May 21, Prime Minister Datuk Seri Anwar Ibrahim outlined a strategic vision for Asean's next phase of growth. Under Malaysia's Asean chairmanship this year, he emphasized stronger economic integration, trade expansion, and cross-border energy connectivity as key pillars.
The Star
6 days ago
- Business
- The Star
Address long-standing trade barriers, Asean members told
PETALING JAYA: Economists are calling for Asean countries to address long-standing barriers that hinder economic integration among member states. Despite close and strong cooperation, the situation can be improved by addressing key regulatory hurdles and inconsistent financial systems. ALSO READ: Asean leaders assemble in KL today for key summit, related meetings Economist Geoffrey Williams said there are still many trade barriers among Asean countries, especially for small and medium businesses (SMEs). "Asean needs to establish a framework to identify regulatory barriers across all areas and begin a process to systematically remove them or to harmonise regulations at the lowest cost," he said, when contacted yesterday. Malaysia, as Asean Chair is the host of 46th Asean Summit and Related Summits. Wisma Putra is taking the lead in organising these summits under Malaysia's Asean chairmanship this year with the theme 'Inclusivity and Sustainability'. Two other high-level meetings – the 2nd Asean-Gulf Cooperation Council (GCC) Summit and the Asean-GCC-China Economic Summit – will also be held. Williams said there are still many constraints on simple issues such as setting up businesses, bank accounts and even payment transfers. "So harmonising regulations on payment transfers, reducing transaction costs and building common platforms for e-payments is essential. "Even issues related to the free movement of workers are underdeveloped as Asean members protect their own labour markets," added Williams ALSO READ: Asean-GCC-China model will help forge inclusive, sustainable future, says Anwar Asean countries, said Williams, are still very different in terms of economic development, political systems and the economic self-interests of each country and this holds back closer integration. "Tourism provides a good model because private sector driven business models make travel, accommodation and currency exchange easy. "So integration is not impossible if it is market driven but it is proving difficult if it is government driven," he explained. He said Asean cannot follow the integration model of the EU for example because that is government driven but it can follow a market driven integration model using technology platforms and e-commerce which avoid brick-and-mortar business models and move online. "An Asean-wide digital nomad visa would be a good idea and would be attractive for the region as a whole while reducing competition between countries. "Another Asean-wide entrepreneur visa would also be helpful in reducing costs, especially for the non-Asean business community allowing foreign investors to move easily around the 10-member states," he argued. Centre for Market Education chief executive officer Carmelo Ferlito said forcing cashless can become a burden if a person needs to have an app in each country, but instead such initiative can be linked with a local bank account. "I travel often to Indonesia and I struggled with their cashless system, which must be linked to a local bank. "Some places do not accept any other form of payment. "So I think having more integration is good but in reality it is better to increase options rather than reducing them," said the economist. He also said that abolishing barriers to entry was much more effective rather than thinking about cashless. "Good infrastructure and fast procedures, this is what travellers want. Cashless is an option but not a game changer. More tourism or travel affects the generality of the economy," said Ferlito. At a special media briefing on May 21, Prime Minister Datuk Seri Anwar Ibrahim outlined a bold strategic vision for Asean's next phase of growth, emphasising stronger economic integration, trade expansion and cross-border energy connectivity as key pillars under Malaysia's Asean chairmanship this year. Responding to questions on the direction of the regional bloc amid growing global geopolitical competition, Anwar said Malaysia is determined to drive Asean beyond its traditional role as a neutral platform towards becoming a more cohesive, values-driven force in the Indo-Pacific. "As part of our thrust this year, we are focusing on strengthening Asean's cohesiveness, increasing economic interest and trade, and boosting investments among member countries," he said.
Malay Mail
22-05-2025
- Business
- Malay Mail
Malaysia's fuel subsidies waste billions and worsen inequality, economists warn
KUALA LUMPUR, May 22 — Universal fuel subsidies have long helped Malaysians cope with the rising cost of living, but economists now warn that blanket subsidies may be doing more harm than good. While they reduce costs for consumers, such subsidies often lead to overconsumption, smuggling, and a disproportionate benefit to higher-income groups. 'There is a tipping point, and we are already beyond that point,' economist Geoffrey Williams, who supports a move towards targeted subsidies, said in a Free Malaysia Today report. He said this occurs when inequality grows and the cost of subsidies outweighs their intended social impact. Economist Madeline Berma said subsidies are not inherently flawed but often miss their intended targets, with wealthier Malaysians enjoying most of the benefits. 'They're poorly targeted; the wealthier groups, not the vulnerable ones, are absorbing a big chunk of the benefits,' she said. She praised efforts such as the Budi Madani programme, which the finance ministry said saved more than RM7 billion by reducing leakages and diesel smuggling. Universiti Malaya economist Goh Lim Thye highlighted that nearly 40 per cent of the RON95 subsidy, valued at RM8 billion, benefits the richest 15 per cent of the population and foreign nationals. 'Money lost to leakages and inefficiency could have gone into healthcare, digital infrastructure, or climate resilience — it's not just inefficient, it's unfair,' Goh said. Williams warned that prolonged subsidy protection can harm Malaysia's long-term economic competitiveness, while Madeline cautioned that failure to act now could hurt investor confidence and the country's fiscal credibility.
Daily Express
21-05-2025
- Business
- Daily Express
Blanket subsidies bring more harm than good, say economists
Published on: Wednesday, May 21, 2025 Published on: Wed, May 21, 2025 By: Alysha Edward Text Size: An economist believes that subsidy reform will become harder to accomplish the longer subsidies remain, as the public will begin to see them as entitlements. PETALING JAYA: While subsidies have long been positioned as a tool to help ease the burden of living costs, economists warn that the cost of keeping blanket subsidies afloat may be higher than we think. While fuel subsidies have helped cushion citizens from rising costs, they've also come with unintended consequences such as overconsumption, leakage, and a disproportionate benefit to higher-income groups. 'There is a tipping point, and we are already beyond that point,' says economist Geoffrey Williams bluntly. 'This is why implementing targeted subsidies is essential.' He said the tipping point is marked by growing inequality that usually occurs when the cost of the subsidies outweigh their intended benefits. But the challenge isn't just about how much subsidies cost, but also the damage that it costs when left unchecked. The cost of doing nothing Advertisement Economist Madeline Berma argues that while subsidies are not inherently bad, the current design often benefits those who least need them. 'They're poorly targeted. The wealthier groups, not the vulnerable ones, are absorbing a big chunk of the benefits,' she says. She notes that the government has already made commendable progress in rationalising diesel subsidies and rolling out targeted initiatives such as the Budi Madani programme. According to the finance ministry, the programme has helped save approximately more than RM7 billion, with significant reduction of smuggling and leakages. Universiti Malaya's Goh Lim Thye takes it a step further, saying that blanket subsidies become liabilities and encourage wastage when reforms are delayed. 'Nearly 40% of the RON95 fuel subsidy amounting to RM8 billion benefits the wealthiest 15% of the population and foreign nationals,' he said. By 2023, fuel subsidies had ballooned beyond RM50 billion annually, more than the budget for health and infrastructure combined. That inefficiency has a ripple effect as funds that could be channeled into more productive avenues, such as digital infrastructure, or education. 'Money lost to leakages and inefficiency could have gone into healthcare, digital infrastructure, or climate resilience. It's not just inefficient, it's unfair,' Goh said. Another 'silent cost' was that of entrenchment. The longer subsidies remain universal, the harder it is to carry out reforms as 'the public begins to see them as entitlements' and the political window for reform starts to close. Williams said excessive protection through subsidies would also weaken economic vitality in the long run. 'Companies are less competitive if they are protected with subsidies, and this makes Malaysia as a whole less competitive, agile and innovative,' he says. Madeline said that without timely action, Malaysia would be at risk of missing its own fiscal targets, weakening investor confidence. 'Subsidy reform isn't just about economics. It's about national credibility and long-term resilience,' she said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
